Capsie Insurance Mission Statement Analysis
Running Head: MISSION, VISION, AND VALUES
Mission, Vision, and Values: Erie Insurance Company University of Phoenix MMPBL 590 March 15, 2010
Mission, Vision, and Values: Erie Insurance Company Erie Insurance has been in existence since 1925 by two men H. Orth Hirt and Oliver G. Crawford in Erie, Pennsylvania. Erie Insurance is in the service industry that provides service in 11 states, …show more content…
from New York to North Carolina, from Wisconsin to Tennessee and the District of Columbia. This company provides auto insurance, homeowner insurance, personal property and liability, life insurance and retirement, and business insurance. They provide their services to those customers with the need of insurance. Erie’s customers share some of the same characteristics that bring together very different people. “Erie knows that a fair price and superior service is at the heart of this decision, along with a good dose of trust and loyalty” (Erie Insurance, 2010, para. 3). Mission, Vision and Value Statement
A company’s mission, vision and values reflect the firm’s intention to secure survival through growth and profitability.
These statements describe why they are in business, their economic goals, their philosophy, their competencies and competitive advantages, what customers they can serve and their social responsibilities (Pearce & Robinson, 2004). The mission, vision, value statement set the company apart from other companies in the same industry. The founders of Erie Insurance wanted “To provide our Policyholders with as near perfect protection, as near perfect service as is humanly possible and to do so at the lowest possible cost" (Erie Insurance, 2010, para. 2) This simply means that Erie’s agents, management adjusters and appraisers take full responsibility to provide the best service to the policyholders. No matter how far, day or night that company will provide as near perfect service. Erie Insurances wants to be the top company in the insurance industry offering auto, life, property, and casualty …show more content…
insurance.
As the mission and vision statement is to describe the company’s purpose of the organization and to describe how the future will look once the company achieves its goal, values are also important to include with the mission and vision statement.
Values are principles and standards believed and accepted within the company.
“Values motivate people to work together collectively. Values are like ever-receding or never-ending goals. The higher the values, the more the energy and effort required to achieve and sustain them. The more they pursue them, the greater the energy they release, and put into action” (Posner, n.d., para. 2).
Erie Insurance is a customer focus company. Their slogan is “Above all in Service.” The values and principles used is the Golden Rule, Do unto others as you would have others do unto you (Erie Insurance, 2010). Simple common sense mixed with plain decency. With the clarity of the mission and vision statement along with Eire’s values is the strengths of the company’s accomplishments, progress, joy, and success. Without these statements it will be difficult for the company to survive.
Strategic Management
Process
“Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment” (Lamb, 1984).
The strategic management process is how companies create strategies, to find new and more efficient ideas to react promptly to new challenges. In the Strategic Management Model there are 11 components that have to be analyzed as new strategies are created. The company mission should be first analyzed, when there is a new strategy in place. The new strategy must be aligned with the mission and the company’s social responsibility, this statement is what sets it apart from their competitive companies. Internal analysis, this is the company’s strength and weaknesses, quantity and quality of their financial, human and physical recourses. External environment which consists of any conditions and forces that could affect the strategic objective. Strategic analysis and choice this provides a combination of long-term (employee relation, profitability, competitive position, e.g.), generic and grand strategies (low cost, focus strategy, differentiation, how the objective are to be achieved) to place the company in its external environment to accomplish the company’s mission (Pearce & Robinson, 2004).
Action plans and short-term objectives turn the generic and grand strategies to action, a clear time frame for completion and accountability of the action plan. Functional Tactics that identifies activates to the function to build a competitive advantage. Policies that empower action that increases the effectiveness of implementing strategies. Restructuring, Reengineering and refocusing the organization may be essential when changing the strategy of the company. The company’s structure, leadership, culture and reward system should be changed to achieve the company’s end state goal. Last, strategic control and continuous improvement, which is tracking, detecting, changes and making adjustment as the strategic plan, along with responding proactively and timely to influence the company’s success as the plan is being implemented (Pearce & Robinson, 2004).
New Strategy Effects on Leadership, Culture and Stakeholders
With a new strategy leadership, culture, and stakeholders are bound to be affected. “Change has become an integral part of what leaders and managers deal with daily” (Pearce & Robinson, 2004, p. 339). It is imperative that leadership themselves understand the change to know how to convince all stakeholder to embrace this new strategy. With this new strategy the organizational culture should also be linked to the mission statement. This is a huge challenge for leadership, but it is achievable. By clarifying and help stakeholders embrace change with a clear vision, building or rebuilding the organization with the change and changing environment and reshaping the organizations culture to align with the new change, will guide leaders within the company to engage stakeholders in the strategic planning process and be successfully.
In closing, the mission, vision and values statement reflects what the company is, what it wants to become in the future and the principles that they will follow to accomplish their goals. When implementing a new strategy, following the strategic management process and clearly explaining the new changes will help stakeholders embrace the change that in turn help the company achieve their goals.
