Aviva was founded in 2000 by the merger of two British insurance companies with a heritage of over 300 years, however the name Aviva was only adopted in 2002. Aviva operates globally and is the UK's largest insurer employs 30,021 people, of which 14,600 are in the UK (Aviva, 2018a). Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay They provide protection platforms across life insurance, general insurance (including motor vehicle, home and travel), asset management businesses, savings, such as retirement programs, as well as investment products. Aviva serves 33 million customers worldwide, both domestic and business, and recognizes that its customers come from all demographics, each with different priorities and concerns. “Some just want to get off the phone, while others really need a phone hug and someone to reassure them” (Aviva, 2018b). Aviva's financial executive team, made up of senior officers/directors from departments such as investor relations and international communications, reports to the chief financial officer (CFO), Tom Stoddard. The CFO is responsible for financial decisions, however he delegates financial responsibility to group executives who will oversee the finances in their business area. Despite the total loss of £5,639 million in consolidated income due to net investment, Aviva still earned £1,646 million for the year and reduced expenses by £6,180 million, despite spending more on fees and commissions. Target increase of more than 5% in operating profit per share. Achieve a dividend payout ratio of 55-60% by 2020. Repay £900 million of debt hybrid securities, saving £60 million in annual pre-tax interest expenses. PESTLE analysis. Factor Reason for impact Importance Legal changes in the General Data Protection Regulation (GDPR). High political uncertainty about Brexit and its consequences. LowEnvironmental Increase in CO2 emissions. HighEconomic Uncertain interest rate environment. MediumBecause Aviva operates in Europe, it must comply with the new GDPR regulation which replaced the Data Protection Act. Failure to comply can result in a maximum fine of "2% or 4% of the group's global turnover depending on the type of breach" and it can result in individuals seeking damages and making claims directly against businesses (Aviva, 2018). As a result, Aviva must retrain all staff to ensure these requirements are met. There is uncertainty about the full implications of Brexit on economic growth and productivity, regulations and the status of EU employees working in the UK. To minimize disruption, Aviva has reviewed its data arrangements to ensure that appropriate measures are in place to enable a continuous and uninterrupted flow of personal data, as well as creating a 'Financial Event Response Plan' which ensures a response quickly and effectively to any serious adverse financial event. (Aviva, 2018, page 26) Co2 emissions are expected to increase, resulting in an increase in weather-related claims (including business continuity claims), inaccurate pricing of general insurance risk and a negative impact on economic growth and investment markets. Aviva must incorporate climate change, as well as other environmental and social issues, into its investment decisions. Aviva has adapted flood mapping analysis to helpto recognize the properties most at risk and improve risk selection. Rapid growth in interest rates could cause bond prices to collapse, thereby widening spreads and reducing asset prices. Low interest rates may affect investment returns and reduce the attractiveness of the returns Aviva can offer to new customers. Aviva should invest in “fixed interest securities that closely match the interest rate sensitivity of their liabilities” through acts such as “tightly matching liabilities to assets and shifting sales towards protection 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-based, customer, project and network based (CIPD, 2018).(Aviva organization chart, Aviva, 2018, p.216) We can see a divisional structure where Aviva groups together employees responsible for a certain product/service and position of this structure is that due to flexibility, Aviva can recognize the needs of its customers and form stronger relationships with them. This structure requires a lot of coordination, otherwise there may be poor communication between departments, possibly conflict between departments. Therefore, 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 officials who report directly to the. CEO. The finance departments' responsibilities include "planning, organizing, auditing, accounting and controlling" Aviva's finances (BusinessDictionary, 2018). Operations and IT departments focus on administration and the production of efficient products and services, while the role of digital departments is to transform the company through innovation, development and improvement of products and how customers interact with our products and services. The role of the legal and secretarial department 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 key to supporting Aviva's objectives, everyone needs to know what they are aiming for. This can be illustrated through the introduction of a new product, such as pet insurance. The finance department determines how much the launch will cost, then informs each department of the established spending budget. The legal department will draft the pet insurance contract and handle any court cases that may arise due to negligence caused by other departments. The digital department aims to discover advanced technologies 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 the communication between each department. Organizational culture provides a framework for how employees think and behave through 'patterns of values, norms, beliefs, attitudes and assumptions that may not have been articulated' (Armstrong, 2006, p.303). It is the “regulatory glue” that binds the company together and shapes the outcome of corporate objectives (Tichy, 1982). The ways in which.