this model shift is connected with the cultural and motivational aspects and

This model shift is connected with the cultural and

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this model shift is connected with the cultural and motivational aspects and not solely a technological issue. Implementing cloud-centric model in the business model is expected to increase employee motivation by creating effective tools of promoting initiative and improving the quality of work. It will be also more effective from the perspective of organizational cooperation and collaboration. Finally, another important advantage of a cloud-centric model, which is expected to replace a traditional business model in Allstate in the very near future as it is suitable for various groups of employees. Working under the conditions of this model offers advantages such as: (a) the possibility to organize their own work schedules, (b) telecommuting from home, (c) shift the company’s attention from rigid, structured process to increase the agility of the operation. Financial Analysis The current totals assets have shown a steady decline during the relevant time period researched of 2011 to 2015. The most recent total assets reported by the firm is $106.5 billion, down from $127.7 billion in 2011. The downward trend of total assets is troubling as it is a financial metric that evidences the financial health of the organization that stakeholders review to determine the cost of capital when investing. Conversely, the firm has also reduced its liabilities from $109 billion in 2011 to $86.4 billion in 2015. Overall, the resulting debt to asset ratio shows a favorable trend of .85 in 2011 to .81 in 2015. The trend results in slightly more flexibility and less risk. As compared to the insurance industry average, Allstate Insurance Company’s most recent debt to asset ratio indicates the higher level of assets financed by debt than the industry average .69 debt to asset ratio reported by CSI
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ALLSTATE INSURANCE CORPORATION CASE ANALYSIS 28 At the same time, it is also pertinent to note that Allstate has achieved a rapid growth of its net income after the world economic crisis. While the company’s net income was $788 million in 2011, it has grown to $2.17 billion in 2015. In the short-time perspective, a substantial decrease of the net income is observed: $2.85 billion in 2014 were replaced by $2.17 billion in 2015 (MarketWatch, 2016). In general, we can see that the current situation in the company is complicated. Although Allstate Insurance Corporation has reported recovery from the crisis, the firm’s growth is not dramatic. Moreover, a decrease in both net income and total assets in 2015 in comparison with 2012 was reported. Thus, it is obvious that innovative decisions are required for ensuring growth of the company’s financials in the nearest future. The world financial crisis has adversely effected the domestic economy and the insurance industry in the United States. The world financial crisis necessitated efficient and effective business operation to reduce cost and maximize the use of limited resources. The main objectives for insurance companies were to lean out operations, avoid significant financial losses and implement effective strategies in order to survive and ultimately thrive following the crisis.
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  • Fall '18
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