Discuss the consequences of a change in any combination of the STEEPLE factors for an organization’s objectives and strategy

Change is the term used to describe how business organisations adjust their goals, plans, and day-to-day operations in response to the marketplace, emerging technologies, and shifting consumer trends. In order to satisfy the needs and desires of their stakeholders, organisations must make important long-term planning decisions known as strategies.

In this essay, the legal, technological, and social goals and strategies of AIA Hong Kong (AIA) are examined. The goal of the well-known insurance provider AIA is to give its clients financial security, protection, and a comfortable future. Given the nature of the sector in which it operates, AIA has a difficult time meeting the needs of Hong Kong residents and businesses. A STEEPLE analysis examines the external environment that an organisation must deal with. Legal factors, such as legal rights and health and safety regulations, are one change in the external environment that has an impact on AIA's objectives and strategies. The Office of the Commissioner of Insurance was established by the government of the Hong Kong Special Administrative Region (HKSAR) on January 1st, 2016, to oversee the wholesome growth of the HKSAR's insurance industry and the protection of policyholders. Every individual policyholder is now required to disclose their financial situation to the insurance agent as an external stakeholder in order to demonstrate their ability to pay for their insurance policies.

"Doing the right thing in the right way with the right people" is the AIA's mission statement. Although the costs of compliance are higher as a result of this change, AIA's objective of doing the right thing (even if it costs AIA more to do so) is well aligned with it.

Another STEEPLE factor that has an impact on AIA's goals and strategy is ethics. AIA's agents are prohibited from misrepresenting any investment risks due to recent changes in insurance regulations. For instance, the insurance agent must never mislead clients regarding the conditions of the policies. The individual customer, who may not have extensive knowledge or experience in financial investments but must still make decisions, is the group that is most affected by ethics. However, the need for time and money to train its employees is a limitation of AIA's strategy to address this. The technological environment is another change in the outside world that affects AIA's goals and plans. As technology advances, AIA must keep up in order to have better technological systems to support its daily operations more successfully and effectively. For insurance agents, for instance, electronic applications have taken the place of paper forms.

Using a single-stop procedure that includes application with e-signature and online payment with an iPad, agents can now finish the paperwork for a client.

Customers (an external stakeholder group) can download AIA's health apps to look up nearby hospitals and panel physicians who accept their medical insurance. Customers of AIA benefit from this strategy change because it makes it easier for them to access first-hand information through online apps. However, network security and privacy are a restriction. Even if encryption is employed, private information about users' financial and medical histories could still be hacked. According to Forbes magazine, approximately 112 million health records were compromised in the USA during 2015. Finally, social factors like changing demographics have a significant influence on AIA's goals or strategies. There is an increase in the percentage of workers with degrees in HKSAR. Therefore, AIA's recruitment strategy in terms of workforce planning is to recruit more young people. In HKSAR, the average age of its front-line agents was 27 years old in 2015 as opposed to 40 years old ten years prior. To expedite the progression of graduates into management positions within the company, AIA has developed a special graduate programme. Thus, one advantage of this strategy is that it draws highly capable university graduates to AIA.

In conclusion, the changing objectives and strategies of AIA are significantly impacted by changes in the external environment factors (such as legal, ethical, technological, and social factors). For AIA to maintain its position as one of the most powerful insurance companies in Hong Kong, it must constantly adapt quickly to changes in these STEEPLE factors.
 

Having a solid understanding of the concepts and content is required to receive 4 points for Criterion A. The candidate did well given the time constraints to explain four STEEPLE factors in the context of AIA. Not all of the examples offered, though, were sufficiently specific to AIA. Instead, general examples were used; for instance, most business organisations, not just AIA, update their IT systems. The essay included arguments in opposition to Criterion C. But for justification to be valid, the arguments must be supported by evidence. The essay did not make this point very clear.

Since all structural components are present, the candidate can earn 4 marks for Criterion D. The chosen STEEPLE factors were discussed in separate paragraphs, in particular. Because a "individual" consumer (last paragraph of the first page of the essay) cannot be taken into account alongside a "group" of consumers, the candidate did not receive a 4 for Criterion E.

Having a solid understanding of the concepts and content is required to receive 4 points for Criterion A. The candidate did well given the time constraints to explain four STEEPLE factors in the context of AIA. Not all of the examples offered, though, were sufficiently specific to AIA. Instead, general examples were used; for instance, most business organisations, not just AIA, update their IT systems. The essay included arguments in opposition to Criterion C. But for justification to be valid, the arguments must be supported by evidence. The essay did not make this point very clear.

Since all structural components are present, the candidate can earn 4 marks for Criterion D. The chosen STEEPLE factors were discussed in separate paragraphs, in particular. Because a "individual" consumer (last paragraph of the first page of the essay) cannot be taken into account alongside a "group" of consumers, the candidate did not receive a 4 for Criterion E.