Assignment on Operations Management and Decision-Making Models of Suncorp Group Limited

Introduction of Operations Management and Decision-Making Models of Suncorp Group Limited

         Suncorp Group Limited is one of the best providers in the field of financial services in New Zealand and Australia. The company history goes back to the year 1902 when it first made its presence in the financial business, and since then it has marked great success over the years. The company has more than 13000 people and listed in the top 20 list of ASX. The assets of the company are around $96 billion. The variety of financial services is offered by the Suncorp Group such as insurance products, wealth management, as well as banking. These services are given through its famous brands such as Suncorp, Apia, GIO, and AAMI. According to the latest statistics of the group for 2018-19, it was revealed that the group average equity of the shareholders in cash returns was 8%, whereas a $9.2m investment was made for the local communities. In Suncorp Group, around 51% of women are working in its leadership (SUNCORP, 2019)

        It is also important to mention here that the number of customers for Suncorp Group is around 9 million, which shows the success and length of its business in the financial industry. The company has given its vision by revealing its purpose of existence, which “is to create a better today for our customers.” It means that Suncorp Group is providing services, products as well as tools to its valuable customers so that they can make today’s life better. It does not help them in enjoying their current lives, but it helps customers to plan for a better future with more financial security and independence. That’s why they have developed a great work culture so that their employees can really make a difference in the lives of their customers. It is vital to look at sustainability as well as strategic direction to analyze their operations management and decision making (Suncorp Group, 2019)

Desired Business Outcomes of Operations Management and Decision-Making Models of Suncorp Group Limited

        It is a fact that corporate social responsibility and sustainability are becoming crucial for modern business firms and groups because there are so many things associated with the sustainability objectives. So, it was important for Suncorp Group to understand why sustainability is crucial for them if they want to deliver the best to their customers to make their today’s lives better. To make lives better, only the products and services of the group are not crucial, but society needs to get better as well so that everyone enjoys a better life with better facilities. So, it is the responsibility of the firms to invest in sustainability activities so that they can do something considerable for future generations in terms of social, environmental, and economic aspects. Sustainability is getting crucial for all kinds of businesses in so many ways, and it is estimated that firms having sustainability will enjoy more competitive advantages. It should be part of the strategic direction so that it is easiest to integrate sustainability in operations management and decision making (Haanaes, 2016)

               The great thing is that Suncorp Group has this realization that they need to participate in the betterment of society in terms of social, environmental, and economic aspects. That is why they have done so much in terms of sustainability that they have been included in the 2019 list of companies with Sustainability Awards by Australasian Reporting Awards (ARA), which was established in 1950. They give this award to different companies each year, after analyzing their sustainability efforts. There are three categories for this award including Gold, Silver, and Bronze Awards. In the 2019 awards list, Suncorp Group Limited was listed in Silver category (ARA, 2019). Suncorp Group strongly believes in creating a better today with their corporate responsibility efforts for all the stakeholders. They have derived a sustainable strategy to manage governance, social as well as environmental risk & opportunities. They are helping students as well as communities in so many different ways (SUNCORP, 2019a).

      To achieve sustainable growth, Suncorp Group has developed a great strategy that tries to optimize as well as innovate in terms of social, economic and environmental so that better outcomes are achieved in the value chain and business. They seek to make required changes as per the changes in the economic, social or environmental situation of the society so that their adverse impact is as minimized as possible. They have set great targets like till 2030; they are looking to reduce 51% GHG emissions of Scope 1 & 2. They are looking to achieve net-zero emission with their sustainable efforts by 2050. In the year 2018-19, they have reduced 6% GHG emission, and $310 million has been invested in the low carbon initiatives. They have developed a Natural Hazard Resilience Strategy and included in the group of New Zealand Climate Leaders Coalition (SUNCORP, 2019b). It is vital to mention a few real examples of their sustainability work. In the recent summer, bushfire came with so many devastating damages, and Suncorp Group has decided that they will help the community by donating $100,000 to help the relief and recovery efforts made by the authorities and Red Cross (SUNCORP, 2019c). They have also contributed to zero-emission and climate change by doing efforts for renewable energy. They are investing in the efforts made by Palisade’s Renewable Energy Fund (SUNCORP, 2019d)

Internal and External Factors of Suncorp Group Limited

      It is important to have a look at internal and external factors, which can play their part in assisting a firm to manage its operations and make viable decisions. For this purpose, the SWOT analysis can be helpful to see both internal and external factors, how they are making an impact on their day to day activities and strategy. The internal factor can be assessed by strengths & weaknesses, whereas external factors can be assessed by opportunities & threats.

