STATE FARM INSURANCE COMPANIES

State Farm is the leading personal (automobiles, property, and casualty) insurer in the United States. The mutual company is in a strong industry position and has positive profit potential for the coming five years. Poor relations with customers and state insurance regulators, however, threaten the company's future prospects.

This research develops a strategic analysis of State Farm Insurance Companies (official name) headquartered in Bloomington, Illinois. The firm includes wholly owned subsidiaries through which the firm operates in a variety of business lines in the financial services sector. Additionally, State Farm Insurance Companies is a mutual company, as opposed to a stock company. Thus, stock market data are not available for the financial analysis component of this strategic analysis. The elements of the strategic analysis of State Farm Insurance Companies are as follows: (1) company mission; (2) industry analysis; (3) strengths ù weaknesses ù opportunities ù threats analysis (4) competitive analysis; (5) organizational structure of competitors; (6) business portfolio structure and analysis; (7) functional area strategy analysis; and (8) strategic recommendations.

State Farm states that the company's mission is to "help people manage the risks of everyday life, recover from the unexpected and realize their dreams." The company's mission statement inco

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are moving into e-marketing. This approach is increasingly attractive to consumers. Thus, the move is good for the industry. Some insurers, such as State Farm, also are using electronic networks as the technological basis for the delivery of banking and investment services. Most insurers, however, are lagging in the use of electronic networks to interact with customers. Strengths - Weaknesses - Opportunities - Threats Analysis This section presents the strengths ù weaknesses ù opportunities ù threats (SWOT) analysis for State Farm Companies. The results of the SWOT analysis are as follows: 1. Strengths: State Farm Insurance is the largest automobile insurer in the United States. Insuring one in every five automobiles in the United States givers the company a strong market position. The company is almost as strong in the personal property and casualty insurance market. State Farm Companies also has a strong and stable management. Only two families have ever provided the top management at the mutual company. The current top management group, the Rusts, have been in charge of the firm since 1954. 2. Weaknesses: The major weakness at State Farm in the contemporary period is the relationship between the company and
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Approximate Word count = 2125
Approximate Pages = 9 (250 words per page)

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