13 Chapter 5

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS
5.1
INTRODUCTION
SWOT analysis is conducted to analyze internal and external environment of any

organization.
This
analysis
comprises
four
components
i.e.
strengths,
weaknesses, opportunities and threats. Strengths and weaknesses are considered

to be internal positive and negative factors, whereas, opportunities and threats
are confined to external environment. This specific analysis is helpful in deciding
a unique and effective strategy to meet competitive challenges. If an organization
wants to lead in todays competitive scenario, it has to sharpen its strengths and
overcome its weaknesses in the light of opportunities and threats.
5.2
SWOT ANALYSIS OF LIC
This section is divided into two broad categories. Part one comprises of General
SWOT analysis of the organization whereas the later part throws light on specific
SWOT analysis of leadership scenario prevailing in the organization. The
researcher identified major strengths, weaknesses, opportunities and threats
which can be summarized as follows:
5.2.1
GENERAL SWOT ANALYSIS OF LIC
The researcher after studying secondary data and consultation with some
independent inputs had identified certain general strengths, weaknesses,
opportunities and threats of the organization which were put forward in front of
the respondents through a self-structured questionnaire.
5.2.1.1
STRENGTHS OF LIC
Strengths are internal positive factors which accelerate the growth of any
organization. Major identified strengths of the organization on the basis of
secondary and primary data are summarized in the table 5.1
~ 139 ~

TABLE 5.1
STRENGTHS OF LIC
STRENGTHS
RANK
1
TOT.
W.A.
RANK
FINANCIAL SOUNDNESS
36
27
13
20
11
107
3.5
ADEQUATE BUSINESS
ENVIRONMENT
37
23
19
13
15
107
3.5
QUALITY PRODUCTS
31
29
17
21
09
107
3.4
II
INFRASTRUCTURE AND NETWORK
32
21
14
27
13
107
3.3
III
GOOD REPUTATION
33
25
15
22
12
107
3.2
IV
1.
Scale: Ranking Scale 1-5, TOT=Total, W. A.=Weighted Average
2.
Source: Primary Survey
5.2.1.1.1
FINANCIAL SOUNDNESS
First strength of the organization according to the respondents is its financial

soundness. The weighted average score of this parameter is 3.5 which reveal that
around 70% of the respondents believe that their organization is financially
sound. As LIC is the largest life insurance company having 64% market share.
5.2.1.1.2
ADEQUATE BUSINESS ENVIRONMENT
Next strength of the organization is its adequate business environment. As the

organization is having the plans for all the sections of the society its business
environment automatically increases. According to the respondents it is also the
biggest strength of the organization with the weighted average score of 3.5.
5.2.1.1.3
QUALITY PRODUCTS
Another strength of the organization is its product in the market. The weighted
average score is 3.4 which reveal that more that 65% of the respondents believe
that the organization is having quality products. LIC is an organization which is
having the objective of social welfare and it is made for both the sections of the
society. The organization is having both types of plans for the persons the
traditional plans and the united link plans.
~ 140 ~
5.2.1.1.4
LIC is having a good infrastructure and netwok. As the organization is having

2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and
the corporate office. LICs Wide Area Network covers 100 divisional offices and
connects all the branches through a Metro Area Network. LIC has tied up with
some banks and service providers to offer on-line premium collection facility in
selected cities.The Corporation directly operates through its Branch offices at
Port Louis in Mauritius, Suva & Lautoka in Fiji and at Wembley in the United
Kingdom. During the year 2008-09, these three foreign Branches together issued
1,073 policies with Sum Assured of US$ 85.1 million and First premium income
of US$ 4.52 million.
5.2.1.1.5
GOOD REPUTATION
According to the respondents the next strength of the organization is its

reputation in the market. The weighted average score of this parameter is 3.2
which reveal that around 60% of the respondents believe that the organization is
having good reputation in the market.
5.2.1.1.6
PRODUCT DEVELOPMENT
In a competitive market, there is a greater need to provide insurance products

that meet the needs of our customers. LIC therefore offers a wide variety of
products which fulfills the needs of different segments of the society. As at the
end of the financial year 2008-09, the Corporation had 52 plans available for
sale. During the year Corporation introduced 6 new Plans viz. Money Plus-1,
Market Plus-1, Jeevan Bharti-1, Child Fortune Plus & two closed ended plans viz
Jeevan Astha and Jeevan Varsha.
~ 141 ~
5.2.1.1.7
AGENCY STRENGTH
The total number of Agents on our Roll is 13,44,856 as on 31.03.2009 against

11,93,744 as on 31.03.2008. The number of Active Agents is 12,75,611 as at
31.03.2009 as compared to 11,17,908 as on 31.03.2008.
5.2.1.1.8
INVESTMENT IN SOCIAL SECTOR
The total investments of the Corporation amounted to Rs. 815483.95 crore as at

31st March, 2009. The Corporation subscribed an amount of Rs.35284.40 crore
(face value) and Rs.18154.93 crore (face value) to the Securities of the
Government of India and the new loan issues of the various State Governments
respectively during 2008-2009. The Corporation has been promoting Social
Schemes through investments in Infrastructure and Social Sector which includes:
Projects/Schemes for generation and transmission of Power, Housing Sector,
Water Supply and Sewerage Projects/Schemes, Development of Roads, Bridges &
Road Transport. The total Investment in these sectors during 2008-09 was
Rs.21,775.57 crore as indicated in Table 7. The investments by way of Central,
State and Other Government Guaranteed Marketable securities, Loans &
Debentures to Infrastructure and Social Sector amounts to Rs. 5,30,159 crore.
5.2.1.1.9
AUTHORIZED AGENTS
Keeping in tune with the increasing customer expectation for more Conveniences
in servicing, the Corporation has empowered select Agents to collect the renewal
premium. At present, there are 2590 authorized Agents across the country.
5.2.1.1.10
CORPORATE COMMUNICATION
During the year, the emphasis was on fortifying the Brand LIC more effectively
through various Corporate Communication strategies. All media activities were
focused on achieving optimum value for the money spent. A conscious effort was
made to enhance the Brand presence throughout the year across various media
with cost effective communication. Four new TV commercials were produced on
~ 142 ~
products viz., Jeevan Anand, LICs Children Plans, Jeevan Aastha and Jeevan
Varsha. Jeevan Aastha and Jeevan Varsha commercials became extremely
popular and were widely appreciated.
5.2.1.1.11
RURAL THRUST
Sustained and conscious efforts are made to carry the message of Life Insurance
to the rural areas, especially the backward and remote areas. As a result, there
has been steady growth of new business from these areas. As per the definition of
rural/social sector approved by IRDA, the New Business from rural areas
amounts to Sum Assured of Rs. 73354.97 crore (Rs733.54 billion) under
87,14,662 (8.71 million) policies representing 24.28% and 18.81% share of
policies and Sum Assured respectively completed during the financial year 200809.
5.2.1.1.12
MISCELLANEOUS STRENGTHS
The organization is having some miscellaneous strengths which are as follows:

