Prudential PLC

PRUDENTIAL PLC
Introduction: This report is directly related to the strategic issues that Prudential plc has to face as a company in the insurance market. Prudential plc is an English company that operates in Europe, US and Asia. It is structured around four main business units: Prudential Corporation Asia, Jackson National Life Insurance Company, Prudential UK and M&G. My research is based on life assurance, general insurance and pensi ons. We will use a PESTEL analysis to evaluate the macro-environment that affects the company. The political, economical, social, technological, environmental and legal factors can affect the situation of the company. In a recent study (Grell 2010) states that Insurance helps to economic growth and develop ment in Europe. In 2006, insurance enterprises in the EU generated EUR 996bn in turnover and employed more than one million people and invested more than EUR 5 229bn in the economy.
Main Issues for Prudential plc:
Prudential plc is an insurance company that provides life insurances for the private sector, so social will be my first main issues because it is directly related to the private customers. In Europe pensions are covered by the government, but every day we can see that the governments are cutting down pensions. The solution for this situation is to make a contract with the insurances company such us Prudential plc.
Secondly, economic issues are my second choice because Prudential is a financial service that gives to the population the opportunity to invest in their security. The situation of the families could affect the situation of the company. If we are in uncertainty period people will contract more life insu rances and pensions. The demographic can influence in the company, for example in the population its getting old they are going to raise the number of pensions, but the need to pay more pensions as well.
Political factors:
These refer to government policy like taxes. Political decisions as for example law can affect on many areas for business. The situation of the country and the quality of the infrastructure of the economy such as transport system could influence in the results of the company at the end of the year. The current and the future legislation also could be a very important part of the political activity of governments. Fiscal policy is not only carried out through discretionary actions (explicit measures) but also a number of mechanisms operating automatically, helping to stabilize economic activity. Taxes are the most representative example of an automatic stabilizer because the altered income varies the amount collected automatically. Unemployment insurance also acts as an automatic stabilizer because the depression increases and decreases in the recovery phase.
Social Factors:
From the point of view of a social position the company is an association of people, using the items that they have , gives its members and their families the security in their member of their material and moral commensurate with i ts human condition. We cannot think of just private enterprise as a mechanism for the production of goods, services and benefits, or as a body biological struggling to stay alive in an environment. Private enterprise is now a social system with a large impact on people who compose it. These people have an influence mutual society that participan t. Therefore, they should worry not only about how they occur and distribute the products, but also the type of
advertising that is used, how they are employed natural resources, waste disposal and the impact of all these factors in our social values.
Political:
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ecological/environmental issues current legislation home market future legislation international legislation regulatory bodies and processes government policies government term and change trading policies funding, grants and initiatives home market lobbying/pressure groups international pressure groups wars and conflicts
Economic:
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home economy situation home economy trends overseas economies and trends general taxation issues taxation specific to product/services seasonality/weather issues market and trade cycles specific industry factors market routes and distribution trends
y y y
customer/end-user drivers interest and exchange rates international trade/monetary issues
Social:
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lifestyle trends demographics consumer attitudes and opinions media views law changes affecting social factors brand, company, technology image consumer buying patterns fashion and role models major events and influences buying access and trends ethnic/religious factors advertising and publicity ethical issues
Technological:
y y y y y y y y y y y y y
competing technology development research funding associated/dependent technologies replacement technology/solutions maturity of technology manufacturing maturity and capacity information and communications consumer buying mechanisms/technology technology legislation innovation potential technology access, licencing, patents intellectual property issues global communications

Prudential PLC

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Main Issues for Prudential plc:

customer/end-user drivers interest and exchange rates international trade/monetary issues

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