Case Study Lic

Case Study: Life Insurance Corporation of India

Corporate management has become an essential feature of any organization. It involves corporation strategies particularly marketing strategy, financial strategy. The Life Insurance Corporation has failed in corporate management although it has theoretically considered its importance.

Corporate Strategies:

The LIC has formulated corporate objectives in 1974 to spread life insurance business much more widely particularly in rural area, maximize insurance linked savings, investing insurance funds for the best advantage of investors, conduct business with utmost economy act a business of the insured public, meet the various life insurance needs, involve people of the Corporation to the best of their capability, promote sense of participation and job satisfaction. The LIC has failed to achieve the objectives, as it has not formulated proper strategies to achieve them. It has not properly analysed the impacts of environmental factors. The economic, political, cultural, social and geographical factors have been accepted as constraints.

The SWOT analysis has not been applied. The threats have been accepted as blocked barriers. No attempt has been to convert the threats into opportunities. Similarly, the weakness of LIC has not been identified for its conversion into strength. It is smoothly sailing in the ocean of abundant market opportunities. Many untapped resources are lying idle. The poverty need of insurance, political unawareness, demographic segments natural vagaries and competition have been taken as accepted parameters of non-development. Strategic audit is native idea in the corporation although it is essential for success of a Corporation.

Marketing Strategy:

The LIC has several attractive schemes of insurance but they are least utilized. Many field force personnel are unaware of the scheme. They do not have adequate knowledge of the insurance plans. The agent and development officers are working...