5.2.1.1.12.1
POLICIES ASSURED
During the financial year 2008-09, 325.84 lakh (Rs.32.584 million) individuals
were insured for the first time for a total Sum Assured of Rs. 360937.07 crore
(Rs.3609.37 billion) as against the previous years figures of 355.47 lakh
(Rs.35.55 million) policies for S.A. of Rs.260873.23 crore (Rs.2608.73 billion).
The ratio of First Insurance to the Total Business completed for the year comes to
90.78% and 92.54% in respect of Number of Policies and Sum Assured
respectively.
5.2.1.1.12.2
REPRESENTATIVE OFFICE
First ever Representative Office was opened in Singapore on 6th November,

2008. This Office is engaged in market research, study of regulatory issues and
assessment of potential for viable operations through appropriate route.
~ 143 ~
5.2.1.1.12.3
ONLINE PAYMENT CHANNELS
Online premium payment on LIC Website: www.licindia.in with the help of Net
Banking Facility of 33 major Banks.
5.2.1.1.12.4
ATM
Available with two banks - Corporation Bank and Axis Bank. Through EBPP &
ATM Premium can be collected for in force policies only which are NOT with
Monthly /SalarySaving Schemes mode or under ULIP or Health Insurance plan.
5.2.1.1.12.5
CORPORATE ACTIVE DATA WAREHOUSE (CADW):-
LICs CADW is one of the largest life insurance customer databases in the world.
The Project has enabled LIC to launch various Customer focused Campaigns like
the Customer Contact Programs and Gold Club Customer Campaigns launched in
Pune, Chennai, Hyderabad, Kolkata, Delhi in 2008-09 and various targeted
marketing competitions. The major achievement has been to send a single notice
for premium falling due in the same month for various polices of an individual
customer. The project was also successfully used for generating marketing leads.
All these initiatives launched have made the Brand LIC more visible in the eyes of
the customers.
5.2.1.1.12.6
NETWORK
New software has been implemented at IVR/INFO Centers at 13 locations across

the country. The software enables the executives to attend to the queries raised by
customers in an efficient manner besides generating MIS reports locally and
remotely.
5.2.1.1.12.7
INTERNAL AUDIT
The audit of all Branch/Divisional/Zonal Offices and CO Departments of the

Corporation for the year 2008-2009 has been duly completed as on 31.03.2009.
The concurrent audit of Investment Department was also conducted on a
~ 144 ~
continuous basis. In keeping with our practice of improving our systems and
procedures through the use of IT as a tool, audit packages are being used so that
our auditors are able to carry out the audit in a Front End Applications Package
(FEAP) environment. Information Systems Audit was introduced on a pilot basis
last year and was conducted in 15% of our branches in 2008-09.
5.2.1.1.12.8
INSPECTION
During the year 2008-2009, the Inspection of all the Branches, Divisional and
Zonal Offices in India was carried out.
5.2.1.1.12.9
VIGILANCE
Special efforts were made to focus on disposal of vigilance cases pending over one
year. Special study was conducted on System Improvement for better Vigilance.
Administration and consolidated Report suggesting Department-wise corrective
actions were submitted for necessary action. Practiced preventive vigilance in the
offices of the Organization educating all classes of employees and Agents to
reduce the scope of misconducts leading to frauds. Strict adherence to CVC
guidelines is being ensured in the areas of stores purchase and Building
contracts.
5.2.1.1.12.10
CORPORATE GOVERNANCE
Adherence to good Corporate Governance is an integral part of the philosophy of

LICs business conduct. The driving forces behind institutionalizing the practices
of good Corporate Governance are various proactive measures, initiatives and
guidance by the Government, LIC Board and its Sub Committees along with LICs
Human Resources and Agents. This has enabled the organization in enhancing
their Brand Equity, strengthen stake of shareholders and maintain a healthy
environment within the organization. This has led to a committed organizational
focus on the customer service which in turn has contributed to a good growth in
business.
~ 145 ~
5.2.1.2
WEAKNESSES OF LIC
Strengths and weaknesses are two sides of a coin. Major identified weaknesses of
the organization as per the questionnaire are summarized in the table 5.2.
TABLE 5.2
WEAKNESSES OF LIC
WEAKNESSES
RANK
1
TOT
W.A
RANK
LACK OF MARKETING EXPERTISE
31
25
27
09
15
107
3.5
POOR QUALITY OF GOODS AND

SERVICES
24
31
30
12
10
107
3.4
II
UNDIFFERENTIATED PRODUCTS AND

SERVICES
27
30
10
29
11
107
3.3
III
LACK OF CREATIVITY AND INITIATIVE
29
15
27
21
15
107
3.2
IV
HIGH STRESS
23
19
25
27
13
107
3.1
1.
2.
5.2.1.2.1
The first weakness of the organization is that it lacks expertise. The employees
working in the organization are not very expert in the latest technology and
trends. The weighted average score of this parameter is 3.5 which reveal that
around 70% of the respondents believe that their employers are not so expert and
updated to the latest trends and technology.
5.2.1.2.2
POOR QUALITY OF GOODS AND SERVICES
The weighted average of this parameter is 3.4 which reveal that more that 65% of
the respondents believe that the organization is not having the quality products
in comparison to the other competitive organizations.
5.2.1.2.3
UNDIFFERENTIATED PRODUCTS AND SERVICES
Next weakness of the organization is its undifferentiated products and services.

The weighted average score of this parameter is 3.3 which reveal that around
~ 146 ~
60% of the respondents believe that the organization is having undifferentiated

products and services in comparison to its competitors.
5.2.1.2.4
Fourth weakness according to the respondents with 3.2 weighted average score is
lack of creativity and initiative. The employees of the organization believe that
their employers lack creativity and do not want to take initiative in the
organizations working.
5.2.1.2.5
HIGH STRESS
After globalization many big players entered in the market and due to this the
organization comes under high pressure of competition. The weighted average
score of this parameter is 3.1 which revel that more than 55% of the respondents
believe that the organizations employees work under high stress.
5.2.1.3
OPPORTUNITIES OF LIC
Major identified opportunities of the organization as per the questionnaire can be

summarized in the table 5.3.
TABLE 5.3
OPPORTUNITIES OF LIC
OPPORTUNITIES
RANK
1
TOT
W.A
RANK
UPCOMING MARKET LINK PLANS
49
16
10
15
17
107
3.6
GLOBALISED MARKET
39
23
12
11
22
107
3.4
II
LIBERALIZATION
37
19
14
21
16
107
3.4
II
AWARENESS OF INSURANCE
31
27
15
16
18
107
3.3
III
TECHNOLOGICAL ADVANCEMENT
35
21
13
17
21
107
3.3
III
1.
2.
5.2.1.3.1
UPCOMING MARKET LINK PLANS
The first biggest opportunity for the organization is the upcoming market linked
plans. The weighted average score of this parameter is 3.6 which reveals that
~ 147 ~
around 70% of the employees believe that upcoming plans in the market play an
important role of opportunity for their organization.
5.2.1.3.2
GLOBALIZED MARKET
Next opportunity for the organization is globalization in insurance sector. After

