Question

Requirements

Analyze Cigna organization’s external and internal environments.

Evaluating the organization's internal environment is also critical. This requires evaluating such functional areas as clinical operations, information systems, marketing, clinical support, human resources, financial administration, and so on. In an internal environmental analysis, leaders carefully examine each function or organizational subsystem and then develop and analyze a list of strengths and weaknesses for each.

External Environment

Clinical Operations – Strengths and Weaknesses

Information systems – Strengths and Weaknesses

Marketing – Strengths and Weaknesses

Clinical support – Strengths and Weaknesses

Human resources – Strengths and Weaknesses

Financial administration – Strengths and Weaknesses

Internal Environment

Clinical Operations – Strengths and Weaknesses

Information systems – Strength and Weakness

Marketing – Strength and Weakness

Clinical support – Strength and Weakness

Human resources – Strength and Weakness

Financial administration – Strength and Weakness

Answer 1

 

Internal environment of Cigna organization:

Strength:

1. Clinical operation: Automation of various stages of production has allowed Cigna in more efficient use of resources and reducing the cost of production. It also helps in making the higher quality products and provides the facility of increasing or reducing the production as per the demand in the market.
2. Information system of Cigna: Cigna has a large number of distribution outlets in every state of the country that makes availability of its products easily for the customers in a timely manner.
3. Marketing: Cigna’s innovative teams have allowed it to come up with new products and enter new markets. Cigna has a strong social media presence with millions of followers on the famous social media platforms. It has high level of customer engagement on these platforms with low customer response time.
4. Human resource: Cigna has highly trained employees and has a large number of skilled and motivated employees. It has a diversified workforce that helps the company in bringing the diverse ideas and methodologies of doing things.
5. Financial Position: Cigna has made consecutive profits in the past 5 years and it has a huge accumulated profit reserves which can be used to acquire assets in the future course of time.

Weakness:

1. Clinical operation: Cigna spends less on research and development as compared to its competitors and hence, it has lower number of innovative products than its competitors.

2. Information flow: Cigna’s information flow is little distorted one as it has large number of operations and the departments and every stakeholder of the every department interprets the information in his or her own way.

3. Marketing: Cigna seldom conducts market research as a result of which it do not stay updated with the requirements of the market.

4. Human resource: Cigna has the higher attrition rate in workforce and is required to spend much more in training and development of its employees as compared to its competitors.

5. Financial planning: Cigna is not proper and efficient in its financial planning. The current asset ratio and liquid asset ratios of the company suggest that company can do the cash management more efficiently than what it is doing at present.

External Environment of Cigna organization:

Strength:

1. Clinical operation: Decreasing the cost of transportation as a result of lower shipping prices can bring down the cost of Cigna’s products thus providing an opportunity to the company to either boost its profitability or pass on the benefits to its customers to gain the market share.

2. Information system: company can outsource its information management system or can hire the employees by acquiring the talent of experienced employees from its competitors.

3. Marketing: company can enter into the new markets to acquire more number of customers by seriously performing the market research study.

4. Human resource: company can acquire new experienced talent from the market for its business and can bring about the reduction in its cost of training and development. Moreover, company can reduce the attrition rate by production fair compensation and benefits to its current employees.

5. Financial administration: financial planning of Cigna is efficient as compared to most of its competitors which makes it a financially sound company in the market.

Weakness:

1. Clinical operation: Cigna has only five specialities viz. cardiology, gastroenterology, obstetrics-gynaecology, oncology, and orthopaedics as compared to the bundle of specialities being provided by its competitors.

2. Information system: Cigna has a limited networking in the external market which restricts the company in getting the sufficient information of the external market strategies.

3. Marketing: Cigna spends limited funds for its marketing and hence fails in getting the faster brand awareness for its products as compared to its competitors.

4. Human resource: Cigna has less experienced and skilled human resources as compared to its competitors.

5. Financial administration: Cigna’s financial management is weak in the market and it has weak cash management system.

 

 

Answer 2

Cigna is a global health service and insurance company based in Bloomfield, Connecticut, United States. It aims at helping people make healthier decisions.

Basis	Strength	Weakness	Opportunities	Threats
Clinical Operations	Cigna has insurance subsidiaries including medical, dental, disability, life & accident insurance & related products & services. Governmental & Non-governmental organizations, unions & associations are major service providers.	Had a gap in the product range. Cigna faced challenges in moving to other product segments with its present culture. Had less product innovation.	Growing change helps Cigna to diversify into new product categories too. It is a huge opportunity for Cigna to expand its clinical operations according to consumer behavior. Cigna has also the opportunity to innovate its product range by upgrading the existing product line.	Rising raw material can pose a threat to the Cigna Corporation profitability. Clinical expansion has been impacted due to lack of skilled workforce.
Information systems	Automation of activities. Cigna integrates various technologies together.	Cigna needs to invest more in new technologies to integrate the processes across the board.	The new & innovative technology provides an opportunity to Cigna to practice differentiated pricing strategy in the new market. New technological system helps Cigna to hold its existing customers as well as build new customers. New technological advancements help to provide better customer service.	New technological system used by the competitor is a threat. Cost of installation of new technologies is a threat.
Marketing	Cigna has a strong brand portfolio. It has a strong distribution network. Strong dealer community. Excellent supply chain. Focuses on Go To Market strategies.	Lags in product demand forecasting. Cigna is behind in adopting global marketing strategies according to the market of various countries where it operates.	Cigna has the opportunity to capture new customers & increase its market share. The low inflation rate brings more stability in the market & is an opportunity for Cigna to capture.	Threat of competitor or new entrant in industry. Price war between competitors is a threat to Cigna.
Clinical support	Cigna has a successful track record of mergers & acquisition by integrating complementary firms.	Lags in adapting to different work cultures. Failure to merge firms that have different work cultures.	Clinical support from the state as well as the federal government for procurement of Cigna products.	Clinical support has been hampered due government intervention & change in the policies. Volatile political climate in a number of markets across the world is a threat to expansion to Cigna.
Human resources	Highly skilled & motivated workforce. Emphasis on training and learning programs.	Cigna has a high attrition rate in the workforce. Wastage of time in training employees.	The diversified work culture enables Cigna to understand the behavior of its workforce & upgrade the training methodologies according to it.	Rising unemployment, and government interventions result as a threat to Cigna. Demand for rise in pay level is a threat to Cigna. Shortage of skilled workforce in certain global markets is a threat to expansion for Cigna.
Financial administration	Generates good returns on capital expenditure by building new revenue streams. Cigna has strong free cash flows. Cigna has built a new revenue stream, and diversifies the economic cycle risk.	Cigna has a Higher inventory both in-house and in channel leads to inefficien inventory management system. Financial planning is not done properly by financial analysts at Cigna.	Decreasing cost of transportation because of lower shipping prices helps to achieve profit by selling products at lower prices results in increasing profitability. Economic rise, and increase in customer spending helps to capture new market share & generate high revenue steam through it. Lower inflation rate helps to generate more credit at lower interest rate to customers.	Exchange rate fluctuation hampers the financial aspect of Cigna.