Sharing Economy Platform Analysis

This assignment requires an in-depth analysis of Fat Lama, a sharing economy platform that allows users to share any object. Students need to examine various aspects of the platform, including its funding sources (£1 million from angel investors), business model, sustainability efforts, trust mechanisms, and competitive position within the sharing economy market. The analysis should consider the platform's impact on traditional consumption patterns and explore its potential for future growth.

BACKGROUND ANALYSIS OF FAT LAMA
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TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................3
Overview......................................................................................................................................3
Background..................................................................................................................................3
The Problem.................................................................................................................................3
The Opportunity...........................................................................................................................3
Business Model............................................................................................................................4
Financial Results and Funding.....................................................................................................4
MARKET ANALYSIS....................................................................................................................5
Market Segmentation...................................................................................................................5
Analytical Spending & Outsourcing – Global Perspective..........................................................6
COMPANY DESCRIPTION..........................................................................................................6
Business Definition......................................................................................................................6
Value Proposition.........................................................................................................................7
Competitive Market.....................................................................................................................7
Market Share................................................................................................................................8
Revenue Generation.....................................................................................................................9
Competition..................................................................................................................................9
Regulatory Restrictions................................................................................................................9
MARKETING STRATEGIES......................................................................................................10
Overall Objectives and Strategies..............................................................................................10
Customer Focus..........................................................................................................................10
Laboratory Focus.......................................................................................................................10
Customer Oriented Activities.....................................................................................................11
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Network Oriented Activities......................................................................................................11
SERVICE OFFERINGS................................................................................................................12
Product/Service Description......................................................................................................12
Copyrights, Patents and Trade Secrets.......................................................................................12
BUSINESS ARCHITECTURE.....................................................................................................14
Key Capabilities and Operating Model......................................................................................14
Operating Model........................................................................................................................14
Capability Description...............................................................................................................15
Technical Architecture: Description of the Key Components and Applications.......................15
MANAGEMENT AND OWNERSHIP........................................................................................17
Interim Governance Structure....................................................................................................17
REVENUE MODEL.....................................................................................................................20
FINANCING REQUIREMENTS.................................................................................................22
FINANCIAL DATA..................................................................................................................24
RISK AND CRITICAL ISSUES...................................................................................................25
Market Related Risks.................................................................................................................25
Supplier Network Related Risks................................................................................................26
Operations Related Risks...........................................................................................................26
CONCLUSION..............................................................................................................................28
REFERENCES..............................................................................................................................29
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EXECUTIVE SUMMARY
Overview
A report is developed which will include information related to a business plan to a Start-up
named as Fat Lama. The company is working in a market of connecting people with the effect of
which they can provide their products on rent to others (Anon, 2017). To ensure that a proper
and effective set of direction could be provided to the company a business plan is developed
which will include all the aspects with the effect of which success and sustainability will be
obtained by the company in a competitive market.
Background
Fat Lama is a company which provides a platform to the customers to rent out their belongings
to other people in need available in the nearby location. This is the company which helps the
people in connecting with the people available in the neighborhood and helps them in using the
things at cheaper rates. Fat Lama believes that the people available should work together to
ensure that the world could become efficient (Poon, 2010). Fat Lama is a start-up which was
initiated by founders who left their corporate jobs so as to create a co-working space in East
London in the autumn of 2015. Eight weeks were spent by the co-founders in creating and
renovating a warehouse conversion in Hoxton on a shoestring.
The Problem
Many of the issues were faced by the company as expenses were increasing day by day in
managing the company as there were certain goods and tools which were required to purchase at
many of the times at a higher rate (Sawyer, 2011). In this situation, it has become important for
the company to develop a business plan which could help it in managing the expenses and
processing the work with quality.
The Opportunity
Adopting an effective set of strategies with the effect of which success of the company could be
maintained will be developed. In present time opportunity available with the company is to
diversify the business of to develop a new market. In-depth discussion in relation with these
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factors will help in developing more effective and better set of understanding and will provide a
direction to the company in attaining success and sustainability (Lee, 2015).
Business Model
Fat Lama is an organization which is run and managed by several co-founders. The Co-founders
play a very vital role in every single aspect of the business. The company works on an online
platform where it provides access to the people to land and borrow their belongings. All set of
regulatory aspects are focused upon by the company in which assurance is made that fair trade
should take place. This helps in the business growth aspects and provides an opportunity for
growth and development in the market.
