BUS300: Risk Management Plan for Nature Care Products Expansion

This report outlines a comprehensive risk management plan for the proposed expansion of Nature Care Products. It begins with the development of a risk management plan, followed by a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report then identifies five potential risks associated with the expansion, including market share acquisition, profitability, consumer satisfaction, operational and technical risks, and financial risks. Each risk is analyzed, and strategies for control and mitigation are proposed. The report includes a summary of the potential risks, a risk priority statement, identification of key personnel for consultation, and a proposed process to address the risks. The required documentation and implementation, monitoring, and evaluation of the risk management plan are also discussed, along with a list of relevant references.

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Table of Contents
Development of risk management plan for the proposed expansion...............................................2
SWOT analysis of the proposed expansion.....................................................................................2
Identification of five potential risks.................................................................................................3
Analysis of the potential risks and strategies to control the risks....................................................3
Summary of the potential risks........................................................................................................3
Risk priority statement for five potential risks................................................................................6
Identification of the person needs to be consulted within the organization....................................6
Summary of the proposed process to address the risks...................................................................7
Explanation of the required documentation.....................................................................................7
Summary of implementing a risk management plan.......................................................................7
Monitoring the implementation of the risk management plan.........................................................7
Evaluation of the success of the risk management plan..................................................................7
References........................................................................................................................................8

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Development of risk management plan for the proposed expansion
For the proposed expansion, the risk management plan is given below:
SR/
No.
Risk Management plan Steps
1. Identification of risks Identify and explain the risk
2. Analyzing risks Considering the consequences and
likelihood of each risk
3. Response planning for risks Developing risk mitigation risk
strategies
4. Monitoring and controlling risks Using Project Risk Register to review,
track and monitor the risks
SWOT analysis of the proposed expansion
Strengths Weaknesses
 The company sell its products through its
websites
 It targets consumers who seek eco-
friendly and high-quality products
 Poor comprehension of services or
products
 Lack of enthusiasm
 Communication problems
 Tardiness
Opportunities Threats
 70% of consumers are professional
women comes under the age group of 25-
55
 Changes in customer lifestyle,
government regulations, and technological
 External factors
 Intense competition within the
market
 Changing customer patterns and

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advancement recession
Identification of five potential risks
The five potential risks associated with the proposed expansion are as follows:
 The degree of risks rely upon how nature care products acquire a high market share
 To estimate the relationship between profitability and market share
 The new product range may not satisfy consumer needs and want
 The process of product development might involve operational and technical risks
 The company may face financial risk
Analysis of the potential risks and strategies to control the risks
The first risk could be controlled by nature care products by implementing a strategy of
considering optimal market share. Whereas, the second risk could be resolved by using the
strategy of estimating the risks related to each share level. On the other hand, the third risk could
be controlled by keeping itself updated related to the preferences and needs of the consumers.
The fourth risk could be resolved by hiring people with relevant knowledge and skills regarding
technical aspects (Beckers, Van Doorn & Verhoef, 2018). However, the fifth risk could be
controlled by employing strategies to minimize production costs analyzing the overall budget.
Summary of the potential risks
The potential risks are as follows:
The degree of risks rely upon how nature care products acquire a high market share
It will create an impact on product innovation and will lower the cost of the products that would
decrease market share by 10%.

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Figure: Acquiring a high market share
(Source: Guiso, Sapienza & Zingales, 2018)
The graph shows the number of risks the company could face in the future to acquire a high
market share by 10%. It has been observed that if the company controls the risk, there are higher
chances of increasing the market share by 10%.
To estimate the relationship between profitability and market share
Nature care products may find its current share below the optimal level that would create a
negative impact on market share gains.
Figure: Estimating profitability and market share
(Source: Cremers, Ferreira, Matos & Starks, 2016)
The graph shows the fact that profitability and market share would increase from 10% to 40% in
the future if nature care products control the risk.
The new product range may not satisfy consumer needs and want
This particular risk may arise if the company develops products with little features and
complexity.