globalization many big insurance players have entered in the market and the
market area for insurance players has increased. Globalization has brought new
trends and technologies for the developing countries. Globalization improves the
productivity and increases competition in the market. LIC upgrades its products
and use latest technology for upgrading its employees.
5.2.1.3.3
LIBERALIZATION
Another opportunity for the organization is liberalization. Table 5.7 shows that
the weighted average score of this parameter is 3.4 which reveal that around 68%
of the respondents believe that relaxation in the government restrictions help the
organization in increasing its market.
5.2.1.3.4
Now a days people have become aware of the products and plans offered by the
insurance sector. The weighted average score of this parameter is 3.3 which
reveals that awareness of insurance among the general public has become an
opportunity for the organization. Today, customers take the subject matter of
insurance not only as saving mode but also as investment tool. Due to the
awareness of insurance, the number of policy buyers is increasing day by day and
that is why this factor plays the role of opportunity for the insurance companies.
5.2.1.3.5
Last opportunity for the organization is technological advancement. The

weighted average score of this parameter is 3.3 which reveals that around 60% of
~ 148 ~
the respondents believe that advancement in the technology plays an important

role in upgrading the organization.
5.2.1.4
THREATS OF LIC
Major identified threats of the organization as per the questionnaire can be

summarized in the table 5.4.
TABLE 5.4
THREATS OF LIC
THREATS
RANK
1
TOT
W.A
RANK
HIGH COMPETITION
37
29
17
09
15
107
3.6
RECESSION
41
25
11
12
18
107
3.5
II
TAXATION POLICIES
31
30
14
10
22
107
3.3
III
GOVERNMENT INTERVENTION
29
27
15
11
25
107
3.2
IV
1.
2.
5.2.1.4.1
HIGH COMPETITION
The first biggest threat for the organization is high competition in the market.
The weighted average score of this parameter is 3.6 which reveal that 72% of the
respondents believe that after globalization in market many big players have
entered in the market which lead to be a threat for LIC.
5.2.1.4.2
RECESSION
Second threat for the organization is recession with the weighted average score is
3.5 which reveals that 70% of the respondents believe that recession is a big
threat for the insurance industry. At the time of recession individuals purchasing
capacity comes down and the person even does not think about to opt the
insurance policy in the light of fulfillment of his daily needs.
~ 149 ~
5.2.1.4.3
TAXATION POLICIES
According to the table5.8 the third threat for the organization is taxation polcies
of the government. Due to the higher taxation polices the persons are not able to
purchase the insurance policies and plans.
5.2.1.4.4
Last threat for the organization is government inference in the sector. The
weighted average score of this parameter is 3.2 which reveals that around 64% of
the respondents believe that government interference in the policies and
programs of the organization plays a role of threat for the organization.
5.2.2
SWOT ANALYSIS OF LEADERSHIP IN LIC
This part includes the specific SWOT analysis related to the organization as per
the questions asked in the questionnaire.
5.2.2.1
STRENGTHS OF LEADERSHIP IN LIC
Strengths are internal positive factors which accelerate the growth of any
organization. Any organization that wants to compete must focus on upgrading
and polishing its strengths. Major identified strengths related to leadership in
LIC can be summarized in table 5.5.
TABLE 5.5
STRENGTHS OF LEADERSHIP IN LIC
STRENGTHS
RANK
1
10
TOT.
W.A
RANK
COMMITTED
24
18
14
11
12
107
6.9
CONSISTENT
13
19
16
11
12
107
6.3
II
KNOWLEDGEABLE
12
13
20
15
13
107
6.1
III
FRIENDLY
15
17
12
12
15
107
5.7
IV
LEARNING
ATTITUDE
19
11
23
10
107
5.6
RESPONSIVE
15
11
14
23
14
107
5.3
VI
~ 150 ~
COMMUNICATIVE
10
12
19
17
14
107
5.1
VII
VISIONARY
15
11
12
18
14
107
5.0
VIII
CONFIDENT
17
12
11
15
14
20
107
4.9
IX
PLANNED
12
13
12
11
16
17
107
4.7
1.
2.
5.2.2.1.1
COMMITTED
One of the biggest strengths of LIC is commitment. The weighted average score of
this strength is 6.9 which reveals that 69% of the respondents believe that
commitment is top most strength in LIC. The leaders and employers in the
organization are committed towards their work and organization.
5.2.2.1.2
CONSISTENT
Second strength of LIC is consistency. The weighted score of this parameter is

6.3, which reveal that 63% of the respondents believe that their leaders are
consistent in their work with full responsibility and awareness.
5.2.2.1.3
KNOWLEDGEABLE
The weighted score of this parameter is 6.1, revealing that 61% of the respondents
believe that their leaders are knowledgeable. As researcher has also seen that the
employees in the organization are knowledgeable, having update knowledge of
market and as well as technology and trends.
5.2.2.1.4
FRIENDLY
Next strength of leadership in LIC is that the superiors in the organization are
friendly in nature. The weighted average score is 5.7, which reveals that 57% of
the respondents believe that their leaders are friendly in nature and do work with
them in friendly manner.
~ 151 ~
5.2.2.1.5
LEARNING ATTITUDE
One of the strengths of leadership in LIC is that the employees in the

organization are having learning attitude. They are always keen to learn the new
and upcoming trends and technologies in the market. The weighted score of this
strength is 5.6, which reveals that 56% of the respondents believe that their
leaders are always willing to learn something.
5.2.2.1.6
RESPONSIVE
The weighted score of this parameter is 5.3, which reveal that 53% of the
respondents believe that their leaders are responsible towards the work and
towards the organization. The leaders in the organization complete all the work
with full responsibility and also take care of their subordinates with full
responsibility.
5.2.2.1.7
COMMUNICATIVE
Next strength of leaders in LIC is communication power. The weighted average

