Jacinoto Street, Davao City
In Partial Fulfillment of the Requirements in
MGT248 – Production and Operations Management
Reynaldo C. Navacilla, MPA
Alvarez, Althea Grace
Matuguina, John Oliver
Rivera, Donita Marel
Romea, Jonna Lynn
Siblos, Quennie Jane
MWF / 2:35-3:35pm / C405
November 21, 2011
The Progressive Insurance otherwise, known as the Progressive Casualty Insurance Company, provides personal automobile insurance, and other specialty property-casualty insurance and related services in the United States. The company was co-founded in 1937 by Jack Green and Joe Lewis and is headquartered in Mayfield Village, Ohio. It has 25,000 employees in more than 450 offices. It aims to create employee satisfaction by providing them unique work environment. It ensures that the company’s objectives are clearly known and understood by its employees.
Progressive Insurance is said to be one of the largest auto insurers in the United States. It primarily offers its services through its website or by phone and through independent insurance agents. Progressive's Agency business sells insurance through more than 30,000 independent insurance agencies and progressiveagent.com where customers can quote their own policies and then contact an agent to complete the sale. By its strategic ways of out-operating its competitors, it continues to grow and lead in the insurance industry. However, everything has its plus and minus and no single strategy is effective in different circumstances.
Even a strong company like Progressive Insurance also faces challenges in the pursuit of trying to continually reap the advantages of its core competencies and stability of its business.
STATEMENT OF THE PROBLEM
The strategy that Progressive Insurance has implemented involving immediate response can easily be imitated by other companies, creating potential competitors.
1. Employees, due to the long hours required on the job to be able to quickly respond to customer requests, lose valuable time that could be spent as personal leisure or with their families.
2. Due to Progressive Insurance's goal of lowering operating costs, they are also laying off several employees in order to lessen their salary expenses.
3. Employees have little, if any, incentives to continue working for the company. There is also little room for advancement of rank or status within the company's structure.
4. Benefits for customers of Progressive Insurance are also lacking, which does not help with maintaining or improving customer loyalty and satisfaction.
Based on the problem the group came up with the following objectives: a) To come up with competitive strategies for Progressive Insurance aside from Immediate Response that would serve as a competitive edge over other companies in the same industry b) To create methods that could improve customer loyalty and satisfaction c) To enhance the employee relations and compensation
* Pricing Power
Progressive Insurance offers lower prices compared to its competitors which attracts more customers.
* Unique Products and Services
The company introduced new ways of doing things which enable them to compete and out-operated its competitors.
* Strong Brand Name
Progressive Insurance has already established its name in the industry and is now the United States’ 3rd largest auto insurer.
* Good and Fast Customer Service
Through their innovations, they come up with a system that can provide customers with fast and less hassle services.
* Innovative Culture
The company constantly thinks of new and better ways to improve their system.
* Less Employee Benefits and Incentives
Due to the company’s demanding work schedule,...