Risk Assessment Report on Property Millionaires: MBA402 Analysis

This report presents a comprehensive risk assessment of the fictional company, "Property Millionaires," based on a provided case study. It identifies key challenges related to growth, organizational culture, and information management, employing the "Risk Exposure Calculator" for analysis. The report examines pressure points such as performance demands, expansion rates, and workforce experience, as well as the impact of internal competition, resistance to bad news, and reward systems. Furthermore, it investigates information handling, including transaction complexity, performance gaps, and decision-making decentralization. The analysis culminates in a risk score, placing the company in the "danger zone," and offers strategic recommendations to mitigate identified risks and improve operational effectiveness. The report emphasizes the need for increased skilled employees, reduced internal competition, employee involvement in decision-making, and the adoption of a decentralized information system to foster policy improvements. The report references multiple sources to support its findings.

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Running Head: PROPERTY MILLIONAIRES 0
Student Name:
Student University:

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I. INTRODUCTION
This report will focus on analyse the case study of “Property Millionaire” to find the key
challenges or problems that are faced by the company along with its management due
to the current policies implemented by the enterprise. The enterprise offers regular
people various “real estate investment sessions” and “mentoring services”. Founded by
“George Kirzner” around three years ago, it has established its operations in “Adelaide,
Brisbane, Sydney, and Melbourne” with 100 employees. It is medium in size but it
believes in providing real-estate education to those who are in need to ensure that they
are able to achieve their goals. Its operations allowed it to expand its operations rapidly
in several locations while also ensuring that its profitability remain stable during this
period of time. In this evaluation, the “risk exposure calculator” is used for multiple
challenges to be scored faced by the company founded by R. Simons (Simons, 1999).
The score given on the calculator is based on a “scale of 1 to 5” on which different
parameters will be measures along with evaluation of the overall objectives of the
company in terms of reporting of issues. These challenges are necessary to be
addressed to make sure that the company is able to sustain its growth in the market by
correctly analysing relevant data. Lastly, a number of suggestions will be given to the
enterprise in order to make sure that it is able to tackle its key challenges by removing
inconsistencies from its current business practices.

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II. RISKS DUE TO GROWTH
The factors affecting the operations of companies are analysed for growth results to
make sure that corporations are able to stay relevant even in adverse market
conditions. It is important that companies evaluate multiple factors to regulate their
overall growth impact while also minimising the employees’ pressure (Love & Roper,
2015). Nowadays, companies that are well established with high competitive business
face substantial pressure to perform their operations which result in putting immense
pressure on their employees to achieve their targets which are fixed by the company
within a specific period of time (Visser & Scheers, 2018). The targets and aims decided
by the management for sustaining the market growth for employees focus on setting
expectations which lead to increasing the pressure faced by the workers that negative
effect their performance (Batkovskiy, et al., 2015).
Organisations operate by sustaining growth through market expansion and creating a
competitive advantage. Moreover, there will be both negative and positive implications
present while increasing the revenue streams of companies as strategized and
employees’ sustainability imposed by the time load and keeping with changes (Kung &
Schmid, 2015). Companies try to meet the targets whereas employees are lowering the
work timing and reducing the quality of results delivery. It is not easy to sustain the
expansion rate and growth in the market where employees can work when they are
trained and skilled (Bianchi, et al., 2019). Employees being experienced and qualified
are required by companies to make sure about activeness for meeting the change in
needs of differing concerning the market.
EXPANSION RATE
As mentioned by George, “Property Millionaire” does not hire a new workforce as per its
growth of operation to reach the requirements by its strategy of expansion. The
companies started to compete to achieve commission and expensive gifts for each other
due to which the employees have the workload increment. The company scored “5 out
of 5 points”.

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PRESSURE OF PERFORMANCE
The company faces issues of work pressure on employees as per the aims decided by
the management without consulting it from the employees that leads to an increase in
the workload for them. It was a big issue according to George where employees need to
deliver “strong financial performance” continuously for what they are accountable for.
The targets decided were high where the deadline was limited for achievement due to
which the difficulties faced by the employees were that they were not able to release
their requirements. The hiring and investing in the new workforce was the issue faced
by the company as well including the operations expansion and spoiling the living of the
employees as per the working. The company has scored “4 out of 5 points”.
INEXPERIENCE OF WORKFORCE
According to the perception of George, the main issue of the company was to work on
hiring the new workforce with skills and experience as needed. The clients were
dependent on the consultants who make sure to bring them in the company for the
customers and management concerns not to affect unfavourably due to the continuous
services of the company and not the hiring workforce. Therefore, the company scored
“5 out of 5 points”.
III. RISKS DUE TO ORGANIZATIONAL CULTURE
Organisations’ operations are affected by the cultural aspects essential for management
concerned about achieving high results. The estimation of risks in the market deals with
staying of companies due to unfavourable concerns. Corporations face challenges due to
less approach and innovation for taking risks (Reason, 2016). It is important to allow
risks to take for company’s growth in improving its services and products as the
customer demands in the business for expansion (Brettel, et al., 2015). The reliable
opportunities for conducting operations make sure to reduce the costs of operations
and quality increment alternates for products and services of the company (Bromiley, et
al., 2015). After identifying the adverse affecting factors, it is the responsibility of
superior authorities to make the company sure on their ability for executing strategies
in future to allow them to stay in the unfavourable market conditions (Liu, et al., 2015).