score of this parameter is 5.1, which reveal that 51% of the respondents believe
that their leaders are good at communication. They communicate with their
subordinates and with their customers in a good manner. They communicate all
the policies, rules and regulations to their subordinates thoroughly.
5.2.2.1.8
VISIONARY
One of the strengths of leadership in LIC is that the leaders in the organization
are visionary. The weighted score of this parameter is 5.0, which reveals that 50%
of the respondents believe that their leaders are having the power to forecast the
future.
5.2.2.1.9
CONFIDENT
Second last strength of LIC is that their leaders are confident. The weighted
average score of this parameter is 4.9 which reveal that less than 50% of the
~ 152 ~
respondents believe that their leaders are confident and they work in the
organization with confidence.
5.2.2.1.10
PLANNED
Last strength of LIC is that the leaders in the organization are planned. The
weighted score is 4.7, states that 47% of the respondents believe that their leaders
are well organized in their activities and they work in the organization in a
planned manner.
5.2.2.2
WEAKNESSES OF LEADERSHIP IN LIC
Strengths and weaknesses are almost two sides of the same coin. No organization
can cope up without internal limitations. This section of analysis throws light on
major weaknesses identified by the respondents. The responses can be
summarized in table 5.6
TABLE 5.6
WEAKNESSES OF LEADERSHIP IN LIC
WEAKNESSES
RANK
1
10
TOT.
W.A.
RANK
LACK OF EXPERIENCE
22
15
12
13
11
12
107
6.9
LACK OF CONFIDENCE
17
22
13
14
107
6.8
II
LACK OF
TRANSPARENCY
27
11
13
13
14
107
6.6
III
SELF CENTERED
23
11
13
10
11
10
107
6.2
IV
POOR COMMUNICATION
27
13
10
107
6.0
LACK OF ATTITUDE
14
12
10
18
11
11
107
5.9
VI
LACK OF ENTHUSIASM
13
21
11
16
10
107
5.7
VII
LACK OF CREATIVITY
13
15
10
12
11
10
21
107
5.6
VIII
LACK OF INITIATIVE
13
11
21
11
13
16
107
5.2
IX
LACK OF VISION
13
11
11
12
15
16
107
5.0
1.
2.
~ 153 ~
5.2.2.2.1
LACK OF EXPERIENCE
The first weakness is regarding experience. The weighted average score of this
parameter is 6.9, which reveal that 69% of the respondents believe that their
leaders are having lack of experience. They are not having the experience related
to the technologies and knowledge.
5.2.2.2.2
LACK OF CONFIDENCE
The second weakness of leaders in the organization is lack of confidence with the
weighted average score is 6.8 which states that 68% of the respondents believe
that their leaders are lacking in confidence.
5.2.2.2.3
LACK OF TRANSPARENCY
One of the weaknesses of leaders in LIC is that their leaders are not transparent
in their work. The weighted average score of this parameter is 6.6 which states
that 66% of the respondents believe that the leaders are not having transparency
in their work.
5.2.2.2.4
SELF-CENTERED
Next weakness of leaders in LIC is that their leaders are self-centered. The
weighted average score of this parameter is 6.2, which reveal that 62% of the
respondents believe that their leaders focus on themselves only and not on their
subordinates.
5.2.2.2.5
POOR COMMUNICATION
One of the weaknesses of leaders in LIC is that their leaders are not good at
communication. 60% of the respondents believe that their leaders in the
organization do not communicate properly about the policies, rules and
regulations of the organization to their subordinates.
~ 154 ~
5.2.2.2.6
LACK OF ATTITUDE
In LIC the leaders in the organization are having lack of attitude as the weighted
average score of this parameter is 5.9, which reveal that 59% of the respondents
believe that their leaders lack attitude in their working.
5.2.2.2.7
LACK OF ENTHUSIASM
The weighted average score of this parameter is 5.7, which states that 57% of the
respondents believe that their leaders are having lack of enthusiasm. The
superiors are not having the enthusiasm for doing work and that is why they are
not able to generate enthusiasm in their subordinates.
5.2.2.2.8
LACK OF CREATIVITY
Lack of creativity is also one of the weaknesses of leadership in the organization.

As per the weighted average score 56% of the respondents believe that their
leaders lack creativity. The leaders in the organization are not having the
capability to present things in creative manner, and they are not able to attract
their subordinates in the organizational work.
5.2.2.2.9
LACK OF INITIATIVE
Next weakness related to leadership in the organization is that the leaders in the
organization are not take initiative. 52% of the respondents were agreeing with
this parameter and believe that their leaders are reactive in performing the tasks.
5.2.2.2.10
LACK OF VISION
The last weakness of the organization is lack of vision with the weighted score of
5.0, which reveals that 50% of the respondents believe that their leaders are not
having the power to see the future and they are not able to visualize the coming
trend for the organization.
~ 155 ~
5.2.2.3
LEADERSHIP OPPORTUNITIES IN LIC
Every organization is quite enthusiastic and keen to explore the opportunities

with proper utilization of strength at the right time. Various identified and
further ranked opportunities by the respondents are as follows:
TABLE 5.7
LEADERSHIP OPPORTUNITIES IN LIC
OPPORTUNITIES
RANK
1
TOT.
W.A.
RANK
LIBERALIZATION
49
31
19
107
3.6
PROFESSIONALISM
51
22
27
107
3.0
II
CONTINUOUS DEVELOPMENT
47
23
19
18
107
2.8
III
INFORMATION TECHNOLOGY ADVANCEMENT
45
27
13
22
107
2.6
IV
1.
2.
5.2.2.3.1
LIBERALIZATION
The first opportunity for leadership in the organization is liberalization. After

liberalization many private players have come in the market, which lead to the
development in public sector also. Good managers and leaders are coming in the
market because after liberalization the organizations have started conducting
management development programs. The weighted score of this parameter is 3.6,
which reveal that around 90% of the respondents believe that liberalization is a
great opportunity for developing leaders in the organization.
5.2.2.3.2
PROFESSIONALISM
Next opportunity for the organization is professionalism. As professionalism is

increasing in the market and due to this the organizations are getting trained and
professional leaders from the institutes. Now, because of professionalism the
organizations are not taking the pain of giving training to the leaders because
they already get the professionals from the market. 75% of the respondents
believe that professionalism is also an opportunity for the organizations.
~ 156 ~
5.2.2.3.3
Continuous development has been ranked as third opportunity for the

organization. The weighted score of this parameter is 2.8, which reveal that 70%
of the respondents believe that continuous development in the market is working
as an opportunity for the organizations. As market is continuously developing,
the organizations are also getting the developed leaders from the market and they
also organize various programs so that their leaders can be developed.
5.2.2.3.4
Last opportunity for the organization is information technology advancement. In

LIC, the employee focuses on the latest technologies which are coming in the
market and also application of these technologies.
5.2.2.4
LEADERSHIP THREATS IN LIC
LIC is also working under certain unfavorable still unavoidable external

circumstances, termed as threats. Major threats identified and ranked by the
respondents can be summarized in a tabular form in table no. 5.8
TABLE 5.8
LEADERSHIP THREATS IN LIC
THREATS
RANK
1
TOT
W.A.
RANK
POLITICAL CHALLENGE
36
27
11
15
18
107
3.4
RECESSION
30
21
19
23
14
107
3.3
II
EXCESSIVE COMPETITION
19
29
22
24
13
107
3.1
III
ECONOMIC FACTORS
17
19
18
21
32
107
2.7
IV
DERAGULATION
19
17
20
11
40
107
2.6
1.
2.
5.2.2.4.1
POLITICAL CHALLENGE
Political challenge is the top most threat for leadership in organization. The
weighted score of this parameter is 3.4, which reveal that 68% of the respondents
~ 157 ~
believe that political pressure is a major challenge. Due to change in the political
parties, the rules, regulations and the policies in the market change at a speedy
rate and this creates problem for the employees and also for the customers.
5.2.2.4.2
RECESSION
Recession is also a big challenge for the organizations. Due to recession, the
earning power of the customers comes down and they pull their hands from the
insurance side which creates a lot of problems for the insurance industry. The
weighted score of this parameter is 3.3, which indicates that more that 50% of the
respondents believe that recession is a major challenge for the organizational
growth.
5.2.2.4.3
The third major challenge for the organization is excessive competition in the
field of insurance. After globalization, government has opened the gate for private
players in the market and many big companies have already jumped in insurance
sector, which has created a big problem for LIC. For a long time in insurance
sector only LIC was there and the organization was enjoying monopoly in the
market, but in current scenario LIC is facing a tough competition due to the
private players.
5.2.2.4.4
ECONOMIC FACTORS
Next challenge for the organization is related to the economic policies in the
market. As earning power comes down, the insurance business also comes down.
The weighted score of this parameter is 2.7 which reveal that 54% of the
respondents believe that economic factors are the major challenge for the
organization.
~ 158 ~
5.2.2.4.5
DEREGULATION
The weighted average score of this parameter is 2.6 which reveals that only 52%
of the respondents believe that deregulation is a threat for the organization.
When the government removes it control from the industry then, the
organizations did not perform well in the market.
5.3
SWOT ANALYSIS OF BAJAJ ALLIANZ
In this section, strengths, weaknesses, opportunities and threats have been

