BUS300: NatureCare Products Risk Management Report for Expansion Plan

This report provides a comprehensive risk management plan for NatureCare Products, a company specializing in eco-friendly skincare products, as it seeks to expand its business into Sydney, Brisbane, and Melbourne. The report begins with an introduction to risk management, emphasizing the importance of identifying and mitigating potential losses. It then details the legislative and regulatory aspects of risk management, the roles of internal and external stakeholders, and an analysis of the company's strengths and weaknesses. The report includes a PESTEL analysis to evaluate the political, economic, social, technological, environmental, and legal factors influencing the expansion. Task 1 outlines the risk context and research, including stakeholder consultations and critical success factors. Task 2 includes emails to marketing and office managers for discussion and identifies key risks such as disaster recovery, high competition, customer choice unpredictability, financial risks, and supplier bargaining power. The report also outlines a risk management plan with descriptions, likelihood, treatment, resources, monitoring, responsibilities, and timelines for each risk. This detailed analysis aims to support informed decision-making and ensure the successful expansion of NatureCare Products, addressing potential challenges and ensuring a legally compliant and sustainable growth strategy.

Project

Table of Contents
E-mail to CEO .................................................................................................................................1
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
Introduction............................................................................................................................2
1. Review the risk context and conduct research...................................................................2
2. Develop a risk briefing report.............................................................................................3
TASK 2............................................................................................................................................6
TASK 3............................................................................................................................................9
PART - A.........................................................................................................................................9
Short report to CEO..............................................................................................................10
Report to CEO......................................................................................................................11
Email to customer service representatives...........................................................................11
PART – B.......................................................................................................................................12
Staff survey...........................................................................................................................12
Evaluation of report..............................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

E-mail to CEO
To: CEO of NatureCare Products Company
CC:
BB:
Subject: Overview of risk management plan for business expansion
Respected Sir,
This mail is written to inform you that the NatureCare organisation want to expand their
business in three countries which is named as Sydney, Brisbane and Melbourne. This expansion
procedure involve risk because every nation have different political economical, social,
technological and environmental elements which effect expanding of NatureCare Products in
market. Entire report is explaining this and make sure that this will be done in legal manner.
Thank you
XYZ
1

INTRODUCTION
In the terms of a business organisation, risk is refer as a possibility will have maximum
experience of loss rather than expected revenue and profit. For this, employees needs to create a
management plan that aid to reduce risk and uncertainty from business. Risk management is a
most important process in a company that assist to identify credence or mitigation of uncertainty
in organisational decisions (Aebi, Sabato and Schmid, 2012). This report is based on Naturecare
products which was established in the year of 1996 and manufactures eco-friendly, high quality
beauty skincare products. The organisation wants to expand their business chain in several
countries, so for this they requires to produce a risk management plan to identify uncertain issues
that can affect business procedure and policies at the time of expansion. This report is going to
cover issues and elements related to risk as well as its management approaches in the context of
Naturecare products.
TASK 1
Introduction
1. Review the risk context and conduct research
 Legislative and regulatory in relation to risk management
Every organization have to follow all the rules and regulation while expanding their
business in other countries. Same as NatureCare products also have to work in legal manner
when they will establish their enterprise in some other nation such as Sydney, Brisbane and
Melbourne. Whereas, regulations are those which is given by government in relation to the same
procedure and these must be followed as per law (Bessis, 2015).
 Internal and External stakeholders with whom consultant is required for identifying
potential risk and issues which raise as a part of risk management process.
Internal and external stakeholders are those to whom company can consult for their
potential risk. Here, employees are inner and investors are outsider with them discussion can be
done related to risk involved for expanding business.
 Strength and Weakness of the company
NatureCare Product is the organization which serve through both online and offline.
Moreover, strength of online serving is that they can easily attract large number of customers
2

through display. Whereas, weakness of the same is that preferences as well taste or nature of
purchasing of customers will not easy for identifying.
Retail stores also have its strength i.e., by serving goods and services through physical
outlets employees of NatureCare company can analyses taste and preferences of their customers.
Same as its weakness is that respective association is not able to grab customers from market at
large extend (Cardona, 2013).
 Analysis of critical success factors, goals and objectives for expansion of business.
Objectives – To serve healthy and chemical free products at worldwide level.
Goals – to attract large number of customers
 PESTEL analysis
It is important for an to gain external factor knowledge while expanding their business in
other location. Such this is only possible through conducting PESTEL analysis.
2. Develop a risk briefing report
 Introduction
Scope of risk management :- There are several scope of risk management in NatureCare i.e.,
environmental monitoring, equipment cleaning, preventive maintenance, calibration, deviation
and so on.
Risk management process :- Below mention is the process of risk management -
Process 1: Risk Management Planning
Process 2: Risk Identification
Process 3: Risk Analysis and the Risk Database
Process 4: Risk Response Planning
Process 5: Risk Monitoring/Control
Process 6: Additional Risk Analysis Tools and Techniques
Legislation and regulation risk in expanding business :- Their are various legislation as well
regulations which must be followed by the NatureCare while expanding their business in
different location these are as follows -
Legislation dealing with:-
 disasters, emergencies
 occupational health and safety
 the environment
3

