Business evaluation Essay

This essay has a total of 1380 words and 6 pages.


business evaluation




Business evaluation
The subject that I interviewed was Mike from Allstate Insurance. Mike is an agent who
owns his own office and has his own employees but at the same time is also an employee
himself for the Allstate Corporation. The nature of Allstate is the sales of different
lines of insurance policies. Mike's office is very service oriented although they are in
the sales business. He classifies his office as a retail business with the explanation
that he is selling something that is not provided directly by him, rather by the company,
and because what he is selling is being bought.

Allstate is a company that has many people that work for it. Each of these employees is a
separate agent that works as a mediator between the customer buying the product and the
company selling the product. Thus, Mike's own business inside another business positions
itself, as well as Mike, as an agency.

Since Mike is ultimately a salesperson, what he does most frequently during the day is to
interact with people and sell them a policy or assist them with one he already provides
them with. Even though this is what he does most often, he finds human relations to be
the most difficult thing to do. Working with people isn't the easiest thing to do and he
informed me that in the insurance business the calming people down and making sure you do
your best to try to satisfy the customer can sometimes become quite exhausting. What made
this the most difficult for him was frequently having to this for customers who were upset
with something that happened and trying to remain calm and pleasant after dealing with
someone who refuses to be satisfied.

He uses trend exploration to determine his forecast. Since he is the sales person of his
business he does his own forecasting. Trend exploration involves extending a pattern
observed in past data into the future. He simply looks at the past sales of a few months
or a year to try to come up with a projection for the next few months or year. This is a
simple way of forecasting because trend exploration assumes that sales will remain the
same, however, this may not always be the case.

Allstate is probably known best as the "good hands people". This is their main
advertising campaign. It commonly uses the sales pitch, "your in good hands with
Allstate." Beyond having a photo and name in the yellow pages, Mike himself doesn't have
a particular advertising campaign for his individual office. He does, however, supply
his customers with his personalized pens, magnets, calendars, and business cards. Mike
doesn't supply any promotional things for his office; the company does it for him. They
manufacture and send him any special promotional advertisements that he can place or hang
in his office. The company informs him of what areas that the agents need to focus on
selling but that doesn't necessarily mean that there is a promotional campaign that will
go along with it.

Prices for each policy are determined to specifically fit the individual who is buying the
policy. Things such as the number of years a person has had his license, how many points
are on ones record, and the type of vehicle being driven, along with other certain
factors, help to determine the price of an auto policy. Certain features such as smoke
detectors and an alarm system, again along with many other factors, contribute to a final
cost of a home policy; and a person's age, health, and length of the policy will all
affect the price of a life insurance policy. In addition to the individual factors that
help the agent find the premium that needs to be paid, the company also figures in how
many losses, of money, there were due to claims, the salaries and benefits paid to the
employees, and the cost of advertising and promotions. All of those factors contribute to
the final cost that the customer has to pay.

The way the competition is analyzed is actually quite simple. Mike himself uses
comparative rating. He merely notes the premium of his competitors compared to his own so
he knows what the strong points, less expensive policy rates, that he should sell compared
to the weaker, more expensive policy rates, points that he should concentrate less on.

The atmosphere of this office was very pleasant. The over all feeling that one feels when
he enters this particular office is a feeling of being welcome. The entire staff was
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