Firms management in Pakistan a case of Adamjee insurance company Limited

1 | Fiaz Ahmad Center For Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Contents
Introduction of Adamjee:..............................................................................................................................4
Vision:............................................................................................................................................................4
Mission:.........................................................................................................................................................4
Core values:...................................................................................................................................................4
Integrity:....................................................................................................................................................4
Humility:....................................................................................................................................................4
Fun at workplace:......................................................................................................................................4
Corporate Social Responsibility: ...............................................................................................................5
Company Profile & Description:....................................................................................................................8
A Truly Dynamic Business Setting:................................................................................................................8
Delivering Value to Customers: ....................................................................................................................8
Corporate Objectives:...................................................................................................................................9
Establish latest management systems and adopting latest techniques.....................................................10
Strategies: ...................................................................................................................................................10
Achievements over the years: ....................................................................................................................10
Executive Management Team of Adamjee:................................................................................................11
Board of Directors:..................................................................................................................................11
Advisor: ...................................................................................................................................................11
Management Team:................................................................................................................................11
Management Committees:.........................................................................................................................12
Audit committee:....................................................................................................................................12
Ethics, Human Resource and Remuneration Committee: ......................................................................12
Investment Committee:..........................................................................................................................12
Company Secretary:................................................................................................................................13
Chief Financial Officer:............................................................................................................................13
CHAPTER NO 2: ...........................................................................................................................................14
Cultural and values: ................................................................................................................................14
The different types of structures are:.................................................................................................14
Role Culture: .......................................................................................................................................14

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Task Culture: .......................................................................................................................................14
Person Culture: ...................................................................................................................................14
Values:.....................................................................................................................................................14
Leadership:..........................................................................................................................................15
Collaboration:......................................................................................................................................15
Integrity:..............................................................................................................................................15
Accountability: ....................................................................................................................................15
Passion: ...............................................................................................................................................15
Diversity: .............................................................................................................................................15
Quality:................................................................................................................................................15
Work Smart:............................................................................................................................................15
Act Like Owners: .....................................................................................................................................16
Be the Brand: ..........................................................................................................................................16
CHAPTER NO 3 ............................................................................................................................................17
Organization design: ...............................................................................................................................17
Organization Structure:...........................................................................................................................18
Organizational goals:...............................................................................................................................19
Leadership Style:.....................................................................................................................................19
CHAPTER NO 4: ...........................................................................................................................................21
Core capabilities:.....................................................................................................................................21
Consumer Marketing: .............................................................................................................................21
Commercial Leadership: .........................................................................................................................21
Franchise Leadership: .............................................................................................................................22
CHAPTER NO 5: ...........................................................................................................................................22
Management styles:................................................................................................................................22
Democratic:.............................................................................................................................................22
Autocratic:...............................................................................................................................................23
Consultative democratic:........................................................................................................................24
Team Work:.............................................................................................................................................24
Employee Engagement: ..........................................................................................................................25
CHAPTER NO 6 ............................................................................................................................................25

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Management Functions of Adamjee: .....................................................................................................25
Planning: .................................................................................................................................................26
Strategic Goals: .......................................................................................................................................26
The following are the strategic goals of Adamjee: .................................................................................26
Tactic Goals:............................................................................................................................................26
Operational Goals: ..................................................................................................................................27
Decision Making:.....................................................................................................................................27
The following are the decisions which are taken by the top level of management in the Adamjee: 27
Organizing in Adamjee Insurance: ..........................................................................................................28
All the steps are discussed below in detail: ........................................................................................28
Departmentalization:..............................................................................................................................28
There are five major departments in the Adamjee which are as follow: ...........................................28
Administration Department:...................................................................................................................28
Health Insurance Department: ...............................................................................................................29
Sales and Marketing department: ..........................................................................................................29
Human Resource Department:...............................................................................................................29
Finance Department: ..............................................................................................................................29
Work Specialization: ...............................................................................................................................29
Delegation and Accountability:...............................................................................................................29
Resource Allocation: ...............................................................................................................................30
Organizing the Human Resources:..........................................................................................................30
Leading:...................................................................................................................................................30
Motivation: .............................................................................................................................................31
Communication:......................................................................................................................................31
Corporate Culture:..................................................................................................................................31
Controlling:..............................................................................................................................................32
Sales Person’s Reporting System:...........................................................................................................32
Five Forces Model for Adamjee:.................................................................................................................33
Threat of new entrants- High:.................................................................................................................33
Bargaining power of suppliers- Medium: ...............................................................................................33
Bargaining power of buyers- Moderate to High:....................................................................................34