Strengths of Suncorp Group Limited

         They are one of the leading and famous financial groups, so they have a lot of strengths to maintain this standard. They have a strong distribution network, which has the capability to extend its reach to every potential market. They have reliable suppliers network, which helps them to achieve great customer satisfaction. Their dealer community is strong, and they are very good at developing and innovating new products and services. Their brand portfolio is also extremely strong (Fern Fort University, n.d.)

Weaknesses of Suncorp Group Limited

        Suncorp Group also has few weaknesses as well. Their profitability ratio is lower than the average profitability ratio of the industry. The present business model is consistent with the current organizational structure, which means they may not be able to integrate a new business model. Their success outside their core activities and business is less than expectation (Fern Fort University, n.d.)

Opportunities of Suncorp Group Limited

        They have a lot of opportunities to look at from their external environment. Their cash flow is quite stable, which allows them to find opportunities for making investments in other product segments. They can bring down their transportation costs by developing a good strategy. The customer spending is increasing and technology is also making new vibes, and these two aspects offer great opportunities for them (Fern Fort University, n.d.)

Threats of Suncorp Group Limited

       The most considerable external threat to the company is the level of competition, which is getting intense. They are working in more than one country, so they are always exposed to financial conditions and currency fluctuations. The other companies are integrating technology, working more on sustainability to get competitive advantages (Fern Fort University, n.d.)

      So, SWOT analysis has explained how internal factors are playing a part in their strengths and weaknesses, and how external factors are coming with opportunities and threats for them.

Operational System of Suncorp Group Limited

     The group is working efficiently to improve their overall operational system so that they can develop a better and risk-free supply chain and logistics. They are trying to manage every risk present in their supply chain. They are improving their procurement practices and building their capacity so that they can deal with risks, and find new opportunities. Their efforts have been rewarded with recognition like the Chartered Institute of Procurement and Supply has given them Achieved Corporate Ethics Award. The Supplier Code of Practice has been embedded by them in all kinds of supplier agreements. They are complying with the Modern Slavery Act (2018) with the help of efforts made to identify as well as manage abuses of human rights, and child labor (SUNCORP, 2019e). They have made a lot of efforts in their acclivities related to logistics so that operational system gets better to manage operations more efficiently, which ultimately helps in making better future decisions.

Conclusion of Suncorp Group Limited

               After analyzing different aspects of business managed and operated by Suncorp Group Limited, it is evident that they have taken understood the importance of sustainability, and that’s why they are making great contributions to come up with great corporate responsibilities. They are making great efforts and investing in so many ways so that communities can get better and people living in these communities can live a better life. So, they are not only contributing to their range of products and services, but they are also contributing to sustainability activities, which are in line with their overall strategic direction. Suncorp Group has been managing their internal and external factors in a proper way, and that’s why they have been successful in the region as a leading financial group. Their customer base is more than 9 million, which shows that they are doing great in their operational system to satisfy the needs of their customers.

References of Operations Management and Decision-Making Models of Suncorp Group Limited

ARA (2019) 2019 Sustainability Winners, [Online], Available: http://www.arawards.com.au/SustainabilityAwards [3 December 2019].

Fern Fort University Suncorp Group Limited SWOT Analysis / Matrix, [Online], Available: http://fernfortuniversity.com/term-papers/swot/nyse/4975-suncorp-group-limited.php [3 December 2019].

Haanaes, K. (2016) Why all businesses should embrace sustainability, [Online], Available: https://www.imd.org/research-knowledge/articles/why-all-businesses-should-embrace-sustainability/ [3 December 2019].

SUNCORP (2019) Who we are, [Online], Available: https://www.suncorpgroup.com.au/about [3 December 2019].

SUNCORP (2019a) Corporate Responsibility Principles, [Online], Available: https://www.suncorpgroup.com.au/corporate-responsibility [3 December 2019].

SUNCORP (2019b) Sustainable Growth, [Online], Available: https://www.suncorpgroup.com.au/corporate-responsibility/sustainable-growth [3 December 2019].

SUNCORP (2019c) Suncorp donates $100,000 to aid bushfire recovery, [Online], Available: https://www.suncorpgroup.com.au/news/news/suncorp-donates-100-000-to-aid-bushfire-recovery [3 December 2019].

SUNCORP (2019d) Palisade’s renewable energy fund, [Online], Available: https://www.suncorpgroup.com.au/news/community/renewable-energy-fund [3 December 2019].

SUNCORP (2019e) Managing Risk in our Supply Chain, [Online], Available: https://www.suncorpgroup.com.au/corporate-responsibility/sustainable-growth/managing-risk-in-supply-chain [3 December 2019].

Suncorp Group (2019) OUR PURPOSE, [Online], Available: https://www.suncorpgroup.com.au/about/purpose [3 December 2019].