identified and analyzed by the researcher following the same pattern as in case of
LIC. Item wise detailed analysis is as follows:
5.3.1
GENERAL SWOT ANALYSIS OF BAJAJ ALLIANZ
This part consists of general SWOT analysis of Bajaj Allianz. All the elements are
based on policy documents, websites and other published material along with the
consultation with the respondents of Insurance industry. All the parameters
were mentioned in the questionnaire under the questions related to SWOT.
Thereafter, the questionnaire was executed to the respondents of both the
organizations. Respondents have ranked these parameters as per their
preferences.
5.3.1.1
STRENGTHS OF BAJAJ ALLIANZ
Major identified specific strengths of the organization as per the questionnaire

can be summarized in the table5.9.
TABLE NO. 5.9
STRENGTHS OF BAJAJ ALLIANZ
STRENGTHS
RANK
1
TOT.
W.A.
RANK
81
64
21
17
07
190
4.02
62
47
29
29
23
190
3.50
II
QUALITY PRODUCTS
32
59
67
21
11
190
3.42
III
FINANCIAL SOUNDNESS
57
31
42
11
49
190
3.18
IV
GOOD REPUTATION
29
16
13
52
80
190
2.27
1.
2.

~ 159 ~
5.3.1.1.1
Around 80% of the respondents believe that the business environment is

adequate for them. Bajaj Allianz is under constant pressure to provide its users
with a robust computing environment. With a requirement of over 1,000
concurrent users, efficient storage and data retrieval was the key. Lowering the
overall infrastructure cost and ensuring sustained investment protection-while
simultaneously energizing performance and optimal storage management-were
some of the challenges that Bajaj Allianz was grappling with.
5.3.1.1.2
INFRASTRUCTURE AND NATIONAL NETWORK
The organizations Head Office is located at Pune, with more than 1100 branches.
It has 7 Processing HUBS located at Bhilwara, Chandigarh, Kolkata, Pune, Salem,
Bangalore and Coimbatore, 28 regional or state offices and state operations
managers. The organization is having over 9,000 sales managers, over 3, 00,000
insurance consultants, and more than 10 bank assurance partners across the
country. The organization is having strong alternate channel with over 1421
Franchisees, over 233 corporate agents, more than 28 brokers and over 133
Direct Marketing Branches operating nationwide.
5.3.1.1.3
QUALITY PRODUCTS
Third biggest strength of the organization is quality products along with unit link
plans and capital gain plans. The Company launched a basket of 15 new products
during the year 2009, with a view to providing additional products to the
customers. The Company now has 38 individual products and 14 group products
catering to all strata of the society. Product tailored leadership is used by the
organization for satisfying the needs of the customers and their employees. Bajaj
Allianz Life Insurance ensures excellent insurance and investment solutions by
offering customized products, supported by the best technology.
~ 160 ~
5.3.1.1.4
FINANCIAL SOUNDNESS
Financial soundness is one of the strengths of the organization. The weighted

score of this parameter is 3.18, which reveals that around 64% of the respondents
believe in the financial soundness is one of the strength of the organization. Bajaj
Allianz Life Insurance has over 40,00,000 satisfied customers, supported by
customer care centers in 155 cities and supplemented by 35,000 insurance
consultants. A countrywide network of 876 offices, assets under management Rs.
5,500 cr. and shareholder capital base of Rs. 700 cr.
5.3.1.1.5
GOOD REPUTATION
On the basis of the responses of the respondents, the researcher has analyzed that
one of the strengths of the organization is its good reputation in the market.
Around 45% of the respondents believe that their organizations reputation is
good in the market. Researcher also believes the same to some extent. The
Company was ranked 32 in the Economic Times most trusted service brand
survey and was ranked 30 in the Pitch Magazine India's top 50 service brand.
Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52% and its market
share went up to 6.98% in 2007-08 form 5.66% in 2006-07. The company
ranked second (after LIC) in number of policies sold in 2007-08, with total
market share of 7.36%.
5.3.1.1.6
GLOBAL PRESENCE
BALIC is a joint venture between Allianz SE of Germany and India based Bajaj
Auto Limited. BALIC came into being on 12th March 2001. It is characterized by
global presence with a local focus and is driven by customer orientation to
establish high earning potential and financial strength.
5.3.1.1.7 CUSTOMER SERVICE AND CLAIM SETTLEMENT PROCESS
The organization is having over 4 million satisfied customers, and it uses highest
standard of customer services and simplified claims process in the industry. The
~ 161 ~
organization has its own website to provide all assistance and information on
products and services, online buying and online renewals, swift and easy claim
settlement process.
5.3.1.2
WEAKNESSES OF BAJAJ ALLIANZ
Major identified specific weaknesses of the organization as per the questionnaire

can be summarized in the table 5.10.
TABLE NO. 5.10
WEAKNESSES OF BAJAJ ALLIANZ
WEAKNESSES
RANK
1
TOT.
37
81
10
32
30
190
3.3
39
47
20
53
31
190
3.0
II
HIGH STRESS
38
36
22
48
46
190
2.9
III
27
51
17
57
38
190
2.8
IV
21
39
41
59
30
190
2.6
1.
2.
5.3.1.2.1
W.A.
RANK
As quality products is one of the strengths of Bajaj Allianz life Insurance

organization it is one of the weaknesses also because on one side the organization
is launching new products related to unit linked plans and capital gain plans, and
on the other side the organization is lacking in traditional plans of insurance. The
organization is not having any traditional plans, which work as a strength of any
insurance company.
5.3.1.2.2
Second weakness of the organization is that the organization is having

undifferentiated products and services. The organization has the same products
that are already available with other insurance companies. The weighted average
score of this parameter is 3.0, which reveals that 60% of the respondents believe
that it is one of the major weaknesses of the organization.
~ 162 ~
5.3.1.2.3
HIGH STRESS
The researcher also observed that the employees of the organization were
working under stress. The employees in the organization have target based jobs
and they have a lot of pressure to complete their targets. The employees are
forced to complete their targets in any situation.
5.3.1.2.4
One of the weaknesses of the organization is that the employees of the

