marketing managing at redwoods group term paper
Excerpt from Term Paper:
Marketing Supervision
My firm is the Redwoods Group, a specialized insurance agency. The company declares its key purpose should be to serve others, and its focus is to maintain kids safe. They be aware that solutions to various problems are “often inconvenient for the people used to undertaking things a certain way” and that Redwoods “engages in not comfortable conversations with individuals who are generally not ready to confront these issues: general public officials, teachers, philanthropists, sociable service and business leaders” (Redwoods Group 2013 Report). The company’s primary business is an insurance company, and as a risk consultant. In these tasks, Redwoods safeguards YMCAs, camps and community groups. Providing insurance to bodies, Redwoods is not strictly aimed at profit-taking, but rather providing the insurance at an amount that budget Redwoods although otherwise the lack of profit-taking allows it to undercut different insurance companies in competing to get nonprofit insurance business. The business wrote $48 million in premiums in 2013, generating $12. you million in revenue and from that a net profit of $138, 000 (Redwoods Group 2013 Annual Report).
Triple Final conclusion
The three-way bottom line principle takes into account how the organization executes on three categories of measure – income, planet and folks. The profits have been completely noted over – Redwoods turns a modest cash in on its venture, $138, 1000 last year. This represents a net perimeter of 1. 13%. The previous season the net margin was a little bit higher for 2 . 67%, and the organization also attained slightly more revenue the prior 12 months as well and wrote more premiums, so 2013 was a down yr. The sector average for net perimeter in insurance is 10. 39% (MSN Moneycentral, 2014). The company’s track record of profitability, on the other hand minimal, gets it a net great.
The N Corporation is known as a watchdog group that says companies in accordance to multiple bottom line results, more or less. The B Organization gave Redwoods Group a 7 around the environment, vs . a typical score of 9 (B Corporation, 2014). Redwoods has a strong eleemosynary streak, yet that is focused on the human aspect, not the surroundings. Its impact is probably low and environmental impact is usually taken into consideration, however the company is focused elsewhere. The best the company can say for alone is that above 50% of its establishments are located near public flow, which pretty much means that it can be in a town. On “planet, ” Redwoods is a net negative. While the core activity is certainly not destructive, this still constitutes a negative contribution when it offers employees whom drive to work – it’s in North Carolina so most will – and attempt to reduce this with telecommuting. Without the other work to make a great environmental contribution, Redwoods receives a net negative level based on the fact that their very own business is usually small enough that even their tiny footprint is more than required – a large competitor can handle this kind of business having a lower little increase in footprint. This is really bad – Redwoods does well at other areas yet seems to have little or no environmental consciousness with regards to taking less from the world that this puts in. It creates practically nothing of ecological value that is certainly what hurts it right here.
The W Corporation (2014) ranks Redwoods high on workers (36 vs mean of 22) and but low on community (17 vs . median of 32). Hence, Redwoods ratings well for individuals. Employees will be reimbursed pertaining to continuing education, and are paid a full time income wage. The latter is just about mandatory for just about any company inside the insurance sector. Over 80% of overall health premiums are covered and it offers 6+ weeks of maternity leave. In essence, Redwoods gets a whole lot of credit from N Corporation pertaining to doing things that every insurance provider in the created world away from the United States does. In the U. S., expectant mothers leave plus some health care is special. The B Company credits this for having over 50% ladies – mathematically that’s not hard – although also that above 75% of employees devote some time off pertaining to community services. Redwoods provides a wide range of basic safety resources, which include contributions to child sexual abuse reduction, employee protection, aquatics security, and other items related to you’re able to send risk asking business. As a result, it makes a genuine contribution to the betterment of the community, putting its knowledge of risikomanagement to great use. It is rather reasonable to argue that Redwoods has a net positive contribution to the neighborhoods it acts. The insurance services it provides can just as very easily be offered by others, yet Redwoods would it at a lower price to the customer, freeing up their earnings for other stuff. Furthermore, Redwoods’ efforts to lessen risk in the neighborhood should generally be considered to get positive and appear to be much more than similar corporations would carry out.
Overall, the minimal net positive from the profit is not enough to offset environmentally friendly net unfavorable, but the net people confident is. Within the strength of its commitment to bettering the community, the triple main point here for Redwoods Groups is positive.
four Cs Stakeholder Analysis
The four Cs are customers, competitors, firm and community (Nager 2014). While in theory Redwoods can offer insurance solutions and risk consulting for any wide range of customers, in particular risk consulting, used the company mainly markets to not for profit agencies. Community businesses are the primary target market for the company’s insurance services, and it has accumulated a niche in understanding the needs of these customers and locating ways to meet their needs at a lower cost than typical insurance companies can (Redwoods Group. com, 2014).
One consumer is the YMCA of Grand Rapids. This can be a case examine presented in the 2013 Redwoods Group Total annual Report. As with most customers, the standard need is responsibility insurance. These organizations have got limited money normally, when it comes to the GRMS YMCA elevated through memberships and charitable contributions. Redwoods, for example , became a donor in order to donated money to help source a “veggie van” to be able to improve the usage of fresh fruits and vegetables in underprivileged local communities. So furthermore to getting insurance, the GR YMCA also individuals Redwoods with an initiative to aid fight years as a child obesity. This can be the sort of romance that Redwoods often wants to build with its good clients. YMCAs certainly are a major focus on group pertaining to the Redwoods Group, along with related organizations that run community centers and providers. These are typically small , dissipate organizations, non-e of whom makes up much of the total consumer bottom for Redwoods.
The rivals for these insurance services is also insurance companies. A great many other insurance companies offer similar providers aimed at this target market, nevertheless do so with an vision to earning higher earnings than Redwoods is considering earning. Pertaining to Redwoods, it is more important to provide the insurance in a marginal profit than it is to make large earnings (Redwoods Group. com, 2014). There are a number of indirect rivals as well. These kinds of agencies may opt for zero insurance, or perhaps less insurance, as a means of freeing up some of their operating capital intended for other spending. That other spending could possibly be just about anything, yet might even become the services they give. That said, insurance of some form is often mandatory to be able to prevent bankrupting the not for profit in the possibly that something happens.
One of the major insurance companies that provides insurance intended for charitable organizations is definitely USLI, the us Liability Insurance Group. This kind of competitor can be larger than the Redwoods Group, and is element of Berkshire Hathaway, which also owns Geico and has $183 billion dollars in product sales (MSN Moneycentral, 2014). The non-profit segment of USLI is a miniscule part of that total, however the fact that USLI is underwritten by these kinds of a large business makes it a formidable competition. USLI contains a program where it seeks to provide a variety of nonprofit insurance in a single package, leveraging their capabilities since an expert with a a few different specialties. USLI offers individual liability packages as well, although does not provide insurance pertaining to the employees of such organizations; alternatively USLI will refer these to another company under the Berkshire Hathaway umbrella. USLI can be therefore a formidable rival, but with a stronger profit motive and never nearly precisely the same sense of ethics that Redwoods Group has.
The company has its own hobbies as well, and Redwoods splits these in the profits gained for the owners as well as the benefits pertaining to the employees. Personnel are awarded a living salary and substantial levels of benefits relative to different firms inside the U. H. They staff are as a result fairly very well looked-after. The company is also lucrative. The profits are generally not much, but are enough, together with the owners earning a living for the company and drawing an income. There is over $2 mil in owner’s equity within the balance sheet (Redwoods Group 2013 Annual Report). The main interior stakeholders happen to be therefore the personnel, the owners and the managers.
The employees are generally considered to be the main group. The business needs to strike a balance between offering
