Sun Life Financial – Case Report

Topics: Insurance, Strategic management, Economics Pages: 18 (5194 words) Published: December 27, 2006

teacher X
Corporate strategy

Table of content
Table of content3
1.Executive Summary4
2.1.Company background4
2.2.Sun Life Financial Involvement in China5
3.Definition of the problem6
4.Description of the procedure to solve the problem7
5.The research8
5.1.The main implications of the resource-based view8
5.2.The competence based perspective of strategic management10 5.3.The strategic logic11
5.4.The business and the organization concept11
The business concept11
The organization concept12
5.5.The core process13
6.Environmental analysis14
6.1.The swot14
6.2.The PEST16
Political factors16
Economic factors16
Social factors16
Technological factors (information gathered from internet dating 2005)17 7.The attractiveness of the Chinese market17
The Market17
The people18
8.Internal Strategies VS Operation China18
9.Results and Conclusions19
9.1.(Dis)Advantages Entry Strategies +City Choices19
Entry Strategies19
City Choice20
9.2.Governmental Relations & Joint Venture Management21

1.Executive Summary
For the course of corporate strategy we had to make a report dealing with the problem of Sub Life Financial entry into the Chinese market. In this report we will deal with several topics related to the corporate strategy course and we based our theory upon the literature of this course. The book that was taken to base our theory is "the new strategic management" of Ron Sanchez and Aimé Heene. After a long analysis of the case we came up with a recommendation of having a full speed approach and choosing Shanghai as city to enter the Chinese market. 2.Introduction

2.1.Company background
Sun Life Financial of Canada began in 1865, Montreal, selling insurance policies to Canadians in the process of the country's creation. By the 1890s, Sun Life Financial had begun an internationalization process, by expanding into Nicaragua, Ecuador, Peru and Chile and later into Asia, including Japan, India and China; at the turn of the century, Sun Life Financial looked to diversify it's investment and began expanding trough growing industries, such as electric utilities and gas, telephone and transport. Sun Life Financial maintained private ownership and staved off a take-over attempt by U.S firm in the 1950s, allowing it to strengthen its roots in Canada. Sun Life Financial had a six pronged approach to its strategy Aggressively expand the wealth management business

Strategically grow higher return protection business lines Achieve superior shareholder returns while maintaining Financial discipline Leverage strong brands across multiple product offerings Capitalize on distribution strengths

Pursue expansion in key strategic markets
Nowadays the majority of their sales were generated by sales in Canada and United states.

2.2.Sun Life Financial Involvement in China
In 1992, China opened two geographical market areas in the country to foreign investmenent, Shanghai and Guangzhou. Sun Life already had a presence in China in the 1920s but as the communist party took the power in 1949 they were asked to leave the country. The purpose of Sun Life was to be present in Asia and to provide information to the Canadian headquarters. In 1999, the Chinese government granted the right for the company to apply for a license. And later on they signed a memorandum of understanding for a joint venture with china Everbright Group. These agreements were required by the Chinese government to maintain domestic involvement in business expansion within the country. Its strategy was to partner with a respected and prestigious firm that had clout with the national and local authorities. The company wanted to create an entity that was...

Bibliography:  The case
 The new strategic management from Ron Sanchez and Aimé Heene
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