BUS1001 - Risk Review: Analysis of Risk Factors for Virgin Mobile 5G

This report provides a comprehensive risk review of Virgin Mobile's plan to introduce 5G technology in its handsets. It explores microeconomic factors such as customer demand, employee expertise, competitor actions, and shareholder expectations, as well as macroeconomic factors including political risks, security concerns, environmental impacts, and social trends. The analysis identifies the strongest risk factors associated with 5G adoption, such as potential security vulnerabilities, reliance on trusted component manufacturers, and the need for proper network implementation and configuration. The report concludes with proposals to mitigate these risks, including government licensing for trusted manufacturers, encouraging international standards, and ensuring careful implementation and configuration of 5G networks in mobile handsets. The goal is to provide Virgin Mobile with actionable insights to navigate the challenges and maximize the opportunities presented by 5G technology.

Risk Review

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Microeconomic factors - industry level evaluation.....................................................................2
Macroeconomic factors...............................................................................................................3
Summary of strongest risk factors and proposals to mitigate those risks....................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journal........................................................................................................................7

INTRODUCTION
Risk analysis or review refers to the identification of risk in any business operation before
implementation of the project (Ding, Ji and Khan, 2020). It is essential for any business to
analyze the risk associate with any new innovation and business they are going to launch in the
market. Virgin mobiles is a brand of wireless communications services and famous for providing
their services in the United Kingdom, Ireland, Canada, Russia, India, Saudi, UAE and Mexico.
This is the mobile brand company wants to bring new innovation in their handsets to provide
effective services to their customers. In this time period of good and fast connectivity Virgin
Mobile wants to launch new 5G services in their handsets to provide effective services of
internet connectivity to their customers. This launch will be associated with the great risk which
can affect the business of virgin mobiles. This report contains micro as well as macro
environmental factors in order to have in depth analysis of risk associated with these factors of
business. Further, this report also contains summary of the overall risk and various
recommendations in order to mitigate all the risk associated with the proposal.
MAIN BODY
Microeconomic factors - industry level evaluation
Microeconomics studies deals with individuals as well as business decisions and focuses
on demand and supply of products in the market. In an industry, it is essential for every business
organization to identify these microeconomic factors so that the internal risk of the business can
be analyzed by the business in effective manner. In order to analyze the microeconomic factors
of Virgin mobiles it is essential to evaluate the microeconomic factors of the industry which are
related to introduction of new innovation in their mobile handset that is 5G technology support in
the handsets. The microeconomic factors of the industry in which virgin mobile operates is given
below:
Customers: First most important factor which affect the industry and it is the customer due to
which company decide to bring innovation. Increased use of internet every customer in the
market requires fast speed data from their operators. In order to provide 5G services to be used
by the customers Virgin mobile requires to update their handset so that their handset supports 5G
networks (Ding, Khan and Ji, 2020). Introduction of 5G support Virgin mobile can create a risk

for the company the software installed in the handset. Introduction of 5G network to the mobile
network operators and if mobile network operators does not introduce 5G network then it will be
a great risk for the company.
Employees: Introduce this innovation in the company Virgin mobile is required to motivate their
employees so that they can work with full dedication and provide effective products to their
customers. The industry will require expert employees for the organization in order to introduce
reservation in their mobiles. It is risky for the organization if they don't get such expert
employees and their organization.
Competitors: Competitors are another microeconomic factor which affects business of any
organization. Virgin mobile has several competitors in the market which affects their business in
several manner. If the company does not decide to launch 5G technology in their handsets and
this innovation is adopted by another company then the company will not able to get competitive
advantage. The company has decided to bring this innovation in their handsets of 5G technology
to gain the competitive advantage in the market and if competitors get this technology first then
the company will not be able to establish their image in their customers. As seen in the industry
the customers are demanding more speed data which has increased the risk of competitors to
adopt this 5G technology (Issa, Mosaad, and Hassan, 2020).
Shareholders: Shareholders are the part of an organization who are getting benefits from the
operations of an organization. It is essential for the Virgin mobile to keep their shareholders
satisfied with their new launch as the investment requires in the launch is coming from the
shareholders only. The company is required to analyze that whether the shareholders are ready to
invest in the organization or not because if the company will not get required amount of
investment then they will not be able to introduce this technology in their products. If
shareholders disapprove the innovation in the product then it can create a great loss to the
organization. It is essential for every organization in this industry to take care of their
shareholders for that the company can give benefits from their customers by providing time
innovative ideas.
Macroeconomic factors
Macroeconomic factors are those factors which are connected with the industry or country as a
whole. These factors are not in the control of business and the business is required to take

decisions in accordance with these macro environment factors. In order to identify micro
environmental factors with which a risk as an associated for Virgin mobile to launch 5G
technology is in their handsets are given below:
Political risk
The company's operating their business in the markets of United Kingdom which provides
them a good political stability of the market (Kuipers, Kok, and Vermeulen, 2020). All the there
are several risk related to the political factors such as approval of Government and many more
but the organization already as a plan to cope up with the risk of political factors in the
environment. The recent Brexit agreement in the market of UK also causes political instability
which is a greater risk for the company to launch a new product as they will get their raw
materials at higher prices due to the violation of trade agreement between Europe and United
Kingdom and the company will require to launch their products in low prices. It is because of the
untrusted companies and based in 5G technology is which can be risky for the political
environment of the country the government is not providing the permission of the 5G networks
to untrusted companies and it is required for Virgin mobile to with get a certificate of the trusted
companies in order to adapt 5G technology in the handsets.
Security – consider physical security, digital security and sustainable security
Another major threat for the company version mobile is there security in their organization
due to the increasing theft and cyber-crime cases reported every day. The company should also
make several security system to consider their digital physical and sustainable security so that
they can provide effective services to their customers. The company is involved in an expensive
business which requires a lot of investment and it is compulsory for the company to make several
strategies regarding the security of their products and the plan they have created to launch
innovative 5G technology in their products. The company has also registered for patent of their
invention so that their formula of implementing 5G technology in the handset cannot be stolen
by their competitors.
Environmental factors
As there is a high concern among the society regarding the environmental impact of any new
product launch in the market the company should take it as their priority. Hence, in order to