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Threat of substitutes- Low:.....................................................................................................................34
Intensity of Rivalry- High:........................................................................................................................34
BCG Matrix for Adamjee:............................................................................................................................34
Stars: .......................................................................................................................................................35
Cash Cows:..............................................................................................................................................35
Dogs: .......................................................................................................................................................35
Question Marks:......................................................................................................................................35
SWOT analysis of Adamjee insurance:........................................................................................................37
Reference:...................................................................................................................................................39
Introduction of Adamjee:
Vision:
Our will is to explore, innovate and differentiate
Our passion is to provide leadership to the insurance industry
Mission:
Being the leading insurance company of Pakistan and second best in Asia, our aim is to be a
significant percipient in developing Pakistan‟s image by providing maximum insurance
protection at the most competitive in highly efficient manner for industrial and economic growth.
Core values:
Integrity: Transparency and honesty without compromise
Humility: Empathy, self-esteem and respect in all relationship
Fun at workplace: Work with balance

5 Core values: | Fiaz Ahmad Center For Research and Development Minhaj University
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Corporate Social Responsibility: Service to Humanity

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8 Company Profile & Description: | Fiaz Ahmad Center For Research and Development
Minhaj University Lahore
fiaz.crd@mul.edu.pk
Company Profile & Description:
Adamjee Insurance Company Limited (AICL) is one of the largest insurance companies in
Pakistan incorporated as a Public Limited Company on September 28, 1960 and is listed on
Pakistan Stock Exchange Limited. AICL has unique advantage of having regional presence in
United Arab Emirates (UAE) and maintains its standing through an unwavering commitment to
its corporate philosophy. AICL‟s competitive competency is achieved by combinations of
voluminous assets, notable paid-up capital, sizable reserves as well as diversified business
portfolio.
A Truly Dynamic Business Setting:
AICL aims to deliver innovative customer solutions, owing to its wide-ranging line of products.
Its employees are dedicated to performing their best for its valued customers, trained with all the
skills necessary for a truly outstanding customer service. The Company‟s focus on strengthening
and expanding its global presence is reﬂected in its tapping the potential available in the UAE
market along with the consolidation of business in Dubai & Abu Dhabi. AICL collaborated with
Hollard International, based in South Africa, to commence Life Assurance operations under a
separate entity name, today known as Adamjee Life Assurance Company Limited.
Delivering Value to Customers:
Adamjee Insurance is broadly involved in underwriting the following classes of business:
 Fire and property
 Marine aviation and transport
 Motor
 Accident and Health
 Miscellaneous insurance

9 Corporate Objectives: | Fiaz Ahmad Center For Research and Development Minhaj
University Lahore
fiaz.crd@mul.edu.pk
AICL‟s well-founded confidence lies in the large number of banking and ﬁnancial sector clients
that AICL insures. Some of AICL‟s high risk-value projects include risk-coverage provision to
Petrochemical Factories and Industrial Risk projects. AICL also specializes in insuring
Engineering and Telecom concerns. Alternatively, AICL serves Pakistan‟s primary industry by
providing coverage to the Textile and Sugar sectors. As a pioneer in the coverage of Oil & Gas
(upstream & midstream), Wind and Thermal Energy Risks, AICL has successfully assumed the
role of the leading player in Pakistan‟s insurance industry. The Company has also managed to
secure business being brought in by foreign investors entering Pakistan to execute construction
or infrastructure development projects. AICL is proud to be the premier insurer of Kidnap &
Ransom, Professional Indemnity, Product Liability and other specialized lines in Pakistan.
A wide range of Shariah-compliant Takaful Products are also oﬀered through AICL‟s top-of-the-
line Window Takaful Operations, serving customers from all walks of life, on a much larger
scale.
AICL‟s customer-centric approach drives it forward in customer care. The Company‟s. financial
strength allows the timely remuneration and settlement of hefty claims. A competent team of
professionals works tirelessly to ensure comprehensive customer satisfaction and a 24/7 Call
(0800-00-242) dedicated customer care call center is always on call.
Corporate Objectives:
 Strengthen customer relationship through customer satisfaction by providing excellent
service and quality product
 Maintain a healthy balance between profitability and volume and have a balanced
portfolio mix.
 Increase investment return from its growing funds and absolute return strategy.
 Consolidate market share through offering new product and to focus our approach to
areas where our presence is small

10 Establish latest management systems and adopting latest techniques. | Fiaz Ahmad Center
For Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Establish latest management systems and adopting latest techniques.
Strategies:
 To pursue strong growth
 Adopting industry‟s best practices and increasing economies of scale.
 Leveraging opportunities across the industries
 Developing the Human Resource through training
 Expansion of business and improving customer relationship management through wide
network of branches locally and internationally.
 Development in information technology to have an effective management information
system.
 Pursue best reinsurance arrangements.
 Establish effective risk management system
Achievements over the years:
Adamjee Insurance Company is the only insurance company in Pakistan to be declared the 2nd
best insurance company in Asia by Euro money.
 Up gradation of IFS ratings of JCR-VIS from AA-TOAA.
 Best export performance trophy from FPCCI 18 times.
 31% average dividend payout over the last 20 years.
 Corporate excellence award from management association of Pakistan for two
consecutive years.
 Principle insurer in Pakistan for providing the cover of kidnap and Ranson, professional
indemnity, product liability and certain other specialized lines.
 Winner the top companies award from the Karachi stock exchange 17 times.

