NatureCare Products: Risk Management Project for Business Expansion

This project, undertaken by a student in the role of Operations Manager at NatureCare Products, focuses on developing a comprehensive risk management briefing report to support the company's business expansion strategy. The report begins with an introduction to NatureCare Products, its goals, and the context of the expansion, which involves opening new retail outlets and enhancing online presence. The project then delves into a detailed risk analysis, encompassing PESTLE analysis to identify political, economic, social, technological, legal, and environmental factors. The core of the project centers on identifying key risks associated with expansion, such as insufficient resources, competition, poor infrastructure, and customer service issues. The student proposes solutions like attracting investors, improving operational infrastructure, and enhancing customer service. The report includes communications such as an email to the CEO and a team meeting plan. The project emphasizes the importance of integrating risk management principles and procedures, referencing AS/NZS ISO31000:2009. The project highlights critical success factors like eco-friendly products, online accessibility, and positive relationships with health food shops. The project concludes with an evaluation of the risk management process, including strengths, weaknesses, and recommendations for improvement. The project provides a thorough examination of risk management in a business expansion context.

Running head: RISK MANAGEMENT
Risk management
Name of student
Name of University
Author note

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Table of Contents
Assessment 2: Risk management project...................................................................................3
Assessment 3............................................................................................................................14
Assessment 4............................................................................................................................19

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I have been assigned with the role of an Operations Manager at NatureCare Products so as to
develop a proper risk management briefing report that is related to the expansion of business.
This will also allow for researching various risks and associated risk treatment options
required to manage successful expansion of business while undertaking the project.
Assessment 2: Risk management project
Development of risk briefing report
From the case study, it is clear that NatureCare Products Company is aiming at
expanding the business through focus on strategic priorities including the growth and
diversification of business. Because of the growing demands in the marketplace for the skin
products, the company has made sure to deliver skin care products that are made from
environment friendly ingredients and various other components (Lam, 2014).
Introduction
To expand its business, NatureCare has enabled emphasis on the introduction of
multiple retail chain outlets in Melbourne. Sydney and Brisbane. Moreover, the management
of online website could also benefit the company’s ability to market the products and services
easily to the customers while the Risk Management Policy and procedures incorporate the
AS/NZS ISO31000:2009 Risk Management Principles along with the rules, regulations and
guidelines associate with it (Hopkin, 2018).
The purpose of risk analysis is to identify and manage the potential issues and risks
while at the same time, strengthen the management and implementation of business
initiatives required during the project undertaking. The purpose of risk analysis has also been
to determine the potential threats as well as estimate the probable likelihood and impacts
created about the materialisation of these threats furthermore. The other purpose of risk
analysis process has also been higher costs associated with the expansion of infrastructure

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and other business process management, competitive risks, decline product or service quality,
etc (Pritchard & PMP, 2014). The underdeveloped operational infrastructure could also be a
major risk while undertaking the project and thus it could affect the work procedures,
communication process as well as the decision making process and create performance
management issues too.
The scope of risk management process is that it has been applied in the area where the
Information and Communication Technology has been implemented so as to deal with the
new projects and also ensure that the risk management procedures are applied properly in
various stages to prevent further issues associated with it and also could help in constantly
monitoring every stages and make those free form any risks (Glendon & Clarke, 2015). The
ingredients and environment friendly components to be used for the NatureCare products
must also be checked properly and ensure that those meet the desired quality standards too
for sustenance in the marketplace much conveniently. Not only does the scope of research is
to check for understanding whether the environmental risks and human health, but also make
an assessment about whether opening the retail chain outlets in the concerned locations could
bring in enough customers or not (McNeil, Frey & Embrechts, 2015).
The critical success factors include the production of eco-friendly and high quality
skin care products that are skin friendly and have also contributed to the higher demands in
the marketplace too. The products are sold at the retail stores and also online, which have also
been major critical success factors that have enhanced the convenience and accessibility to
the products and services quite easily. Moreover, the relationship, positively managed, with
the various health food shops aims at managing long term growth in terms of revenue
generation and ability to attain competitive advantage in business as well (Cardona, 2013).
The diversification of products and the own brand have also ensured better management of
products and services along with easily influenced the purchasing behaviours of clients too.

