Case Study: Struggling Against Competition and Local Government Issues
1. The steps that would have indicated the presence of a higher risk in the Victorian market would have been 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. 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 return on investment kept diminishing yet the company had no effective alternatives. The social factor was the company’s inability to adequately address the needs of the consumers who are important stakeholders. This could have been done through product and price variation to fit the market.
4.
- 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:
- Brainstorming
- 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. 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. This would involve making consultative interactions with various stakeholders as well as individuals within the environment in a bid to obtain their opinions on the best steps that would be taken to ensure minimal risk.
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. This research ought to have factored in the elements of financial implications, consumer preferences and the dynamic nature of the motor vehicle bearing in mind that other industries are equally fighting for a segment in 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 hence affecting the market performance. This places the company at risks of losing its grip on the market. 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).
Substituting the product or varying its forms to increase the scope of client’s needs and satisfaction. Price control is another control measure
Eliminate the current services and establish more effective alternatives which are result oriented and efficient towards achievement of company objectives.
Minimize the size or volume of expenditure ensure a balance in the utilization of resources
Improve the system through acquisition of more technologically enhanced equipment and trained personnel
Eliminate the portion of the human resource whose functions are minimal, can be performed by a machine or another worker.
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.
Documentation provides the necessary records which can be used in future during evaluation procedures after the risk management strategy has been implemented.
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
Communication can be maintained through constant interaction via the most effective platforms and by receiving the responses of the stakeholders on a periodical basis.
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
References
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.
Flyvbjerg, B. (2010). Megaprojects and Risk: An Anatomy of Ambition. Cambridge University Press.
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