3. Stock price:- ₹ 700.80 +28.95 (+4.31%)
Founded:- 1 September 1956
Founder:- Indian government
Headquarter:-Mumbai
Life Insurance Corporation of India is an Indian
central public sector undertaking headquartered
in Mumbai, Maharashtra, India. It is under the
ownership of the Ministry of Finance, Government
of India.
About LIC
4. Products of LIC
LIC’s Insurance Plans are insurance that
speaks to you individually and recommends
the best solutions to meet your needs.
•Life Insurance
•Health Insurance
•Investment Management
•Mutual Fund
6. GOVERNANCE SYSTEM
political factors exert a strong influence on the long-term
sustainability and profitability of LIC. The presence on the
international stage increases the company’s sensitivity to
changes in the political environments of different
countries. the key to success in a dynamic international
business environment is to diversify the systematic risks.
LIC needs to consider the following political factors
during the strategic planning process:
LIC can benefit from the economic freedom offered by
the democratic governance system, which promotes
entrepreneurship and free trade.
POLITICAl FACTOR
7. INFLATION
INDUSTRY LIFE CYCLE STAGES
The second component of the PESTEL framework,
comprise multifaceted variables that directly affect the
business’s ability to achieve its economic objectives. LIC
must gain an in-depth understanding of these factors
to anticipate short-term and long-term business growth
in the chosen sector. Some of the key economic factors
are explained below:
ECONOMIC FACTOR
8. GENDER ROLES
Social factors represent the key demographic
characteristics, social values, norms, and customs of the
society in which the business organization functions. LIC
must carefully handle the social factors, as failure to
adapt according to the socio-cultural environment has
driven many highly successful business organizations
towards failure. This article section discusses the
implications of some key social factors for LIC
SOCIAL FACTORS
9. Rapid technological advancement and technology diffusion
across the globe has increased the importance of understanding
technological factors during the strategic decision-making
process. A detailed analysis of the technological environment can
help LIC. capture the technological trends to achieve certain
business advantages, such as increasing profitability, boosting
innovation processes, and enhancing operational efficiency. The
technological factors can influence the business performance of
LIC.:
TECHNOLOGICAL FACTOR
Social media marketing
Technological innovation and development level
10. ENVIRONMENTAL FACTOR
COVID
Environmental analysis has gained significant importance in
the contemporary business environment due to the
increased vigilance of stakeholders toward sustainability
and environmental protection. LIC should gain an in-depth
understanding of environmental regulations to avoid
lawsuits and reputational harm in the market. Implications
of some important environmental factors are discussed
below
11. LEGAL FACTOR
Consumer law
Discrimination law
Copyright law
Health and Safety law
Employment law
Legal factors are external factors which refer to how the
law affects the way businesses operate and customers
behave.
Product transportation, profit margins, and viability of
certain markets are all examples of things which may be
influenced by legal factors.
General examples of Legal Factors affecting business
include:
12. INTERNAL FACTORS THAT IMPACT
THE OVERALL BUSINESS
CUSTOMER
ADVERSE IMPACT DUE TO BRAND NAME
COMPETITOR
EMPLOYEES
1.
2.
3.
4.
13. Many consumers think of some factors like premium, plan,
bonus, interest, company service, and documentation. LIC
of India dominates all the sectors that can attraction of
customers and gain their customer’s satisfaction. Other
insurance companies are increasing, and a wide range of
products offered in the market is still LIC of India highly
demanding in the insurance market.
CUSTOMER
1.
14. Since there was a higher demand for policies due
to the outbreak of Covid, many employees and
agents of LIC misused the situation under the LIC
brand name. Due to misconduct and fraud by such
people using LIC’s brand name, there has been a
severe impact on the brand.
Adverse impact because
of brand name
15. It can be said that LIC did a commendable job by bringing
about changes in its marketing strategy. LIC tried its level
best to cope with the marketing initiatives of the private
insurance companies. The market share which the private
companies were taking away from LIC was an eye-opener
for LIC which was once enjoying a monopoly position in the
market. The private companies were taking away the market
share by bringing new and innovative products to suit the
needs of customers, building a strong distribution network,
strong advertisement, and finding new markets for their
products. LIC which was moving on a traditional pattern
revitalized itself to regain its market share and image and
came up with new marketing and sales promotion
techniques. These changes proved to be fruitful for LIC.
COMPETITOR
16. The LIC employees said the justification offered by
the government that it would bring in ‘discipline’
lacked merit and pointed out that many private
sector entities in the insurance and banking sector
have collapsed in recent times. They also sighted the
meltdown in the world economy and the crash of
private entities worldwide despite which the public
sector institutions in India fared well.
EMPLOYEE
17.
18.
19. LEARNING OUTCOME
LEARNING OUTCOME
Improve presentation skills.
To get to know about the internal and external
factors that affected the business environment.
How different policies affect businesses that
weakens/strengthens them.