Financial Results and Funding
The company has set plans in relation to the financial aspects. Presently is growing at the growth
rate and is working towards to raise more funds so that it could enter the market of New York.
The company is working on a path of growth with the effect of which sustainability will be
obtained and a success factor will be developed with the effect of which it will attain competitive
advantage in the market. Fat Lama has an impressive idea which helps it in attracting funders
towards the business with the effect of which it manages it marketing aspects (Stoutenburg,
2015).
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MARKET ANALYSIS
Online businesses are increasing day by the in the market due to which it has become important
that the start-ups trying to enter into the market should come up with innovative ideas. It is
required that the ideas with which the companies are trying to enter the market should be
innovative and new (ZANETTA, 2016). In the same manner, Fat Lama entered the market with
its idea of connecting people so that they can provide their products and services on rent for a
certain period of time to the people in need. This was helping people in making the process of
sharing their belongings in a quick and easy form.
Market Segmentation
Segmentation is the process in which bifurcation of the people available in the market is done on
the basis of geographic factors, demographic factors, behavioral factors and psychographic
factors. Targeting is done by the organization so as to ensure that people available in the market
could get attracted towards the products and services (Huang et al., 2015). Fat Lama is a
company which has targeted the people of the low-income group which is middle-aged people.
People who have less money to fulfill their needs they will visit the website of Fat Lama so as to
check whether they will be able to afford the product or service at a low cost or not. The
behavior of people is being evaluated by the company before indulging in any kind of strategy
this helps the company in obtaining a competitive advantage in the market and provides a set
direction with the effect of which more and more people get attracted towards the company.
It is necessary that the Fat Lama should develop the strategies according to the geographic
factors which include customer location and region like urban or rural. This classification of the
customer will help in developing marketing and promotional strategies with the effect of which
population of the mass area will get attracted towards the business (Sawyer, 2011).
Demographic factors should also be taken into consideration by the company in which factors
like age, gender, occupation, and the socio-economic group should be focused upon. This will
help in availing services according to the type of people and will help the customers in
classifying the products and services according to the classification.
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Understanding the behavior of the customer and developing attractive packages according to
their behavior will also help Fat Lama in attracting a maximum number of customers towards its
products and services. Behavioural aspects include the rate of usage, benefit sought, loyalty
status and readiness to purchase (Wagner, 2012).
Psychographic factors also help the companies in understanding the market and help in
developing an appropriate set of strategies for managing the growth aspects. Personality,
lifestyle, attitudes, and class are some of the psychographic factors required to be undertaken by
Fat Lama. These factors will help Fat Lama in managing the work process and will help in
attracting a maximum number of people towards the business.
Analytical Spending & Outsourcing – Global Perspective
Fat Lama is the company which is totally dependent upon outsourcing. Without outsourcing, it is
not possible that the company could fulfill the requirements of the people available in the market.
The company works as a link between the people available in the market so that they can meet
and finalize the deal provided on the website of the company. In the rental market, the company
takes a 30-40 data points to create a risk profile for the renters (Stoutenburg, 2015). There are
90% of the renters who are qualified on the basis of the assessment. This helps the company in
ensuring that the renter will remain attached with the same and will ensure to avail the products
and services on rent. This helps the company in maintaining the outsourcing process and ensures
that timely delivery of the products and services could be managed.
The analysis was done and with the help of the secondary sources, it is being evaluated that
16.7% of the spending of Fat Lama is being made on outsourcing only as its whole business is
dependent upon it. It is being evaluated that the company is working toward to indulge in the
activities which could help it in outsource he work at international level so that it could provide
its services in other parts of the world (Rousek, 2010). This will help the company in entering the
global market which will help in enhancing its brand value and will provide a set direction for
the success of the company.
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COMPANY DESCRIPTION
Business Definition
Fat Lama is a company which is helping the people in connecting and providing their belongings
on rent. In present time it is being evaluated that the things are changing and so the requirements
of the people are also changing. People in present time are moreover relying upon smart buy
rather than going for the products and services which are expensive. Online marketing is taking a
control over the market. Hence, in this condition introducing the concept of connecting people so
that they can avail their belongings on rent is really an impressive and effective idea
(CrunchBase, 2017).
