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A report on:

The Planning Process

Submitted to the Faculty of Business Administration in part-fulfillment of the

requirements of the final examination in Introduction to Behavioral Science, Spring 2008-09

Prepared and submitted by:

Ali Emran (08-10005-1)

Hossain Aftab (08-10013-1)

Sarker Thirtho (08-11844-2)

Md. Tahmid Uddin Khondoker (08-10330-1)

Course Teacher:

Mrs. Munsura Rahmatullah

Section: D

Submission Date:

12th April, 2009

American International University-Bangladesh

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Acknowledgement

There are so many individuals that we would like to thank for helping

us doing this report. It would have been impossible for us to complete

this report in due time without the help of these people.

First of all we would like to thank Almighty Allah for the strength and

the patience that He has given us. Then we want to thank our parents

for the limitless support that they have given us. We couldnt have

finished our report in due time if our parents didnt allow us to spend

nights after nights at each others home working on this report.

Secondly we would like to thank Noor Hossain, Iffat ara Tasnuva, Abdul

Zaheed for their opinions on this topic which they posted in an online

forum upon request. We would also thank this person, whose name isunknown, who shared his point of view on The Planning process of

Prime Insurance Company. We also thank all those people who

cooperated in the surveys we carried out.

Last but not least, we thank our course instructor Mrs. Munsura

Rahmatullah for giving us the chance to make this report.

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Group members:

Aftab Hossain

Emran Ali

Thirtho Sarker

Md. Tahmid Uddin


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Table of Contents

Chapter 1 Introduction Page

no.

61.1 Objective of the report 7

1.2 Methodology 7

1.3 Limitations of the project as a group 8

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Chapter 2 Body of the paper

2.1 Company Overview 9

2.2 Identifying the functional area 10

2.3 Description of the topic which we made

2.3.1 The Planning Process

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2.3.1.1 Strategic planning 12

2.3.1.2 Intermediate planning 13

2.3.1.3 Operational Planning 14

2.4 Different level of management works 15

2.5 SWOT Analysis 16

2.5.1 Strength 16

2.5.2 Weakness 18

2.5.3 Opportunities 19

2.5.4 Threats 20

2.6 Recommendations 21

Chapter 3 Conclusion 22

Chapter 4 Bibliography 23

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Prime Insurance Company Limted

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Chapter 1

Introduction

There are no lives without danger. Many people sometimes faced some

dangers some problems. People dont know wherever they faced

problems or dangers. People can face problems in many ways. Their

business products, their lifes, their family lives also can face any kinds

of uncertainty. Insurance companies are the companies who can

ensures that in times of danger they can help us for giving us the

insurance money for the life or for the products or for anything which

have insurance. We have to give insurance company a particular

amount of money which is called premium. We have to give premium

to the insurance company for fulfilling our insurance policy for the

particular event. Bangladesh has many kinds of well known insurance

company. Prime insurance company is also one of the well reputed

insurance companies in Bangladesh. Prime insurance company have

large network with a total branch of 13 spread all over the country.

Prime insurance company main objective is to satisfy the peoples

needs in course of time. Their mission is to up to date their insurance

policy which can be useful for the betterment of the people. They just

think that the person of Bangladesh needs them in their bad times.

Prime insurance company always spread their hands of giving help tothe people in their bad times. Prime insurance company manages their

company in proper way for that they can attract the people for making

insurance from the company. Their planning policy for the company is

also very good and productive. They have many insurance policies

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which can be easily helpful to the people. They planning their different

works in a proper way that people can be helpful by their planning. So

the people can make insurance policy from Prime insurance company

without making any hesitation.

1.1 Objectives of the report

Objective is one of the main parts of the report. It gives us the

information about what we want to find from the report. It gives us the

summary of the report.

Company has many kinds of planning process. So at first we have to

identify the short term and long term plans of the company. In the

making of planning they faced several kinds of problems, so we have

to identify those problems that can make barriers in the way of

planning. Then we have to find the managers who made the majorplans and who made the minor plans. Planning has many advantages

and disadvantages so for that our next objective is to finding the pros

and cons of the planning process which is establish by the different

managers in the Prime insurance company.

1.2 Methodology

While doing researches on this topic, we used the secondary method

for finding the information about the planning process of the Prime

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insurance company limited. We collect the information from the

internet that means from the Prime insurance companies official

website. We also find the information about the company from their

annual report and a book of their company. But all the things will not b

possible for us without the help of a known person from the company.

He gives us the least information that is helpful to do our project. We

didnt have so much time to complete our report. For that we cant go

for the field survey. By doing the primary data collection we add some

more things for our report. But it was really enjoyable work to do and

doing this report we can understand about some key points of planning

process.

1.3 Limitations of the project as a group

While doing researches on this topic, we faced a number of problems

and because of this we have many limitations based on the topic.

Problem that we faced while doing this assignment is that, due to

the shortness of the time and also the final term this semester is

knocking at the door and therefore we were under immense

pressure because we had to finish this assignment and other

assignments from other courses and the time was very limited.

