Malaysian Assurance Alliance
Malaysian Assurance Alliance Berhad is an investment company. It is listed on the main board of Bursa Malaysia. It provides products and services like life and general insurance. This company also provides with single premium, individual life, investment linked, personal accident life insurance and healthcare. It also provides with liability, employee benefits etc. This company also provides services to individuals in Malaysia (Sulaiman, Majid, & Ariffin, 2015). Based on the annual report 2016 this company has no financial problem as such. However, the total revenue is decreasing per year. However, from 2015 to 2016, the revenue has increased but the revenue has increased with just 1%. Revenue graph of MAA Group Berhad in 2012 was RM455 Million, then in 2013 the total revenue was RM541 Million, after that in 2014 the total revenue dropped to RM538 Million (Yakob, Yusop, Radam, & Ismail, 2014). In 2015, the total revenue went down to RM484 Million. The total revenue in 2016 was RM485 Million.
This is major problem where the revenue is not increasing and rather the revenue of the company is decreasing per year. One can see the figures above and it is clear that the revenue is going down per year. Revenue is an amount of money that a company collects by exchanging goods and services with public (Bakar, 2016). Revenue collected by a company is always listed on the top of the income statement. The total revenue of the company tells that the company is going through loss or profit. Higher the revenue of the company goes the profit margin of the company also increases and lower the revenue goes the profit margin of the company goes down day by day. In the annual report of MAA Group Berhad, under financial highlights there are no expenses for advertisement. This shows the company does not do any advertisement of the company or its products and services.
In the above section it is seen that the MAA group has be facing an issue of decreasing revenue which has been a major challenge to the financial stability of group which may further lead to the downfall the company. In order to achieve better its financial position it is important that company follows a particular technique and model which can provide a proper framework for the development of the business in Malaysia. The revenue has been decreasing for this insurance company so it is evident that the sale of the insurance policy has been decreasing. The company has not followed a proper strategy in order to promote and attract new customers to get insured with their policies (Ahmad, 2014). Customers get attracted towards the company’s when they get proper specification about the policy it is also very evident that the MAA group has failed in providing proper advertisement campaign to invite new customers.
It is recommended that the MAA group should carry out proper attractive advertisement campaign so that the company can promote the insurance policy and also can invite new customers. Brand promotion is the major aspect which the MAA group would take into consideration. Proper advertisement will help the organization to achieve the desired result of achieving success in the long run. Inviting new customers through advertisement should be done via television ads and the advertisement through newspaper which will also be very profitable. The insurance company should also consider that the promotion is specific with their individual specification of the policies. It is also important that the company follows stipulated laws and legislation in their advertisement campaign to maintain uniformity with the increase of customers approach through advertising the sales of policies will increase which will result in better revenue and income stability in the near future.