Value Proposition
The company believes that sharing and caring, therefore to ensure that this legacy could be
maintained it is working towards to develop a system where they share their belongings in a
quick and easy way. Dream of the company is to develop a platform where all goods from
everyday to the abstract can be borrowed within a minute. This will help the people in managing
their day to day lives and will help in connecting people with each other.
Competitive Market
E-commerce is becoming highly competitive in which there are many of the competitors are
entering. People are starting up their businesses by introducing some of the other new and
innovative idea in the market (ZANETTA, 2016). Hence, to gain competitive advantage Fat
Lama prefers to ensure that all the up to date promotional and marketing activities could be taken
into consideration. The expansion is one of the strategies on which company prefers to focus
upon. Such type of activities will help the company in managing the things and will help in
attaining competitive advantage in the market.
Competition is one of the aspects which have a huge impact on the progress of a company. The
direct impact is caused by the sale of the products and services of the company due to which
growth of the company gets affected. It is necessary that the competitive strategies should be
developed by the company so as to ensure its success in the market (ZANETTA, 2016). To attain
competitive advantage in the market it is required that several aspects should be focused upon by
the company. These aspects are:
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Cost leadership in which a company should ensure to develop the strategy in which it could lead
the market with its cost. Cost leadership will provide a proper set of support to the company in
managing the things and will help in attaining competitive advantage in the market.
(Poon, 2010)
Differentiation is another aspect which is required to be focused upon by the organizations
available in the market. It is necessary that Fat Lama should introduce the products and services
which are different from the other companies. This will help in attaining competitive advantage
and will help in providing a set direction of success and sustainability in the market (Sawyer,
2011).
Cost focus provides an opportunity for success but it narrows the progress of the company in the
market. To attain competitive advantage in the market it is required that company should remain
customer focus and should develop the strategies with the effect of which more and more
customers could get attracted towards the products and services of the company.
Differentiation focus is another aspect which is related to the competitive advantage in the
market. It is required that rather than relying completely on differentiation company should also
work towards to expand its business by entering into the new market. New market entrance will
provide a platform for growth and will help the company in connecting with new people and
covering a large area across the globe.
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Market Share
Fat Lama is a company which remains indulged in the process of making an effective set of
contribution in the economic growth. The company has a 1 percent market share which helps it is
growing in the market (Manocha, 2017). It provides a set path to the company in maintaining its
growth and helps in managing the market activities in a proper and effective way. For a start-up
grabbing a 1 percent of market share in such a small time is really an aspect which is influential.
It could be suggested that Fat Lama should indulge in the strategies with the effect of which it
could expand its business and could ensure acquire a huge market share.
Revenue Generation
Net Revenue of Fat Lama tracked is $21k with $80k in the booking value. Cofounders of the
company are planning to launch the business in San Francisco and New York in near future
(Pargaonkar, 2016).
Competition
Fat Lama is a start-up which is different and new as it is providing a set platform to the
customers where they can share their belongings with others and apply the rental charges on
them. In short, the company is availing business to the customers available in the market and is
helping them in managing their living. The concept is new and attractive and there is no
competition available so it creates an opportunity for the growth of the company with the effect
of which it could sustain in the market.
Regulatory Restrictions
According to Fair Trade Act, it is necessary that Fat Lama should ensure to provide the services
which are fair. Providing fair information will help in maintaining the decorum of the market and
goodwill of the company.
It is necessary that data should remain protected and confidentiality should be maintained by the
company. Fat Lama should use the personal information of the customers for business purposes
only and the information should be shared with the authenticated and authorized people only
(Wagner, 2012).
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MARKETING STRATEGIES
Overall Objectives and Strategies
One of the main objectives of Fat Lama is to create the importance and effectiveness of sharing
among the people living in the UK.
The company wants to develop a platform which could help the society in which both, the person
wants to share the belonging and the person wants to take the belonging on rent could get
benefitted (Stoutenburg, 2015).
The company aims at saving the time of the people. With the help of service provided by the
company, people available in the market could rent the goods and services just by making
several clicks which will help them in saving their time and managing their day to day life in a
more appropriate way.