11 Executive Management Team of Adamjee: | Fiaz Ahmad Center For Research and
Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Executive Management Team of Adamjee:
Board of Directors:
Umer Mansha Chairman
Fredrick Coenrard de Beer Director
Ibrahim Shamsi Director
Imran Maqbool Director
Muhammad Anees Director
Muhammad Umer Virk Director
Sheikh Muhammad Jawad Director
Muhammad Ali Zeb Managing Director and CEO
Advisor:
Mian Muhammad Mansha
Management Team:
Muhammad Ali Zeb Managing Director and CEO
Muhammad Asim Nagi Executive Director Finance and CFO

12 Management Committees: | Fiaz Ahmad Center For Research and Development Minhaj
University Lahore
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Adnan Ahmad Chaudhary Executive Director Commercial
Asif Jabbar Executive Director Technical
Muhammad Salim Iqbal Executive Director Reinsurance
Management Committees:
Audit committee:
Sheikh Muhammad Jawad Chairman
Ibrahim Shamsi Member
Muhammad Umer Virk Member
sUmer Mansha Member
Ethics, Human Resource and Remuneration Committee:
Ibrahim Shamsi Member
Muhammad Anees Member
Muhammad Ali Zeb Member
Investment Committee:
Imran Maqbool Member

13 Management Committees: | Fiaz Ahmad Center For Research and Development Minhaj
University Lahore
fiaz.crd@mul.edu.pk
Muhammad Ali Zeb Member
Muhammad Asim Nagi Member
Company Secretary:
Tameez Ul Haque – F.C.A
Chief Financial Officer:
Muhammad Asim Nagi - A.C.A

14 CHAPTER NO 2: | Fiaz Ahmad Center For Research and Development Minhaj University
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CHAPTER NO 2:
Cultural and values:
Every business is made up of different cultures and the cultures that are present within the
business depend on the management style and the organizational structures that are used.
The different types of structures are:
Role Culture: This is best suited to a hierarchy organizational structure. This type of
culture works best by every employee playing the role that he or she has been
predetermined and corresponds with the rules and regulations of the business
Task Culture: This culture encourages people to work as a team; this works best in a star
structure.
Power Culture-: This works well in a matrix structure. It is based around one dominant
individual/leader.
Person Culture: This culture focuses on providing administrative help and support and
close attention to one person in the organization (Annual Report 2016)
Role culture is the culture that Adamjee adopts. This is where all members have a defined job or
role to carry out. Role culture is normally split up into a number of functions that are organized
in a hierarchical way. Adamjee would divide themselves into various functions like accounts,
marketing and Administration. These also have hierarchical ordering of office examples of these
are Administration director, Administration managers, supervisors, technicians, operatives etc.
This type of culture works by logic and rationality. Role culture is mainly used in large
organization. In this culture position in the main source of power and rules and procedures are
the main source of influence.
Values:
Adamjee values serve as a compass for its actions and describe how it behaves in the world.
These values include:

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Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well
Focus on the Market:
 Focus on needs of its consumers, customers and franchise partners
 Get out into the market and listen, observe and learn
 Possess a world view
 Focus on execution in the marketplace every day
 Be insatiably curious
Work Smart:
 Act with urgency
 Remain responsive to change
 Have the courage to change course when needed
 Remain constructively discontent
 Work efficiently

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Act Like Owners:
 Be accountable for our actions and inactions
 Steward system assets and focus on building value
 Reward our people for taking risks and finding better ways to solve problems
 Learn from our outcomes -- what worked and what didn‟t
Be the Brand:
“Inspire creativity, passion, optimism and fun.”

17 CHAPTER NO 3 | Fiaz Ahmad Center For Research and Development Minhaj University
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CHAPTER NO 3
Organization design:
Before the nineties the Adamjee was having a centralize system of control, but after sometime
they realized that if they had to meet the demands of the customers they should adopt a
decentralized system in which the authority of decision making is distributed between different
managers so that every sector can be managed effectively. This system was implemented in the
nineties by the Adamjee‟s board of directors. Now the organization is having two groups who are
responsible for operating:
 Investments
 Corporate
Operating groups are also divided by different regions i.e. Africa, Asia, Middle East, European
Union, Latin America, North America etc. All the divisions are further divided into
geographical regions. This allows the local market to involve in decision making, due to this the
organization responds quick to the changing demands of the market, this helps the upper level
managers to concentrate on the long term planning of the organization.
The Adamjee‟s corporate division is filled with different departments which are as follow:
 Finance Department
 Human Resource Department
 Marketing Department

