Republic of the Philippines

MARINDUQUE STATE UNIVERSITY

College of Business and Accountancy

STRATEGIC MANAGEMENT

A CASE STUDY ON AXA:

CREATING THE NEW CR METRICS

SUBMITTED BY:

CARREON, MYSHERLAH

FERRAN, FATRICIA VERNICE

MADRIGAL, LEA

PALMERO, KELVIN

SOL, JOHN ALEXANDER

SOL, KYM JUN LESTER

FM 3A

SUBMITTED TO:

MRS. VERNA LIZA CAPIÑA

Subject Instructor

NOVEMBER 5, 2024
 Republic of the Philippines
MARINDUQUE STATE UNIVERSITY
College of Business and Accountancy

I. Time Frame

This case study about AXA's evolution spans from its formation in the 1980s to its strategic
initiatives in 2014. As we analyzed AXA’s growth and corporate responsibility journey we found
that in 1980s, AXA was initially formed through mergers of several mid-sized French insurance
companies. With CEO Claude Bébéar’s vision, the company aimed to become the first truly global
insurance brand. In 1990s, AXA expanded aggressively through acquisitions in the United States,
Europe, Africa, and Asia. They were known for successfully turning around struggling companies
and rebranding them under the AXA name, piece by piece building a worldwide brand. In 2000s,
Henri de Castries took over as CEO, helping AXA maintain solid financial results despite
economic challenges. In 2008, AXA formalized its corporate responsibility (CR) efforts by
launching its first global CR action plan, led by Alice Steenland, who created a CR metric to track
their progress across business units. In 2010, AXA introduced the "Ambition AXA" five-year
strategic plan. This plan aimed to improve efficiency, reduce costs, and focus on growth in
emerging markets. Through this strategy, AXA entered major markets like China and India,
solidifying its position as a global player. In 2014, AXA took another major step by moving its CR
team into a newly created "Strategy, Sustainability, and Public Affairs" department, showing how
CR was becoming central to their overall business strategy. They also worked on developing new
CR metrics more directly connected to their operations. By 2014, AXA was recognized as both the
leading global insurance brand and the top "green" insurance brand, with a goal to produce an
integrated report by 2020, covering financial, social, and environmental progress. Through this
journey, we saw how AXA consistently aligned its business and corporate responsibility strategies,
positioning itself as a leader in both areas.
 Republic of the Philippines
MARINDUQUE STATE UNIVERSITY
College of Business and Accountancy

II. Viewpoint

As we analyze AXA Corporation's successful CSR, we firmly believe that the company's
strategic pivot towards customer-centricity, innovation, and sustainability has been instrumental in
driving its growth and resilience.

Summary of the case:

AXA, a leading global insurance provider, faced significant challenges in the early 2010s,
including declining revenues, increasing competition, and regulatory pressures. In response, the
company embarked on a comprehensive digital transformation strategy, investing heavily in data
analytics, artificial intelligence, and customer experience enhancement.

Analysis:

From our perspective, AXA's CSR success can be attributed to:

1. Customer-centric approach: AXA's focus on understanding customer needs and

preferences led to personalized services, improved engagement, and increased loyalty.
2. Innovative culture: Encouraging innovation and experimentation enabled AXA to stay
ahead of the competition and adapt to emerging trends.
3. Strategic partnerships: Collaborations with mid-sized French insurance company and
made a series of acquisitions in different companies in United States, Europe, Africa, and
Asia.
4. Sustainability emphasis: Integrating environmental, social, and governance (ESG)
considerations into business decisions enhanced AXA's reputation and appeal to socially
conscious customers.

Implications:

AXA's transformation offers valuable lessons for the insurance industry and beyond:

1. Digitalization is imperative: Embracing digital technologies is no longer optional, but

essential for survival.
 Republic of the Philippines
MARINDUQUE STATE UNIVERSITY
College of Business and Accountancy

2. Customer experience matters: Investing in customer-centric initiatives drives loyalty,

retention, and growth.
3. Innovation fosters resilience: Encouraging innovation and experimentation enables
companies to adapt to changing market conditions.