Customer Focus
Fat Lama is a company which remains indulged in the practices of adopting new strategies which
will help the company in managing the customers and will provide a set path for growth. The
company has a tendency to provide a huge scope of growth to its customers (Rousek, 2010). It
ensures that fair deals could take place by spending minimum cost. Hence, it could be evaluated
that Fat Lama is a company which focuses on its customers and take care of them which helps in
ensuring that the value chain could be maintained and feeling of sharing could be developed
among the target customers available in the market.
Laboratory Focus
Customer focus is one of the aspects which remain attached to the company with which company
prefers to focus on the strategies and innovation. Fat Lama is a start-up which requires that it
should remain indulged in the practices of adopting some of the other new strategies with the
effect of which growth of the company could be managed so that competitive advantage could be
gained by the company (Crunch Base, 2017).
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Customer Oriented Activities
Customer oriented activities are applied by the company in the workplace. All the services
availed by the company are customer oriented only. In the service process of Fat Lama, both the
parties the party willing to share the belongings and the party willing to take the belonging on
rent are the customers of the company for whom a set platform is provided by Fat Lama where
they can do the trade.
It helps in saving the time of the people living in the country.
Services of Fat Lama help the people in saving their money and help them in reducing
unnecessary expenses (Manocha, 2017).
The concept of renting items provide by Fat Lama is also helping in environmental sustainability
aspects. Opting the option of borrowing not buying will help in putting brakes on the
unnecessary mass manufacturing and will help in reducing carbon-intensive distribution systems.
Network Oriented Activities
Fat Lama is a company which helps in creating a chain networking system among the people
available in the market. Sharing is the process which helps in creating a mutual bonding among
the people available in the market. It is a process which ensures that the fair trade could take
place and transparency could be maintained.
People create a value chain by developing a sharing system. Maintaining the legacy of sharing is
also creating a networking chain which will provide a set path in maintaining environmental
sustainability aspects (ZANETTA, 2016).
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SERVICE OFFERINGS
Product/Service Description
Fat Lama is a company which is indulged in the sector of service providing. It is a company
which ensures that the people who are willing to avail their belongings on rent to others could
register their details with the company. On the other hand, people who search for the products
and services on the Internet get access to the website of Fat Lama which provides them the
opportunity to grab that particular product on rent (Banumathy and Azhagaiah, 2015). This
information sharing service is provided by Fat Lama which is being enjoyed by the people
available in the market and provides them an option to manage their lives in a more relevant and
effective way.
Copyrights, Patents and Trade Secrets
Fat Lama provides certain terms which are required to be accepted by the people willing to trade
with the company. A legally binding agreement is being created between Fat Lama and the
customer willing to trade.
Fat Lama is a company registered in England and Wales with register number 09927338 and
VAT number of the company is 243670411.
Fat Lama has a copyright on its logo
(Bhattacharya and Kojima, 2012)
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This Logo of the company is patented.
These are certain copyrights, patents, and secrets of Fat Lama on which company works.
Compliance is one of the aspects which are being kept on the priority by the company. It ensures
that the people available in the market should follow all the compliance aspects (Bhattacharyya
and Dey, 2011).
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BUSINESS ARCHITECTURE
Key Capabilities and Operating Model
Fat Lama provides an innovative idea of sharing the valuable items with others. It has the
capability to reduce the unnecessary manufacturing of products and making a positive
contribution in the environmental sustainability aspects. The company is working towards to
create a network chain among the people available in the society which will help in promoting
societal growth and will help in creating a sustainable platform for the people.
Operating Model
(Bianconi and Yoshino, 2014)
The company has an operating model which works on to aspects in which customers available in
the market gets two options which are of whether to borrow stuff you need or to lend stuff you
don’t. The company works within the framework of the customer to customer interaction. It is a
platform where customers available get the access to interact with each other and to make an
agreement on a single aspect. This helps in maintaining transparency and promoting fair trade in
the market. Customer to customer is a whole new concept of operating a business. The company
plays a vital role in maintaining the interaction and availing the deals required by the people
available in the market (Burgherr and Hirschberg, 2014).
