Propose a suitable structure for a strategy plan that ensures appropriate participation from all stakeholders of an organization
There are many organization structures such as Functional Structure, Product Structure, Geographic Structure, Product Team Structure, Matrix Structure, Network Structure and Multidimensional Structure.
The essence of organization design structure should be considered the division of labors and achievement of coordination. For First National Insurance, we would like to suggest a “Functional Structure” based on the grouping by department. Functional organization contains specialized units such as information technology, marketing development, research etc. Top management is responsible for coordinating the effort of each unit and meshing them into a cohesive whole.
This proposed structure can help to improve effective differentiation strategy. And then, First National Insurance is one of the growth insurance companies. Being the company size is giant, centralization should be used by top level and decentralization structure should be by team level.
By adopting the propose organization structure FNI can take advantage of the following key benefits:
• Clustering the expertise professionals who lead to the development of specialists within their field.
• Clearly defined reporting their relationships, manage through a coherent top-down approach.
• Being a supportive individual skills and knowledge, employees can be driven their tasks with independence in working environments.
• Functional Structure is swift decision making and authoritative.
• Effective communication and knowledge sharing between co-workers.
• Easier to supervision.
First National Insurance Organization Structure
Develop Criteria for reviewing potential options for a strategy plan
When FNI defined the organizational strategy, the organization should be evaluated their strategy and describing criteria how to evaluate.
(Rumelt, 1980) represent “four criteria for evaluating strategies”. These are consistency, consonance, feasibility and advantage.
The theory to of a Rumelt strategy must be consistency for implementing. And then, policies, rules and conditions should be exactly. Consonance means that the strategist examines their set of strategic trends, as well as individual trends. Feasibility indentify that the creating strategy is flexible to the organization and have abilities to implement their strategy. Advantage mean that implementing strategies which can bring competitive advantages.
First National Insurance organization evaluates the differentiation strategy. So, the organization need to define develop criteria why FNI organization are going to use to select a strategy.
Four criteria for evaluating strategies
Factors Developing Criteria Evaluation Reason
Consistency Review the short-term goals, objectives and policies can support a long term business strategy.
Examine the relationship of business function as a cohesive team-oriented unit to develop the criteria
Any Inconsistencies between vision, mission and strategic objective
If the policy / issues to be brought to a decision, then the strategy may not be consistent.
FNI functional based strategies can bring to a long term strategic goal
Modify the structure to be a team –oriented unit for cooperation
Analysis vision, mission statements are relevance to implement the strategy.
Change the modify policies and issues to be consistent strategy.
Determine how well the differentiation strategy match and adapt to it environment.
Strategy can support FNI company realize social and economic deals outlined in business mission.
A firm key internal and external factors desire to formulate the strategy.
A well-developed strategy encourages anticipation and a proactive that changes is fit to the external environment.
There are developing insurance industry zone.
It is really relevance FNI mission which can support economic deal.
Before to draw a strategy, we make PESTEL and SWOT analysis.
Considered FNI strategy is really bring a proactive approach.
feasibility Examine FNI business strategy to assess its long-term feasibility.
Indentify the financial limitation during implement the strategy.
Evaluate requirement of staffs, knowledge and skill to achieve the long-term strategic goal.
Check the analysis employee personal, they are willing to participate in a strategic change.
To get a long –term feasibility strategy, we calculated the Space Matrix .
The FNI financial background is so strength and generally increase market share.
Employees have highly skills and knowledge, FNI arranges education and training.
FNI has a reward and punishment plan which can motivate the employee.
advantage Analyze the business strategy to make sure it allows developing, promoting and sustaining company’s competitive advantages.
Analysis strategy how to affect the competitor, the strategy is innovation based or process-oriented based.
A business possesses the superior skills of employee.
Analysis of developing specialized resource and reputation can bring to be a competitive in industry.
Related Differentiation strategy well provides competitive advantages.
FNI strategy affects the competitor directly because it based upon customer safety first.
Arrange well educated and training.
Examine the specialized resource that can support to implement a good reputation.
According to above table, First National Insurance organization differentiation is relevance and this strategy pass the chosen the strategic option. So, the FNI differentiation strategy should be implemented because it is one of the winning strategies.
Construct an agreed strategy plan that includes resource implications
To construct a differentiation strategy, First National Insurance company need to consider resource implication.
To be effective implementing strategy, human resource involves the vast department that organizes the major issues in the FNI organization.
The first activity of the human resource is “Recruitment and Selection with their estimate costs” in the company. The organization should be prepared the carrier plan to publish or advertise which involves roles and responsibilities, required skills in these vacancies.
First National Insurance Company want to build differentiation strategy, they need marketing expertise, technology expertise, and International consultants.
To be effective marketing style that can support differentiation strategy, FNI needs 10 vacancies about marketing expertise to modify marketing strategy with innovation idea. This is important for creativity marketing strategy which can be influence to the public awareness new insurance categories.
The next category is FNI need 5 vacancies consultants’ posts to be international insurance companies. This sector can join with the foreign international agencies or can be publish in local or foreign. This post is very important to fit their requirements, experiences and knowledge.
The final category of human resources is recruitment of IT technicians about 10 vacancies. IT is important sector for upcoming period such as linkage with bank sector online, Video calling, online processing issues and so on. For these sectors, the organization can be chosen in-house IT projects or outsourcing IT project. FNI organization has IT department, so to extent the IT sector is easy to implement. Even the outsourcing, the FNI should be recruitment about 2 IT expertise persons.
So, First National Insurance should be prepared differentiation strategy which includes expectation recruiting budget, should be calculate about their expected result or outcome.
Describing the physical resource, the FNI organization needs some departments and computers, extend Data connection, any essential equipments to support differentiation strategies. It means that physical resources is the facilities which involvement one of the essential factors.
FNI need to calculate the estimate budget about the financial of the organization. In order to handle finance, there has a finance plan for differentiation strategies. The estimation budget of differentiation strategy is approximately 10 million kyat.
There has been drastic change in production, marketing, outsourcing and other fields due to technology. The FNI organization needs upgrading their technology to be international standard and support one of the essential sectors for differentiation strategy. So, it can be succeeding in its vision, mission and make way for growth.