Hayat Inssurance Company

1467 Words6 Pages
1. Do you think the decision of removing the CEO/chairman was correct? Explain The decision of removing the CEO/chairman was correct although it was too late. There were many reasons for that decision to be made and they are summarized as follows: * He came from an agricultural engineering background. It was true that he had good networking skills in the community and the civil administration in the West Bank, but he lacked a clear managerial mind. He had no strategic planning experience for the long run. He had no contingency planning in case of sudden incidents or threats. Moreover, he was unsuccessful in taking advantage of internal strengths, and over the weaknesses of his company. * His sons assumed dominant positions in management with the founder CEO-Chair Delegating authority to his children, one son became a member of the board in Addition to being the General Director and the other son was his deputy. * The CEO/chairman used his powerful executive force for his own interests instead of pointing that force for the good of the shareholders. He had the privilege to allocate 3% of the company’s revenues to himself. He started the company as a family business and kept on that track all the time. He opened supply companies for his children in order to source the materials used by HIC. * He didn’t increase the capital of his company as he claimed that his company doesn’t have abundant cash flow to settle its debts. * He was uncooperative with PNA officials what made him to be considered as once considered as “improper”, in addition to overconfidence and arrogance. * The company began a continuous decline of its' market shares compared to increase of their' competitors shares . * he was not study all factors that related to porter's five forces , especially Threat of New Entrants and Rivalry among existing

More about Hayat Inssurance Company

Open Document