Aviva was formed in 2000 by the merger of two British insurance companies with a heritage of over 300 years, but the Aviva name was not implemented until 2002 Aviva operates globally and is the UK's largest insurer. employing 30,021 people, including 14,600 in the UK (Aviva, 2018a).Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get an Original EssayThey provide protection platforms through life insurance, general insurance (including auto, home and travel), asset management companies and savings - such as retirement programs, as well as investment products. Aviva serves 33 million customers worldwide, both domestic and commercial, and recognizes that its customers come from all demographic groups, each with different priorities and concerns. “Some just want to hang up, while others really need a phone hug and someone to reassure them” (Aviva, 2018b). Aviva's financial leadership team, comprised of senior executives/directors from departments such as investor relations and international communications, report to the chief financial officer (CFO), Tom Stoddard. The CFO is responsible for financial decisions, but delegates financial responsibility to group executives who will oversee the finances of their business area. Despite a total loss of £5,639 million in consolidated profit due to net investments, Aviva still profited £1,646 million from the business. year and cut spending by £6,180 million, while spending more on fees and commissions. Objective of increasing operating profit per share by more than 5%. Achieve a dividend payout ratio of 55-60% by 2020. Repay £900m of hybrid bonds. debt, saving £60m in annual pre-tax interest costs. PESTLE analysis. Factor Reason for impact Importance Legal Changes to the General Data Protection Regulation (GDPR). Strong political uncertainty around Brexit and its consequences. LowEnvironment Increased CO2 emissions. High economic Uncertain interest rate environment. MediumAs Aviva operates in Europe, it must comply with the new GDPR regulations which replaced the Data Protection Act. Non-compliance can result in a maximum fine of "2% or 4% of the group's global turnover depending on the type of breach", as well as claims for damages by individuals and proceedings directly against companies ( Aviva, 2018). As a result, Aviva must retrain all of its staff to ensure these requirements are met. There is uncertainty over the impact of Brexit on economic growth and productivity, on regulation and on the status of EU employees working in the UK. To minimize disruption, Aviva has reviewed its data arrangements to ensure adequate measures are in place to enable a continuous and uninterrupted flow of personal data, as well as creating a 'Financial Events Response Plan' ensuring a rapid and effective response to any serious adverse financial event. (Aviva, 2018, page 26) Co2 emissions are expected to increase, leading to more weather-related claims (including business continuity claims), inaccurate pricing of general insurance risks and an impact negative on economic growth and investment markets. Aviva must embrace changeclimate as well as other environmental and social issues in its investment decisions. Aviva has adapted flood mapping analysis to help recognize properties most at risk and improve risk selection. Rapid growth in interest rates could cause bond prices to fall, widening spreads and reducing asset prices. Low interest rates could affect investment returns and reduce the attractiveness of the returns that Aviva can offer to new customers. Aviva is expected to invest in "fixed interest rate securities that closely match the interest rate sensitivity of their liabilities" through actions such as "close asset-liability matching and shifting sales towards protection products and unit-linked products” (Aviva, 2018, p. 26). Structure is “the formal configuration between individuals and groups regarding the distribution of tasks, responsibilities and authority within the organization” (Lunenburg, 2012, p.1). Common types of structures include: functional, matrix, customer-oriented, project-based and network (CIPD, 2018). (Aviva organization chart, Aviva, 2018, p.216) We can see a divisional structure in which Aviva groups together the employees responsible for a certain product/service. and location. One of the advantages of this structure is that Aviva, through its flexibility, can recognize the needs of its customers and build stronger relationships with them. This structure requires a lot of coordination, otherwise it could lead to poor communication between departments or even conflicts between departments. Thus, this could lead to customer dissatisfaction due to lack of cooperation if they have to deal with more than one department. (Aviva Board Chart, TOB, 2018) We can see that there are 10 key functions overseen by senior executives who report directly to the CEO. The responsibilities of the finance department include “planning, organizing, auditing, accounting and controlling” Aviva’s finances (BusinessDictionary, 2018). Operations and IT departments focus on administering and producing effective products and services, while the role of the digital department is to transform the business through innovation, product development and improvement and how customers interact with our products and services. The role of the Legal Department and Secretary is to ensure that Aviva's products, services and the way the business is governed comply with legal and regulatory requirements. Communication between all departments is essential to support Aviva's objectives, everyone must know what they are aiming for. towards. This can be illustrated by the introduction of a new product, for example pet insurance. The finance department establishes the cost of the launch, then informs each department of its set spending budget. The legal department will draft the pet insurance contract and handle any possible lawsuits that may arise due to negligence caused by other departments. The digital department aims to discover cutting-edge technology to improve service production and ensure that the digital platform for customers is easily accessible. The Operations Department will produce and distribute pet insurance through its customer service function. The employee's knowledge, and therefore ability to sell, about the product is shaped by communication between each department. Organizational culture provides a framework for how employees think and behave through “a.