A Detailed Historical Description Of An Organization Essay

1322 Words Jan 28th, 2016 null Page
1. Introduce your organization by presenting a detailed historical description of the organization from inception to a discussion of current issues and major initiatives (500-1000 words).
a. As an organization, GEICO has a colorful history. Originally founded in 1936 by Leo Godwin, Sr., GEICO today has grown into a massive company, holding the title as the second largest private auto insurance company within the United States. With its original founding, Godwin sought to create a product that was marketed directly to certain target groups, thereby giving him the ability to lower premiums (Calandro, 2011). The first such group were government employees, hence the long name of Government Employees Insurance Corporation, or GEICO for short. By using this strategy and marketing to relatively safe risk groups, Godwin built GEICO into the fourth largest auto insurance company by 1975. This stunning growth was short lived as underwriting standards became lax and poor investment choices almost led the company to the brink of collapse (Calandro, 2011). This all contributed to a decrease in market share and by 1993, GEICO only accounted for 1.9% of the auto insurance market. This led to the appointment of a new CEO, Tony Nicely, and eventually two years later saw the purchase of the company by Warren Buffett’s Berkshire Hathaway. Buffett, who followed the company since 1951, had a keen interest in seeing GEICO succeed and began slowly purchasing shares of the company until 1996, when…

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