organization do not want to take the initiative for any work. The employees are
not creative hence do not want to create new things and new patterns for the
organization.
5.3.1.2.5
The organization lacks expert employees. The employees are not so experienced
because many of the employees in the organization are fresh graduates at the
time of joining the organization. Moreover, because of high stress and job
pressure many experienced employees switchover their jobs.
5.3.1.2.6
LESS COVERAGE IN RURAL AREA
The organization does not focus on the rural area. The organization is not having
products for rural areas. As a result, the company is unable to adequately serve
one big market segment and management is suddenly swamped with support
problems and competitors.
5.3.1.2.7
LIMITED OPERATIONS
The company does not have operations in any other country. It is limited to India
only, since the company performs all the functions within the local boundaries,
and it does not work at international level. The management has not directly or
indirectly invested outside India.
~ 163 ~
5.3.1.3
OPPORTUNITIES OF BAJAJ ALLIANZ
Major identified specific opportunities of the organization as per the

questionnaire can be summarized in the table 5.11.
TABLE NO. 5.11
OPPORTUNITIES OF BAJAJ ALLIANZ
OPPORTUNITIES
RANK
1
TOT.
W.A.
RANK
UPCOMING MARKET LINKED PLANS
54
39
37
41
19
190
3.5
GLOBALISED MARKET
69
31
41
29
20
190
3.4
II
57
32
41
39
21
190
3.3
III
LIBERALIZATION
51
42
39
21
37
190
3.2
IV
49
37
32
27
45
190
3.1
1.
2.
5.3.1.3.1
UPCOMING MARKET LINKED PLANS
One of the opportunities for insurance sector is that upcoming market linked
plans. The weighted score of this parameter is 3.5, which reveals that 70% of the
respondents believe that market linked plans are playing the role of opportunity
for all the insurance companies.
5.3.1.3.2
GLOBALISED MARKET
Next opportunity for the organization is globalization. After globalization,

organizations started doing business beyond the geographical boundaries. It
increases the size of market, size of customers and also the upcoming
technologies and opportunities.
5.3.1.3.3
As awareness among the people related to insurance is increasing day by day,

now a days people do not take insurance as safety concept but they take it as an
investment concept.
~ 164 ~
5.3.1.3.4
LIBERALIZATION
Liberalization is also one of the opportunities for the private sector life insurance
organizations. After Liberalization, government has opened the gates for private
players in insurance sector. Liberalization policy plays an important role for all
the private sector players, and all the companies jumped in the market with latest
policies.
5.3.1.3.5
The organization uses advance tools and techniques for working in the
organization. Bajaj Allianz life insurance is a private sector organization and uses
latest technology for conducting all the functions related to the organization.
5.3.1.3.6
HIGH GROWTH OF ULIP INDUSTRY
High growth of ULIP plans plays an important role of opportunities for insurance
industry because, the traditional insurance market is a mess as insurers are not
interested in marketing a class of insurance under which shareholders bear a
major portion of the investment risk but get only 10 per cent of the profit. In the
case of unit-linked insurance, while the entire investment risk is passed on to
policyholders, the entire profit also goes to the shareholders. The high average
growth rate of 43 per cent was due to purely heavy inflow of funds. The
contribution of unit-linked policies during this period to this surge in stock
indices and explosive growth of the life insurance market cannot be denied.
5.3.1.4
THREATS OF BAJAJ ALLIANZ
Major identified specific threats of the organization as per the questionnaire can
be summarized in the table5.12.
~ 165 ~

TABLE NO. 5.12
THREATS OF BAJAJ ALLIANZ
THREATS
RANK
1
TOT.
W.A.
RANK
RECESSION
77
51
27
25
10
190
3.8
69
41
31
27
22
190
3.6
II
TAXATION POLICIES
61
49
39
21
20
190
3.6
II
HIGH COMPETITION
64
42
33
21
30
190
3.5
III
ECONOMIC FACTORS
61
49
29
27
24
190
3.5
III
1.
2.
5.3.1.4.1
RECESSION
First threat of the organization is recession. The weighted average score of this
parameter is 3.8 which reveal that 76% of the respondents believe that recession
plays the role threat for the organization restricting the discretionary income of
public.
5.3.1.4.2
As the government changes in every five years and makes new rules and
regulations for the organization which create a critical position for the
organizations. Government intervention is also a big threat for the organization.
5.3.1.4.3
TAXATION POLICIES
The weighted average score of this parameter is 3.6 which reveal that 76% of the
respondents believe that high taxation policies of the government play a role of
threat for the organization ultimately the burden will be on the shoulders of
insured.
5.3.1.4.4
HIGH COMPETITION
Next threat for the organization is high competition in the market. The weighted
average score of this parameter is 3.5 which shows that 70% of the respondents
believe that high competition in the market plays the role of threat for the
organization and stops the organization in performing well in the market.
~ 166 ~
5.3.1.4.5
ECONOMIC FACTORS
Last threat for the organization is economic factors prevailing in the market. The
weighted average score of this parameter is 3.5 which reveals that 70% of the
respondents believe that bad economic conditions in the market become threat
for the organizations performing in the market.
5.3.2
SWOT
ANALYSIS
OF
LEADERSHIP
IN
BAJAJ
ALLIANZ
This part includes the specific SWOT analysis related to the organization as per
the questions asked in the questionnaire.
5.3.2.1 STRENGTHS OF LEADERSHIP IN BAJAJ ALLIANZ

Strength is an inherent capacity, which an organization can use to gain strategic
advantage over its competitors. With a view to take opinion of respondents about
strengths of leadership in their organization, one question was included in the
questionnaire. Major identified strengths of the study can be summarized in
table 5.13
TABLE NO. 5.13
STRENGTHS OF LEADERSHIP IN BAJAJ ALLIANZ
STRENGTHS
RANK
1
10
TOT.
W.A
RANK
CONFIDENT
64
17
20
20
24
18
14
05
08
00
190
7.4
PLANNED
57
21
19
18
30
20
13
04
03
05
190
7.3
II
LEARNING ATTITUDE
41
12
22
28
23
38
06
09
06
05
190
6.7
III
COMMUNICATIVE
42
20
11
25
12
34
07
19
09
11
190
6.4
IV
COMMITTED
25
31
14
19
29
21
15
13
12
11
190
6.2
FRIENDLY
38
17
20
14
19
23
15
06
23
15
190
6.1
VI
CONSISTENT
30
25
18
10
20
32
08
12
18
17
190
VII
VISIONARY
18
13
24
23
28
19
04
06
32
23
190
5.4
VIII
RESPONSIVE
26
14
16
11
17
27
12
07
27
33
190
5.2
IX
KNOWLEDGEABLE
20
15
12
13
15
30
10
17
28
30
190
4.9
1.
2.
~ 167 ~
5.3.2.1.1
CONFIDENT
As per the responses of the respondents the biggest strength of Bajaj Allianz is
that the employees in the organization are confident. as per table 5.13 one can
easily see that confidence in the employees of the organization is their biggest
strength with the weighted average of 7.4.
5.3.2.1.2
PLANNED
This parameter occupies second rank with the weighted average score of 7.3. the
respondents of Bajaj Allianz feel that leaders in their organization are well
planned and they perform each and every task in a systematic manner.
5.3.2.1.3
LEARNING ATTITUDE
As one of the core strengths of Bajaj Allianz Life Insurance is that the employees
in the organization are having learning attitude, the weighted average of this
parameter is 6.7 with third rank among ten parameters as shown in table 5.13.
5.3.2.1.4
COMMUNICATIVE
Good communication is one of the strengths of Bajaj Allianz. The employees in