Conclusion:

In conclusion, AXA's successful CSR demonstrates the importance of strategic pivoting,

customer-centricity, innovation, and sustainability in driving business growth and resilience. As
the insurance industry continues to evolve, AXA's approach serves as a compelling model for peers
and aspiring industry leaders.

Recommendations:

1. Insurance companies should prioritize digital transformation and customer-centric

strategies.
2. Invest in data analytics, AI, and emerging technologies to enhance operational efficiency
and customer experience.
3. Foster innovation and experimentation through strategic partnerships and intrapreneurship
initiatives.

III. Statement of the Problem

AXA is an insurance and asset management business that had risen up to the top. In year
2010, AXA's management has established a five-year strategic plan that will let the company grow.
In this growth, AXA's leadership had maintained its strength in its CSR. However, it was stated
that during the year of 2008, AXA have already created a formal CR strategy. With this, in
September 2014, there was an event where leadership transferring takes place. AXA's changing of
strategic planning is a must but, it will take a lot of time and a lot to process to establish an effective
 Republic of the Philippines
MARINDUQUE STATE UNIVERSITY
College of Business and Accountancy

CSR strategic planning for a long period of time that will reflect the company's way in its financial,
social, and environmental value aspects.

IV. Statement of Objective

AXA's Goals:

• Risk Management
AXA's objective is to assist clients in effectively managing the risks they encounter
in both personal and business contexts. This involves offering insurance coverage for
different scenarios, providing risk evaluation services, and devising strategies to reduce
potential losses.
• Enhanced Healthcare
Within the health insurance sector, AXA focuses on enhancing the quality of
healthcare services for its clients. This includes offering comprehensive healthcare plans,
working in collaboration with healthcare providers, and advocating for preventive
healthcare measures.
• Wealth Preservation
AXA aims to help individuals and families preserve their wealth through life
insurance, savings, and asset management services. This encompasses providing financial
security through life insurance, offering investment products, and aiding in retirement
planning.
• Addressing Individual Requirements
AXA acknowledges the distinct needs and situations of each client. The
organization aims to customize its offerings to accommodate these particular requirements,
guaranteeing tailored solutions and efficient risk management.
 Republic of the Philippines
MARINDUQUE STATE UNIVERSITY
College of Business and Accountancy

V. TOWS Analysis

OPPORTUNITIES THREATS
EXTERNAL • Emerging Markets • Intense competition
• Increased Focus on • Environmental risks
Sustainability • Economic instability
INTERNAL • Innovation in • Diverse regulatory
Insurance Products challenges

STRENGHTHS SO STRATEGY ST STRATEGY

• Global Presence and • Expand Global Reach • Develop and market
Strong Brand through Emerging products that address
• Successful Acquisition Markets environmental risks
Strategy • Develop Sustainable • Invest in Risk
• Strong Leadership and Products Management Tool

Strategic Planning • Leverage Strong CR

Reputation to Mitigate
Competition
WEAKNESSES WO STRATEGY WT STRATEGY
• High dependence on • Focus on emerging • Cost-Cutting
Mature Markets markets to reduce Measures
• Costly acquisitions dependence on • Focus on optimizing
and high operational Mature Markets operations to reduce
expenses • Streamline Operations costs
• Complex for Cost Efficiency
Organizational
Structure
 Republic of the Philippines
MARINDUQUE STATE UNIVERSITY
College of Business and Accountancy

VI. Strategic Alternatives

Alternative 1: Focus on Key CR Issues Aligned with Core Business

Identify specific CR issues that directly impact AXA's business operations and develop
strategies to address them. For example, AXA could focus on climate change mitigation,
promoting financial inclusion, or improving customer service.

