Strategic Audit Report- Strategic Management

SWOT

#

FACTORS

WEIGHT

RATING

WGTD

SCORE

COMMENTS

S1

Claims Handling

.15

4.8

.72

Progressive is considered a leader in the industry

S2

Customer Service

.05

3.5

.18

Progressive policy holders rate high but none policy holders rate low. Gap needs bridged.

S3

Employee Satisfaction

.10

3.5

.35

Most employees are happy but limited advancement opportunities frustrates some

W1

Out Dated Technology

.10

2.5

.25

Progressive operating systems are over 10 yrs old

W2

Claims Errors

.05

2.5

.13

Progressive has a goal of below 10% currently around15%

O1

Technology

.15

2

.30

Progressive needs to grow its technology reach by using more social media and other online support tools to consumers vs. the competition.

O2

Department of Insurance

.05

2

.10

Progressive has had a difficult past with the DOI. Improvement on relationship needed to make business easier.

T1

Competition

.10

2.5

.25

Progressive needs to diversify its product offering. Many other companies offer multiple lines of coverage for easy to the consumer.

T2

Stock Market

.10

3.5

.35

Progressive’s profitability is tied to the stock market heavily. If the market falls, so do Progressive’s profits. This accounts for a large sum of profits.

T4

Weather

.15

4

.60

Progressive sets aside a certain reserve each year. If weather is more damaging than predicted the cash flow of the company is put in serious jeopardy.

TOTAL SCORES

1.00

3.23