Risk Analysis And Briefing Report For NatureCare Products

Company Overview

For this task you are required to review the risk context of the organisation and conduct research; and then develop a briefing report for the CEO and shareholders of an organisation. 

You are the Operations Manager of a medium-sized Australian company. NatureCare Products. based in Brisbane. The company commenced business in 1996 and manufactures eco-friendly, high quality beauty skincare products. The business was established to cater for a growing demand for skin products that contain eco-friendly and natural ingredients. There is also an emphasis on eco-friendly packaging. The company sells its products in health food shops across the country, as well as online through its own website. The company targets customers that want high quality, eco-friendly products. Market research has identified that around 70% of customers are professional women aged 25 - 55. Strategic priorities focus on business diversification and growth, specifically to increase market share by 10% and to expand the existing product range to attract more customers. At a recent board meeting, the two company shareholders and the CEO discussed options for expanding the business, including establishing a chain of retail outlets. The CEO has asked you to investigate this by undertaking a risk analysis on establishing a chain of retail outlets. The idea is to initially set up a retail outlet in central Sydney, Brisbane and Melbourne. The CEO and shareholders are keen to get the business expansion started as soon as possible so you need to get your risk management plan in place immediately. Currently the company employs the following staff: Accounts Manager, Marketing Manager, Marketing Assistant, Sales Manager, four customer service representatives, Office Manager and Administration Assistant, Operations Manager, as well as the CEO and two shareholders as indicated above.

Review the case study Information provided to you to determine the scope of the risk management process required. as well as the company's risk management policy and procedure and Information on risk management standards. Make notes for use In your report that address:

• Legislative and regulatory context of the organisation In relation to risk management.

• Identification of internal and external stakeholders with whom you will need to consult to identify potential risks, as well as issues they are likely to raise as part of the risk management process.

 • An analysis of the strengths and weaknesses of the company's existing retail approach namely, online and through health food shops.

• Analysis of critical success factors. goals or objectives for the business expansion project.

• Following. this you are ,earthed to conduct a PESTLE analysis for NatureCare Products In order to identify key factors that Impact on the business environment In which the company operates and their relevance in Identifying risks. Make notes for use in your report.

When you have completed your PESTLE analysis, you will be ready to write an initial report for the CEO as outlined in the next activity.

This part of the assessment task requires you to develop an initial report for the CEO about the risk management project and processes and to seek approval to proceed.

Your report should address:

• Introduction. including scope of the risk management process and an Outline of the risk management process as per the Organisation's policy and procedure. as wen as how the organisation's process aligns with the risk management standards as identified in the link provided to you It must also include any legislative and regulatory context of the organisation In relation to risk management that you have identified In your research.

? PESTLE analysis identifying the key factors that impact on the environment In which NatureCare Products operates and their relevance to the risk management process.

• Identification of internal and external stakeholders with whom you will need to consult to identify potential risks, as well as issues they are likely to raise as part of the risk management process.

• An analysis of the strengths and weaknesses of the company's existing retail approach namely. Online and through health food sheet • Analysis of critical success factors, goals or objectives for the business expansion project.

When you have completed your report, send It to the CEO &our assessor) via email. In the email you should provide a brief Overview Of the risk management project and seek approval to proceed with the process.

Your assessor will send you an email in the role of the CEO providing you with feedback and approval to proceed. Consider any feedback provided to you by the CEO in the next part of the assessment 

This report is going to outline an efficient risk analysis for a medium sized Australian company that is based in Brisbane. The company has specialized in the manufacturing of skin care products which are usually of high quality. This business was established purposely to cater for the increasing demand for skin products because of they are eco-friendly. There mode of packaging is also eco-friendly which attracts most of the Australians. The company wishes to expand its operations through establishing a chain of retail outlets in Sydney, Brisbane and Melbourne. As a result, risk analysis is very crucial so as to formulate effective strategies to enhance the achievement of the stipulated goals and objectives. Risk management process shall involve risk identification, risk analysis, risk evaluation, risk treatment and monitoring and reviewing the risk (Valsamakis, Vivian and Du Toit, 2010). A PESTEL analysis shall also be conducted so as to evaluate the external factors that may impact the business in several ways and approach them appropriately.

According to (Bessis, 2015) Business expansion comes with various associated risks. Some of the risks that the company might face in the process are:

Financial risks

Expansion needs sufficient capital which might be a disadvantage for the business. The company has to thoroughly determine the financial sources that shall facilitate the expansion process to enhance the achievement of the objective.

Legal risks

The government might have regulations on the number of similar businesses to be established in similar region by individuals hence the company needs to ensure that it is not violating such regulations in the process of expansion.

Labor risks

Expansion might result to the need for more number of employees in the various retail stores. The company must evaluate the rate of labor supply in the predetermined areas so as to avoid shortage of labor that may have an adverse effect to the success of the business.

Experienced employees

These employees have adequate knowledge on the factors that affect the business due to their long service in the organization hence they would be efficient in identification of the potential risks together with the strategies for mitigating the risks.

External stakeholders for risk identification

The consumers

They are significant in risk identification because their consumption behavior play a critical role in the determination of expansion strategies.

1. To achieve a wide market

The company wishes to obtain a large market for its products hence the need for expansion to enhance product accessibility by consumers in the desired regions.

1. ToIncrease production

The company seeks to increase the production of its products hence the need for expansion so as meet the consumer requirements in the regions

1. To promote environment sustainability

The company seeks to promote environmental conservation through the increase of eco- friendly product in the market.

1. To enhance good skin for customers

The company aims to promote healthy skin for most of the Australians in the desired regions. This is because most of them have skin problems due to their race hence the skin care products would be of great help to them.

Political factors

Political stability in Australia shall enhance the business expansion. The freedom of trade in Australia implies that organizations can invest in any part of the country hence facilitating the expansion process.

The stability of the Australian economy implies better price for the products in those localities.

Most of the Australians prefer eco- friendly products which is a direct implication of the success of the company after the expansion takes place.

Increased accessibility of the internet by many people requires the company to make use of the online purchasing practices rather than just focusing on the expansion of the company.

The product have minimal impact to the environment which attracts most of the customers. Expansion shall be efficient due to the great interest of Australians for the product.

The business expansion should be in line with the business laws for efficiency.

Strength

Great interest of Australians on eco-friendly products.

Wide market due to large population and stable economy

Weaknesses

Lack of adequate utilization of the technology through e-commerce as the organization do not have an online purchasing platform. 

References

Bessis, J. (2015). Risk Management in Banking. 4th Ed. New York, NY: John Wiley & Sons, p.68.

Kumar, L. (2014). Financial Risk and its Mitigation. SSRN Electronic Journal, 4, pp.46-76.

Philips, R. (2010). Rapid Training Development. 3rd ed. John Wiley & Sons, pp.56-89.

Simonovic, S. (2012). Risk management. 3rd ed. Cambridge: Cambridge Univ. Press, p.46.

Valsamakis, A., Vivian, R. and Du Toit, G. (2010). Risk management. 3rd ed. Sandton: Heinemann, p.45.