Alternative 2: Develop Partnerships with NGOs and Other Organizations

Collaborate with NGOs, research institutions, or other stakeholders to enhance CR

initiatives and leverage expertise. This could involve joint projects, knowledge sharing, or co-
creating innovative solutions.

Alternative 3: Invest in Innovative Solutions

Invest in technology and research to develop innovative solutions that address CR

challenges and create new business opportunities. This could include developing sustainable
insurance products, implementing data-driven risk management systems, or investing in renewable
energy projects.

VII. Evaluation of Alternatives

Alternative 1: Focus on Key CR Issues Aligned with Core Business

Evaluation:

• Effectiveness: This strategy can effectively leverage AXA's strengths in brand reputation
and technical expertise. By focusing on CR issues that resonate with its core business, AXA
 Republic of the Philippines
MARINDUQUE STATE UNIVERSITY
College of Business and Accountancy

can enhance its competitive position and demonstrate tangible benefits to stakeholders,
such as improved customer loyalty and risk management.
• Feasibility: Identifying and prioritizing key CR issues may require significant internal
assessment and stakeholder engagement. However, given AXA's established commitment
to CR and employee engagement, this should be feasible.
• Alignment: This alternative aligns well with AXA's strength in financial capability and its
commitment to CR, as it can help reconcile the potential conflict between short-term
financial goals and long-term sustainability objectives.

Alternative 2: Develop Partnerships with NGOs and Other Organizations

Evaluation:

• Effectiveness: Collaborating with NGOs and other stakeholders can enhance AXA's CR
initiatives by providing access to additional expertise, resources, and credibility.
Partnerships can lead to innovative solutions and broaden the impact of AXA's CR efforts.
• Feasibility: Forming partnerships is generally feasible, especially for a company with
AXA's global presence and reputation. However, establishing and managing these
partnerships will require careful coordination and alignment of goals.
• Alignment: This strategy supports AXA's commitment to CR and can help address its
weaknesses related to transparency and accountability in reporting. Collaborating with
external organizations can provide third-party validation and enhance credibility.

Alternative 3: Invest in Innovative Solutions

Evaluation:

• Effectiveness: Investing in technology and research can lead to the development of cutting-
edge solutions that not only address CR challenges but also open new business
 Republic of the Philippines
MARINDUQUE STATE UNIVERSITY
College of Business and Accountancy

opportunities. This could position AXA as a leader in sustainable insurance and asset
management.
• Feasibility: While the investment in innovation is promising, it can be resource-intensive
and may require a shift in organizational priorities. AXA would need to ensure that it has
the necessary infrastructure and talent to support such initiatives.
• Alignment: This alternative aligns with AXA's strength in financial stability and its
technical expertise. Moreover, it capitalizes on market opportunities in sustainable
investments and technological advancements.

VII. Alternative choice

Recommended Alternative:

A combination of all three alternatives, with a focus on Alternative 1 (focusing on key CR

issues aligned with core business) as the primary strategy. This approach allows AXA to leverage
its existing expertise and resources while also exploring partnerships and innovation to enhance
its CR impact.

Implementation:

• Develop a comprehensive CR strategy: Define clear objectives, identify key CR issues,

and outline specific actions.
• Create a dedicated CR team: Ensure the CR team has the resources and expertise to
effectively implement the strategy.
• Develop new CR metrics: Create metrics that align with operational goals and accurately
reflect value creation.
• Communicate the strategy: Communicate the CR strategy to stakeholders, including
employees, customers, investors, and the public.
• Monitor and evaluate progress: Regularly monitor and evaluate the effectiveness of the
CR strategy and make adjustments as needed.
 Republic of the Philippines
MARINDUQUE STATE UNIVERSITY
College of Business and Accountancy

Conclusion:

By integrating CR into its core business strategy, AXA can enhance its long-term
sustainability, attract investors, and maintain its position as a global leader in insurance and asset
management. The company should prioritize key CR issues aligned with its core business, leverage
partnerships, and invest in innovative solutions to achieve its ambitious goals.