Chapter 5

Summary, Conclusions and Recommendations

A. Summary

The scope of strategic management is inherently greater than any other aspects of different organisation.

Primarily, the main goal of this research study is to identify the strategies used by American International Assurance

(AIA) company to remain competitive in the banking and insurance industries. Furthermore, the aim is to determine the
factors that affect overall performance of the industry and to know the core competencies of AIA.

To achieve the objective of the study, the researcher have used descriptive approach and gathered pertinent

data from 50 respondents of AIA through its self-administered survey-questionnaires. Base on the data gathered and
analysed, it has been found the company uses effective management strategy.

Most of the respondents have strongly agreed that strategies of AIA have been important in meeting the needs

and demands of their target market, which results to having a competitive advantage mong their rival companies. The

study also shows that the effective management strategy allows the company to outgrow their rival companies in

banking and insurance industries. Effective management practices provide the firm with highly motivated and
productive employees that works on meeting the needs and demands of their clients.

By paying attention to customer wants and needs, organizations are more likely to achieve their objectives in

the marketplace. Customers are the ones benefited by the management of AIA. By giving clients what they want they

tend to be more willing to purchase a companys products than its competitors. In customer service their can be different
requirements for different place and different situations.

The result of the study shows that the effective strategies initiated by AIA have been able to meet the

organisational goal of improving and enhancing the performance of the employees but also the performance of the

organisation as well in meeting the needs of the customers. In addition, the result also shows that as perceived by

respondents, the marketing strategies enhances the market capabilities of AIA to be more motivated and productive in

providing quality products and services that will be offered to the target market. Effective strategies functions as a
companys basis to achieve competent organisational performance.

In addition, the study also revealed that as perceived by the respondents the factors that affects the

performance of the company includes the political status of HK, technology and innovation, buying behavior of
consumers, current economic status of HK and the innovation strategies of other banking and insurance industries.
 As mentioned, one of the aims of this research is to identify the core competencies of AIA. The gathered data

revealed that the core competencies of AIA includes company management, products and service design, corporate
culture and their efficient use of information Technology.

Conclusion

At present, businesses are becoming more focused on different aspects that influence their organisational

performance and competitive position in the marketplace. Although, competition in banking and insurance industry is

tough, it can be said that AIA is still able to compete well because of their effective management strategies, their ability
to cope with different factors that affects the business as well as their core competencies.

Through this study, it can be perceived that the success of an organisation may depend on the strategies

implemented by the management of the company. Being able to identify these factors is important so that other
companies will likely to find strategic ways to stay in the competitive market.

The dissertation revealed that these factors benefit the organization, the group, and the individual. Accordingly,

the context of these factors is about enhancing employee skills to do their tasks well and to be able to contribute to the

success of the organisation. It can be said that these factors has been useful in identifying the preferences of their

market and this has helped them in enhancing the potentials of their organisational performance and core competencies
to its maximum level.

It can be said that the AIA in HK has been able to use effective strategy to compete well in the marketplace.

The assessment of the strategies used by the company provides a constructive impact on organisational culture,

organisational development, and bottom line. Through this, the employees has been able to see that the AIA is geared
towards ensuring that organisational goal will be achieved through different business activities and practices initiated.

Based from the research questions developed for this research, a number of important findings were drawn.

With regards to the components of the factors that influence AIA, the company has been able to value their employees
and considers essential activities such as capabilities, technology, and innovation.

Recommendation
Effective business practices are essential elements for the success of all businesses. Through these, companies
are able to distribute and promote their products and services to retailers and consumers.

In this research paper, it becomes apparent that management strategy is among the key factors for businesses

to succeed and meet the organisational goals. From this discussion, several important points had been suggested. For
instance, this research has implied the value of choosing the most applicable and effective management strategy which
 will enable them to meet and the needs of the customers. Sufficient time should be allotted by the company in order to
develop effective strategy plans. In addition, time is also necessary during the implementation process.

Skills or expertise is also an important element in implementing business strategies, specifically leadership

and communication skills. According to (2003), strategies tend to evolve constantly. As businesses encounter different

pressures and environmental factor over time, their respective managements must create strategies that are

appropriate to their current situation. Some of the factors that encourage constant strategic changes include the

identification of new business threats or opportunities, technological advancements, emergence of new purchasing

trends and requirements, competitive conditions and initiatives to increase market share. Strategic reforms and

business changes actually share a directly proportional relation; as changes and adaptations in business increases,

the need for strategic reforms also increases. Business strategies must evolve in order to let companies overcome the
challenges that they encounter.

In this discussion, much focuses where given on how these strategies help the company to outgrow its rival

industries. However, it is also necessary to point out that monitoring the progress or effects of these strategies are also

prioritized. Monitoring systems or procedures should be developed by companies along with the implementation plans

of the chosen business strategies. This is an important additional process to strategy implementation as it leads to
several other benefits.

After citing all these other important needs, perhaps the most important learning from this research is that

implementing business strategies, be its customer-oriented or not, is not a standard matter. Each business is operating

in an environment that is different from others. This means, businesses are subjected to unique internal and external

factors, which should be considered in strategy implementation. Hence, rather than follow the implementation practice

of major and successful corporations, it is more recommendable to take an individualized or customized approach in
implementing business strategies. In this way, greater control can be obtained.

In this regard, the management of the company must have the ability to strategically decide the most essential
external environment factors to be monitored in order to sustain competitive advantage.

Future Research Directions

The study conducted for the AIA in Hong Kong can be enhanced further through the following future research
recommendations:

1. Future researchers using a similar topic may consider the use of a larger sample instead of just using 50

respondents or customers of the company. This could be helpful in making the findings more applicable in
general.

2. Other methods of research and data-gathering such as meta-analysis or correlation may be used in the future
to determine the connection between management strategy and competitive advantage.
http://www.myspeedythesis.com/2009/09/assessment-of-the-strategy-used-by-american-international-
assurance-company-aia-bermuda-limited-in-line-with-the-competitio.html