Monday, October27, 2008
This underwrite focuses on the problems that Manzana Insurance is currently lining in its business. The company is falling behind in direct performance compared to its competitors. It is for this causa crucial for Manzana to introduce a emergence of changes in its operating activities. Four questions that are related to the master(prenominal) issues that the company is facing have been formulated in the report and the answers to these questions must lead the way for Manzana in order to pie-eyed the gap on its competitors.
Questions
1a How important is turnaround cadence ( create from raw material) in this business?
TAT is a very important grammatical constituent of competition in the property indemnification market. The main reason for this is related to the structure of the system in which the agents choose the companies products they rat to their customers. As competition in the insurance business increased, insurance rates and commission schedules had become nearly identical among competitors. This resulted into a swift that agents started to direct clients to particular insures on the basis of do and not on the amount of commission they would receive for recommending a particular firms products. One measure, as mentioned in the case is the TAT.
When the TAT is too high, agents cannot serve their customers needs wellhead on the basis of time and will choose another(prenominal) companys product, resulting in a loss of gross revenue and profits. Besides this, the agents can make fewer deals in the corresponding time and will earn less money. From the customers perspective, they need to get their insurance fast and efficiently. The more time between the customers inquiry and the delivery of the final policy, the less likely it becomes that the deal will be closed.
1bIs the TAT the only reason for the lack of competitiveness of Manzana?
Regarding the operations function, companies make out on 4 product attributes; Quality, Price, Time and Variety. Related to the case...If you want to get a full essay, order it on our website: Orderessay
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