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The risk management process, as stated in the case study, has been integrated with the
policies, which incorporated the AS/NZS ISO31000:2009 Risk Management Principles and
Guidelines, which are needed to be followed by NatureCare Products so as to gain growth
and ensure production of healthy skin care goods too. By aligning the process with the
standards of risk management, it has also become effective for using the ingredients that meet
the quality standards as well as facilitated the company’s ability to resolve the issues and
risks quite effectively too (Ho et al., 2015).
PESTLE analysis
Factors Aspects
Political Influence of Government policies,
environmental laws, tax rates, exchange
rates that have contributed to the use of eco-
friendly and natural ingredients for the
production of good quality products.
Economic Rates of inflation, rates of exchange, interest
rates and economic condition, which has
been quite stable in Australia. Thus the
purchasing demand are higher as well for
the products (Aven, 2016).
Social Lack of awareness among people in some
areas of Australia could be a major problem
whereas the lifestyle choices and buying
patterns among people could enable
NatureCare to ensure promoting green
products for protecting the environment and

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also fulfil the customers’ demands
sustainably.
Technological The technological advancements have
favoured NatureCare to promote innovation
and prioritise on the development of
ecommerce for easing down the
accessibility of products for the customers
online (Bolton, Chen & Wang, 2013). This
would also facilitate the distribution of
those and ensure higher revenue generation
and competitive advantage too
Legal Legal aspects such as the rules and
regulations have been integrated with the
business functioning whereas the
Government policies and principles are
associated with the employment laws and
tax regulations, which support the business
functioning (Chance & Brooks, 2015).
Environmental Most of the products of the company have
been made by using natural and eco-friendly
ingredient s and components, which include
environmental concerns’ management and
emphasis on the management of
sustainability too.

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The major risks that are associated with the expansion ability of the organisation, i.e.,
NatureCare while managing business expansion include the lack of sufficient resources, both
financial and human resources, risks due to competition in the marketplace, poor
management structure, lack of product quality and poor operational infrastructure (Bromiley
et al., 2015). The usage an consumption of resources have also not been done properly while
the poor customers’ services resulting from poor response time and lack of ability to respond
to the queries of customers have also been the major risks associated with the business
functioning.
One such treatment option could be to attract more investors or shareholders and
influence them to make investments, which should raise the working capital and allow the
company to possess the required resources and ensure smooth business functioning (Edwards
& Bowen 2013).
The internal stakeholders include the management team, employees, board members,
etc. while the external stakeholders are the shareholders or investors, external media,
customers, local Government and the suppliers too. Often the employees are affected due to
expansion, as with the expansion, certain changes occur, which they might be unable to adapt
to while the change in wages structure could also make them dissatisfied. On the other hand,
with the business, in case, it faces loss, then the shareholders would not be provided with the
desired rate of return on investments made, which could be a major issue associated with
these risks as well (Earle & Cvetkovich, 2013).
The strengths of the organization include the emphasis on the use of eco-friendly
ingredients and components for the production of natural and healthy skin care products
while the positive approaches towards sustainability management has helped in presenting a
positive image among the minds of consumers, which are considered as major strengths as

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well. The weaknesses though include poor operational infrastructure, inaccurate usage and
consumption of resources as well as the poor customers’ services, which has resulted in
customer dissatisfaction and also reduced the sales and revenue generation capability for the
organisation (Wiengarten et al., 2016).
Email to CEO
To
CEO,
NatureCare Products,
Australia
Sir
It is to inform you that for the last few months, the sales of our company have
gradually went down and this may be due to the reason of lack of enough options made
available for the customers to make purchases. As the Operations Manager, I do think that it
would be a good thing to open up some new retail chain outlets all over Australia, which
would increase the accessibility o products and services for the customers and also enhance
the revenue generation capability largely. We have found that due to the lack of both
financial and human resources along with the poor level of customer satisfaction, high
competition have affected the business’ functioning. Due to this, the poor operational
infrastructure has made the company experience complexities and issues to open up new
platforms, which could enhance the accessibility fir the customers. Thus, before undertaking
the project and open up new retail outlets for business expansion, I would recommend
making necessary changes to the operational infrastructure as well as attract more
shareholders to increase the working capital. This would not only help in improving the