the organization are good communicator. The weighted average of this parameter
is 6.4 and it is at fourth position among all strengths of leadership in the
organization.
5.3.2.1.5
COMMITTED
The weighted average of this parameter is 6.2 which shows that the employees in
the organization are committed towards their work and towards the organization.
They work with enthusiasm and zeal.
5.3.2.1.6
FRIENDLY
As friendly nature is a good sign for the growth of the organization. The weighted
average of this parameter is 6.1. One of the strengths of employees in the
~ 168 ~
organization is that they are friendly in nature and very much supportive and
cooperative.
5.3.2.1.7
CONSISTENT
Next strength is consistency. Employees are regular with their work and with
their duties. The weighted average of this parameter is 6 as shown in the
table5.13 and it is at seventh position among all the parameters related to
leadership.
5.3.2.1.8
VISIONARY
Vision is ability to see future in advance. Employees in the organization are

visionary. The weighted average of this parameter is 5.4 which shows that the
organization should remain focused on the vision.
5.3.2.1.9
RESPONSIVE
Responsive is one of the strengths of the employees in this organization. This

parameter is on ninth position with the weighted average score of 5.2 as shown in
the table 5.13. Leaders in the organization are responsible towards their work and
organization.
5.3.2.1.10
KNOWLEDGEABLE
As one of the strengths of leadership in the organization is knowledge. Leaders in

the organization are knowledgeable as they are having good knowledge of the
market and upcoming trends and practices in insurance sector.
5.3.2.2
WEAKNESSES
OF
LEADERSHIP
IN
BAJAJ
ALLIANZ
Every organization has strengths and as well as weaknesses. Strengths and
weaknesses can be compared as two different sides of the same coin. On one side
there are strengths, helping in growth of an organization, on the other side there
~ 169 ~
are weaknesses creating obstacles in performance. Weaknesses are inherent

limitations or constraints, which create problems for the organization. Based on
information collected through questionnaire and interaction with respondents
the following major weaknesses of leadership have been identified. The
preferences of respondents on various weaknesses are shown in table5.14 along
with the frequencies and weighted average of all the parameters.
TABLE NO. 5.14
WEAKNESSES OF LEADERSHIP IN BAJAJ ALLIANZ
WEAKNESSES
LACK OF INITIATIVE
LACK OF ATTITUDE
LACK OF EXPERIENCE
LACK OF CONFIDENCE
LACK OF CREATIVITY
POOR COMMUNICATION
LACK OF
TRANSPARENCY
SELF CENTERED
LACK OF VISION
LACK OF ENTHUSIASM
RANK
1
10
TOT.
45
31
28
17
07
21
11
16
09
05
190
41
30
15
27
19
18
16
09
07
08
190
27
25
42
29
15
13
11
14
08
06
190
29
31
27
23
25
13
09
09
11
13
190
39
25
23
21
19
17
12
07
09
18
190
29
27
17
21
38
05
13
19
10
11
190
37
31
19
13
11
18
17
21
07
16
190
37
25
23
14
19
16
21
18
17
190
29
25
13
16
28
19
10
14
19
17
190
32
21
13
13
19
17
28
16
15
16
190
00
1.
2.
5.3.2.2.1
W.A.
RANK
7.0
6.9
II
6.8
III
6.6
IV
6.5
6.3
VI
6.3
VII
6.2
VIII
5.9
IX
5.8
LACK OF INITIATIVE
The first weakness related to leadership in Bajaj Allianz is lack of initiative. The
employees in the organization do not want to take initiative in the work. The
weighted score of this parameter is 7.0 as shown in the table5.10 which reveals
that it is their major weakness and they should take care of this weakness.
~ 170 ~
5.3.2.2.2
LACK OF ATTITUDE
The second major weakness of the employees in the organization is lack of

attitude. The weighted average score of this parameter is 6.9, which reveals that
they need to have more proactive and positive attitude.
5.3.2.2.3
LACK OF EXPERIENCE
Next weakness of leadership in the organization is that the employees in the

organization are having less experience. The weighted average score of this
weakness is 6.8, which reveals that 68% employees believe that the leaders in the
organization are less experienced.
5.3.2.2.4
LACK OF CONFIDENCE
Believing in your self is the key to success. 66% of the respondents believe that
their leaders are less confident. This is not a good sign for the organization and it
creates negative image of the organization.
5.3.2.2.5
LACK OF CREATIVITY
Another weakness of the organizations leader is that they lack creativity. The
weighted average score of this parameter is 6.5 which reveal that 65% of the
respondents believe that their employers are not creative.
5.3.2.2.6
POOR COMMUNICATION
One of the weaknesses of the organization is that the employees of the

organization they are not good in communication. The weighted score of this
weakness is 6.3 which reveal that 63% of the respondents believe that their
leaders are not having proper two way communication.
5.3.2.2.7
LACK OF TRANSPARENCY
The weighted score of this weakness is also 6.3, which reveals that 63% of the
respondents believe that the leaders are not having transparency in their work.
~ 171 ~
5.3.2.2.8
SELF-CENTERED
One of the major weaknesses of leadership in the organization is that the leaders
are self-centered and they focus only on themselves and their work. They do not
focus on their subordinates. The weighted score of this parameter is 6.2 which
states that 62% of the respondents believe that their leaders are self-centered.
5.3.2.2.9
LACK OF VISION
One of the weaknesses of leadership in Bajaj Allianz is lack of vision. The

weighted average score of this parameter is 5.9, which reveals that 59% of the
respondents believe that the leaders in the organization are having lack of vision.
They were lacking in visualizing the future of the organization.
5.3.2.2.10
LACK OF ENTHUSIASM
The last weakness of leadership in the organization is lack of enthusiasm. The

weighted score of this parameter is 5.8, which states that 58% of the respondents
believe that their leaders are less enthusiastic. They do not work with their
subordinates in full passion.
5.3.2.3 LEADERSHIP OPPORTUNITIES IN BAJAJ ALLIANZ

Opportunities are attractive areas for ones action in which one would enjoy an
advantage. An opportunity provides favorable environment to an organization or
a nation, which enables it to consolidate and strengthen its position. The success
of an organization depends on how it uses its strengths keeping opportunities in
mind. Some of the opportunities related to leadership can be summarized in
table5.15.
~ 172 ~