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Capability Description
Fat Lama has a capability of managing the work in a proper way. It works on a framework of
providing attractive offers and deals to the customers. Both the options are provided by the
company which includes the option for the customers who are willing to share their belongings
with others on the agreement of rent. On the other hand, it also avails option for the people who
want to borrow the stuff from others. An agreement between both the parties is developed which
helps in creating transparency and fairness. The agreement contains several policies and
procedures in which time of handling of the equipment and the time of return is mentioned along
with the description of the equipment (Harcariková and Šoltés, 2016). Agreement also contains
the rented value required to be paid by the borrower to party offering its belongings.
Technical Architecture: Description of the Key Components and Applications
Fat Lama is an E-Commerce company which works on online trading aspects. The company has
designed a website which provides access to the customers to visit the website and indulge in the
practices of lending and borrowing business. The company works on an online networking
system sharing economic 2016.
(Jarvis, 2009)
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It is a networking system with the effect of which various networking sites like Uber, Airbnb,
and Lending Club works. It is a networking system which provides access to the companies with
the effect of which assurance is made that the company will be able to manage the access of the
customers. This networking system provides a relevant set of support to the companies on behalf
of which interaction of customers could be maintained and online trading could be promoted
(Levine and Waters, 2012).
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MANAGEMENT AND OWNERSHIP
Interim Governance Structure
Interim Advisory Committee
The interim Advisory committee is the committee which works upon providing an access to the
organizations to do business in the market. There are a various set of procedures and policies
which are required to be followed by the businesses so as to ensure that the future hindrance of
the committee could be mitigated. The interim Advisory committee comprises of:
Interim Governance which ensures that the work process could be managed in a proper way and
assurance could be made that the internal decorum of the company, as well as market, could be
maintained (Sidortsov, 2014). Various set of policies and procedures are being developed at the
end of interim governance with the effect of which security of the customer’s interest is
developed.
Strategy and design is another aspect which is focused upon by the interim committee. All the
aspects related to the strategy and design of the structure of the company and trading should be
approved by the interim governance (Wagner, 2012). This helps in maintaining fair deals in the
market.
Agreeing on Permanent Governance Structure is a part of the interim advisory committee in
which assurance is made that the companies starting their business should develop a structure
which is approved by the governance. This structure will help in the progress of the company
and will provide a growth support.
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(Sidortsov, 2014)
Funding Partnership is another aspect which is provided by the interim advisory committee. The
interim advisory committee also provides funding partnership to the start-ups providing new and
innovative ideas. Funding is provided as a motivation by the company with the effect of which
work process of the company is managed token. It helps in providing an effective deal to the
start-ups with the effect of which they can process their work and could ensure their success in
the market.
Secretariat
Policy and administrative support are being provided by the governance with the help of which
fair trade is promoted in the market. It is the situation which helps in providing an effective set of
solution to the organization with the effect of which decorum of the market is being maintained
in a proper way (Manocha, 2017).
Strategic development is another aspect which is focused upon by the governance. Government
helps in developing a support system for the organizations with the effect of which development
of the industries could be done and the economy could grow in the market.
Support for pathfinders is being provided by the end of the governance. It is required that the
innovation should be focused upon by the people planning to introduce a start-up (Wagner,
2012). Governance gets influenced by the pathfinders and provides an appropriate set of support
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with the effect of which growth is managed and the company gets the opportunity to attain
competitive advantage in the market.
Advocacy and Fundraising are also being considered by secretariat but the approval related to
funding is being provided by the interim advisory committee.
Therefore, it is required that the growth perspectives should be taken into consideration by the
start-ups and assurance should be made that they should provide ideas and frameworks which
could help in managing the growth perspectives and ensure that effective amount of funding
could be raised (Stoutenburg, 2015).
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REVENUE MODEL
Fat Lama has managed to rake in £1m from the slew of the angel investor, augmenting the
£150,000 pre-seed it has raised in October 2016. In the interrogation it was evaluated that the
company the company manage the investments with the help of certain investors, company
prefer to say that the funders provided funding are the individuals including successful tech
entrepreneurs, executives of international media and well-known executives of the global
investment banks. In short evaluating the funding system of the company, it could be analyzed
that investment approach is managed by the companies by approaching the well-known financial
institutions, tech entrepreneurs and international media (Rousek, 2010).
