Essays on Finance Assignment

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Financial analysis: Prepaid Legal Service (PPD)Some of the PPD’S business strategies are for instance; Membership plan. In the prepaid legal services legal expense plan, there is provision for or reimbursement of some legal fees that are charged to members. This is in relation to the various kinds of legal services that prepaid legal services offer to their clientele. In this regard, it is important to identify the two kinds of membership at PPD. Open panel and chased panel. As noted in the company’s form 10-k of 1998, at least ninety-four percent of the memberships consisted of chased panel.

It is the company’s policy that chased panel members has access to any kind of legal service via networking with autonomous attorneys but who have contracted with PPD. On the other hand, open panel members are allowed to find attorneys of their own choice in provision of legal services. However, the attorney who is chosen is reimbursed for any legal service he/she provides to the open panel member by PPD (Pre-Paid Legal Services, Inc, 1998). Provider attorneysAs aforementioned, it is possible for members belonging to the chosen panel to find attorneys of their own choice in provision of legal services.

However, the company’s policy requires such attorneys to be in a valid legal contract with PPD and they are preferred called “Provider attorneys”. Furthermore, as indicate in form 10-k of 1998, provider attorneys are pond a constant fee based on per capital so as to offer legal services to chosen panel members. However, the independent attorney is required by the company’s regulations to be within the particular state the plan member(s) resides in. As evident from Form 10-K of 1998, as at 1997, PPD had entered into a contract with thirty-five law firms with a total of up to thirty independent attorneys (Pre-Paid Legal Services, Inc, 1998). AssociatesThe company has a strategy for encouraging the general public to become members indirectly.

Reasons being legitimate members can sell membership hence forming their own sales and marketing organizations with PPD. This results in formation of associate companies. On the other hand, PPD generates revenue from the fees that members pay upfront as well as from other supplies. Multi-level MarketingThe company has a multi-level marketing program (MLM) that encourages individuals to market and sell membership to others.

This is like a pyramid system of membership which guarantees continuity of PPD’S popularity. Besides MLM works well for marketing of products dependent on individual states because it facilitates group or individual face-to-face meetings with potential buyers of the products. It also increases the probability of attracting a significant number of salesmen/ salesladies within that period of time (Pre-Paid Legal Services, Inc, 1998). Cooperative MarketingThe company works in coordination with service and insurance companies which have an already established sales force to develop a cooperative marketing strategy.

In such case, the personnel of the cooperative marketing partner sell PPD’S products alongside theirs with the sole aim being to enhance the existing customer distribution channels and relationship. Some of PPD’S cooperative marketing partners are for instance Atlanta-based Primerica Financial services and Chicago (Pre-Paid Legal Services, Inc, 1998).

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