Situation Audit: Progressive Mutual Insurance Company

Executive summary

This document presents a situational audit for Progressive Mutual Insurance Company, an insurance company with its headquarters in Mayfield Village, Ohio. The Progressive Corporation was created on Mar. 10, 1937, by Joseph Lewis and Jack Green when they set up Progressive Mutual Insurance Company. The current CEO and President is Tricia Griffith, who succeeded Glenn Renwick in 2016. The corporations mission is to be an excellent, innovative, growth-oriented, and enduring business. They plan to achieve this by profitably and cost-effectively cutting-down the human trauma and costs of accidents and developing a recognized, trusted, admired, business-generating brand. The objectives for the company are; profitability and growth. The most prominent business strategies that the Progressive Corporation has adopted include product development, innovative products, integration, and market development. Progressive Corporation the biggest car insurance company in the United States.

According to the latest statistics, the company has over 39,000 talented employees. It has a clear organizational structure with the CEO and president at the top and all departmental heads reporting to her. The companys critical resources are its flexible and talented human resources, technology resources, and organizational culture. The management and leadership style at the Progressive Corporation can best be described as transformational. The leadership has played a crucial role in navigating the organization towards improvement by changing existing through and procedures. Corporate governance for the corporation is under the responsibility of the board. Learning and change in the company are facilitated by the companys transformative leadership and change training programs. Based on this audit, it is recommended that; 1) The management should seek ways to expand on the insurance business by providing additional covers for uncovered risks or venture into other related business, 2) it should take in riskier customers or give more discounts for some segments, and 3) consider opinions, views, and reviews from their customers.

Introduction

This document presents a situational audit for Progressive Mutual Insurance Company, popularly referred to as The Progressive Corporation. A situation audit is the appraisal and analysis of the basic planning premises and covers all the processes. It presents a sense of expectations, needs as the organizations current status in creating awareness throughout the organization, crystallization of a development-oriented focus, and making people committed to realizing specific goals (Clarke, Friese & Washburn, 2017). This information is vital for strategic planning as the organizations top management makes current risk-taking...

The report provides the best possible information on the organizations current status, the operational environment, and the target customers, thus enabling future situations and consequences.

More specifically, the situational audit for The Progressive Corporation is important because;

i. it identified and analyses the key trends, phenomena, and forces that can impact the organization on the formulation of strategies. This will help top management identify specific elements in the operational environment to be addressed

ii. . It emphasizes the importance of conducting a systematic evaluation of how the environment affects the organization

iii. . It is a forum to share and debate various and divergent views about appropriate environmental changes. The more open the debate, the more effective it is for strategic planning

iv. the attempt to assess the environment helps sharpen vague, amorphous altitudes concerning operations in the environment, and

v. all the information presented in the report provides a base for the completion of strategic planning in all its phases, from re-evaluating missions, visions, and goals as well as the formulation of strategies and implementing them.

Fact sheet

The Progressive Corporation was created on Mar. 10, 1937, by Joseph Lewis and Jack Green when they set up Progressive Mutual Insurance Company (Progressive, n.d.). The company, which has its headquarters in...

…working, but it has been concluded that the insurance industry is limited, and due to the many complex laws that govern insurance, there might be no room for expansion in the near future and thus limit the growth of the company.

Progressive Corporation is one of the top insurance companies in the U.S., with its auto insurance comprising about 9% of the auto insurance market based on premiums underwritten. The companys size can offer discounts, coverage options, and rates comparable to other large national insurance companies. Still, some segments of drivers, e.g., drivers who are inexperienced, who have not had previous accidents, and who do not drive conservatively, do not get good rates and services and are unlikely to insure with the progressive corporation.

Views and concerns of customers are not included. It is also concluded tha, even though this audit is indicative of a successful business model with an effective process in place, it is also clear that the views of the most important stakeholders, the consumers, are not included.

Based on these deductions, it is recommended that;

i. The management should seek ways to expand on the insurance business by providing additional covers for uncovered risks, e.g., reinsurance, stock insurance, etc., or venture into other related business, e.g., corporate pension plans.

ii. Given the companys size, it is possible to take in riskier customers or give more discounts for some segments, e.g., the segment made up of inexperienced drivers who have not had previous accidents not drive conservatively is a potential for growing the business.

iii. The management should consider opinions, views, and reviews from their customers. Based on reviews from the processes and the ROI for the company, it might suggest all is well, but only authentic and real status can be determined from customers reviews on such things as how is the cover…