launch new technology in the market Virgin mobile should consider that the technology has a
very less or nearly no impact on the environment in order to be successful in the market. As 5g
technology has not much impacted on the environment then there is less risk for the company
regarding the environmental factors (Mazumder, Salman, and Li, 2021). The company should
ensure that I am not using any material that can be harmful to the environment and should be
renewable and also reduces the carbon emission in the environment. Not only this in order to a
great impact on the customers the company should also involve themselves in several
environmental efforts so that they can attract more and more customers towards their product.
Social factors
Social factors refers to the societal trends followed by an organization for adapting the
culture of their employees and their customers in their organization. It is essential for the
organization to adapt the culture of society and consider the trends of society to understand the
needs and demands of their customers. It is the effect of social factors that the companies able to
understand the demand of their customers that they want high speed internet and finds out to
launch 5G technology in their handsets. There is a risk associated with this launch in the social
factors that either the societies ready to adopt this technology or not. In order to cope up with this
risk the company has conduct a proper research regarding the needs and wants of their customers
and finds out that the consumers wants 5G technology in their handsets so that they can adopt 5G
networks as they launch in the market.
Summary of strongest risk factors and proposals to mitigate those risks
In the above discussion helps to analyze that the strongest risk factor are associated with the
adaptation of 5G technology in cell phones. Some of the major risk associated with the
introduction of 5G technology in virgin mobiles handsets with the ways to mitigate that risks are
given below:
 The major risk of using 5G technology by any untrusted company in the
telecommunication industry can result in risk of intussusception manipulation disruption
and destruction in the country. It is essential for any organization to consider that the 5G
components are used by trusted companies in their software hardware and service
providers. In order to manage this government of UK can provide a license to the trusted

manufacture companies so that 5G technology can be use by customers as soon as
possible (Mesa-Gómez, , Casal, and Muñoz, 2020).
 Fifth generation is an advanced generation than the previous generation of this wireless
networks and to create an infrastructure for 5G network can provide malicious actors a
more attacking vectors. And to take care of the effectiveness of the security of 5G it is
completely depend on the appropriate implementation and configuration of the network.
This should also be insured by Virgin mobile before implementing 5G network then there
have properly implemented and configured in the mobile handsets. in order to mitigate
this risk Virgin mobile should take care of implementation and configuration in their
mobile phones which is an internal risk to the organization.
 In order to mitigate the risk of entrusted companies manufacturing 5G components in the
industry of telecommunication the government of United Kingdom can encourage
international standard and processes by promoting them and making it open transparent
and consensus (Wang, He, and Weng, 2020).
CONCLUSION
The above discussion helps to conclude that it is essential for every business to a certain
the risk which are associated with their business in the internal as well as external factors. The
micro as well as micro economic factors helps a company to analyses their industry in such a
manner that they are able to analyze the factors which can create a greater risk for the business of
the organization. In order to launch 5G technology in the mobiles of Virgin mobile they are
required to analyze the whole industries microeconomic as well as macroeconomic factors so
that we can analyze the risk and the strategies to overcome the risk for the successful launch of
new innovation in the market. The summary provided for the strongest risk factor of the market
helps to identify the several risk which are present in the market for version mobiles for their 5G
handsets and it also helps to identify the proposals so that those risks can be mitigated by the
company.

REFERENCES
Books and Journal
Ding, L., Ji, J. and Khan, F., 2020. Combining uncertainty reasoning and deterministic modeling
for risk analysis of fire-induced domino effects. Safety science, 129, p.104802.
Ding, L., Khan, F. and Ji, J., 2020. A novel approach for domino effects modeling and risk
analysis based on synergistic effect and accident evidence. Reliability Engineering &
System Safety, 203, p.107109.
Issa, U.H., Mosaad, S.A. and Hassan, M.S., 2020, October. Evaluation and selection of
construction projects based on risk analysis. In Structures (Vol. 27, pp. 361-370).
Elsevier.
Kuipers, F., Kok, M. and Vermeulen, C.J.M., 2020. Modelling of extreme precipitation events in
risk analysis of water systems. In Stochastic Hydraulics 2000 (pp. 445-452). CRC Press.
Mazumder, R.K., Salman, A.M. and Li, Y., 2021. Failure risk analysis of pipelines using data-
driven machine learning algorithms. Structural Safety, 89, p.102047.
Mesa-Gómez, A., Casal, J. and Muñoz, F., 2020. Risk analysis in Natech events: State of the
art. Journal of Loss Prevention in the Process Industries, 64, p.104071.
Wang, J., He, Z. and Weng, W., 2020. A review of the research into the relations between
hazards in multi-hazard risk analysis. Natural Hazards, 104(3), pp.2003-2026.