Thursday, December 19, 2019
Risk Profile Of The Company Essay - 1448 Words
RISK PROFILE OF THE COMPANY The targeted sales of ABC is $ 3 million in three years where as currently the companyââ¬â¢s sales are 1.2 million. The three million dollar sales objective is more than double where the company is at in sales today. This is an aggressive strategy which needs to be examined in terms of its perceived risk factors. The following are factors that may impact the success of this strategy: 1. There is a risk that the new product(s) might not meet the expectations of customers. 2. Change always face reluctance, the new product will be subject to the acceptability risk of a customer. 3. Risk of competition follows the launch of new product, may result in loss of market share by the company. 4. Production depends upon the factors of production, the new product requires a different raw material which is required to be purchased from outside supplier. To find the correct and cheap raw material for the product is also a major task for the company. Further the reliability in supply is crucial for the success of business 5. Impact of inflation on the profit of the product is a foremost problem which company might be facing in the upcoming years. Inflation is the key element which management fails to foresee and may result in price fluctuation. 6. Human resource is the vital part of product development and current human resource might not be able to meet the technical requirements of the new product. The company would be required to hire human resource for the newShow MoreRelatedThe Risk Profile Of Abc Company Essay1540 Words à |à 7 Pagescontroller of ABC Company, and the CEO has set a target sales goal of 3 million in annual sales over the next three years. The three million dollar sales objective is more than double where the company is at in sales today. This is an aggressive strategy which needs to be examined in terms of its perceived risk factors. 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