Insurance CPCU 520: Insurance Operations 2nd Edition/Chapter 10: Insurer Strategic Management

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natte
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287693
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Insurance CPCU 520: Insurance Operations 2nd Edition/Chapter 10: Insurer Strategic Management
Updated:
2014-10-31 18:32:00
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CPCU520 CPCU Insurance
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CPCU 520
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Insurance CPCU 520: Insurance Operations 2nd Edition/Chapter 10: Insurer Strategic Management
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  1. Strategic management process
    The process an organization uses to formulate and implement its business strategies.
  2. Mission statement
    A broad expression of an entity's goals.
  3. SWOT analysis
    A method of evaluating the internal and external environments by assessing an organization's internal strengths and weaknesses and opportunities and rewards.
  4. Function structure
    An organizational structure in which departments are defined by the operation they perform.
  5. Multidivisional structure
    An organizational structure in which divisions are organized into separate profit centers.
  6. Cost leadership
    A business-level through which a company seeks cost efficiencies in all operational areas.
  7. Five forces model
    A method of evaluating the external environment in which a company operates. Involves assessing five forces that drive competition: threat of new entrants, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers and rivalry among existing firms.
  8. Trend analysis
    An analysis that identifies patterns in past data and then projects these patterns into the future.
  9. Vertical integration strategy
    A corporate-level strategy through which a company either produces its own inputs or disposes of its own outputs.
  10. Related diversification strategy
    A corporate-level strategy through which a company expands its operations into areas that are similar to its existing operations.
  11. Unrelated diversification strategy
    A corporate-level strategy through which a company expands its operations into areas that have no relation to its existing operations.
  12. Harvest strategy
    A corporate-level strategy through which a company seeks to gain short-term profits while phasing out a product line or exiting a market.
  13. Turnaround strategy
    A corporate-level strategy through which a company rebuilds organization resources to return to profitable levels.
  14. Divestiture strategy
    A corporate-level strategy through which a company sells of a portion of an operation, usually a division or profit center that is not performing to expectations.
  15. Differentiation strategy
    A business-level strategy through which a company develops products or services that are distinct and for which customers will pay a higher price than that of the competition.
  16. Focus cost leadership strategy
    A business-level strategy through which a company focuses on one group of customers and offers a low-price product or service.
  17. Focused differentiation strategy
    A business-level strategy through which a company focuses on one group of customers and offers unique or customized products that permit it to charge a higher price than that of the competition.
  18. Strategic alliance
    An arrangement in which two companies work together to achieve a common goal.
  19. Joint venture
    A business association formed by an express or implied agreement of two or more persons (including corporations) to accomplish a particular project, such as the construction of a building.
  20. Merger
    A type of acquisition in which two or more business entities are combined into one.
  21. Subsidiary
    A company owned or controlled by another company.
  22. Retention ratio
    The percentage of insurance policies renewed. (10.28)

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