XYZ Corp Case Study: Risk Management and Market Entry Strategy

This case study analyzes the risk management failures of XYZ Corp during its expansion into the Queensland and Victorian markets in 2008. The company's minimal and narrowly focused risk assessment, primarily addressing financial aspects of competition, proved inadequate. The case highlights the company's lack of understanding of the Victorian market's specific risks, compounded by potentially overzealous management. The analysis covers the steps senior management should have taken to better understand market risks, including conducting thorough market research, understanding consumer preferences, and addressing governmental policies. The potential economic factors, such as maintaining financial strength amidst losses, and social factors, such as failing to meet consumer needs, contributed to the closure of stores and the company's withdrawal from Victoria. The solution also discusses risk control options like product substitution and service elimination, risk reduction measures, and the importance of documentation and accurate estimates in risk management. It further identifies the roles of project oversight, communication strategies, and potential constraints like financial and time limitations, along with strategies to counter them.

Running head: Risk Management 1
Risk Management
Name of Student
Name of Institution
Name of Course
Date of Submission

Risk Management 2
Case Study A
Question 1
The company ought to conduct a thorough analysis of the market situation in the particular
business environment. Checking the nature of consumer preferences and types of products in the
Victorian market would also help the management to ascertain the extent of risk.
Question 2
The management ought to have established the nature of products and the price regulations in the
market zone surrounding the outlet (Clemons, 2009). The management also ought to have put in
place the right strategies to counter the government policies which affect business operations in
the area.
Question 3
The economic factor that led to the closure was the ability to maintain its financial strength based
on the losses that occurred due to poor market experience. The social factor was the company’s
inability to adequately address the needs of the consumers who are important stakeholders.

Risk Management 3
Case Study B
Question 4
 The personnel should include:
 An expert in project management
 An expert in cost estimation
 A specialist in environment management and conservation
 A financial auditor
Question 5
The research methods include:
 Brainstorming
 SWOT analysis
 Information gathering techniques
 Documentation review
 Checklist analysis
 Root cause analysis

Risk Management 4
Question 6
Carrying out a SWOT analysis would be an effective approach in the holistic identification of the
involved risk causes. This is because the form of analysis covers a wide area and the analysis is
deep enough hence identifying the various risks is easy (Premkumar, 2015). Root cause analysis
would also be an appropriate approach since identifying the cause of the current situation enables
the company to come up with the best counter strategies. Lastly, brainstorming can also be
applied.

Risk Management 5
Case study C
Question 7
As an assessment of consequence or perhaps to prevent the occurrence, GM ought to have
conducted an in depth market research to be able to project how the product would perform in
the US market factoring in the elements of financial implications, consumer preferences and the
dynamic nature of the market.
Question 8
The factor to be assigned to this situation would be the issue of fuel prices and rising
environmental concerns. First, the oil prices are rising; as a result, it would not be a good idea to
release into the market a car which uses a lot of fuel. Consumers are likely to dump this for
cheaper alternatives. Secondly, the rising environmental concerns ought to be a point to consider.
An inefficient vehicle whose operations fail the standards for environmental conservation is
unlikely to perform well in such a market (Flyvbjerg, 2010).

Risk Management 6
Part D
i. Risk control options
Increased competition
Substituting the product or varying its forms and price helps to increase the scope of client’s
needs and satisfaction.
Decline in demand for the organizations services
Eliminate the current services and establish more effective alternatives which are result oriented
and efficient.
Expenditure exceeds budget forecast
Minimize the volume of expenditure ensure a balance in the utilization of resources
IT system doesn’t meet company requirements
Improve the system through acquisition of more technologically enhanced equipment and trained
personnel
High staff turnover
Eliminate the portion of the human resource whose functions are minimal, can be performed by a
machine or another worker.

Risk Management 7
ii. The risk reduction measures that can be applied include eliminating the cause of risk,
substituting the object that places the organization at risk and training of staff on risk
management strategies.
iii. Documentation provides the necessary records which can be used in future during
evaluation procedures after the risk management strategy has been implemented.
iv. Definition of the risk: Indicates a good understanding of the risk and enables the
establishment of an appropriate objective (Ashforth & Kreiner, 2010).
Risk breakdown plan: assist in identifying the areas of priority hence addressing the
most essential components
Accurate estimates: outlines the financial scope of the plan and helps in estimation of
the resources that would be required.
v.
 Oversees the progress of the project right from implementation
 Coordinates the procedures involving each case with the help of the supervisors
 Conducts meetings involving updates especially on areas for improvement
 Provides recommendations for improvement based on evaluation outcomes
vi. Communication can be maintained through constant interaction via the most effective
platforms and by receiving the responses of the stakeholders on a periodical basis.
vii. Financial constraints: This can be countered by using a budget that falls within the
financial scope of the company
Time constraints: Can be managed using an effective event schedule and strictly adhering
to its elements

Risk Management 8
Poor services: Can be countered through the incorporation of trained and qualified
personnel in the whole project

Risk Management 9
References
Ashforth, B. & Kreiner, G. (2010). How can you do it? Dirty work and the challenge of
constructing a positive identity. Academy of Management Review, 24(3), pp. 413-434.
Clemons, R. (2009). Making Hard Decisions: An Introduction to Decision Analysis. US:
Duxbury Press.
Flyvbjerg, B. (2010). Megaprojects and Risk: An Anatomy of Ambition. Cambridge University
Press.
Premkumar, G. (2015). “Role of Inter organizational and Organizational Factors on Adoption of
Systems.” Journal of Management. 26(1), pp. 200-236.