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Financial Decision Making for Creative Projects & Event

   

Added on  2020-06-04

20 Pages4813 Words43 Views
FINANCIAL DECISION MAKING FORCREATIVE PROJECTS AND EVENTS

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3Introduction to company..............................................................................................................3Aims of organization....................................................................................................................4Opportunities and threat for the company...................................................................................4Risk in business............................................................................................................................5RISK REGISTER........................................................................................................................9CONCLUSION..............................................................................................................................18REFERENCES..............................................................................................................................19

INTRODUCTIONRisk management is one of the main domain on which currently firms are focusing in order to manage wide range of risks.Risk is the factor that always affect business firms to great extent. There are number of factors that internally and externally affect thecompany business performance. It is very important to identify rate at which above mentioned factors are affecting the venture interms of risk. In the present research study threats and opportunities that are associated with the enterprise will be identified. Apartfrom this, control mechanism that is followed by the firm to control the situation will be identified. Calculation of risk will be doneand on that basis risk register will be prepared in the report. On the basis of obtained results mitigation strategy will be developed sothat situation can be controlled is risk is increasing at rapid pace in the business. Tesco is following specific structure through whichrisk is managed in the business. Under this, there are few managers that are in the risk management team. These managers consistentlymonitor business environment and whenever required, steps are taken to handle specific risk to which firm is exposed. It can be saidthat there is strong risk management mechanism in the firm.Introduction to companyTesco is the one of the largest retail chain in the UK as it expands its business consistently on yearly basis. From the last fewyears it is observed that firm business does not expand at fast rate as it is facing heavy loss in its business. Two small rival firms Lidland Aldi are giving tough challenges to the business firm (Almeida and Williams, 2016). These firms are offering products at very low price in the market relative to Tesco and due to this reason they are giving toughcompetition to the Tesco. It can be said that firm currently facing huge problems in its business . It needs to make changes in itsbusiness in terms of restructuring and using analytic tools to improve business performance. As part of risk management strategy firmis focusing on shutting down stores that are not profitable for the firm. By doing so, company is reducing cost in its business. It can besaid that by constructing relevant strategy it is improving its business performance. Price reduction consistently in the business isanother factor that lead to decline in earned profit in the business. This is another risk to which firm is currently exposed. Topmanagement needs to manage relevant risk in business to earn profit. 3 | P a g e

Aims of organizationThere are following aims of the business firms and some of them are given below.To grow market share in the FY 2017 by 10%.To cut cost growth rate by 5%.To make innovation in business and streamlining business operations for cost optimization and giving better services to thecustomers (Hopkin, 2017).On analysis of aims of Tesco it can be observed that firm is fully committed towards controlling cost of its products and services. Inthis regard it is prepared to take number of steps and aims at reducing cost in the business so that profit amount can be increased forthe upcoming year. Main aim of the business firm is to accelerate its growth rate by 10% on yearly basis. There are some areas wherefirm is currently focusing for sustainability such as, training and development of employees. Tesco aimed at act as responsibly forcommunity. In this regard it is taking number of steps so that confidence of customers can be gained back. In past years number ofcases were charged on the firm in respect to performance of unethical acts in business. Horse meat case is one of the example that isquite popular in respect to business firm. Such kind of cases heavily damage firm image. Due to this reason firm aimed to becomeresponsible entity towards community.Opportunities and threat for the companyOpportunities for TescoIn the different countries where the company might be under-performing, there they have opportunities for making ventureswith other companies where the local organization will help to do proper marketing research and intelligence to enhanceperformance in such areas (Finch, 2014). They have very big opportunity to increase online shopping where they can able to serve their good and service on the virtualbasis and able to increase their sales for the company and they can offer home delivery service to that area where home deliveris difficult which help them to gain competitive advantage.4 | P a g e

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