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 Innovation Department
 Planning Department
Some of the above mentioned departments are in the lower levels in the regions of the Adamjee,
the decision making job is most of the times done by the top level management.
Sharing the latest information with each other is very fast by all the departments and by such
activities the organization appears to be doing their job effectively by balancing standardization
and mutual adjustment. The organization has made the Code of conduct which is a guidebook for
the employees on how they should act? The disciplinary actions are the main subjects of the code
of conduct.
The larger role in the organization‟s success is played by the mutual adjustments due to the
changes brought upon by the CEO and Chairman of the Adamjee. The turnover has been reduced
because the employees feel more engaged in the work. The organization‟s growth rates increased
and the return of equity for stockholders went from a negative return to a 20 percent return. The
changes brought l proved to be good for the organization and the employees were also happy
with the change which is reflected by the end results of the Adamjee.
Recently there was a shift in the organization to make it more decentralized and organic which
corresponded with quite uncertainty with organization.
Organization Structure:
Adamjee is “Tall” in terms of organizational complexity. Adamjee is controlled through a
vertical hierarchy, with decision-making authority residing with the Adamjee‟s upper
management. Daily and routine decisions are made by the line managers at the middle level.
Adamjee has more than 1000 system employees. The Adamjee‟s operations reach over 6
countries worldwide, with 84 offices in Pakistan. Adamjee head office is responsible for
providing the Adamjee with an overall direction and support to the regional structure. The
Adamjee‟s Executive Committee makes key strategic decisions for the Adamjee. The Chair of

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the Executive Committee acts as a figurehead for the Adamjee and chairs the board meetings. He
is also the CEO and is the senior decision maker.
Each division of the Adamjee has a marketing manager, public affairs director, finance director,
etc. When one of these divisions is planning to do something, an advertising campaign for
example, the division has to communicate with their superiors to get approval. Since the
Adamjee‟s hierarchy is so tall, communication has to travel back to corporate headquarters in the
U.S, where the Executive Committee has the final decision making power for activities the
divisions have proposed. Below is an organizational chart of the Adamjee.
Organizational goals:
Adamjee is both effective and efficient, as they have made it their objective to succeed in these
areas. Adamjee is more focused on efficiency than effectiveness, but they still achieve in both.
Regardless of what they specialize in, their organizational goal is to maximize profits for
shareholders by selling Adamjee products worldwide to a wide range of customers. They are
able to do this by having a very vertically hierarchical organization that allows them to take
advantage of a low cost strategy, limiting expenses and increasing revenues.
Leadership Style:
For effective leadership, there can be no substitute for strategic thinking and tireless, relentless
execution. There can be no alternative for attracting and retaining the absolute best people to lead
and creating a dynamic environment for them. And there can be no job more important than
communicating effectively with your customers and all your key stakeholders. Adamjee achieves
this by formulating a clear and compelling vision, getting their system aligned behind it,
executing and constantly communicating intentions.
Let's face it; vision without execution is merely daydreaming. And execution without vision is
like running in the dark - you're moving but probably not in the right direction. Adamjee
understands that capturing new opportunities is going to require both vision and execution across
the Adamjee and its wonderful system of its policy partners. That's where the Adamjee‟s vision
which they call Vision 2020 comes into play. It's a look at where the Adamjee and its its policy

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partners need to be heading in the future. The vision is centered on capturing unprecedented
opportunities emerging in future within the global non-alcoholic beverage industry.
In an interview with Management Paradise.com, the CEO states, “my job is to create a climate of
success for our people and inspire them to achieve the vision we have created for our business.
That's really the true essence of leadership”. At the end of the day, it all comes down to
execution. For the Adamjee, execution involves focusing on three core capabilities of:
 Consumer marketing - which generates that bond and emotional connection with
consumers.
 Commercial leadership - which involves all the strategic actions taken with over 20
million retail customers who sell Adamjee brands around the world each day.
 And franchise leadership - which is working with its 300 its policy partners around the
world to create greater system alignment.

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CHAPTER NO 4:
Core capabilities:
Consumer Marketing:
Marketing investments are designed to enhance consumer awareness of and increase consumer
preference for Adamjee brands. This produces long-term growth in unit case volume, per capita
consumption and the Adamjee‟s share of worldwide nonalcoholic beverage sales. Through
relationships with its policy partners and those who sell Adamjee products in the marketplace,
the Adamjee creates and implements integrated marketing programs, both globally and locally,
that are designed to heighten consumer awareness of and product appeal for brands.
Commercial Leadership:
The has millions of customers around the world who sell or serve their products directly to
consumers. The Adamjee focuses on enhancing value for these customers and providing
solutions to grow their beverage businesses. Adamjee approach includes understanding each
customer's business and needs, whether that customer is a sophisticated retailer in a developed
market or a kiosk owner in an emerging market. We focus on ensuring that our customers have

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the right product and package offerings and the right promotional tools to deliver enhanced value
to themselves and the Adamjee.
Franchise Leadership:
The Adamjee must continue to improve its franchise leadership capabilities to give the Adamjee
and its policy partners the ability to grow together through shared values, aligned incentives and
a sense of urgency and flexibility that supports consumers' always changing needs and tastes.
The financial health and success of its policy partners are critical components of the Adamjee's
success. The Adamjee works with the its policy partners to identify system requirements that
enable them to quickly achieve scale and efficiencies, and the Adamjee shares best practices
throughout the its policy system.
CHAPTER NO 5:
Management styles:
A management style is an overall method of leadership used by the manager. The success that
the management team at Adamjee has in motivating its employees to meet their objectives is
based on the management style they adopt. There are three main management styles democratic,
autocratic and the laissez-faire style. The Adamjee uses the following management styles, but
each one in different departments.
There are three main types of management styles used in businesses:
Democratic:
The democratic leadership style consists of the leader, sharing the decision making abilities with
the group members by promoting the interests of the group members and by practicing social
equality. This emphasizes on group agreements to generate new ideas. There are two types of
democratic management styles; democratic and consultative democratic. Democratic is where all
the managers, junior managers and employees are involved in the ideas and final decision
process. Out of all the workers, no-one has a higher level than the others in this management
style.

