Ace Case Study Prep Questions

1. Profits are being squeezed in the insurance industry because of low interest rates. Because of these low rates, insurance companies are making less on their investments, which accounts for a large portion of their profits.

2. Ace decided to acquire Chubb as an offensive move, as they are a first mover. The executives predicted that many deals were going be executed based on economic conditions and wanted to jump the gun. Many rivals in the industry are engaging in mergers and acquisition activities and by acquiring more clients, Ace has access to more funds, leading to higher profits in a time of low interest rates.

Another factor that has benefited FIJI is the fact that bottled water consumption in the world is increasing. It is constantly growing (at about 7% per year) which helps FIJI grow as a direct result. They were able to capitalize on this and thus create a trend towards FIJI bottles. At the same time society has also become more health and fitness conscious, and FIJI has branded itself to fit those needs.

1. Ethical and socially responsible marketing is a marketing concept that says a company should take into considerations the interest of society both now and in the future. They can do this by producing products that not only offer immediate value, but also long term benefits to the community and consumers as well. CSR is “the business contribution to sustainable development issues.”

Although there is no concrete data when it comes to CSR, some say that there is a correlation to between company performance and how a company impacts its environment, thus making it important to consider. Some benefits include risk prevention, cost cuts, improved reputation, and increased value. Overall, companies in today’s world can have a large impact on its surroundings and therefore must be accountable and considerate of their practices.