Government Employees Insurance Company (Geico), was founded by Leo and Lillian Goodwin in the mid-1930s, during the pinnacle of the great depression. The organization was originally focused on selling its insurance coverage to the United States government employees and military personnel. The Goodwin’s actively marketed Geico and after a year they wrote approximately 3,700 insurance policies and had 12 employees. During the 1960s Geico’s growth was exceptionally success with ten million policyholders. Geico’s insurance premiums extended to $150 billion.
Geico’s net earnings were $13 million and the company opened offices that offered sales, services, and claims handling. At the beginning of the 1970s Geico’s good fortune was taking a turn for the worse because of the death of the Goodwin’s. The loss caused Geico to lose revenues. In the1980s Geico’s underwriting actives helped the company to gain its momentum and reputation, it was at this time that Geico unveiled the 24-hour, seven days a week, and 365 days a year call center for sales, service, and claims department.
The purpose of this was to provide customers with ‘A’ level customer service. During this time billionaire Warren Buffet gained interest in the company. After a meeting with the Warren Buffet’s company Berkshire Hathaway purchased the remaining shares of stock and Geico became one of Berkshire Hathaway’s subsidiaries. Today Geico has more than 11 billion auto policyholders and more17 million automobiles. Geico has 12 major call centers throughout the United States, employees over 26,000 individuals and is ranked the third-largest auto insurer in the United States.
Geico added a new president, Tony Nicely, who had the vision to expand their customer base, increase the advertising and marketing budget, to become more visibly to prospective customers. Geico’s Vision, Mission, and Goal There is not a formal vision, mission, or goal statement for Geico. Geico operates their cooperate culture with their seven operating principles. Geico prides itself with commitment to supporting customer’s exception ethical principles. These principles are thought in every training class and employees are tested often.
Geico incorporates this principle throughout the company and daily business activities. Principle 1- Respect Respect, support, and provide opportunity for all associates ("Corporate Culture", [Place commas and periods inside quotation marks] [A period or comma goes inside the closing quotation mark] 2012). Geico capitalizes their employees through development and training, so associates will that the opportunity to achieve career goals and aspirations. Principle 2- Service Be fanatic for outstanding customer service ("Corporate Culture," 2012).
Customers and employees are Geico’s foundation for security and opportunity. Geico attempts to give exception service for retention of their customer base. Principle 3-Low Cost Be the low-cost provider ("Corporate Culture," 2012). Geico keeps expenses low to provide customers with low insurance rates. Geico’s marketing statement states it best, “Geico can save 15% in 15 minuets or less” Principle 4-Integrity Operate with uncompromising Integrity ("Corporate Culture," 2012). Geico demands and requires all employees to operate with complete honesty and integrity.
Principle 5- Discipline Maintain a disciplined balance sheet ("Corporate Culture," 2012). Geico demands that all assets are recorded and not overstated and no liabilities are understated. Geico understand that this level of honesty is imperative to customers, employees, and Berkshire Hathaway. Principle 6-Profitable Growth Make an underwriting profit while achieving optimum growth ("Corporate Culture," 2012). Geico revenues are dependent upon effectively calculating risk, underwriting policies, maintain customers, and gaining new customers.
Geico’s ultimate goal is to growth and profit, while guaranteeing an affluent future. Principle 7- Invest Invest for total return ("Corporate Culture," 2012). One of Geico’s focuses on stability for returns on investments. Geico’s thought process for “invest for total return” means to invest in one by taking advantage or opportunities offered will give a total return. Conclusion Geico is committed to providing excellent customer service to customers, exceptional ethical standards, and support to employees for over 70 years.
Geico’s ability to merge the seven operating principles into their business culture allows Geico to have superior accomplishment. Although Geico does not have a formal mission or vision statement, their operating principles provide employees with the awareness of what Geico’s ultimate goals, mission, and visions are. Geico’s operating principles, provide employees the present and future expectations.
- Corporate Culture. (2012). Retrieved from http://careers. geico. com/working_at_geico/corporate_culture