References Erie Insurance. (2010). Auto, Home, Life and Business Insurance from Erie Insurance. Retrieved March 13, 2010, from http://www.erieinsurance.com/ Lamb, R. B. (1984). Competitive strategic management. Englewood Cliffs, NJ: Prentice-Hall Pearce, J. & Robinson, R. (2004). Strategic Management. New York: The McGraw-Hill Companies Posner, R. (n.d.). Business: Utilizing Business Values. Retrieve March 13, 2010 from http://www.gurusoftware.com/Gurunet/KnowledgeBase/Business/Values.htm
Mission, Vision, and Values: Erie Insurance Company University of Phoenix MMPBL 590 March 15, 2010
Mission, Vision, and Values: Erie Insurance Company Erie Insurance has been in existence since 1925 by two men H. Orth Hirt and Oliver G. Crawford in Erie, Pennsylvania. Erie Insurance is in the service industry that provides service in 11 states, …show more content…
from New York to North Carolina, from Wisconsin to Tennessee and the District of Columbia. This company provides auto insurance, homeowner insurance, personal property and liability, life insurance and retirement, and business insurance. They provide their services to those customers with the need of insurance. Erie’s customers share some of the same characteristics that bring together very different people. “Erie knows that a fair price and superior service is at the heart of this decision, along with a good dose of trust and loyalty” (Erie Insurance, 2010, para. 3). Mission, Vision and Value Statement
A company’s mission, vision and values reflect the firm’s intention to secure survival through growth and profitability.
These statements describe why they are in business, their economic goals, their philosophy, their competencies and competitive advantages, what customers they can serve and their social responsibilities (Pearce & Robinson, 2004). The mission, vision, value statement set the company apart from other companies in the same industry. The founders of Erie Insurance wanted “To provide our Policyholders with as near perfect protection, as near perfect service as is humanly possible and to do so at the lowest possible cost" (Erie Insurance, 2010, para. 2) This simply means that Erie’s agents, management adjusters and appraisers take full responsibility to provide the best service to the policyholders. No matter how far, day or night that company will provide as near perfect service. Erie Insurances wants to be the top company in the insurance industry offering auto, life, property, and casualty …show more content…
insurance.
As the mission and vision statement is to describe the company’s purpose of the organization and to describe how the future will look once the company achieves its goal, values are also important to include with the mission and vision statement.
Values are principles and standards believed and accepted within the company.
“Values motivate people to work together collectively. Values are like ever-receding or never-ending goals. The higher the values, the more the energy and effort required to achieve and sustain them. The more they pursue them, the greater the energy they release, and put into action” (Posner, n.d., para. 2).
Erie Insurance is a customer focus company. Their slogan is “Above all in Service.” The values and principles used is the Golden Rule, Do unto others as you would have others do unto you (Erie Insurance, 2010). Simple common sense mixed with plain decency. With the clarity of the mission and vision statement along with Eire’s values is the strengths of the company’s accomplishments, progress, joy, and success. Without these statements it will be difficult for the company to survive.
Strategic Management
Process
“Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment” (Lamb, 1984).
The strategic management process is how companies create strategies, to find new and more efficient ideas to react promptly to new challenges. In the Strategic Management Model there are 11 components that have to be analyzed as new strategies are created. The company mission should be first analyzed, when there is a new strategy in place. The new strategy must be aligned with the mission and the company’s social responsibility, this statement is what sets it apart from their competitive companies. Internal analysis, this is the company’s strength and weaknesses, quantity and quality of their financial, human and physical recourses. External environment which consists of any conditions and forces that could affect the strategic objective. Strategic analysis and choice this provides a combination of long-term (employee relation, profitability, competitive position, e.g.), generic and grand strategies (low cost, focus strategy, differentiation, how the objective are to be achieved) to place the company in its external environment to accomplish the company’s mission (Pearce & Robinson, 2004).
Action plans and short-term objectives turn the generic and grand strategies to action, a clear time frame for completion and accountability of the action plan. Functional Tactics that identifies activates to the function to build a competitive advantage. Policies that empower action that increases the effectiveness of implementing strategies. Restructuring, Reengineering and refocusing the organization may be essential when changing the strategy of the company. The company’s structure, leadership, culture and reward system should be changed to achieve the company’s end state goal. Last, strategic control and continuous improvement, which is tracking, detecting, changes and making adjustment as the strategic plan, along with responding proactively and timely to influence the company’s success as the plan is being implemented (Pearce & Robinson, 2004).
New Strategy Effects on Leadership, Culture and Stakeholders
With a new strategy leadership, culture, and stakeholders are bound to be affected. “Change has become an integral part of what leaders and managers deal with daily” (Pearce & Robinson, 2004, p. 339). It is imperative that leadership themselves understand the change to know how to convince all stakeholder to embrace this new strategy. With this new strategy the organizational culture should also be linked to the mission statement. This is a huge challenge for leadership, but it is achievable. By clarifying and help stakeholders embrace change with a clear vision, building or rebuilding the organization with the change and changing environment and reshaping the organizations culture to align with the new change, will guide leaders within the company to engage stakeholders in the strategic planning process and be successfully.
In closing, the mission, vision and values statement reflects what the company is, what it wants to become in the future and the principles that they will follow to accomplish their goals. When implementing a new strategy, following the strategic management process and clearly explaining the new changes will help stakeholders embrace the change that in turn help the company achieve their goals.
References Erie Insurance. (2010). Auto, Home, Life and Business Insurance from Erie Insurance. Retrieved March 13, 2010, from http://www.erieinsurance.com/ Lamb, R. B. (1984). Competitive strategic management. Englewood Cliffs, NJ: Prentice-Hall Pearce, J. & Robinson, R. (2004). Strategic Management. New York: The McGraw-Hill Companies Posner, R. (n.d.). Business: Utilizing Business Values. Retrieve March 13, 2010 from http://www.gurusoftware.com/Gurunet/KnowledgeBase/Business/Values.htm