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Democratic style is the management style that Adamjee adopts. This sort of management style
involves empowerment. In this management style individuals and teams are given
responsibilities and decisions to make, usually within a given framework. If anything wrong
happens then the individuals and teams are then held responsible for the decisions that are
chosen. With this type of management style, it allows the manager to feel comfortable with other
people in the organization making some of the decisions. Democratic managers will often want
feedback from their employees on decisions being made. Democratic leaders listen and act on
the opinions of the group. This type of management is good as it makes the employees happy and
productivity is high. This is a very good method because employee's thoughts and suggestions
are listened to by the business. This makes the employees seem as if they are respected and that
their thoughts are valid.
Feedbacks from managers at Adamjee system across the across the Pakistan provide vital
information that is incorporated in their strategies.
Autocratic:
The authoritarian leadership style or autocratic leader keeps strict, close control over the
followers by keeping close regulation of the policies and procedures given to the followers. To
keep main emphasis on the distinction of the authoritarian leader and their followers, these types
of the leaders make sure to only create a distinct professional relationship.
Where the leader makes all the decisions, there is no negotiation and is very prescriptive and
there is little job satisfaction. However, the job gets done quickly and there is less conflict
between different ideas. This style is hardly used among the Adamjee as they believe that the
lack of input could lead to poor results. Autocratic does save a lot of time as quick decisions can
be made and there is no time wasted on discussion resulting in the business saving time and
money.
Laissez-faire management style:
The Adamjee has a culture that is run in the laissez-faire style meaning the „hands off‟ approach.
The laissez faire style is sometimes described as the "hands off" leadership style because the
leader delegates tasks to their followers, while providing little or no direction to the followers.

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If the workers are meeting their Key Business Indicators, then the managers and the directors of
the Adamjee take this relaxed style of coordinating their business. They have a vision to „refresh
everyone everyday ‟and the values „to take pride in their work, to be honest, fair and determined
to win and have a passion for their actions‟.
Consultative democratic:
This is where the managers allow the employees to make the ideas but the ideas are forwarded to
the executive's or the manager consults their team to make the final decision. Adamjee applies
consultative management style to the Adamjee more as there can be less conflict for what the
final decision is. The advantage of this is that it helps to motivate staff as they are aware that they
have a say in the Adamjee to some extent. The disadvantages of this that the process is very time
consuming and effort will be needed by a manager to do this.
Management encourages employees to set goals in line within the organization aims. There are
reviewed regularly in performance appraisals. The advantages of this style are that it will
increase efficiency of individuals and help to motivate them and train them so they are
productive. He world's insurance marketer and whole insurance industry leader for more than
118 years, Adamjee are focused on the strategic workplace programs that help assure the success
of their commitment to embracing the similarities and differences of the people, cultures and
ideas. The strategies Adamjee uses to achieve these objectives include the use of certain
mechanisms that facilitate such communication to take place. These mechanisms include the use
of:
Team Work:
Team work is a sub culture within the Adamjee. Teams are accountable for activities like:
 Quality
 Utilization and
 Yield

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Within the system, there needs to be a balance of Utilization, speed the factory works at, and the
Yield. Working together in teams provides the cooperation necessary to achieve this smoothly.
Employee Engagement:
Another part of the culture and the management style at the Adamjee is its employee
engagement. Employee engagement consists of the following five points:
 Realizations that delivery of the hard stuff is simply not enough.
 Openly acknowledging this to the workforce.
 Doing what it takes to engage every employee in the space of 16 days.
 Involving everyone in the design of the management style consistent with vision and the
values.
 Identifying talented individuals across the operation to act as the internal facilitators to
train out the new behavioral standards (The Adamjee 2016).
CHAPTER NO 6
Management Functions of Adamjee:
There are four major functions of management of the Adamjee which are as follow:
 Planning
 Organizing
 Leading
 Controlling

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Planning:
The Adamjee consists of just a three layers of flat hierarchy. Due to this the top level
management has the duty of setting the goals and objectives of the Adamjee. Planning is also
done by the upper level managers.
Strategic Goals:
In most of the companies the strategic goals are made for long term but Adamjee Adamjee‟s
goals are set for only three years, they change their strategies after every three years. The goals
are set by the Managing Directors of the Adamjee after getting the clearance from the
headquarters. Every year in the annual meeting they have a review of their strategy to make sure
they are moving with the changing environment in the market.
The following are the strategic goals of Adamjee:
“To continue to be an organization providing the quality insurance policies to the valuable
customers.
 To select and retain the professional people for the organization.
 To project an outstanding corporate image.
 To satisfy the customer through extra ordinary service and an excellent service
 An along with the complete tactical and operational support.”
Tactic Goals:
Tactic goals are set at the end of the year at annual basis. The top level management decides
these goals with the consultation of the lower level employees. The following are the tactic goals
of the Adamjee:
 To increase the revenues by 20% as compared to last year.
 To increase the total retail customers by around 10%
 To increase the market, share by 5%
 To reactivate the discontinued customers by 30%” (Annual Report 2016).