 equal employment opportunity
 privacy.
Local government requirements dealing with:-
 land use planning
 building and planning permits
 business permits
 community interaction
 noise limits
 traffic management
 use of community facilities and event permits.
Safety standards
Operating procedures
Emergency procedures
Management procedures.
 PESTEL analysis
In order to identifying environmental factor it is required to analyses them properly
before the expansion of business (Chance and Brooks, 2015). Through this, management of
Naturecare can identify maximum risk factors that can affect business operations and procedures.
For a detailed analysis PESTEL model assist in determining authenticate information as -
Political factor – In Australia political environment is stable thus while expanding
business in same country location will be be easy because these factors are not flexible.
Economical factor – NatureCare expand their business in some location of Australia it will
result in reducing unemployment rate by providing job opportunity to peoples. But major issue
will be faced by them is financial due to global financial crises in the same nation.
Social factor – Customers preferences is much fluctuating in Australia which sometimes
result in decreasing sales (Glendon, Clarke and McKenna, 2016).
Technological factor – Their is much technological benefits in the same country such as
Efficient Aircraft, internet, Video-conferencing and surface transport investments.
Environmental factor – Infrastructure in must for physical stores and there is shortage of
the same in Australia.
4

Legal factor – Anti competitive behaviour, allegations of misleading advertising and
legislative compliance requirement (Hull, 2012).
 Internal and External stakeholders with whom consultant is required for identifying
potential risk and issues which raise as a part of risk management process.
Their are two types of stakeholders one is internal and another is external and both play
important role in the organization at different level.
Internal Stakeholders External Stakeholders
Employees are the inner part of NatureCare
and their suggestions are important for
organisation. While expanding business in
other location CEO of the same enterprise can
discuss it with their personnel for gaining
better outcomes as well to achieve pre-
determined goals and objectives.
Every company have some external
stakeholders same as NatureCare also have
these are their investors. They are the one who
help by providing funds and resources for any
purpose in expanding also. Thus, it is
important to discuss with them also while
taking important decisions.
 Strength and Weakness of the company
NatureCare Product company sever or offer their goods and services by online as well
offline both process which have strength and weakness both. These are as follows :-
Basis Strength Weakness
Retail Stores NatureCare can easily identify
taste and preferences of their
customers through their
purchasing habit. It is
important for organisation to
know about their buyers
choice so that they can easily
convert them into loyal.
The same organisation is not
able to grab or attract large
number of customers through
their retail store which result in
decreasing their sales.
Online Online apps assist the same
enterprise in attracting large
Naturecare company is not
able to identify taste and
5

number of customers through
displaying their products on
their site.
preferences of comers which
sometimes results in
dissatisfaction as well decrease
in sales.
 Analysis of critical success factors, goals and objectives for expansion of business.
NatureCare is expanding their business business in three other location with their health
and chemical product. If such activity is doing by the organization then their must be some goals
and objectives behind it. In this report also there is reason behind expansion these are as
follows :-
Goals – This is the main motive or goal of an enterprise to attract large number of
customers when they enhance their business in other countries. Because Profit maximization is
only possible when numerous people will purchase goods and services.
Objectives – Main objective behind expanding business is to serve healthy and natural
products at several other local also.
TASK 2
1. Email to the marketing manager and office manager for inviting them for discussion.
To: The Marketing manager and Office Manager
From: Operation Manager
Subject: Formal meeting for identifying five greatest risk of the company while establishing a
new branch.
Respected Sir/ Ma'am
I would like to request you that official gathering has scheduled on 1st October, 2018 in
morning 10.00AM at our conference hall in the branch of Brisbane. However, one of the major
reason behind establishing this meeting is to discussed on major risk that might encountered by
our company while launching a new venture in Sydney. Basically, CEO of our company had
already identified one of the dangerous risk due to the occurrence of one incident that is;
disaster recovery plan. Hence, we need to meet and discuss on this major subject for reaching at
final conclusion.
Regards
6

