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ING INSURANCE ASIA-PACIFIC
[ASSIGNMENT ON ING INSURANCE ASIA-PACIFIC]
SUNIL BHASKARAN NAIR – 1711997 WORD COUNT : 3019 LECTURE INCHARGE : ANDREW GRIFFITH DATE : 19/04/212
NO HEADINGS PAGE NUMBERS 1 INTRODUCTION 4 2 TERMS OF REFERENCE 4 3 ING INTRODUCTION 4 4 ING ASIA PACIFIC BACKGROUND 5 5 JACQUES KEMP 5 6 ING ASSESSMENT 6 7 CHANGES PROPOSED 7 2 .PREFACE SR.
8 EXPECTED CHALLENGES 8 9 COLLABORATION OF ING’S BUSINESS UNITS 9 10 ROLE OF INFORMATION SYSTEM 10 11 CONCLUSION 11 12 REFERENCE/BIBILOGRAPHY 12 13 APPENDIX 1 13 3 .
Discussing about the challenges encountered during the implementation of any suggested changes. ING Role: Balance score card for monitoring business development. ING a Netherlands based company started there global expansion in the late 90’s there after expanding their operations in more than 45 countries throughout the globe. ING was the largest financial as well as insurance company in the world in 2010 by revenue.. Commercial banking. By 2003. The main headquarters of the company is in Amsterdam.. TERMS OF REFERENCE: Purpose of the Project: To give insight on the context of industry analysis for the company. I was asked to prepare an assignment on ING by the lecturer in charge of the module International Management.000 employees covered across 60 million private. 4 . The orange lion signifies the company logo. I am a 26 year old Indian student studying in Dublin Business School enrolled for my Masters in Business Administration specialized in Cloud Computing. Evaluating the potential for collaboration between different ING business units.INTRODUCTION: My name is Sunil Bhaskaran Nair. ING has been providing a wide range of Banking. particularly within the value chain. According to a survey conducted. ING had expanded itself with a workforce of more than 115. ING INTRODUCTION: INTERNATIONAL NETHERLANDS GROUP (ING) is a globally recognized financial group that deals in Direct banking. Retail banking. Netherlands. Proposing changes and giving recommendations supported by an analysis. Insurance and Asset management services in many countries from more than 150 years. corporate as well as institutional clients in nearly 50 countries. Insurance etc. Linking objectives and measures.
wealth management. New Zealand. Malaysia. It also has some emerging markets in India. This structure focuses on Asia Pacific region and thereafter two different teams organize the responsibilities. the company has a distribution network based on tied agents. Australia. 5 . the way Jacques Kemp’s new strategy helped ING to improve the business process based on the balance score card and how it changes the roles and responsibilities of each of the respective department and improves relationship with customer and shareholders. ING follows a Matrix Organizational Structure. ING was ranked 5th among the multinational financial providers in the Asian belt with more than 6 million clients regardless of continuing declines in the global equity market in the year 2002. the Line Management Team and the Functional Management team. This score card lays certain roles and responsibility to be fulfilled by every individual related to the organization. The company relies on a standard template for balance score card for all its operations. Japan and Taiwan. accidental benefits. Line management team deals country wise where as functional management team deals with the different functions required to run the business within a country. cost for the particular country as well as the profit and loss related to it whereas in Functional management. a functional manager provides support across the region and deals with the human resource necessities on that region. Jacques Kemp was appointed as the Chief Executive Officer of the ING Asia Pacific Ltd. JACQUES KEMP: When I read the article. ING was the first to enter the markets of South Korea. telemarketing etc. banc assurance. Indonesia and Thailand. ING major business units (countries) include Japan. In Line management. By the year 2003. During his tenure. a shared regional service centers where developed in order to reduce the operating cost thereafter ING was able to get connected to its clients through their preferred channel. In India. conjointly having tie up with local companies. In the year 2002. employee benefits etc. Ahead of the other European companies. the China and India. he developed a business model Towards Performance Excellence (TPE).. in order to enhance their distribution capacity. career agents. which is widely being implemented in the ING organization. there after it was a fast growing company in Japan. ING has a strong hold in two of the most emerging markets in the Asian region. a country manager is responsible for deciding the budget. In the year 2002. it has 44 percent stake on the fifth largest private bank named ING Vysya Bank conjointly with life insurance as well as mutual funds business. China. retail management as well as company asset management products such as group life policy. I was so inspired by. Hong Kong and Korea. Taiwan.ING INSURANCE ASIA PACIFIC BACKGROUND DETAILS: ING Insurance Asia Pacific Business units serves us with different types of life insurance policies.
