This fact is confirmed not only by this table but by other indices as well The

This fact is confirmed not only by this table but by

This preview shows page 33 - 35 out of 57 pages.

This fact is confirmed not only by this table, but by other indices as well. The Allstate’s stock prices were reduced from $70 to $65 during this quarter. All the other indicators also support a conclusion that this quarter was one of the worst quarters for the company during the last several years. As represented on the earning table, subsequent quarters were more favorable for the firm. Both the third and the fourth quarters of 2015 appeared to generate higher actual earnings than expected. Thus, it is reasonable to assume that the negative drop in earnings during the second quarter of 2015 were rather a temporary occurrence than a stable and consistent pattern. As a conclusion, it is reasonable to deduce that the Allstate Insurance Corporation is currently experiencing difficulties but is stable. It appears to have successfully recovered from the world economic crisis. However, the rates of its growth are low in comparison with the key competitors and even in comparison with the average indices in the United States insurance
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ALLSTATE INSURANCE CORPORATION CASE ANALYSIS 33 industry. This situation of less than optimal growth and loss of market share may be explained by recent strategic decisions made by the leadership of Allstate Insurance Corporation. Specific strategic decisions related to changes in the business model are likely contributing factors of the less than optimal growth and loss of market share. As mentioned previously, it seems that the actions of the leadership do not necessarily support the famous slogan “You are in Good Hands”. By taking extreme measures to avoid honoring customers claims, demonstrates a lack of follow through on the stated mission and purpose of the organization. It is likely that as corporate culture is developed based on the leadership, the employees have adopted the new culture that is not as customer focused as it may have once been. The decision to change the business model from a traditional hierarchical model to one that is cloud-centric can be meet with resistance. The natural human instinct is to resist change or anything that disrupts the current flow of things. Since the change in business models would necessitate a change and command structure, it is likely that there are influential leaders within the Allstate Insurance Corporation that will resist the change. The perception of a reduced or eliminated role can lead to chaos and turbulence. The positive indicator for Allstate Insurance Company is the fact that many of the financial indices have remained stable. On a large scale of the firm’s business significantly complicates the process of changing business model to take advantage of new technologies. Allstate has implemented online sales and other modern technologies that are necessary to thrive in the modern insurance industry.
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