(Operations Manager)
(XYZ)
2) By assessing the given report, we come to know that our company is going to open a new
branch in Sydney due to which we are here to determine risk. Basically, we will follow an
appropriate method of risk management such as; understand the reason behind specific problem,
measure it, analyse cost, hire skilled or talented employee according to skill and various other
things in a given time frame. Mainly, initial risk that is already identified by CEO is; disaster
recovery risk. Therefore, four another risk which is observed are; high competition,
unpredictable in customer choice, financial risk and bargaining power of suppliers.
 Risk management plan
Description of
Five major
risk (High
risk- Blue,
Moderate
risk- Green
colour, low
risk- Brown)
Likelihood
of risk
occurred
(impact of
risk)
Treatment
of risk
(recommen
ded
actions)
Resource
requirements
Monitoring
process
Responsibilit
ies
Timeli
nes
Disaster
recovery Plan:
Its all about
contingency
situations
which might
occurred at
anytime
without
indication such
as;instant cut
It may
happen
anytime
and affects
the
production
department
of an
organizatio
n. As a
result,
Needs to
make
contingency
plan by
reserving
additional
materials or
stocks.
Skilled
employees,
raw materials
like; natural
ingredients,
plant or
machinery
and various
other things
which are
used while
Productivity
of an
organizatio
n.
Board
members and
strategy
maker is
liable for
these
activities.
2
months
7

of electricity. company
might face
heavy loss.
producing
goods.
High
competition:
Beauty care
industries are
growing at
fastest rate
because of
consumer
demand which
create
competition for
small
organization.
Minimize
the profit
level of
Nature care
products.
As a result,
it affects
their
success.
Requisite
for
production
team for
design or
create
unique
items which
are different
from
rivalries.
Unique idea,
creative skills
or employees,
proper
planning,
qualitative
machinery
with
advanced
features.
Demand of
the product.
Marketing
manager
needs to
focus on
competition
for assisting
whole
organization.
1
month
Unpredictable
in customer
choice:
Women's are
curious to try
something new
or different due
to which their
choice get
changed as per
the situation.
It happens
when there
is the
presence of
close
substitutes
and it
influence
their
production
department
as their
workload
get
Company
needs to
conduct
campaignin
g or
maintain
personal
relations
with
customers
for
analysing
their
demand or
Online
websites,
positive
reviews.
Percentage
of customer
which are
get attracted
towards the
product and
their
loyalty.
Sales
executive is
liable for this
task.
1.5
month
8

increased. choices. For
example;
offer
discounts on
occasions.
Financial risk:
Capital is
consider as
most
indispensable
aspect for
every
organization
because it
helps in
conducting
business
operations in
more efficient
way.
It occurred
when there
is shortage
of funds
because of
insufficient
reserves,
debentures
and
absence of
investors.
However,
it influence
in high
context and
stop all the
other
business
activities.
Maximize
investors
and
safeguard
the reserve.
Debentures,
assets,
connectivity
with investors
and so on.
Profit level
of an
association.
Finance
manager.
2
months
TASK 3
PART - A
In a business organisation, training takes a specific place that assist to provide appropriate
knowledge to employees in regarding their job role and designation. Naturecare organisation
wants to expand their business at several locations, so for them it is required to identify
9

consumer's behaviour with the helps of trained staff members. At the time of expansion,
management of firm identified some major risk factors as inability to attract sufficient qualified
and knowledgeable staff to manage new retail store. For this new job role, the existing customer
service representatives show their interest in order to provide their quality services to new
customers. Therefore, management of Naturecare requires to provide them proper training that
helps to maximise employees ability and knowledge regarding new job role. In this process, On
the job training will be identified as more suitable and appropriate that aid to enhance
interpersonal skills of worker during the job hours. In the terms of on the job training approach
best possible options can be -
 Job rotation
 Job instructions
 Coaching
Short report to CEO
For the new job role, employees requires a proper knowledge and understanding in order
to serve quality services to target customers. In this regarding, best suitable options for training
are identified as on the job training approach in which job rotation, instruction and coaching is
determined as most effective factors. All these activities assist to provide proper practical
training during the job hours of employees. Further details of these options are determined below
as -
 Job rotation – This on the job training approach involves movement of employees from
one job role to another on the basis of their performance or organisation's requirement
(Kaplan and Mikes, 2012). On the basis of this approach, trainer can identify abilities to
of their employees fro the suitable designation. In this procedure management of
Naturecare requires to spend a amount of $1500 and it will takes approx. 1 month for the
effective applicability.
 Job instructions – In this procedure, trainee provides proper guidance of each step to
their employees (Lam, 2014). The major outcomes of this method is that it assist to
reduce errors, mistake and so on. In this process, management requires to spend around
$1400 and approx. 1.5 month for the proper training practices.
 Coaching – In this training method, employees works under a supervisor who working as
a coach in order to identifying issues, to provide solutions and feedbacks for betterment
10