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Figure: Satisfying consumer needs and wants
(Source: Rabetino, Kohtamäki & Gebauer, 2017)
The graph depicts the percentage of dissatisfied and satisfied customers due to the development
of a new product range.
The process of product development might involve operational and technical risks
The company may deal with the elements that have to be delivered regularly, and a significant
problem could be sourcing these materials.
Figure: Graph for operational and technical risks
(Source: Hassan, Nawaz, Lashari & Zafar, 2015)
The above graph represents the amount of risk that creates an impact on the company's business
operations because of operational and technical risks.
The company may face financial risk

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This particular risks may create a negative impact on the excess utilization of resources at the
time of the development stage.
Figure: Graph for financial risks
(Source: Ramanathan, Subramanian & Parrott, 2017)
The graph represents the estimated percentage of financial risks that might be faced by the
organization while gaining market share and developing new products.
Risk priority statement for five potential risks
For the first risk, the company must focus upon a specific channel of distribution and bundling
services to gain 10% of the market share.
To resolve the second risk nature care products must consider enhancing its long-term
profitability.
To mitigate the third risk, the organization needs to determine the series of product testing to
develop a working prototype (Ortiz‐de‐Mandojana & Bansal, 2016).
To control the fourth risk, it is essential for the company to guide the employees regarding the
technical aspects.
To resolve the fifth risk, the company must prepare an appropriate budget and create an
alternative product range.

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Identification of the person needs to be consulted within the organization
To control or minimize the risks the customer service operator must consult with the workers
within the organization who will help in recognizing and assessing the risks. The employees will
help reduce or eliminate the risks.
Summary of the proposed process to address the risks
The proposed process to address the risks are as follows:
 Identifying threats
 Avoiding risks
 Sharing risks
 Accepting the risks
 Controlling the risks
Explanation of the required documentation
The required documentation is preformatted tool and risk management template that will help
minimize the time needed for documentation.
Summary of implementing a risk management plan
The risk management plan will be implemented by exploiting opportunities and managing
recognized threats. The plan will be implemented by using new technology, establishing
competitive pricing, and creating barriers for market entry (Kang, Alejandro & Groza, 2015).
Monitoring the implementation of the risk management plan
The risk management plan will be monitored by analyzing and evaluating the risks, along with
developing and reviewing the plan.
Evaluation of the success of the risk management plan
The success of the risk management plan will be evaluated by determining the probability and
consequence of each risk.

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References
Beckers, S. F., Van Doorn, J., & Verhoef, P. C. (2018). Good, better, engaged? The effect of
company-initiated customer engagement behavior on shareholder value. Journal of the
Academy of Marketing Science, 1-18.
Cremers, M., Ferreira, M. A., Matos, P., & Starks, L. (2016). Indexing and active fund
management: International evidence. Journal of Financial Economics, 120(3), 539-560.
Guiso, L., Sapienza, P., & Zingales, L. (2018). Time varying risk aversion. Journal of Financial
Economics, 128(3), 403-421.
Hassan, R. S., Nawaz, A., Lashari, M. N., & Zafar, F. (2015). Effect of customer relationship
management on customer satisfaction. Procedia Economics and Finance, 23, 563-567.
Kang, J., Alejandro, T. B., & Groza, M. D. (2015). Customer–company identification and the
effectiveness of loyalty programs. Journal of Business Research, 68(2), 464-471.
Ortiz‐de‐Mandojana, N., & Bansal, P. (2016). The long‐term benefits of organizational resilience
through sustainable business practices. Strategic Management Journal, 37(8), 1615-1631.
Rabetino, R., Kohtamäki, M., & Gebauer, H. (2017). Strategy map of servitization. International
Journal of Production Economics, 192, 144-156.
Ramanathan, U., Subramanian, N., & Parrott, G. (2017). Role of social media in retail network
operations and marketing to enhance customer satisfaction. International Journal of
Operations & Production Management, 37(1), 105-123.