1). The company ought to conduct a thorough analysis of the market situation in the particular business environment. Checking the nature of consumer preferences and types of products in the Victorian market would also help the management to ascertain the extent of risk.
2). The management ought to have established the nature of products and the price regulations in the market zone surrounding the outlet (Clemons, 2009). The management also ought to have put in place the right strategies to counter the government policies which affect business operations in the area.
3). The economic factor that led to the closure was the ability to maintain its financial strength based on the losses that occurred due to poor market experience. The social factor was the company’s inability to adequately address the needs of the consumers who are important stakeholders.
Case Study B
- The personnel should include:
- An expert in project management
- An expert in cost estimation
- A specialist in environment management and conservation
- A financial auditor
5). The research methods include:
- SWOT analysis
- Information gathering techniques
- Documentation review
- Checklist analysis
- Root cause analysis
6). Carrying out a SWOT analysis would be an effective approach in the holistic identification of the involved risk causes. This is because the form of analysis covers a wide area and the analysis is deep enough hence identifying the various risks is easy (Premkumar, 2015). Root cause analysis would also be an appropriate approach since identifying the cause of the current situation enables the company to come up with the best counter strategies. Lastly, brainstorming can also be applied.
Case study C
7). As an assessment of consequence or perhaps to prevent the occurrence, GM ought to have conducted an in depth market research to be able to project how the product would perform in the US market factoring in the elements of financial implications, consumer preferences and the dynamic nature of the market.
8). The factor to be assigned to this situation would be the issue of fuel prices and rising environmental concerns. First, the oil prices are rising; as a result, it would not be a good idea to release into the market a car which uses a lot of fuel. Consumers are likely to dump this for cheaper alternatives. Secondly, the rising environmental concerns ought to be a point to consider. An inefficient vehicle whose operations fail the standards for environmental conservation is unlikely to perform well in such a market (Flyvbjerg, 2010).
1. Risk control options
Substituting the product or varying its forms and price helps to increase the scope of client’s needs and satisfaction.
Decline in demand for the organizations services
Eliminate the current services and establish more effective alternatives which are result oriented and efficient.
Expenditure exceeds budget forecast
Minimize the volume of expenditure ensure a balance in the utilization of resources
IT system doesn’t meet company requirements
Improve the system through acquisition of more technologically enhanced equipment and trained personnel
High staff turnover
Eliminate the portion of the human resource whose functions are minimal, can be performed by a machine or another worker.
2. The risk reduction measures that can be applied include eliminating the cause of risk, substituting the object that places the organization at risk and training of staff on risk management strategies.
3. Documentation provides the necessary records which can be used in future during evaluation procedures after the risk management strategy has been implemented.
4. Definition of the risk: Indicates a good understanding of the risk and enables the establishment of an appropriate objective (Ashforth & Kreiner, 2010).
Risk breakdown plan: assist in identifying the areas of priority hence addressing the most essential components
Accurate estimates: outlines the financial scope of the plan and helps in estimation of the resources that would be required.
- Oversees the progress of the project right from implementation
- Coordinates the procedures involving each case with the help of the supervisors
- Conducts meetings involving updates especially on areas for improvement
- Provides recommendations for improvement based on evaluation outcomes
6. Communication can be maintained through constant interaction via the most effective platforms and by receiving the responses of the stakeholders on a periodical basis.
7. Financial constraints: This can be countered by using a budget that falls within the financial scope of the company
Time constraints: Can be managed using an effective event schedule and strictly adhering to its elements
Poor services: Can be countered through the incorporation of trained and qualified personnel in the whole project
Ashforth, B. & Kreiner, G. (2010). How can you do it? Dirty work and the challenge of constructing a positive identity. Academy of Management Review, 24(3), pp. 413-434.
Clemons, R. (2009). Making Hard Decisions: An Introduction to Decision Analysis. US: Duxbury Press.
Flyvbjerg, B. (2010). Megaprojects and Risk: An Anatomy of Ambition. Cambridge University Press.
Premkumar, G. (2015). “Role of Inter organizational and Organizational Factors on Adoption of
Systems.” Journal of Management. 26(1), pp. 200-236.