Tax Avoidance
How the SWOT analysis can be used to make investment recommendations
——based on the case of “China Life Insurance Company Limited”
Contents 1. Introduction 3 2. Company Overview 5 2.1 History and firm size 5 2.2 Product and service network 5 2.3 Financial overview 6 2.4 Strategic Objectives 6 3. SWOT analysis 7 3.1 Strengths 8 3.1.1 Financial achievement 8 3.1.2 Corporation operation 10 3.2 Weaknesses 11 3.2.1 Geographic concentration 12 3.2.2 Declining performance 12 3.3 Opportunities 14 3.3.1 High growth of Chinese insurance industry 14 3.3.2 Large population and growth in pensions 15 3.4 Threats 16 3.4.1 Intensive competition 16 3.4.2 Influence of bancassurance channel 17 4. Evaluation 18 4.1 Investment recommendation 18 4.2 Evaluation of SWOT 19 5. Conclusion 21 6. References 22 7. Appendices 25
1. Introduction
In recent years, there has been an increasing interest in financial investment, especially in stock investment, which is always high-yielding along with high-risk. When making stock investments, for the sake of getting as high a return as possible on the base of the comparatively lowest risk, methods are needed to analyze the value of the company before deciding a particular corporation is worth to invest in or not.
There are numerous methods to analyze a corporation in terms of the financial management, marketing strategies and operation. Of all, SWOT analysis is a typical management consulting tool to make an overall analysis of a whole company. Consequently, this method can be used to make investment recommendations to enable the investors to have a clear view of the corporation that they are going to invest in.
“SWOT, an acronym that stands for strengths, weakness, opportunities, and threats, is a careful evaluation of an organization’s internal strengths and weakness as well as its environmental opportunities and threats” (Griffin, 2008, p.67). As an outstanding and base
——based on the case of “China Life Insurance Company Limited”
Contents 1. Introduction 3 2. Company Overview 5 2.1 History and firm size 5 2.2 Product and service network 5 2.3 Financial overview 6 2.4 Strategic Objectives 6 3. SWOT analysis 7 3.1 Strengths 8 3.1.1 Financial achievement 8 3.1.2 Corporation operation 10 3.2 Weaknesses 11 3.2.1 Geographic concentration 12 3.2.2 Declining performance 12 3.3 Opportunities 14 3.3.1 High growth of Chinese insurance industry 14 3.3.2 Large population and growth in pensions 15 3.4 Threats 16 3.4.1 Intensive competition 16 3.4.2 Influence of bancassurance channel 17 4. Evaluation 18 4.1 Investment recommendation 18 4.2 Evaluation of SWOT 19 5. Conclusion 21 6. References 22 7. Appendices 25
1. Introduction
In recent years, there has been an increasing interest in financial investment, especially in stock investment, which is always high-yielding along with high-risk. When making stock investments, for the sake of getting as high a return as possible on the base of the comparatively lowest risk, methods are needed to analyze the value of the company before deciding a particular corporation is worth to invest in or not.
There are numerous methods to analyze a corporation in terms of the financial management, marketing strategies and operation. Of all, SWOT analysis is a typical management consulting tool to make an overall analysis of a whole company. Consequently, this method can be used to make investment recommendations to enable the investors to have a clear view of the corporation that they are going to invest in.
“SWOT, an acronym that stands for strengths, weakness, opportunities, and threats, is a careful evaluation of an organization’s internal strengths and weakness as well as its environmental opportunities and threats” (Griffin, 2008, p.67). As an outstanding and base
References: China Life, 2012. Fact sheet [pdf] Available at: < http://www.e-chinalife.com/IRchannel/files-fixed/summary_EN_120425.pdf>[Accessed 15 July 2012]. Datamonitor, 2004. China Life Insurance Company Ltd. SWOT Analysis [pdf] Available at: <http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=3&hid=17&sid=893eae2c-14ef-4a22-9e49-85bfda89f4ae%40sessionmgr4>[Accessed 15 July 2012]. Dazhihui大智慧, 2012. Financial center财经中心 [online] Available at <http://cj.gw.com.cn/news/stock/sh601628.shtml> [Accessed 8 August 2012] Guotaijuan securities国泰君安证券, 2012 Griffin, R.W., 2008. Fundamentals of management. 5th ed. New York: Houghton Mifflin Company. MindTools, 2012. PEST Analysis [online] Available at<http://www.mindtools.com/pages/article/newTMC_09.htm> [Accessed 18 August 2012] PingAn中国平安, 2012 Robbins, S.T. and Coulter, M., 1996. Management. 5th ed. New Jersey: Prentice Hall Inc. Zhang, J. and Xiang, B. 张建东，项保华, 2005. The drawbacks of SWOT SWOT的缺陷. Available at <http://www.cqvip.com/Read/Read.aspx?id=11521720#>[Accessed 8 August 2012]. Dazhihui大智慧, 2012. Financial center财经中心 [online] Available at <http://cj.gw.com.cn/news/stock/sh601628.shtml> [Accessed 8 August 2012] B C. PingAn, 2012中国平安. Securities research report: China Life 证券研究报告：中国人寿[pdf] Available at:<http://114.80.136.108/F0/2A/F02A6DBFA1A8B3C15BB3DF14E6F6DCD1.pdf>[Accessed 10 August 2012]. E. Zhang, J. and Xiang, B. 张建东，项保华, 2005. The drawbacks of SWOT SWOT的缺陷. Available at <http://www.cqvip.com/Read/Read.aspx?id=11521720#>[Accessed 8 August 2012].