This aim of this research report is to analyse the firm current strategic management. It is done through use of factor such as PESTEL method. In regards to this project, the selected organisation is Sun Life Company.
However, it is found that strategic management is the important field for firm in regards to achieve success in this competitive business environment. This is because strategic management involves the formulation and implementation of goals and objectives and this is performed by the management through use of firm resources and assesses the internal and external environment in which organisation operates its business.
In addition to this study, there are various actions are involved such as description of Sun Life company resources & capabilities (Hill et al., 2014). Besides that, the factors are also undertaken in order to analyse the firm corporate level strategies. Based on this, company corporate strategic approach effectiveness is identified. Thus, this report will provide detail understanding about the Sun Life strategic approach in order to analyse the efficiency of firm corporate and business level strategy.
Sun Life Company is a life insurances firm based on Canadian financial services. It is an oldest financial firm back to 1865. It also deals in multiple portfolios such as investment management, financial advice, insurances offering and asset management etc (Sun Life Insurances, 2019).
The firm involves various resources such as skilled human resources and strong innovation schemes which offers the quality services to clients. Other than that, sun life insurances also consist of diversified investment through address employee physical, mental and financial health needs by making connection between health of individual and business future goal.
The strategic approach to health and goal supports both organisation and employee to meet the goals in a proper manner. At the same time, firm has a strong financial resource due to which it expands its business in different portfolio. That’s why it has a capability to explore various offering in a proper manner such as insurance, asset management and pension etc.
Furthermore, it also gain benefit with the change in its distribution strategy as firm start focuses on guiding customer to buy the policy rather than pushing the policy. This allows the firm to achieve the loyalty of clients.
In addition to this study, it can be stated that the availability of timely resources give rise to the capabilities of firm (Hitt & Duane Ireland, 2017). Likewise, skilled staff helps the firm to make the strong asset management and it is occur through develop the innovative schemes such as unconditional life insurances policy which offers various benefits to customers. Thus, these capabilities allow the firm to retain its customers/clients for a longer duration.
However, the technology is also considered as important resources in regards to enhance its capabilities as the technical expertise assist the firm to easily manage the assets through implement the digital process at the time of customer survey.
Thus, the digital platform helps to cater the needs of customers at every level (Kramar, 2014). Therefore, the diversified portfolio investment, digital platform and innovative schemes give rise to the achievement of competitive advantage.
This section includes the factor that helps to analyse the Sun Life financial corporate and business strategies efficiency. This can be done through use of PESTEL method (Wright et al., 2014). However, Sun Life insurances adopt the growth strategy in order to remain competitive and run business over a longer duration.
Political Factor:- Canada consist of good political stability as it includes low crime rate and trustworthy policing service and this is because of less interferences of political leaders. The county also have a powerful relationship with the UK, USA, France and other nations.
This factor influences the Sun Life insurances strategy in the Canada market. Likewise, the political stability allows the firm to easily run the business through timely availability of human, financial and technical resources which allows to fulfilling the customer needs (Sikora & Ferris, 2014).
At the same time, Canada market also helps to Sun Life insurances to easily expand its business in UK, USA and other countries locations. But increasing entrances of firm put pressure on sun life insurances to bring new and become competitive.
Economic Factor: – Canada has a highly mixed economy as it consists of both government and people of Canada which make economic choices for the country. It also has free trade agreements with number of countries through make comprehensive economic and Trade agreement with EU in September 2017.
This agreement aims to make it easier to export products and services with the country EU. In regards to economic factor, it is identified that Sun life insurances have both advantage and disadvantage with the free trade agreement in the form of getting an opportunity to expand the business in different location.
But it affects the firm with the increasing number of new entrants and existing big players in Canada market. Thus, this practice affects the firm sustainability and pushes it to bring innovative schemes. However, after recession period, the trade agreement supports the sun life in terms to enter into UK market and overcome the negative effect of recession over the business.
Social Factor: – Canada is diverse country which includes several cultural people and 46% Canadian is old age population exist. However country encourages immigrations and people with appropriate skills and experiences (Festing, 2012). This allows the country to make an innovation in a rapid manner.
But the immigration is not fulfilling the human resources shortage. This area impacts the Sun life insurances in a negative way as firm does not achieve the skilled staff for developing new product portfolio. This affects the firm ability to sustain in the tough competition.
On the other hand, the majority of old age population assist the firm in a way to explore more retirement schemes in the Canada market (Albrecht et al., 2015). However, Sun life insurances tapped the needs of diversified cultural group through make customised services. This helps the firm to achieve the customer loyalty.