A rapid growth is seen across the users of Fat Lama, according to the company some of its users
make more than £500 per month. People in the market are expecting a more efficient model of
ownership. Alternatives to the people who remain concerned with overconsumption are provided
by Fat Lama.
The revenue model of the company is really very simple as it works on the commission basis.
The company works as a connecting branch between two parties. An agreement is made between
the parties on the basis of the type of product being availed. Valuation of the product is done and
then rent is being applied (Crunch Base, 2017). This helps the borrower in managing to get the
product he wants also helps the lender in generating income with the resources available to him.
In the process of landing and borrowing company add certain charges which help it in managing
its revenue and gaining profit. In short, the company is gaining profit by helping others and
managing their financial system in a proper way.
The company is working towards to expand its business and to indulge in the new market. This
will help the company in increasing its revenue and will help in developing a set framework with
the effect of which assurance for the growth will be made. The expansion is a need for growth
which helps in providing a path of sustainability and success in the market.
Developing an appropriate set of strategies always helps the company in ensuring its growth in
the market also helps in managing the goodwill of the company in the market. The company is
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planning to enter the market of New York which will provide a huge scope of growth and will
help the company in managing its progress in the competitive market (Manocha, 2017).
FINANCING REQUIREMENTS
Start-ups cannot get success by just implementing the innovative plans in the market. Financial
support is one of the most important aspects related to the success of any start-up (ZANETTA,
2016). It is required that if an individual or a group is planning to indulge in a start-up then it
should work upon various factors like raising fund and should work towards to encourage the
funders with the effect of which funding could be availed. This will help the start-ups in
managing their growth and processing. Every organization working on any innovative project
should plan properly of several things like from where it should raise the money and who are the
people who will be providing funding to the new plans.
Financial requirements are the requirements which are really important to get fulfilled. Therefore
to ensure that the financial requirements of the start-ups could be managed and fulfilled it is
required that individual or groups indulging in the start-up should visit the financial institutions
or the funders so that they can avail funding and help the individual or group in managing the
further processes of the work (Anon, 2017).
(Poon, 2010)
Fat Lama is a company which has created an effective set of plans in relation to raising the funds
from the financial institutions. There are financial institutions which provide funding to the
company; these financial institutions are a successful tech entrepreneur, an international media
executive and very well known executives at the global investment bank. These are some of the
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financial institutions and individuals which are working towards to provide an effective set of
support to Fat Lama.
With the help of the analysis and information provided by Fat Lama, it could be evaluated that
the company has proper plans and policies in relation to its financial services. Hence, it could be
ensured that the company is financially secure and has the capability to manage the things in a
better way (Sawyer, 2011). Financial security is one of the most important aspects which provide
a direction with the effect of which sustainability and success could be obtained.
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FINANCIAL DATA
According to the financial data of Fat Lama, it could be analyzed that the company is financially
sound and it is working in a market where it will be able to sustain and will be able to manage its
success.
(Lee, 2015)
The financial position of the company is sound which is helping it in managing and maintaining
its plans in an appropriate way. At present company is planning to enter the market of New York
which will require a huge amount of investment. Evaluating all the aspects related to the
investment decision of the company it could be analyzed that Fat Lama has the capability to
enter the market and has the capability manage the things in a proper way. It could be analyzed
that company will sustain after entering into the market and will be able to attain competitive
advantage in the market (Manocha, 2017).
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RISK AND CRITICAL ISSUES
The risk is one of the most important factors attached to any organization required to be taken
into consideration. The reason behind it is that any kind of risk factor could have a negative
impact on the progress and position of the company. Evaluation of risk should be done in a
proper way with the effect of which company could indulge in the practices of developing the
strategies so to as to mitigate those risk factors. Evaluation of all the risk factors should be done
and it should be done in a repeated manner on the regular basis. This will help the company in
managing its progress and processing the work in a smooth way.
Market-Related Risks
Market-related risks are the risks which are related to the trading and are required to be
calculated at every single point. It is necessary that all the trading risks should be evaluated in a
proper way and assurance should be made that appropriate set of strategies should be developed
which could help in reducing the risk of uncertainties (Nath and Pacheco, 2017).
Assurance should be made by Fat Lama that all the risk factors should be mitigated and monitors
in a proper way. This will help in managing the trading and marketing of the products and
services in a smooth way.