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Operational Goals:
The operational goals are also set by the Managing Director of the Adamjee. Before
implementing these goals, the manager consults them with lower level employees and after
convincing them they implement the goals officially. In this type of goals, the Adamjee uses
Management by objectives (MBO). Every employee assigned is told about what the organization
is expecting from him/her and then his evaluation is done on the basis of organization‟s rules and
regulations.
Decision Making:
Decision making process is centralized in the Adamjee. The classical model is used, the top level
managers take their time in making the decisions and all the possible alternatives are kept in
mind before going for the rationally economic solution. The top level managers don‟t consult
with any employee in case of programmed decision making. The ordinary routine decisions are
made by the line managers of the middle level management after getting the permission from the
general manager.
The following are the decisions which are taken by the top level of management in the
Adamjee:
 The package positioning
 Trade discounts
 Advertisements
 Price reductions
 Distribution
In recruitment of new employees, the top level management approves the vacancies and the
Human Capital Department is asked to conduct a written test such kind of tests are conducted for
the employees of lower level. The prospective applicants are shot listed through the interview
process. After taking the interview of the applicant the operation manager and the general
manager make the final decision of selection of the employee.

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Organizing in Adamjee Insurance:
Organizing is the second management function. The following steps are taken by the Adamjee in
organizing their goals and objectives:
 Departmentalization
 Work Specialization
 Delegation and Accountability
 Resource Allocation
 Organizing the Human Resources
All the steps are discussed below in detail:
Departmentalization:
On the basis of functional approach, the Adamjee is divided into different departments. Grouping
of employees is done on the basis of their common skills and work activities. Such kind of
approach helps the Adamjee in solving their problems and it also make the less the need of
training the employees specially. The general manger is head of all the departments all the
department have to report to the general manager in the Adamjee.
There are five major departments in the Adamjee which are as follow:
 Administration Department
 Health Insurance Department
 Sales and Marketing Department
 Human Capital Department
 Finance Department
Administration Department:
This department looks around all the Administration of the Adamjee. All plants in the country
are in under its control. This play very fey role in Adamjee for the smooth working of Adamjee.

Lahore
fiaz.crd@mul.edu.pk
Health Insurance Department:
This department deals with the health insurance maters. The department listen the problems of
the employees and send them to the high authorities for health insurance clients and receive
complains and then try to improve them for betterment of Adamjee.
Sales and Marketing department:
This department makes sure that the product is easily available in the market for the customers to
buy and deals with the issues of advertisement, promotion, and distribution of the product.
Human Resource Department:
This department takes care of the efficient workers of the Adamjee, they select some efficient
workers of in the Adamjee recommend their names for promotion in job so that the workers
remain happy and don‟t leave the Adamjee. Management level employees are dealt by the
department.
Finance Department:
The department is concerned with cost and price of the products produced by the Adamjee. It
also tackles with import related issues of the Adamjee. Finance department is assisted by the
sales and marketing department in making invoices and payroll entries.
Work Specialization:
There is a high percentage of work specialization in the Adamjee because every manager is
appointed in the function in which he is expert so there is no boredom or monotony. All the
promotions of the employees are based on their performances. No favoritism is allowed in the
Adamjee.
Delegation and Accountability:
There is a high percentage of delegation in the Adamjee. The work is done with proper authority
and responsibility. Every manager is made accountable for the actions of his subordinates. All
the subordinates are guided very keenly by their respective managers at the time of
accomplishing some goal. Keeping the delegation process on the other side the managers also

Lahore
fiaz.crd@mul.edu.pk
motivate their subordinates to boost up their energy and make them more effective by using
different methods. They make their subordinated think that they have to give their best to their
managers which increases their performance, quality of work and satisfaction of the customers.
Resource Allocation:
When the issue of resource allocation comes into action the Adamjee has given the authority to
managers to use the resources of the Adamjee where ever and whenever they are needed. Only
they are required to get the approval from the manager if those assets belong to his department.
The resources can be capital, labor, machinery or anything else.
Organizing the Human Resources:
The Adamjee does the recruitment process when there is a position empty and the recruitment is
always done on permanent basis in Adamjee. Recruitment is done when the manger needs the
employee under him and he send the request to the general manager and after the approval of the
general manager the request is sent to the Human Resource Department. In Adamjee firstly all
the vacancies are announced within the organization so that if there is someone who can fulfill
the requirements can get him/herself promoted or can refer someone of his relative to join if he is
capable of that job. If there are no suitable persons than the Adamjee searches its bank where
there are huge amount of application of the applicants. If there also they find no person suitable
for the job, then at last they give the advertisement in the newspaper etc.
Leading:
The third management function is “leading”. The following major steps are taken by the
Adamjee in the leading function:
 Motivation
 Communication
 Corporate Culture

