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Define the types of risk for the company by origin and nature.

  


From my point of view, there are few risk factors faced by Building Mixtures Co. Ltd. First, the timing of launching a new product is very important for the industry. Due to the pandemic in Covid-19, the economic trend is constantly changing. As a consumer, I will consider whether this product is necessary or just an idea. Besides, if you need this product, what's the price? Can you buy products with the same function at a lower price? Building Mixture Co., Ltd. plans to launch an environmentally friendly product, but the cost will be higher. If the production cost is high, the product may not reach the sales target due to the epidemic situation and rising unemployment rate. In order to minimize the risk of market depression, an industry must investigate market trends to understand the opinions of industry experts on possible economic change. In note 5, there is information talking about the poor research and too much optimism to research data. These kinds of problems will also make it easy for a person/industry to be divorced from reality. For example, a company can ask its team of the marketing department to prepare quantitative or qualitative survey data with correct information to analyze with an impersonal point of view about current economic trends and predict the potential market and consumer. When a group of people expresses their opinions, the company can analyze them from more angles, and the whole observation will not be affected by the over-optimistic attitude of individuals. All these help to prevent the situation of more products and fewer consumers.

在我看来,建筑混合物有限公司面临的风险因素很少。首先,推出新产品的时机对行业非常重要。由于Covid-19的大流行,经济趋势不断变化。作为消费者,我会考虑这个产品是必要的还是只是一个想法。另外,如果你需要这个产品,价格是多少?你能以更低的价格买到同样功能的产品吗?建材有限公司计划推出环保产品,但成本会更高。如果生产成本高,产品可能因疫情和失业率上升而达不到销售目标。为了将市场萧条的风险降至最低,行业必须调查市场趋势,以了解行业专家对可能发生的经济变化的看法。在注释 5 中,有信息谈论研究不充分和对研究数据过于乐观。这类问题也会让一个人/行业很容易脱离现实。例如,公司可以要求其营销部门团队准备具有正确信息的定量或定性调查数据,以客观地分析当前经济趋势并预测潜在市场和消费者。当一群人发表意见时,公司可以从更多的角度进行分析,整个观察不会受到个人过于乐观的态度的影响。所有这些都有助于防止出现产品多、消费者少的情况。

 


        Secondly, a brand new market is also a kind of risk. Questions mentioned that their products have been successfully sold nationwide, and Note 5 mentioned that the company will launch a product that has never been seen in the market at present. If your product type has never been seen before, you will not be competitive from the beginning. However, because your products are obviously profitable, competitors will start launching their own production activities. A preventive solution is to establish a high threshold for entry. For example, getting a patent can shock competitors. If this is impossible, maybe you can reach an exclusive agreement with a big retailer, so that it will be more difficult for other companies to compete with you. Anything you can do to curb competition will reduce the risk of your new product. As mentioned in Note 5, plagiarism is cheaper than research, and industry is likely to produce a possible product instead of doing research, and launch their own brand-new product. For example, last time people didn't care about green environmental protection, in 2017, after the introduction of Recycle bags in China, the Recycle bag culture was famous in many countries.

其次,一个全新的市场也是一种风险。问题提到他们的产品已经成功在全国销售,Note 5提到公司将推出一款目前市场上从未见过的产品。如果您的产品类型以前从未见过,那么您从一开始就没有竞争力。但是,因为你的产品显然是有利可图的,竞争对手就会开始推出自己的产品活动。一种预防性的解决方案是建立一个高门槛。例如,获得专利可以震惊竞争对手。如果这是不可能的,也许你可以与一家大零售商达成独家协议,这样其他公司就更难与你竞争。您可以采取任何措施来遏制竞争,都将降低新产品的风险。正如注5中提到的,抄袭比研究便宜,一个行业很可能会生产一种可能的产品而不是做研究,并推出自己的全新产品。比如上一次人们不关心绿色环保,是在2017年,在中国引进Recycle bag之后,Recycle bag文化在很多国家都很有名。

 


        The third risk is a financial risk for the company. Note 4 has mentioned that the company usually spends 10% of its sales. Financial risk means that the ability of a company to generate income to cover their company debt or financial interest. The company's financial risk is higher when the company does not have the ability to generate income to cover the debt and financial interest. There are some other reasons that will affect the company's financial risk which are the changes in interest rates and the debt financing percentage. The more the equity financing of the company, the higher the ability of the company to cope with these burdens. Companies can use the debt and equity ratios to analyze and determine the stability of the finances of the company. These can also help to measure the debt and equity financing percentage of the company.

第三个风险是公司的财务风险。注释 4 提到该公司通常花费其销售额的 10%。财务风险是指公司产生收入以支付公司债务或财务利益的能力。当公司没有能力产生收入来支付债务和财务利息时,公司的财务风险就会更高。还有一些其他原因会影响公司的财务风险,即利率和债务融资比例的变化。公司股权融资越多,公司应对这些负担的能力就越高。公司可以使用负债和权益比率来分析和确定公司财务的稳定性。这些也有助于衡量公司的债务和股权融资百分比。

 


            The fourth kind of risk is the risk of losing opportunities because of "sticking to" a single development plan. As mentioned in Note 1, there are no new ideas in the company. Because the risk is too high, the cost is too high. The nature of the projects is different, which requires personalized planning and design processes. However, organizations usually stay in their own comfort zone, are "overconfident" with their own plans, and think that their own development plans are the most effective. Doing so may inadvertently lead the organization to form a narrow view on product development, which is not in line with the changing needs of customers. Eventually, this will inhibit their ability to discover other better innovative technologies. Make amendments to the development plans to ensure that they can meet the requirements of the customer.  The manager must create special design and competitive function to their product to ensure that their product is more attractive when compared to other competitors and it is able to fulfill market demand. The process of ‘insisting on originality’ is dangerous. These will lead the company to produce products that are similar to others and lose good opportunities.

第四类风险是因“固守”单一发展计划而失去机会的风险。如注 1 所述,公司没有新的想法。因为风险太大,成本太高。项目性质不同,需要个性化的规划设计流程。然而,组织通常停留在自己的舒适区,对自己的计划“过度自信”,认为自己的发展计划是最有效的。这样做可能会在不经意间导致组织对产品开发形成狭隘的看法,不符合客户不断变化的需求。最终,这将抑制他们发现其他更好的创新技术的能力。对开发计划进行修改,确保能够满足客户的要求。经理必须创造特殊的设计和竞争功能




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