Another problem is that we havent collected more information to

fulfill our report briefly. The company doesnt give us the full

information based on our topic. So there is a lack of full

information

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There is also a problem like group managing problem. One of our

group members has fallen sick and for that he cant attend all

the meetings which we fixed for the report. So for that we haveto do his part of job.

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Chapter 2

Body of the paper

Body of the paper gives us the total information about what we want to

discuss and what is main view of the research topic.

2.1 Company Overview

Prime insurance company limited (PICL) was incorporated on March 21,

1996 with a view to operate its business as a general insurance

company. Prime insurance company limited started its business with a

paid up capital of Tk. 250 million. Subsequently PICL rose paid up

capital to TK. 150 million. The company is led by Chairman Md,

Zakiullah Shahid who has recently added in our management team

with his extensive experience and profound knowledge in insurance

industry. PICL listing with Dhaka Stock Exchange limited in March 21,

2001 & listing with Chittagong Stock Exchange limited in March 22,2001. The overall operations are carried out by as many as 8

departments namely Corporate affairs, Branch Control, Re-insurance,

Claims, Finance & Accounts, Audit, Marketing and Board Affairs. Prime

insurance company limited premium income in the year of 2008 is

144.24 million around 74% of the total profit. Prime insurance

company has well organized 13 branches spread all over the country.

The company top level, mid level, and front line managers works hard& soul for the betterment of people and also for the company. The

sponsors of the Prime insurance company limited are drawn from wide

spread of callings and professionals, ranging from trade, commerce

and industry to banking, insurance and civil service, are all respectable

and successful personalities in their respective fields. PICL maintains

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strong commitments in setting the claims settled net claims of Tk

37.34 million on account of Fire, Marine, Motor, and miscellaneous

business.

2.2 Indentifying the functional area

Prime insurance has many good sides that we can concentrate but we

have concentrate the planning process of the company. Prime

insurance company limited have large network for that reason the

company should have strong planning for the betterment of the

company. PICL does their planning works correctly and nicely. Theyalso plans their work with the suggestion of the people and also some

other experienced person. PICL make short term and long term plans.

Long term plans are made by the Top level of managers. Short term of

plans is made by the mid level & front level of managers. We know

that planning is to determine goals, establishing strategies. PICL

provides all the efforts to make out their plans successful. They dont

leave any of the points of planning which are very much useful to the

company. The manpower is the most effective power of the company.

Expertise manpower can bring success to the company. Planning

involves devising a systematic process for attaining the goals of the

organization it is an unending course of action. It prepares the

organization for the future. Though all levels of management engage in

planning, but major planning is performed by TOP MANAGEMENT (and

part of MID MANAGEMENT) played the vital role for planning.

Depending on the conditions, a company may have to alter its course

of action in accomplishing certain goals. This kind of preparation,

arrangement is known as strategic planning. In strategic planning,

management analyzes inside and outside factors that may affect the

company and so objectives and goals. Here they should have a study

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of strengths and weaknesses, opportunities and threats. For

management to do this efficiently, it has to be very practical and

ample.

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2.3 Description of Data

Planning is the process of determining

goals, establishing strategies,

determining missions etc. Planning is one

of the important sectors in any kinds of

business. Planning gives the company a

mission which is to be completed by the

employees and managers to achieve the

common goals and the company

common goals is to achieve much profit

from the allocated resources. Planning is

not small part; it is a long part of the

company which can be defined in many

branches. Many company divide planning

into two parts; one is Long-term planning

& another is Short-term planning. Manycompanies divide planning into three parts; one is Strategic Planning,

Intermediate Planning, and Operational Planning. Prime insurance

company limited always follows the 3 parts planning because the

insurance company has many things which have to be covered in time

so mainly they follow the 3 parts planning process. The SWOT analysis

is also a part of the planning. It can give the main 4 parts like Strength,

Weakness, and Opportunities & Threats of the company. So the

planning process is a big thing for a company.

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2.3.1 The Planning Process of PICL

The planning process of Prime insurance company limited can be

divided into three parts:

Strategic Planning

Intermediate Planning

Operational Planning

2.3.1.1 Strategic Planning

Strategic planning is determining how to pursue long term goals with

available resources. Prime insurance company follows the strategic

planning for their long term planning. The company top-level of

managers does the strategic planning. Company strategic planning islike one to ten or more years to execute their plans. This type of

planning needs huge amount because the company thinks something

big which can be happened in next one or two or more years. The

strategic plans is like defining missions, establishing strategies, how

much premium they want to give to the people, how much insurance

policy they want to make, how they increase their profit, when they

open new branches etc. they use their brain to make this strategic

planning. The company also have insurance policy which is counted as

their strategic planning like Life insurance Policy, Industrial risk policy,

Motor insurance policy. These types of insurance policy are long

termed because this insurance policy cant be break easily. People

make future plans with these policies. So for that these policies are

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limited types of intermediate planning. For that we have give less

information about intermediate planning.

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2.3.1.3 Operational Planning

Operational Planning is the process of determining how specific tasks

can best be accomplished on time with available resources. That

means it is the process of determining activities which can be

accomplished in given period of time. Front line managers are doing

such kinds of activities. These types of activities are likely to be one

week to one year. Company is given a target to the employees that

how much insurance policy they can make in a given period of time.