Lahore
fiaz.crd@mul.edu.pk
Motivation:
Adamjee gives high attention to the motivation of the employees. Promotions of hardworking
employees are a part of the Adamjee‟s policy. Promotions of employees are done on the
performance basis which is a great motivation for the employee that higher his performance there
is more chance of his promotion. Beside from promotion strategy the Adamjee also uses the
compensation strategy to motivate the employee; Adamjee is paying industrial average in
compensation. Not only this different campaigns and competitions between the employees itself
are also used to motivate the employees.
Managers play a very important role in the motivation of the employees in Adamjee. They help
them in all their problems either they are personnel or professional. They give them feedback on
their performance which makes the employee feel good. Working environment and a challenging
milestone are a major factor in employee motivation in the Adamjee.
Communication:
There is an open environment in the Adamjee which allows the employees to communicate with
each other and it allows the information to flow inside the Adamjee and discourages the barriers
between members to share information. Before making the decisions the top level managers
discuss it with the middle level managers and before decision making it is shared till the end of
the hierarchy. The Adamjee allows the employees that anyone of them can meet the general
manager if he/she is facing any kind of difficulty. Interdepartmental communication is done in
the form of formal and informal manners. To get the feedback of the employees and get the view
of the employee about the manager the grapevine is used.
Corporate Culture:
The top management of the Adamjee tries to follow the prescribed culture of the organization.
Adamjee has formal and documented values that are communicated to all the employees. The top
level manager acts as role models to make sure that the rules and regulations are been applied in
the Adamjee and closely administrator review their employee‟s behavior.

Lahore
fiaz.crd@mul.edu.pk
Controlling:
The last and the most crucial function of management are “Controlling”. In this function the
Adamjee evaluates that either they have achieved the goals which they had set before. If the
answer is “yes” then the employees and managers are rewarded with bonuses and other ways and
vice versa. In the following we‟ll come to know that how the Adamjee performs its controlling
function.
Sales Person’s Reporting System:
Sales person had to report to the market developer area every day about his activities. He gives
him record of the per day sales and he can get any kind of assistance by the area market
developer anytime on any matter. Attendance of the sales person is taken with the punch card
system, with the help of which the entry and exit time of the sales person is recorded.
Every sales person is given a route card in which there are details of the visit of the outlets,
how much time he spent on the outlets, number of sales made on the outlets, the time taken
during travelling from one outlet to the other, name of the loader and sales person and the
entry and exit time of the vehicle.
Apart from this the sales person is also given a forum to fill up for the orders of the next day to
be loaded in the truck. This makes the managers know that how much sales of which brand and
the size of the product are being done by the sales person. The information is useful for the
human resource department because they have to evaluate the total performance and calculate
the total salary of the sales person.

33 Five Forces Model for Adamjee: | Fiaz Ahmad Center For Research and Development
Minhaj University Lahore
fiaz.crd@mul.edu.pk
Five Forces Model for Adamjee:
Threat of new entrants- High:
The threat for new entrants lies within the industry itself. Some companies are operating in the
niche area of underwriting insurance. They are running the threat of being squeezed out by big
players. Another threat is other financial services companies entering the market.
Bargaining power of suppliers- Medium:
For the insurance industry, the source of funds is the premium paid by its customers, hence
intertwining the customer & suppliers here. The suppliers of funds here, hence have the option of
choosing from various insurance agencies. However, the insurance agencies cannot reduce the

34 BCG Matrix for Adamjee: | Fiaz Ahmad Center For Research and Development Minhaj
University Lahore
fiaz.crd@mul.edu.pk
premiums below a minimum support level. Thereby, the bargaining power of suppliers is
medium.
Bargaining power of buyers- Moderate to High:
There are 2 types of buyers/consumers- individual and corporate. Large corporate clients who
pay millions of dollars in premium have a lot more bargaining power than individual clients. As
a whole, the buyers have moderate to high bargaining power.
Threat of substitutes- Low:
There is no real threat of substitutes for the insurance industry.
Intensity of Rivalry- High:
Insurance has become more of a commodity. The Insurance companies with low cost structure,
better customer service and greater efficiency will be able to beat out its competitors.
Considering that more than 50 companies exist in this sector, the intensity of competition would
definitely be high.
BCG Matrix for Adamjee:
Businesses must keep their product offerings relevant and profitable to stay in operation. The
Boston Consulting Group developed a tool, called the BCG matrix, for categorizing a firm‟s
Policies in relation to the overall product life cycle. Product life cycle is based on the observation
that Policies develop, similar to animals, through distinct phases of maturity that differ in amount
of resources required and produced. The BCG matrix places each product a Adamjee offers
according to the growth rate of the business and the relative market share the product controls.
Identifying which quadrant of the BCG matrix a product offering falls into provides valuable
guidance to management about the future of that product.

