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Presentation/PPT
27/08/2022
Question:Identify the risk mitigation strategy that would be most appropriate in the following circumstances. Identify the risk each company is facing, the strategy you would use to mitigate the risk, and your reason for suggesting the strategy.
a) Boom Corporation produces fireworks for commercial use. The company developed a new type of firework called the Nuclear Fusion, which they intend to market extensively in 2017. Like other fireworks, the Nuclear Fusion is made of saltpetre, sulphur, and charcoal. The unique blue colour of the Nuclear Fusion firework is made from copper compounds, strontium salts, and lithium salts. The supplier of copper compounds provided a substandard material to Boom. They state it will have no effect on the firework display or safety.
b) Big T Enterprises has been making freeze-dried foods for the survivalist community for the last 10 years. They guarantee their product will last 20-25 years in storage. Recently, a customer complained when food they had in storage for the last 8 years was found to be rancid.
c) Julie’s eBooks is an online seller of books. Unlike other book sellers, they only sell eBooks in order to remove the needs for inventory. They are able to sell their eBooks for 30% less than the paperback price. They have recently had a large number of complaints about not offering hardcopy books. Many potential customers do not want to read a book on digital device.
d) Big Apple Cakes makes New York style cheesecakes that are frozen and distributed across Canada to consumers. Cheesecakes, which sell for $30 each, cost $14 to make and $3 to ship. Recently the shipper who handles all of Big Apple’s shipping announced an increase in shipping charges, to $7 per cake. They informed Big Apple that the refrigeration requirements make the current shipping cost of $3 unprofitable. Big Apple called around and found that other shipping companies have comparable costs of $7 per cake.
e) The manager of sales for True North Industries has just been informed of a potential error in a quote to a key customer. The labour charges were doubled by accident. Unfortunately, the quote was already received by the customer and accepted.
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