For this purpose company provides some commission to the

employees so that they can motivate and works their job properly.

Company also has to give insurance money for the end of the peoples

insurance policy in a period of time. It is companies responsibility to

give the amount of insurance policy to the people in course of time.

Prime insurance companies front line managers planning from the start

of the year that how much money they have to pay to the customers,

how much premium they will earn in this year, how much premium

they will charge from the people for the particular insurance policy,

what will be the new fresh insurance policy for the betterment of the

people. Companies next operational planning is to recruit as much as

experienced workers. The HR department looks out this matter for

recruiting people as a worker. The company also recruits part-time

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workers because the part time workers can make insurance within a

short period of time.

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2.4 Different level of management works

Every High level manager helps their middle level of managers And

also every top level and mid level managers help to front line

managers in their works. Everyone gives their suggestion that what is

good for the company, what is important for the company, what we

should do that we can achieve the much profit for the company. But

there is some kinds difference in times of their work. In the Prime

Insurance Company different level of management works in the

different sector of the company. They do their work differently buttheir aim is same. Their aim is to gain profit for the company. The

different level of managers works like this:

TASKS ROLE OF MANAGEMENT LEVEL OF MANAGEMENT

Define Mission Chairman, Managing Director, DMD Top Management

SWOT Analysis MD, DMD & Directors, DGMs Top & Mid Management

Set Goals & Objectives Chairman, MD, DMD Top Management

Strategic Management MD, DMD/CEO, DGMs Top & Mid Management

Monitor the PlanDGM, Supervisors/Coordinators,Managers

Mid & SupervisoryManagement

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2.5 SWOT Analysis

The SWOT analysis is the analysis of four parts which is Strength,

Weakness, Opportunity, Threats. By these points we can easily find out

what are the strengths of the company? What are the weaknesses of

the company? What are the opportunities? What are the threats? That

means the companies advantages and disadvantages.

SWOT Analysis:

1. Strength

2. Weakness

3. Opportunities

4. Threats

2.5.1 Strengths:Strengths are like companies power by which the company can easily

be benefitted. Company can be more powerful by acquiring good

strength policies. Prime insurance company also has some kinds

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strength which moves the company towards success. The company

strengths are:

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2.5.2 Weakness

Weakness is the weak points of the PICL. Every company has some

weakness. Prime insurance company limited also has some weakness

which is sometimes creates a bound to the company. The weaknesses

of PICL are:

PICL have fewer amounts of front line workers. By these workers

they believe that they can run their business. But the

overconfidence is bad. If more peoples join the company their

will less burden to the front line workers. So for that they should

provide more workers.

Companies some of the front line managers are not well

educated. It is one kinds of weakness for a company.

Turnover in the company is higher because there are many kinds

of insurance company in Bangladesh. So the employees and the

managers want to taste other companys facilities. Thats why

the turnover is higher.

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2.5.3 Opportunities:

Opportunity is an advantage that company provides to the employees,

customers and clients. Prime insurance company always tries to

impress their employees, customers and by providing some kinds

advantages. These opportunities are:

PICL always provides amazing salaries to the employees. Theywant to motivate employees by giving good salaries do that they

can concentrate to their works.

Prime insurance company provides insurance policy for the

employees which are premium free. Employees can make their

life insurance from the company. Company didnt charge the

premium from the employees. So its an advantage for anemployee.

PICL charge much less premium from the customers. The

company assures the customers that their premium policy is

much less than the other insurance policy.

Prime insurance company limited give discount to the employeesfor making insurance policy from the customers. It also

motivates the employees and decreases the turnover of the

company.

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2.5.4 Threats:

Threats are the fact that company can be harmed. A threat is a

disadvantage for a company. Prime insurance company limited alsohas some threats. These threats are:

The main threat of PICL is their competitors. There are many

insurance companies in Bangladesh. One insurance company is

threat to another company. Every company launches new

products and also new advantages. So for that people always gofor the best.

A political clash is also a threat for a company. If any political

clash is happened in the country there will be strike and works

will not be happened. For this reason political clash is a threat tothe company

Deviant workers are the threats for the company. Deviant

workers always try to violate the works. It also effected in

companies good will. For these reason deviant workers is a

threat for the company.

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2.6 Recommendations

Though PICL is best for helping all the people but there is somethingneeded for more improvement of the company.

Company should provide more insurance policies by which people can

be very much helpful. Company doesnt have some insurance policy

which really common like Crops Insurance policy, Child insurance

policy, Education insurance policy.

PICL have less female workers. Now a days female workers are very

much productive than past. So the company should provide more

female workers for increasing their productivity.

PICL should appoint more educative and productive workers.

PICL should advertise their facilities and advantages to the welfare of

the people. People will be attracted by their advertisement and canmake their insurance from the company. So the company should

provide advertisement for the awareness of the people.

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our report in time. It is because of Allah and the entire group who

works as a unity team. Otherwise the report would not be completed.

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Chapter 4

Bibliography

The planning process of PICL. (n.d.). Retrieved April11, 2009, from

http://www.prime-insurance.net/planning

prime insurance

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