University Lahore
fiaz.crd@mul.edu.pk
Stars:
The polices of Adamjee that are enjoy a high relative position in terms of market share in a
growing market are referred to as stars. They require large investments to maintain the market
share, but often produce enough revenue to cover their expenses. Adamjee should make it a top
priority to maintain the market share of Policies in the star quadrant of the BCG matrix to
increase sales. As the product enters maturity, and growth rates decline below 10 percent,
maintaining market share will require less investment, yet produce similar revenue, and become
cash cows.
Cash Cows:
Cash cows produce substantial profits for their companies because they require little investment
to maintain their high share of the market. Managers should divert profits from cash cows to help
defend market share of star Policies, develop new Policies for emerging markets, or turn
struggling Policies around. While cash cows often provide the largest profit margin in Adamjee
portfolio, firms interested in maintaining long-term profitability must invest in defending and
creating star Policies that will become cash cows.
Dogs:
Low market-share Policies that show low growth are referred to as dogs. Managers should
minimize the number of dogs in the product portfolio. While many managers seek the challenge
of trying to turn a dog product around, additional scrutiny should be given to any investment in
dog Policies. Firms should decide whether to find a niche in the product‟s market to control or
divest from the product entirely to free up resources for more profitable ventures.
Question Marks:
The most troubling quadrant on the BCG matrix is filled with Policies in high-growth markets
that control relatively weak positions within their markets. These Policies, called question marks,
require large investments to develop. Even with substantial funding, a question mark product is
at a disadvantage due to the fierce competition in high-growth markets. Managers should
consider the likelihood and means of increasing market share, such as specializing in a niche

University Lahore
fiaz.crd@mul.edu.pk
market, before allocating additional resources to question marks. If a question mark is unlikely to
capture a niche market or stand out against the better established competition, the firm should
divest to increase its overall profitability.

37 SWOT analysis of Adamjee insurance: | Fiaz Ahmad Center For Research and
fiaz.crd@mul.edu.pk
SWOT analysis of Adamjee insurance:
Strengths:
 Pricing Power:
Customers typically rebel against price
increases by switching to competing
products, but if a company has pricing
power, customers will continue
using AICL‟s products and
services. AICL has the ability to charge
customers higher prices.
 Innovative Culture:
An innovative culture helps AICL to
produce unique products and services
that meet their customer‟s needs.
 Financial Leverage:
Financial leverage allows AICL to use
their balance sheet to expand their
business and increase their profits
 Cost Advantage:
Lower costs lead to higher profits
for AICL. A low cost leader can
undercut rivals on price.
 Brand Name:
This gives AICL the ability to charge
higher prices for their products because
consumers place additional value in the
brand.
Weaknesses:
 Weak R&D:
Weak R&D can slow AICL‟s growth
as competitors out-innovate AICL
 Work Inefficiencies:
An inefficient work environment means
that AICL‟s goods and services are not
being utilized properly
 Weak Supply Chain:
A weak supply chain can delay the
arrival of products to AICL‟s
customers. Unnecessary delays can
hurt AICL over the long run, because
customers will cancel orders
 Lack of Scale:
A lack of scale means AICL‟s cost per
unit of output is very high. Increasing
volume, while maintain quality, would
help reduce those costs…

38 SWOT analysis of Adamjee insurance: | Fiaz Ahmad Center For Research and
fiaz.crd@mul.edu.pk
Opportunities:
 Online Market:
The online market offers AICL the
ability to greatly expand their business.
AICL can market to a much wider
audience for relatively little expense.
 Innovation:
Greater innovation can help AICL to
produce unique products and services
that meet customer‟s needs
 New services:
New services help AICL to better meet
their customer‟s needs. These services
can expand AICL‟s business and
diversify their customer base
 New Technology:
New technology helps AICL to better
meet their customer‟s needs with new
and improved products and services.
Technology also builds competitive
barriers against rivals
 Emerging Markets:
Emerging markets are fast growing
regions of the world that
enable AICL to quickly expand
Threats:
 Bad Economy:
A bad economy can hurt AICL‟s
business by decreasing the number of
potential customers
 Intense Competition:
Intense completion can lower AICL‟s
profits, because competitors can entice
consumers away with superior products
 Government Regulations:
Changes to government regulations can
negatively affect the AICL
 Political Risk:
Politics can increase AICL‟s risk
factors, because governments can
quickly change business rules
 Substitute Product:
The availability of substitute products
hurts AICL‟s ability to raise prices,
because customers can easily switch to
another product or service

39 Reference: | Fiaz Ahmad Center For Research and Development Minhaj University
Lahore
fiaz.crd@mul.edu.pk
Reference:
M Ali (Assistant General Manger Finance Department)
Syed Afraz Ali (Assistant Manager Finance Department)
The Adamjee Adamjee: Mission, Vision & Values. Retrieved Dec 31, 2016 from:
http://www.adamjeeInsurance.com

Firms management in Pakistan a case of Adamjee insurance company Limited

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