Business Administration 462

Business Strategy

Fall 2014

MetLife Strategic Plan

The Great Pumpkins

The Pennsylvania State University

The Great Pumpkins

➢ Jonathan Sailor

➢ Andrea Hosage

➢ Paige Morey

Key Information➢ Growth Opportunities lie in international emerging markets and:

○ providing retirement solutions to the rapidly aging population in

the US Market

○ diversification of products and product offerings

➢ Corporate Social Responsibility is an integral part of the company’s

Strategic Advantage

➢ Strengthening and empowering our personnel will give us a

competitive advantage via customer service

➢ Competition drives the Insurance industry and forces Metlife to

continually strive to maintain its market share

➢Background

➢Mission and Vision

➢Strengths, Weaknesses, Opportunities & Threats

➢SWOT Analysis Summary

➢Strategic Plan on a Page

➢Timeline

➢Measurements

➢Additional Information

➢Questions

Agenda

➢ Starting in 1863, MetLIfe begin as the National Union Life and Limb

Insurance Company. They created plan for Civil War sailors and soldiers.

➢ 5 years later the named changed to Metropolitan Life insurance Company.

MetLife official opened in 1868.

➢ 1879 they went to England where insurance programs like “industrial” and

“workingman’s” was widely successful

➢ 1909 MetLife became the nation’s largest insurer in term of insurance in

force, has held leader position sense

➢ MetLife has had a relationship with the Peanuts Characters since 1985.

➢MetLife has a Best Cost Provider Approach

Background

➢ Mission Statement:

○ MetLife, the leading global provider of insurance, annuities, and employee

benefits, is devoted to enabling and empowering everyone to attain financial

independence and to be recognized as the world’s most trusted company.

MetLife Mission and Vision

➢ Vision

○ Unprecedented levels of world-class customer service, a long history of

sound investments, proven corporate social responsibility, innovative

products and services, and solid leadership will keep MetLife leading the

industry for another 140 years.

➢ Strong Market Share at 4.2% vs competitiors

➢ Brand Image Well Known and Positively received

➢ Solid Core competencies in insurance, annuities and employee benefits

➢ Has Existing Relationships and Sponsorships

➢ Ample financial resources

➢ Global Reach

➢ Cost Structure Advantages

➢ Strong Asset Management

➢ Diverse and multi-culturally aware

Strengths

➢ Other insurance options like home and auto not highly advertised

➢ Low presence in Emerging Markets

➢ Over reliance on legacy products with adverse risk profile

➢ Business lines are not synergistic with core strategy

➢ Size limits ability to respond to emerging and changing market conditions

➢ Integrations of acquisitions into company culture

➢ Employees lack of understanding of current market trends

➢ Not enough adequate communication with clients

Weaknesses

➢ High Potential for Growth

➢ Expand product offerings

➢ Partner with existing health, dental, and vision service providers

➢ Underrepresented customer demographics

➢ Expand into untapped geographic markets

➢ Emerging trend for income and wealth protection

➢ Shift to greater consumer control for retirement planning in United States

➢ Growing middle class in emerging markets

Opportunities

➢ Economic downturns

➢ Strength of competitors

➢ The Affordable Care Act

➢ Employers downsizing of benefit packages

➢ Easy access to information by individuals

➢ Regulatory changes

➢ Younger generations who do not see the importance of investing in the

future

➢ Volatility of stock market

➢ Low interest rates in the United States

Threats

SWOT Analysis Summary

Goals:Increase our market share by 25%

Increase our Net Profit by 10%

Increase our Revenues by 15%

Strategic Plan Goals and Values

Values:Integrity, Leadership, Citizenship, Excellence, Professionalism,

Ethical Operations, and Respect are the core values instilled in

MetLife at its inception.

Strategic Plan

ScoreCard Project 1Increase our international market share in Southeast Asia

Workplan Project 1

2015

Projet 1-Phase

Research Partnerships

X=Yearly measurement

ScoreCard Project 1Cont.Increase our international market share in Southeast Asia

2015

Project 1 - Phase 2

Acquisition Increase by 5% per year

Workplan Project 1 Cont.

X=Yearly measurement

ScoreCard Project 5Create New CSR Opportunities

2015

Project 5 - Phase 1

Implement Green Policies

Workplan Project 5

X=Yearly measurement

ScoreCard Project 5 Cont.Create New CSR Opportunities

Project 5 - Phase 2

Donate Computer and Supplies

Workplan Project 5 Cont.

ScoreCard Project 5 Cont.Create New CSR Opportunities

Project 5 - Phase 3

Establish and Award Scholarships

Workplan Project 5 Cont.

Timeline

Key Information➢ Growth Opportunities lie in international emerging markets and:

○ providing retirement solutions to the rapidly aging population in

the US Market

○ diversification of products and product offerings

➢ Corporate Social Responsibility is an integral part of the company’s

Strategic Advantage

➢ Strengthening and empowering our personnel will give us a

competitive advantage via customer service

➢ Competition drives the Insurance industry and forces Metlife to

continually strive to maintain its market share

Questions?