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Federal Reserve Vs State Farm

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supply within the economy. In effect, business expenditure on taxes decline, and as well, more people have more money at their disposal, which allows them to pay their premiums with ease. State Farm is likely to gain more benefits as a result of saving on taxes and increased premium sales. The government may use monetary policy to regulate the money supply in the economy. Metcalf (n.d.) suggests that the Federal Reserve applies various measures to regulate themoney supply and control inflation in the United States. For instance, the Federal Reserve may increase or decrease the interest rates at specific times according to the state of the economic environment. If the Fed adopts an expansionary policy, money supply increases, thereby lowering …show more content…

The organization of the firm’s business involves a collection of life, property, and casualty insurance firms. State Farm is a mutual company implying that policyholders own it as opposed to shareholders. The business has several subsidiaries and affiliate companies that also provide insurance and financial services in the same way as their parent company. State Farm’s insurance and financial activities take place under five distinct lines of businesses as follows; mutual funds, property and casualty insurance, annuities, provision of banking products, and life and health insurance, (Statefarm.com, n.d.). The firm also employs numerous agency services and marketing channels by hiring independent contractors and agents to provide insurance and financial services on its behalf in different states, (Statefarm.com, n.d.). Its management team comprises of seven members under the leadership of Michael Tipsord who is the Chief Executive Officer. As well, the board consists of fifteen board members and advisors that report to the …show more content…

Most of the firm’s project teams are multi-dimensional implying that the team members possess a variety of technical skills. Some of the project teams include; customer care teams, overseas research teams, research and innovation teams, product development and lead generation teams. Project teams contribute to the success of businesses by developing new methods of doing things, applying different techniques to compete favorably and reacting fast to changes in policies and political processes that may affect their business’s interests. Over the years, State Farm has used project teams to respond to government regulations. To illustrate, to complement government regulations on public transport safety, the company’s project teams pushed for the enactment of various seat belt laws. By enforcing such laws, the company rests assured of fewer casualty cases, and therefore, its expenditure on claims is projected to decline on that account, (Statefarm.com, n.d.. The firm also has in the past participated in interactive responses through business lobbying to influence public policies. It is evident that it has used public awareness teams to lobby for financial assistance and collaboration with various government agencies to support safety programs in the communities. It has also participated in lobbying

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