also there was very less communication between the between the business managers. Hong Kong regional office was the monitoring center of ING but there was some difference between the centre and the business units. ING’s integration of Aetna international (An American company) during the year 2000. Aetna International was four times larger in Asia than ING. Corporate wide approach was not been applied. The hierarchy or the flow of power from down to up had a regional structure. characteristics and working custom for example: countries like Taiwan.ING ASSESSMENT: I have observed that ING. Although the Integration had its own set of drawbacks but ING Asia Pacific did benefit substantially from this merger. Singapore and Indonesia were sold as these countries did not produce the expected profit and also managing these countries required them to provide enough resources to comply with ING’s standard. Difficulties where apparent in managing the same level of standard as every region had there on priorities as well as ideas. ING’s market share and rank where significantly high in countries like Japan and Malaysia. regional managers and functional managers (see appendix 1). Overall the communication between these hierarchies was a little complicated such as the Security manager of a business unit would report to its country’s manager and not it the regional security manager. ING had a very attractive position in the Asia Pacific. Each and every country have their own styles of organizational structure. as ING already had enough potential market and profits coming from 12 other Asian countries. its position was also very stronger. Activities of ING where organized in business units (countries) with each individual units having a high level of autonomy. ING’s operations( life and non life ) in Philippines. CHANGES PROPOSED: While reading through the case. The asset management operational rights in these countries where still with ING. On request the country manager would send the report to the regional security manager. the very first thought that crossed my mind was how did the company manage to flourish in the Asia Pacific without any proper communication being maintained between the Dignitaries of the organization? The following are the key issues I came across: 6 . Each region was segregated into four countries. managed by one or two regional general managers or the executive committee member thereafter passing information to the Regional CEO. Japan and Hong Kong have established themselves on the product lines on the other hand Australia marketed itself stating that it provides all the financial solution required. This different style of working was apparent in each and every business unit. was a major achievement that played a very distinguishable role in the strong position of the company in the Asia Pacific. after entering the Asian market by the beginning of 2000’s. the potential benefits of applying such approach was scarcely adopted.
A public relations department will take care /look after all the relations between B2B and B2C that a company has. It also plays a very important role in earning new relations. strategy as well as to keep each one of the managers updated on the movement of the company. A PR department helps deal with all the problems and concerns of both the internal and external public. Better communication with the employees as well as solving their grievances and making them feel an important part of the company gives them the feel of ownership. salary letter. Certain other recommendations for improving brand image. This report can also be used to analyze Pay for Performance. notices. This information can be used by the functional manager to analyze the working of the particular function. This report can be then used by the regional managers in order to evaluate the potentiality of the country as well as to identify the areas of improvement. Each manager then is responsible to regulate objectives to their sub-ordinates and to monitor the working of agents in his region. announcements. Internal public forms the 1st public that a company deals with.Public relation forms a vital part of the company. Reporting problem (no standard format) 2. Each manager has to understand and adopt the responsibilities given to them and identify the approach required to reach the goal. This information starts to flow from down to top thus the country manager receives an idea about the progress in different regions in the country. etc. All this reports are then stored in a centralized system which would have a online website interface through which managers from the regional office would be able to access the required information. The PR department is also responsible for company's 7 .report available on request. This communication can be done through company journals.1. This forms the basis of a successful company. thus avoiding the current system. This report should be prepared in a standard format throughout the region. Uncertain objectives(individual approaches) Reporting system: Communication system is one of the most important changes to be implemented so as to spread the right message. Set Objectives: Regulate roles and responsibilities for each designation and set goals that can be achieved through a common approach. This can be achieved by regulating a reporting systems in place where in each agents is asked to create a weekly report based on the interaction with the customer or client and even the amount of policy he was able to sell thereby sending this report to his superior through an email. customer and employee satisfaction is given below: Public Relation Department: Another change that can be implemented is involving a Public relation department .
so this new objectives and rules would be a little extra responsibilities as well as now they have to maintain a common goal. A lot of communication between different countries can be looked after by 1 PR Officer handling whole of the Asia . consumer. It thus helps the different publics having the right perception about the company. This takes place through press conferences. Employee Benefits Scheme: Employees in our organization form our first public. A very minimal part of their salary will be taken and also special in-house offers only for the employees. This can be a cost effective factor for ING as well as the employees have to be educated about the new standard format for the reports. distribution. Reporting system would require an IT infrastructure wherein they will have to develop a Database and store this data for analysis. It has the power to change the brand image of the company.external communication with its different publics like shareholders. But this will contribute to the corporate wide approach. so will it be with its customers. etc. If the employee quits the job. he has the option to continue the policy but with normal offers. It would be more like a firsthand experience and people will thus trust them more than a salesman. The idea is to first give our insurance policies to our employees. 8 . letters.Pacific. Thus the employees would spread a positive word of mouth unintentionally about the policies they are selling. While setting objectives there is a chance of objections coming from the regional managers as they would say that there region is giving the required outcome. This would be a challenging situation as the employees had become comfortable using the previous format for reports. EXPECTED CHALLENGES: 1. If the company can keep them happy and content. etc. yearly magazines. Thus a life insurance plan will not seem a burden to them and after retirement will act as pension. The amount and type of insurance will be selected by them from the plans offered to them as per their post in the company. 2.
