Engineering Inspection & Insurance Company (Eiic) Essay
Engineering Inspection & Insurance Company (EIIC) was founded in 1952 by Warren Rodman. Before 1990, they was a small but highly successful company that offers machinery and insurance services. After years of above average growth and profits, they are moving backward from the industry average, policy delivery times are excessive and morale is low. They need to change their current strategy as it is no longer effective. The issues they are facing is not only internal but also face the challenges from the external environment.
Analysis and discussion
Critical Operation and Strategic problems A. The increasing of employee turnover rate at 17% in 1990 is the sign of company dysfunction in EIIC. It caused the rising of …show more content…
Implied performance objectives
Dependability: Experienced and highly trained employees in EIIC delivered a good services in term of quality and dependability.
Flexibility and cost: They inspected and insured a wide range of equipment at various coverage.
However, time for policies preparation is so long and insured only the machinery equipment is the weaknesses has lowered their competitive advantage in the market compare to other competitors.
Redesign the business
EIIC need to speed up the writing and submission of insurance policies. They need to shorten the time for each stage in the process. From inspector to underwriting, the number of inspection requirement need to be cut down specially on smaller policies instead of following the same process as the large policies. Inspectors do not have to inspect whole area of property and industry area but concentrate on the demand of customer inspection. They should have more authority to make decision without having interruption from the managers. Insurances policies need adjustment to remove the