Stock prices fluctuate and this fluctuation causes a huge impact on the progress of the company.
The downfall in the stock prices of the company has a huge impact on the progress of the
company (Pargaonkar, 2016).
Inflation is another risk related to the market. Inflation has a direct impact on the pocket of the
people available in the market due to which they avoid making any kind of purchase. In this
situation, it becomes necessary that appropriate set of strategies should be developed by the
companies in relation to the inflation so as to manage the work process and to manage the
growth aspects in an effective way.
Currencies also create a barrier in the growth aspects of the company. In this situation, it
becomes necessary that the company should develop the strategies to manage the exchange
26

procedures. It should adopt online transfer policy with the effect of which issue of currency
exchange could get reduced and work process could be managed in a proper way (Poon, 2010).
Supplier Network Related Risks
Supply chain management is a factor which is required to be focused upon by the organizations
trading in the market. It is required that the supplier’s network related issues should be properly
managed by the company. Developing an effective supply chain network and distribution system
will help the company in mitigating the supplier network related risks.
Fat Lama is indulged in the market where client to client interaction takes place. Due to this
reason, borrowing and landing process is held between the clients only. There are many of the
cases where clients did not get what actually they want. In this situation, it becomes necessary
that the company should develop a proper networking as well as supply chain management
system with the effect of which assurance could be made that fair and appropriate deals could
take place and trading requirements could get fulfilled (Sawyer, 2011).
Inappropriate network design is another risk which will have a huge impact on the progress of a
company. It is necessary that a proper network design should be developed by the project
manager so as to ensure that the work process could be managed. This will provide a scope of
improvement in the trading process of the company and will help in managing the success in a
proper and effective way.
Operations Related Risks
The risk which is caused due to the change in value which is caused by the fact that actually
causes losses or are incurred due to inappropriate and inadequate internal processes, ineffective
working conditions or due to system failure are known as operation related risks.
It is required that all the operations should be properly formulated and a regular check should be
organized. This will help in reducing the risk of occurrence of operational risk factors.
In the case of Fat Lama online marketing and networking is one of the main aspects required to
be focused upon by the company (SDP -- the SOA-enabled Path to Integrate Legacy and IMS
networks, 2012). The whole progress of the company is dependent upon a proper networking
system; therefore in case of system failure progress of the company will directly get affected. In
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case if the situation of system failure occurs when the working process of the company will get
affected. In this situation, it is required that the company should work towards to manage the
things in a proper way and should keep a regular check on the systems. This will help the
company in reducing the risk of system shutdown and will help in developing a proper and
relevant set of support system for the growth of the company.
To manage the operational risks it is required that Fat Lama should work towards to reduce the
impact and probability of the events which could be possible by applying the strategy of system
check on a regular basis (WHITE, 2015).
Improve Control and Mitigate risks are another step which is required to be taken into
consideration to mitigating the operational risk.
Awareness is another aspect required to be focused upon by Fat Lama. All the employees
working in the workplace should remain informed in relation to the procedures required to be
followed at the time of the occurrence of operational risk
It is necessary to ensure that there is a clear ownership for the element of operational risks and all
the responsibilities should be assigned in a proper way so that progress could be managed in a
proper way (ZANETTA, 2016).
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CONCLUSION
Evaluating every single aspect related with Fat Lama it could be concluded that the start-up has
all the aspects which will help it in sustaining and attaining competitive advantage in the market.
Understanding all the aspects related to the company and making the evaluations in relation to its
progress answer to the questions related to investing decisions could be availed.
(1) Is the company pursuing a valuable opportunity?
Yes, the company is pursuing a valuable opportunity as it is indulged in a totally new, innovative
and sustainable aspect. In present time people, as well as governance, is becoming concerned
about environmental sustainability aspects. In this situation proposal of borrowing and landing
belongings will help in reducing unnecessary production of the products and services and will
help in providing a helping hand in the environmental sustainability aspects.
(2) Is the opportunity feasible to pursue?
Yes, the opportunity is feasible to pursue as it will help the company in growing and obtaining a
huge market share. It could be analyzed that the opportunity towards which the company is
working is really effective and feasible and will provide growth opportunities in near future with
the effect if which company will attain competitive advantage in the market.
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