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To help the company for promoting productivity to enable employees to make sure
through internal competition policies to achieve the goals as decided by the time and
not depending on the competition for a negative working environment in making
(Murray-Webster & Hillson, 2016).
EXECUTIVE STRUGGLE TO BAD NEWS
The company’s main issue with local managers is that they did not inspire employees
regarding their knowledge of understanding the bad news in the company. The
managers are the only whom employees listen and agree to their decisions and not
evaluate the negative culture of appropriate information not helping to reach them to
the higher level of the management. The company scored “5 out of 5 points”.
REWARD FOR RISK-TAKING
The company’s business risk is never promoted taken while operations management
where the policies of innovation promotion is not executed. The use the traditional
approach based on the superior authorities for management operations and consultants
do not let them collect the inputs to deal with consumers directly as they do. Hence,
they do not have enough data as per the lack of guarantee in between. The superior
authorities not having much data as per the availability by market-changing awareness
the company scored “5 out of 5 points”.
INTERNAL COMPETITION
The company has implemented various policies to promote the internal competition
promotion in the culture and promoting the conflicting leading between the employees
for negative working environment creation where the policies do not play and effective
role. It is hard to build a relationship for employees who are new in the company with
others. This affects the difficulty in effective working with customers where the
company scored “5 out of 5 points”.
IV. INFORMATION HANDLING RISKS

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Organizations handle the information with accurate conduct to make sure that the
management has contact with relevancy and correctness to build effective strategies for
business important in the company (Peltier, 2016). To make sure the effectiveness of
the companies of executing accurate information with managers related to business
transactions to allow the handling of effective information (Webb, 2017).
It is important to create policies for the detection of performance gaps in the company
to make sure the relevancy to stay according to the targets in the unfavourable market
conditions evenly (Van Staveren, 2018). Organisations improve the process
effectiveness they want by making decisions and organizing those decisions to
effectively utilise available information (Ahmad, et al., 2015). The company is
dependent on the insights of employee and manager at the time of forming business
policies allow preparing the fast changes effectively (Pappas, 2016).
GAPS IN INVESTIGATING THE PERFORMANCE
“Property Millionaire” allows management to collect appropriate information relating
to the demand of the consumers as the company did not implement any policies to make
it difficult to identify gaps in the process. The management did not have the findings of
the performance of specific departments better than others regarding it. Therefore, the
company scored “3 out of 5 points”.
TRANSACTIONS’ COMPLEXITY
The company had a number of issues in transactional operations as per the high
rapidity having qualified employees where it is important to understand the capabilities
of building relationships stronger with consumers used for workshops in the future.
The accurate details of the company are not taken by the officials because of problems
and transactional rapidity not controlled with real conduct. Due to the deficiency of
operational information systems the company is scored “4 out of 5 points”.
DECENTRALIZED DECISION-MAKING
The implementation of policies by the company supports the decision-making by
decentralization as consultants and managers are not allowed by the administrators for

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their contribution to the process of decision-making. The customers with the contact of
people as mentioned by the management with challenges increment in the company are
scored at “5 out of 5 points”.

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V. CONCLUSION
FIGURE 1: RISK EXPOSURE CALCULATOR
(Source: By Author)
Based on the observations, a score of 41 is received by “Property Millionaire” which
results in putting the organisation in the “danger zone”. As per the scoring system, a
score that is 35 or high depicts that companies are facing serious challenges and it puts
them in the “danger zone”. On the other hand, a score between 21 and 34 depicts that
enterprises are in the zone of “call for help” and corrective actions are needed for
improving the current operations. Lastly, a score below 21 depicts as “safe companies”
and these companies did not face or face minimum challenges which can address
without severe challenges. In this case, it is essential for management to take corrective
steps to reduce the challenges in the company orderly to stay significant in the market.
It is necessary to change policies to ensure the company’s ability for sustaining the
growth in the market.
VI. RECOMMENDATIONS

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The multiple factors are taken into consideration which is important for the
management of “Property Millionaire” to ensure that they reduce risks which are a
direct result of their current operations. There are recommendations to assist the
considered factors and creating essential changes in the policies allowing them for
profitability improvement. The company needs to increase the “skilled and experienced
employees” to hire at the time of slow expansion rate to make sure that the existing
consumers did not compromise in terms of quality services. The company needs to
“lower the level of competition internally” within the company and it should provide
culture support to promote positive relationship between new and existing employees.
The managers' engaged in needs to be involved with consultants and employees to
ensure their ability for contributing qualifications with decision-making process of the
company for forming effective policies. Through the adoption of decentralized
information system, efficient can be achieved in the workplace where the management
will be capable of forming policies which are in the parties' interests for increasing the
effectiveness of the decisions in the company. Therefore, the changes will make sure for
the company to address the prior challenges faced to endure its growing in the market.

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