TABLE NO. 5.15
LEADERSHIP OPPORTUNITIES IN BAJAJ ALLIANZ
OPPORTUNITIES
RANK
CONTINOUS DEVELOPMENT
LIBERALISATION
PROFFESIONALISM
TOT.
W.A.
RANK
75
59
46
10
190
3.04
38
72
49
31
190
29
67
35
59
190
2.34
II
III
29
51
37
73
190
2.19
IV
1.
2.
5.3.2.3.1
2.61
First opportunity related to leadership in Bajaj Allianz is continuous

development. The weighted average score of this parameter is 3.0, which reveals
that 76% of the respondents believe that continuous development is the first
opportunity for their organization. Their organization organizes various
programs for continuous development like management development programs,
auditing practices, etc. for continuous development of the organization.
5.3.2.3.2
LIBERALIZATION
Next opportunity is liberalization. The weighted average score of this parameter

is 2.61, which reveals that around 65% of the respondents believe that
liberalization play an important role of opportunity for them. As the policies of
government become liberal, it became more useful for all the organizations.
5.3.2.3.3
PROFESSIONALISM
Third opportunity for Bajaj Allianz is professionalism. The weighted score of this
parameter is 2.34 which reveal that 58% of the respondents believe that
professionalism is a great opportunity for their organization. As professionalism
comes in the market it gives chance to many organizations to come up with latest
technology and latest trends in the market.
~ 173 ~
5.3.2.3.4
Last but not the least, information technology advancement is also an

opportunity for them. The weighted score of this parameter is 2.19, which reveals
that around 55% of the respondents state that information technology
advancement is an opportunity for the organization. As latest technology and
advancement comes in the market it needs new upcoming managers and leaders
for handling the technologies. Bajaj Allianz is leader in private sector players and
it can make optimum utilization of this opportunity by applying latest
technologies and advancement in the organization.
5.3.2.4
LEADERSHIP THREATS IN BAJAJ ALLIANZ
Threat is an unfavorable condition which adversely affects the productivity,

performance and efficiency of an organization. These are challenges posed by an
unfavorable trend or development of an environment that would lead in the
absence of purposeful action, to the erosion of position. Table5.16 represents
the threats related to leadership in the market and frequencies and weighted
average of each parameter. Some of the critical threats related to leadership are
as:
TABLE NO. 5.16
LEADERSHIP THREATS IN BAJAJ ALLIANZ
THREATS
RANK
1
TOTAL
W.A.
RANK
RECESSION
67
42
27
29
25
190
3.51
53
47
28
39
23
190
3.35
II
ECONOMIC FACTORS
19
61
51
35
24
190
3.08
III
POLITICAL CHALLENGE
15
56
19
41
59
190
2.61
IV
DERAGULATION
08
13
64
21
84
190
2.15
1.
2.
5.3.2.4.1
RECESSION
First threat for the organization is recession. As everyone knows that recession is
a big problem now a days for all. Recession plays an important role in
~ 174 ~
threatening the organizations. As recession period comes in the market, it gives

a negative impact on the performance of the organizations. The weighted
average score of this parameter is 3.51, which reveals that around 70% of the
respondents believe that recession is the biggest threat for leadership in the
organization.
5.3.2.4.2
Next threat for the organization is excessive competition. After liberalization

many big players have jumped in the market in insurance sector. For maintaining
the position in the market, the organization should concentrate on their
performance and for beating the competition the company should come up with
latest technology and trends in the market.
5.3.2.4.3
ECONOMIC FACTORS
Economic factors like taxation policies, economic policies etc. play an important
role in the growth of the organizations. The weighted average score of this
parameter is 3.08, which reveals that 61% of the respondents believe that
economic factors are a big threat for the organizations.
5.3.2.4.4
POLITICAL CHALLENGE
Political challenge is one of the major threats for the organization. The weighted
average score of this parameter is 2.61, which reveals that around 52% of the
respondents believe that as the government changes at fast rate the rules,
regulation, policies will also change at faster rate which is a threat for the
organizations to survive in the market.
5.3.2.4.5
DEREGULATION
Next threat is deregulation which carries a weighted score of 2.15, which reveals
that around 40% of the respondents believe that deregulation is a threat for the
organizations.
~ 175 ~
5.4
CONCLUSION
The researcher in order to conclude this chapter would like to comment that
SWOT analysis plays extremely important role in deciding strategic action plan of
any organization. This analysis of both the organizations reveals about some
major common strengths such as their leaders are confident, planned, having
learning attitude, consistency. Some specific common strengths of both the
organization are about financial soundness, market position and quality
products. Some common weaknesses like high stress, lack of marketing expertise
and poor communication exist. Opportunities and threats are mostly common as
rated by the respondents of both the organizations. The researcher has framed
two different recommended action plans exclusively based on this SWOT analysis
which are discussed in detail in the next chapter.
~ 176 ~

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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

SWOT analysis is conducted to analyze internal and external environment of any

weaknesses, opportunities and threats. Strengths and weaknesses are considered

SWOT ANALYSIS OF LIC

GENERAL SWOT ANALYSIS OF LIC

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

INFRASTRUCTURE AND NETWORK

Scale: Ranking Scale 1-5, TOT=Total, W. A.=Weighted Average

Source: Primary Survey

First strength of the organization according to the respondents is its financial

ADEQUATE BUSINESS ENVIRONMENT

Next strength of the organization is its adequate business environment. As the

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

INFRASTRUCTURE AND NETWORK

LIC is having a good infrastructure and netwok. As the organization is having

According to the respondents the next strength of the organization is its

In a competitive market, there is a greater need to provide insurance products

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

The total number of Agents on our Roll is 13,44,856 as on 31.03.2009 against

INVESTMENT IN SOCIAL SECTOR

The total investments of the Corporation amounted to Rs. 815483.95 crore as at

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

The organization is having some miscellaneous strengths which are as follows:

First ever Representative Office was opened in Singapore on 6th November,

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

ONLINE PAYMENT CHANNELS

CORPORATE ACTIVE DATA WAREHOUSE (CADW):-

New software has been implemented at IVR/INFO Centers at 13 locations across

The audit of all Branch/Divisional/Zonal Offices and CO Departments of the

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

Adherence to good Corporate Governance is an integral part of the philosophy of

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

LACK OF MARKETING EXPERTISE

POOR QUALITY OF GOODS AND

UNDIFFERENTIATED PRODUCTS AND

LACK OF CREATIVITY AND INITIATIVE

Scale: Ranking Scale 1-5, TOT=Total, W. A.=Weighted Average

Source: Primary Survey

LACK OF MARKETING EXPERTISE

POOR QUALITY OF GOODS AND SERVICES

UNDIFFERENTIATED PRODUCTS AND SERVICES

Next weakness of the organization is its undifferentiated products and services.

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

60% of the respondents believe that the organization is having undifferentiated

LACK OF CREATIVITY AND INITIATIVE

Major identified opportunities of the organization as per the questionnaire can be

UPCOMING MARKET LINK PLANS

Scale: Ranking Scale 1-5, TOT=Total, W. A.=Weighted Average

Source: Primary Survey

UPCOMING MARKET LINK PLANS

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

Next opportunity for the organization is globalization in insurance sector. After

Last opportunity for the organization is technological advancement. The

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

the respondents believe that advancement in the technology plays an important

Major identified threats of the organization as per the questionnaire can be

Scale: Ranking Scale 1-5, TOT=Total, W. A.=Weighted Average

Source: Primary Survey

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

SWOT ANALYSIS OF LEADERSHIP IN LIC

STRENGTHS OF LEADERSHIP IN LIC

STRENGTHS OF LEADERSHIP IN LIC

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS