Risk Analysis and Mitigation Strategies for Eve Investment Ltd

This report provides a comprehensive analysis of Eve Investment's business environment, focusing on risk management strategies. It includes a company overview, followed by a detailed PESTLE analysis, SWOT analysis, and risk profiling to identify potential threats and opportunities. The report evaluates the company's current risk management framework and offers recommendations for mitigating identified risks. It emphasizes the importance of understanding both external and internal factors influencing the business to formulate effective strategies for sustainable growth and success in the competitive health and wellness industry. The document is available on Desklib, a platform offering various study tools and solved assignments for students.

Contemporary Business Environment
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Executive summary
Any business is required to have detailed study about the macro external and internal factors of the
business to formulate such plans of the business which would help the business to do better in the
industry. The report highlights the business of Eve Investment, it harvests and create different
innovative products which helps in improving the wellbeing of the consumers globally. SWOT,
PESTLE and Risk Profiling of the business is done followed by recommendations to manage risk of
the business.
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Table of Contents
Executive summary................................................................................................................................2
Table of Contents...................................................................................................................................3
List of Tables and Figures.......................................................................................................................4
Introduction...........................................................................................................................................5
Company overview................................................................................................................................5
PESTEL analysis......................................................................................................................................5
SWOT analysis........................................................................................................................................9
Risk profiling for Eve Investment Company.........................................................................................11
Evaluation of current risk management framework of the given company.........................................12
Conclusion & Recommendations.........................................................................................................14
References...........................................................................................................................................15
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List of Tables and Figures
Table 1 PESTLE Analysis 6
Table 2 SWOT Analysis 9
Table 3 Risk Profiling 12
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Introduction
Contemporary business environment refers to the fundamental and the applied impacts of the
environment on the business and its operations. These environments of the business are very
dynamic and competitive (Nikitina, & Lapiņa, (2019)). The management accounting tools are utilized
to formulate business strategies. The company selected for the following report is Eve Investments.
The report highlights an overview of the company selected, The PESTLE analysis and the SWOT
analysis of the business are also discussed in the report. A detailed analysis of the different risks of
the business are also mentioned in the report.
Company overview
Eve Investment is a health and wellness company based in Australia. The company engages in
agricultural operations in the northern New South Wales and Meluka Honey business. The business
of the company mainly deals in agriculture and investments. They produce high quality goods with
sustainable farming practices. The company basically focuses on creating better lifestyles and
investing in health, nutrition and wellness. Eve Investments Limited is a vertical integration health
and nutrition corporation that invests in global scalability-oriented technological start-ups.
The firm has created a lot of excitement around a customized hemp seed honey it's been producing
with special bioactive properties (Thrassou, and et.al., (2020)). The Meluka-branded honey is made
by Medic Honey, a company in which Eve Investments holds a 50% investment, and is touted to have
high antioxidant properties as well as other advantages including immune system support.
Eve Investments wants to get a slice of the growing worldwide medical nutrition business, which is
expected to be worth $52 billion by 2022. The company's research has revealed that their bioactive
honey has "strong immediate antioxidant capabilities" as well as potent antimicrobial activity.
PESTEL analysis
PESTLE analysis is one of the key tools in the management theory which is used by the strategic
managers of the business to help them check the external environment the business is currently
working in and can have a futuristic view to strategically plan different strategies for the business.
PESTLE is an acronym which stands for Political, Environmental, Social, Technological, Legal and
Economical. These are the different macro external factors which influence the working of the
business directly or indirectly. PESTLE analysis model was introduced by an American Scholar, Francis
Aguilar in the 1960s (Contractor, and et.al., (2020)). In marketing, a comprehensive situational
analysis is required before any strategy or tactical plan can be implemented. To detect changes in
the macro-environment, this examination should be done every six months.
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Table 1 PESTEL analysis
External
environment
Key issues/recent developments/changes
Political Factors These include elements that influence the government's reach and
impact on a country's economy. The political environment includes, for
example, legislation, taxation policies, monetary policies, and so on.
There are also some political considerations to be made:
 The country's political stability
 Governmental political ideologies Taxation policies
 Governing bodies and regulatory practises
 Government's term of office and any predicted changes in the
future
 Political figures with clout and their ideals
Political factors are significant in assessing the viewpoints that could
influence Eve Investments Limited's drawn out benefit in a specific
country or market. Eve Investments Limited is a Diversified Financials
organization that works in excess of twelve nations and is presented to
an assortment of political and political framework concerns (Agwu,
(2020)). Expanding the fundamental dangers of the world of politics is
fundamental for achievement in such a powerful Diversified Financials
market across a few countries. Prior to joining or putting resources into a
market, Eve Investments Limited could completely inspect the
accompanying components:
 Diversified Financials trade regulations and tariffs
 Favoured business associates
 Antitrust laws affecting Diversified Financials
 Are there any valuing administrative instruments set up for
Diversified Financials?
 Paces of tax collection and motivators
 Regulation overseeing compensation, for example, the lowest
pay permitted by law and extra time pay
Economic Factors A financial component affects the economy and its productivity, which
thusly straightforwardly affects the organization's benefit. Loan costs,
business or youth joblessness, unrefined substance costs, and unfamiliar
money rates are generally factors to consider. Monetary
development/decay, premium, trade, expansion, and pay rates, min
wage, working hours, jobless (neighbourhood and public), admittance to
credit, and average cost for basic items are generally components to
consider. These are attributes of an economy's prosperity that
straightforwardly affect a company as well as long haul outcomes.
An ascent in any economy's expansion rate, for instance, would affect
how organizations value their labour and products (Silva, (2019)).
Moreover, it would modify a shopper's buying power and could bring
about a change popular/supply elements for that economy.
The total interest and total interest in a not entirely set in stone by
macroeconomic factors, for example, expansion rate, reserve funds rate,
loan fee, unfamiliar conversion standard, and monetary cycle.
Microenvironmental components, for example, rivalry guidelines affect
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the association's upper hand. Eve Investments Limited can expect the
development direction of the agribusiness area as well as the association
utilizing country monetary factors, for example, development rate,
expansion, and industry monetary pointers, for example, Diversified
Financials industry development rate, customer spending, etc. While
doing a PESTEL examination, Eve Investments Limited ought to inspect
the accompanying financial contemplations:
 Infrastructure quality in the Diversified Financials business. Host
nation and Diversified Financials sector comparative advantages.
 In the Diversified Financials business, the worker has a high
degree of skill.
 the level of training
 labour costs and usefulness
Social Factors Social norms and practices, wellbeing cognizance, low financial
development, age dissemination, vocation directions, wellbeing, and
security are generally friendly components to consider (Ferreira, (2019)).
Organizations might utilize these attributes to all the more likely plan
their showcasing examination and system. For instance, because of
weddings and the celebration season, the Indian market sees a spike in
vehicle interest over the most recent couple of months of the year.
These models are particularly significant for advertisers who are focusing
on explicit clients. They additionally underline the nearby work and its
eagerness to work under troublesome circumstances.
The way of life and lifestyle of a general public affect the way of life of an
association in a given setting. Advertisers at Eve Holdings Limited will
investigate the clients of a particular market and construct the
promoting message for Diverse Financials industry customers in light of
the populace's common qualities and perspectives. Coming up next are
social viewpoints that Eve Investments Limited's administration ought to
consider while doing a PESTEL study:
 In the Eve Investments Limited sector, education level and
standard are both important.
 It involves culture (orientation jobs, social shows and so forth)
 The bigger person of society and the pioneering soul. Business
venture is empowered in specific civilizations.
 Insights (wellbeing, natural awareness, and so on)
Technological
Factors
Innovative angles allude to mechanical progressions and developments.
These factors affect an organization's activities. A few new forward leaps
in the mechanical region are being created, like Artificial Intelligence,
IoT, Machine Learning, and Deep Learning, and assuming a firm neglects
to stay aware of the pattern, it might lose its market position (Hussain,
Ali, Thaker, & Ali, (2019)).
The pace of innovation progress, the development of framework, and
any administration or institutional examination are a couple of the
specialized components remembered for the PESTLE study.
An organization ought not exclusively do an innovative investigation of
the business, yet in addition decide the rate at which innovation upsets
it (Aula, and Mantere, (2020)). More slow velocities accommodate
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additional time, while quicker speeds take into account less an ideal
opportunity for an organization to adapt and stay effective.
Understanding the accompanying impacts of innovation is essential for
innovation investigation:
 Eve Investments rivals have created recent technical
advancements.
 The influence of technology on product offerings
 Power on the Diversified Financials industry's rate structure
Environmental
Factors
These factors principally address the effect of the general climate and
the effect of biological elements. Garbage removal rules, natural security
regulation, and energy utilization guidelines are among them.
For explicit organizations, like the travel industry, cultivating, and
horticulture, this element of the PESTLE is basic. Notwithstanding, a
dangerous atmospheric devation and the developing need to change to
maintainable assets, as well as moral obtaining (both locally and broadly,
including store network insight), have driven each firm to consider
natural contemplations. CSR (Corporate Social Responsibility) has been
made obligatory for organizations.
Shifting business sectors have various standards or ecological guidelines,
which could affect an organization's productivity. Indeed, even inside a
nation, states could have dissimilar ecological and responsibility
regulation. In the United States, for instance, Texas and Florida have
separate culpability rules in case of a mishap or an ecological
catastrophe (Tsakalidis, and Vergidis, (2020)). Essentially, a few
European states give advantageous assessment motivators to
organizations who put resources into the environmentally friendly
power industry.
Prior to entering new business sectors or laying out another activity in a
current market, an organization ought to completely evaluate the
natural measures that should be met in those areas. A portion of the
natural contemplations that an organization should ponder early are:
• Natural regulation is a bunch of regulations that manages
contamination in the climate.
• Guidelines on air and water contamination in the Diversified
Financials business
 Waste management in the board in the Diversified Financials
industry
Legal Factors Changes in regulation influencing business, accessibility of unrefined
components, quantities, assets, unfamiliar products, and tax collection
are for the most part legitimate contemplations. There are outer and
interior perspectives to these issues. A country's business environment is
affected by specific regulations.
Aside from these regulations and standards, organizations have their
own arrangement of decides and guidelines that representatives should
adhere to. Therefore, the lawful examination considers both of these
points of view and plans strategies as needs be.
The legitimate design and instruments in various countries are
inadequate to safeguard an association's protected innovation
freedoms. Prior to entering such business sectors, an organization ought
to painstakingly consider its choices since it could bring about the
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robbery of the organization's mystery ingredient, decreasing its absolute
upper hand. While entering another market, Eve Investments Limited's
initiative ought to think about the accompanying legitimate issues:
 Anti-discrimination policies
 Licenses, copyright, and protected innovation regulation
 Web based business and shopper insurance
 Work regulation
SWOT analysis
The SWOT analysis is another important tool which is used by the management of the business
which is used to analyse and interpret the internal strengths and weaknesses of the business with
the view of external opportunities and threats of the business while working in a competitive
market. Any business, if they want to work efficiently in the market, needs to have an apt knowledge
about the different opportunities that they are provided with while working in a marketplace and
the threats that might be there in the marketplace for a certain business. SWOT is an acroymn which
stands for, strengths, weaknesses, opportunities and threats. The SWOT analysis was invented by
Albert Humphrey, a management consultant in the 1960s. SWOT analysis is present in mostly every
field and not just commerce or business (Chakraborty, Mukherjee, & Saha, (Eds.) (2020)). A SWOT
examination checks out both inner and outer issues, for sure's going on inside and outside your
organization. Subsequently, a portion of these components will be heavily influenced by the
organization, while others will not. In any situation, the best strategy for an organization to take
accordingly will end up being unmistakable whenever the executives has distinguished, recorded,
and assessed however many angles as would be prudent.
SWOT might seem clear, however when applied nicely and helpfully, it might reveal a great deal. For
instance, the business might be completely mindful of sure of your association's assets, yet they may
not perceive how problematic those qualities are except if they record them close by weaknesses
and dangers. Essentially, the business might have authentic stresses over a portion of their
organization's imperfections, however by going through the exploration bit by bit, they might reveal
an open door that could more than redress.
Table 2 SWOT analysis of Eve Investment Company
Opportunities
Outer elements that give a strategic
advantage to an organization are alluded to
as any open doors. In the event that an
administration brings down taxes, a vehicle
producer, for instance, can trade its vehicles
to another market, helping deals and piece of
the pie. Openings or opportunities for
anything advantageous to happen to a firm
and its tasks are alluded to as any open
doors.
They much of the time rise out of outside the
partnership and require a foreknowledge into
what could happen later on.
In the context of Eve Investments:
 New natural arrangements - The
additional opportunities will make
Threats
Threats are conditions that can possibly hurt an
organization. A drought, for instance,
represents a gamble to a wheat-delivering firm
since it could obliterate or decrease crop
creation. Other pervasive difficulties
incorporate developing material expenses,
expanded contest, and a restricted work supply,
among others (Chiguvi, Madondo, & Tadu,
(2019)). Dangers incorporate all that could hurt
an organization from an external perspective,
for example, inventory network concerns,
market shifts, or a work lack. Before it become
a casualty and the development deteriorates,
it's indispensable to expect risks and make a
move against them.
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everything fair for every single
modern member. It is a fabulous
opportunity for Eve Investments
Limited to gain by its mechanical
edge and procure portion of the
overall industry in another item class.
 Diminished transportation costs,
because of diminished delivery costs,
can reduce the expense of Eve
Investments Limited's items, giving
the firm the choice of either
expanding benefit or giving the
reserve funds to customers to win
portion of the overall industry.
 Clients procured through the web
channel - The enterprise has placed
huge load of cash into the web stage
over the most recent couple of years.
Eve Investments Limited currently
has another business channel
because of this venture. Before very
long, the enterprise can exploit this
potential by better agreement its
clients and satisfying their needs
utilizing huge information
investigation.
In the context of Eve Investments:
 Various countries' risk regulations
contrast, and Eve Investments Limited
might be dependent upon an
assortment of obligation claims when
approaches in those markets change.
 Given the assorted guidelines and
steady varieties in item principles in
those areas, the enterprise might
confront suit in various business
sectors.
 In the medium to long haul, new
innovations delivered by an adversary
or market disruptor could represent an
extreme risk to the area.
Strengths
These are things that an organization
performs outstandingly well or such that
separates it from its opposition. Consider the
advantages a firm has over contenders.
These could contain representative energy,
admittance to positive assets, or a vivacious
arrangement of production strategies.
With regards to Eve Investments:
 Consolidations and acquisitions have
demonstrated to be a fruitful
strategy for joining reciprocal
organizations. Over the most recent
quite a while, organization has
successfully consolidated various
innovation organizations to smooth
out activities and foster a steady
store network.
 Robotization of exercises has worked
on the consistency of Eve
Investments Limited's products and
permitted the firm proportional all
over because of market interest
(Ahmed, and Hassan, (2020)).
Weaknesses
These keep an association from arriving at its
maximum capacity. An awful brand, raised
turnover, high obligation levels, a deficient
production network, or an absence of chief are
cases of zones where the enterprise needs to
work on popular to remain cutthroat (Prayag,
Ozanne, and de Vries, (2020)). Its association's
shortcomings, similar to its assets, are inborn
perspectives, so focus on individuals, assets,
frameworks, and cycles. Think about what as a
business could improve and what rehearses
they ought to keep away from.
With regards to Eve Investments:
 Since the firm couldn't meet the
challenges presented by new
participants into the business, it lost
minor portion of the overall industry in
expert areas. To resolve these issues,
Eve Investments Limited should foster
an interior criticism structure that
incorporates direct contribution from
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 Effective preparation and learning
programs have brought about a
profoundly equipped labor force. Eve
Investments Limited dedicates huge
assets to representative preparation
and advancement, bringing about a
group that isn't simply exceptionally
prepared yet in addition headed to
accomplish better progress.
the business staff on the ground.
 High staff turnover rate - contrasted
with different organizations in the area,
Eve Investments Limited has a higher
steady loss rate and should spend
substantially more on worker preparing
and advancement than its rivals.
 Interest in R&D is lower than that of the
business' quickest developing
organizations. Despite the fact that Eve
Investments Limited spends more on
R&D than the business normal, it has
been not able to contend as far as
advancement with the area's driving
firms. It seems, by all accounts, to be a
grounded organization anxious to
deliver products with market-
demonstrated attributes.
Risk profiling for Eve Investment Company
A risk profile is a mathematical evaluation of the numerous risks that an association, resource,
undertaking, or individual stands up to. A gamble profile's motivation is to offer a non-emotional
information on hazard by explicit necessities values to factors that demonstrate different dangers
and the risk they bring (Obayelu, (2019)). Managers should examine the risk profile of their
organisation on a frequent basis. During economic cycles such as recession and recovery, when
workload increases, or when experience levels decline, changes inside the organisation will have an
impact on the risk profile. They should also ensure that employees are aware of the organization's
risk profile and have the required knowledge, guidance, and training to cope with the identified
risks.
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Table 3 Risk profiling for Eve Investment Company
Risk Category Risks Impact of risks Recommendations
Financial Availability of funds in hand Issues with the liquidity of the business The business should focus on reducing
its current liabilities and maintaining a
good amount of current assets.
Legal Different liability laws in nations Exposed to various liability claims Creating different reserves to account
these risks.
Political Political unrest in nations and
their mutual relations
High level of trade tariffs between nations Finding a better option for movement of
raw materials and finished goods
between nations
Product Lack of Innovative products Decrease in demand for the products Investing more in R&D of the business
products and the demand of the
consumers at a macro level.
The above table shows different risks that are faced by Eve Investment in the market and recommendation with which they can cater these risks and
minimize their impact in the long run of the business.
Evaluation of current risk management framework of the given company
The above-mentioned risks of Eve Investment are managed in the following ways:
 The management of the financial risk of the business can be seen as the business is producing more goods and keeping a good level of inventory for
the short period of time (Potter, (2019)). This increases the current assets of the business and the business is available with more liquid assets which
they can sell off to meet its current obligations.
 The legal risk is managed by the way the business is investing its funds into reserves and keeping the surplus of the business to itself for growth
purposes.
 The management of political risk can be seen by taking corrective measures and managing the foreign exchange reserves of the business to tackle
the foreign exchange rate between nations.
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