Technology Factor: – Technological factor is the important factor in Canada as it provides people with high-paying jobs with an average salary of $67000. However, the many international IT professionals and firms see Canada as a one of best countries to grow their businesses.
Similarly, the technological factor provides assistances to sun life insurances in a way to digitally conduct the survey and collects the requirement of people. At the same time, the online marketing is also implementing well at the Canadian market due to which firm get the opportunity to cut the maximum cost of advertisements.
Environmental Factor: – There are several problems that Canada market is facing due to the environmental issues such as air pollutants, acid rain, smog and climate change which affecting the health of Canada people. In regards to this, government has been taken initiatives to reduce the emission of carbon.
Similarly, Sun life financial also raises their help through taking involvement in CSR activities by contributing towards the diabetic patients. It also engaged with sustainable program by providing $487million in financing for renewable energy projects. It also owns and leases over two-million square feet of green-certified space (Peng, 2017).
Thus, these actions are performed by the firm to minimise the environmental problems to a large extent. But due to the poor government policy towards the pollution area, the country fails to address the problem.
Legal Factor: – Canada has a lot of issues in its legal policy system but still 84% of Canada companies are profitable. This is because of right implementation of technology. But the improper policy framing creates lot of problem related to gender and cultural discrimination.
Similarly, there is no appropriate policy related to the worker low wage remuneration. This legal framework also influences the sun life financial strategy as employees are dissatisfied with the firm negligence behaviour towards employee health and safety concerns (Kampanje, 2014).
Moreover, the government free trade agreement supports the insurances firm to easily access the new markets and that’s why Sun Life financial becomes a largest financial firm in the market like UK and USA. This way firm become biggest financial firm in across the globe.
Hence, these external factors that affects the Sun Life financial corporate & business strategy in a both positive and negative manner.
On the basis of above findings, it is discussed that Sun Life financial is focusing on the growth business strategy through diversify its product portfolio. In regards to this, it launches new product in integration of employee benefit acquisition.
In this, Sun Life is developed newly combined portfolio for the employee benefit. This portfolio offers access to one of the largest dental networks in the country with 125,000 unique providers. It also provides assistances to critical illness and accident insurance (Renwick et al., 2013).
At the same time, Sun Life also concentrates large on the data and analytics for surveying the needs of customers and accordingly develops the product for achieving large growth in the Canada market. Moreover, the firm also involves the two new aspects such as sustainable practice and capital-intensive businesses.
These areas help the firm to become more competent and enhance its sustainability in this tough business environment (Sohel et al., 2014). Similarly, firm also adopt the merger and acquisition tactic to properly perform the business operations and this practice also help Sun Life to mitigate or control the risk. Therefore, these approaches help the firm to gain the growth at higher level.
In respect to growth strategy, it is identified that external factor has a huge impact on the firm ability to perform the business operations (Khan et al., 2015). Likewise, Political factor has huge influences over Sun Life business growth strategy.
This is because stable political environment assist the firm to timely available of resources which result in properly function of business in Canada. So, this study clearly shows the support of political environment is much needed to implement the growth strategy (Song et al., 2017).
But the free trade policy of government put pressure on Canada local players like Sun Life to bring innovative schemes to give threats to competitors. This way political factor affects the Sun life growth strategy.
On the other hand, the social factor also considered as important area which support the Sun Life growth strategy in a positive manner. However, it is identified that Canada has a more old age population and this factor supported the Sun Life in regards to explore its retirement insurances policy in the local market.
The Canada market also helped the firm to achieve high customer base (Oestreicher-Singer & Zalmanson, 2013). But it is also recorded that there is a shortage of skilled staff in Canada so this also affected the insurances firm in respect to develop innovative product and services.
Similarly, the changing customer needs also affect the Sun Life business in term to address each and every requirement. Thus, these factors has supported Sun Life financial firm in terms to expand its business beyond boundaries and invest in different product portfolio in a proper manner.
But these factors also affects the firm in the form of include risk of high competition in the Canada market (Kauškale & Geipele, 2017). Overall, these two supports contribute positive as well as negative impact over the Sun Life growth strategy.
From the above discussion, it is concluded that Sun Life financial has adopt the growth strategy. In this, it used various approaches such as investment in different product portfolio and merger & acquisition with other firm. Moreover, the innovative schemes also supported the firm to tap different market in a proper manner.
However, the focus on the digital platform also assisted the firm efficiency in the form of conduct market survey and identifies the needs of clients so that accordingly firm fulfil the needs and requirements of them. Therefore, these approaches helped Sun Life to attain the growth in business.
It results in achievement of competitive advantage in Canada and other markets. Thus, Sun Life firm growth strategy helps the business to sustain in this competitive environment over the longer duration.
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