STRATEGY EXECUTION IN DISCOVERY LIFE AND DISCOVERY INSURE
Date
2014-01-21
Authors
Krawitz, Elton
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Abstract
The purpose of this research was to explore the implementation or execution of
strategy by the Discovery Group of Companies in its Discovery Life and Discovery
Insure subsidiaries using the McKinsey 7-S Model. The research sought to
understand how well Discovery Life (an established Life Insurance company) and
Discovery Insure (a start up company) are positioned to meet their objectives. The
study also analysed whether there are common trends within the strategy
implementation adopted by the two businesses that suggest that Discovery adopts
a common formula for strategy execution through the Discovery Group.
A qualitative study was conducted where 16 indepth interviews were conducted
with representatives from the Discovery Group and each of Discovery Insure and
Discovery Life. Results revealed both strong similarities and significant
discrepancies in terms of the strategy execution between the two companies.
Shared values: while the core values of the Discovery Group permeated both
businesses, each company focused on specific core values given the stages of
their respective life cycles. Strategy: both companies emphasise innovation,
product development and product differentiation. Structure: as Discovery Life
became more established it moved away from the flat structure that is prevalent in
Discovery Insure. Systems: Discovery Life elected to custom develop its own
systems. The systems Discovery Insure employed were largely outsourced. This
proved to be problematic and the company is now trying to gain more control over
its systems. Leadership Style: proved to be transformational in both companies
and the importance of being able to articulate a vision is an imperative for
Discovery leaders. Staff: roles are clearer and better defined in Discovery Life
than in Discovery Insure – of which the latter is on a drive to recruit staff with
relevant industry expertise. Skills/Resources: both companies identified research
and development (R&D) and product development as key skills or resources. The
research has implications for start up businesses in the financial services sector,
Discovery‘s international expansion plans and provides an understanding of what
drives the Discovery businesses.
Description
MBA thesis
Keywords
Strategy development, Strategic planning