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operational infrastructure and management structure, but could even facilitate better
management of both human and financial resources, thus, contribute to the smooth business
functioning and achieving competitiveness in business as well.
I will be very much grateful if you can look into this matter at the earliest and make
sure to approve the fundamentals of the project required to move forward.
Thanks and Regards,
Operations Manager
ABC
Email to team
To
All the employees,
NatureCare Products
It is to your utmost knowledge that our company sales have declined for the past few
months. It is necessary for us to focus on the strategic priorities and make sure to undertake
necessary approaches so as to make it certain that the goals are reached and at the same time,
we can make enough profit as well as achieve a competitive edge over our competitors. Thus,
I would like all of you to attend a meeting n 15th January, 2020 at 4 pm, where we can share
and listen to each other’s ideas and opinions and then make a proper decision, which could
allow us to sustain in this competitive marketplace. Not only are we going to discuss about
how we can achieve he feat, but also we would like to share with you about the various risks
that might be experienced while undertaking the project even. Thus, we expect each and
everyone’s presence and engagement during this meeting tomorrow.

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Thank You
Operations Manager,
NatureCare Products
Team meeting
As part of the company, being the Operations manager of Nature Care Products, it
would the responsibility to make the employees informed about the risks at first and also
about the plan for expanding the business. It would be essential for the OM to make sure that
the proposed business expansion is properly acknowledged by the employees, which could
keep them up to date and also share their individual thoughts, opinions, ideas and feedbacks
required to attain success in business. Moreover, during the meeting, not only the Risk
briefing report would be shared with them, but also the employees should be taught about the
risks and its severity, i.e., how it could affect the management of business processes and
functions negatively (Reboredo, 2013).
From the assessment of the risk briefing report, it is already understood that the major
risks have been insufficient resources, both financial and human resources, poor operational
infrastructure, poor management structure, high competition within the marketplace, etc. To
resolve this, it would be the first and foremost thing to attract important shareholders or
investors, who could invest on the company and make sure to raise the working capital for
NatureCare Products, Australia. With this, not only the company would acquire the desired
amounts of resources, but also it would be able to make necessary changes to the
infrastructure as well as improve the management decision capability through investing in
core training and professional development sessions (Bowers & Khorakian, 2014). This could
make the management structure quite capable of handling the management issues and also

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maintain a string workforce, which should promote innovation, creativity and also enhance
the scopes for business expansion through introduction of new retail outlets.
The risk management plan should include the most important risk, i.e., the insufficient
resources, which has hindered the management of growth and diversification and due to thus,
the company failed to bring in innovation of products as well. The inappropriate resource
usage and customer satisfaction, faring quite below the desired level have also been other
major risks. Thus, it would be important to acquire enough resources and also raise capital for
working without any major risks as well as facilitate the business functioning with the
employees following every rules, regulations and guidelines that are part of the AS/NZS
ISO31000:2009 Risk Management Principles and Guidelines (Serpella et al., 2014).
Development of risk management plan
It is always recommended to bring in responsible shareholders or investors who could
drive the working capital for Nature Care Products and allow for investing in potential
resources management. This would bring the company sufficient resources while at the same
time, form an effective operational infrastructure that could help in using he resources
properly too. Moreover, the management department efficiency, when improved, should also
be the cause of improving the potential and skills among the customer service employees. It
is necessary for making them listen to the clients’ queries and problems as well as provide
accurate responses to deal with them properly (Brem & Viardot, 2015). This would raise the
level of satisfaction among them and make them loyal towards the brand, thus enhance the
profit level for Nature Care Products and make it attain competitive advantage in business
too.
Risks Impacts Prior
ity
Resource
requirem
Recomme
nded
Timel
ine
Responsibi
lities
Monitor
ing

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ents actions process
Inefficien
t resource
usage
and
availabili
ty
Poor
business
functioni
ng
High Sharehold
ers
involvem
ent
Attracting
investors
10
days
CEO Require
d
Lower
customer
satisfacti
on
Poor
customer
services
Medi
um
Quicker
customer
response
time
Improve
customer
service
efficiency
4 days Employees Require
d
Poor
operation
al
infrastruc
ture
Lack of
working
capital
High More
resources
usage
Investment
s to be
done
7 days Manager Require
d
Poor
managem
ent
structure
Poor
skills
and
knowled
ge
among
manage
ment
team
Medi
um
Training Use
resources
and capital
5 days OM Not
required