Public Relation Department: There is not much disadvantage in having a PR department in a company besides the cost factor. the common process would be product designing. Within the Value chain of ING’s Insurance Asia-Pacific. 4. After how much time can an employee be eligible for the insurance? If the employee leaves the job in between. It gives solutions when the company is facing any kind of adversity. A larger staff will be required to handle a larger number of databases and customers. For e. Similarly. house journals. But there are certain things that cannot be done without the PR department like the PRO forms the spokesperson of the company. As I have discussed about the reporting systems in the recommendations. It helps in letting more and more people know about the company and thus increase business. Thus some feel that having an extra department for PR is nothing but increase in expenditure and employees. then what should be done? What different offers should be given to different salaried group of employees? How much will be the minimal amount from their salary and how much benefit will it give the company? A negative point here is that. COLLABORATION OF ING’S BUSINESS UNITS: Collaboration of business units would require each individual unit to communicate with each other as well as should also have a common approach. it may result in negative word of mouth. There can also be a potential collaboration between the countries if they use common website for the company as well as most of the products such as life insurance and medical insurance are common in the Asia-pacific region.: 1. this system is one of the supporting services that can help the business units to collaborate as well as help fulfill the organizational goal of corporate wide approach. it does not actually listen to the grievances of the employees. the PR department does not actually sit back and make those notices or letters. Nor does it distribute the same. etc. 2. Employee Insurance: A lot of hard work will go into reforming the job policies. 3. Thus the PR department actually works in coordination with all the other departments in the company. Without a proper and complete research we cannot determine how much benefit the company will make through word of mouth because not all the employees will go around boasting about the same.g. If you actually go to see. Human resource as 9 . This can create a very challenging environment as some dignitaries would be against the idea of involving a PR department. if it’s compulsory for them to buy a policy. It looks after the brand image of the company as a whole. it is done by the HR department. Every employee thus has to be a marketer for the company's insurance policies. IT functions.
the PR department needs to conduct data mining to identify the odds for example: the PR department has to identify the employee of the year and needs to publish in the news letter. The superior then upload this report in the information system. These systems are said to be communication systems where the data is represented by processing it according to the query. Public Relation department normally deals with advertisements. So the reporting system has to be integrated within the information system to generate the Pay for Performance. So for these advertisements. 10 . Information system is normally said to be a back bone of the company. This role of information system needs to be altered to the requirement. ROLE OF INFORMATION SYSTEMS: An information system is basically a combination of Information Technology and business activities that support operations activity. Role of Information system in Employee Benefit scheme: When ING decides to develop an employee benefit scheme then this information about the scheme and the premium involved in it needs to feed into the information system in such a way that once any employee is enrolled for the scheme then the same information needs to be reflected in the employee’s profile. Role of Information system in reporting system: Information system plays a very important role. Every company has to integrate their business process into this information system so as to generate the best result. thus giving us an overview of every employees leads generated. management strategies and decision making. These supporting services in the value chain have a greater potential of collaboration between the business units. if the recommended reporting system needs to work. This data is then processed by the information system and generates the result according to the query. newsletters and all sort of advertising related media. company journals. This system is the sole operator that generates pay for performance. Every employee creates a weekly report about his sales and communication that he covered and sends it to his superior for analyzing. Role of Information system in Public Relation: The back end system of the information system is a database that stores all the data we have entered.well as the Marketing process.
Overall this assignment enhanced my management ability. I came across different types of issues related to communication and reporting system as well as the hierarchy heterogeneity. It also enhanced my ability to understand the graphical representation of the strategy’s and statistics along with hierarchal interpretation. Understand of hierarchy and its advantages and disadvantages as well as line management and functional management with respect to it was a learning program and a new concept of balance score card and its effect was a significant impact on my intellectual preference. This force compelled me to recommend many suggestions which I think it was very necessarily required to redirect all the business units to achieve the corporate wide approach.CONCLUSION: During analyzing this case. My decision making ability was put to test conjointly enhanced to an extent. 11 . I was forced to vision myself in the shoes of Jacques Kemp and the pressure of being the CEO of ING. research skills and instincts. During this case I learned how to do the necessary research required during implementing a strategy and how it affects the budgeting as well as the employees of the organization.
com/Our-Company.htm?countrycode=IE http://en.wikipedia.org/wiki/ING_Group BIBILOGRAPHY: Kaplan R.com/m/magstream/ingworld/en04/assets/en04/8db6_ING%20Insurance%20%20Asia-Pacific.wikipedia. 12 .wikipedia.ing. & Norton D.REFERENCES: http://en. Harvard Business Review.ing. (2006) HOW TO IMPLEMENT A NEW STRATEGY WITHOUT DISRUPTING YOUR ORGANIZATION.pdf http://www.org/wiki/Information_system http://ingworld.org/wiki/Information_system http://en.
APPENDIX 1: SWOT Analysis: Strength Weakness Opportunities Treat 1. Communicatio n problem between the hierarchy 2. Good Stronghold in Asia Pacific 2. Takeover of Aetna Internation al 2. tie up with companies etc. Merger with fifth largest private bank in India 1. 1. 150 years of experience 3. Communication barrier 13 . Enough resources in terms of agents. No common approach 1.
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