Question 2 (30 marks) New ventures involve risk. If managers attempt to eliminat

Question

Question 2 (30 marks) New ventures involve risk. If managers attempt to eliminate all of them, the products or services would never get to the market. Success comes to those who quickly identify and systematically eliminate risks in the right order, using the right level of resources and the right methods. a) Discuss in detail two risk management strategies that an entrepreneur could adopt he risk associated wh to mitigate the risk associated with the new venture. b) (15 marks) Expecting more competition, what could an entrepreneur do to make his product or service unique? (15 marks)

Explanation / Answer

In today's time the entreprenuer who starts his own business, wants to run the business very fast, means at a speed,wherein the business which has been establised for it, he wants to grow the business like no time, the person who has started the business doesnot understand that the business which he is working on should be initiated with Long term business goals rather than short term business goals, as this business on which we are working on has the potential to do long term business and they should move on with goals keeping in mind that they want to grow the business to that extent that it should suffice all the needs of the growth, planning and the strategy should be in the manner that all the goals are achieved on time.

Now this might not be a major challenge, however, the person who is working and wants to grow the business may face the challenge in selecting the right solution, as the problem in the process arises which is a major thing which is been faced by any person during the work ethics,however the same problem can be faced with any of the process which is going in the business, however, considering this as an issue there are many points which needs to be taken care of, such as this issue might be to the level considering that it is not identified, so it might create a problem moving towards the goal.

Now lets consider the problem which is been identified, by the person, hence the person will get all the solutions in place which will make the business to grow and the built a brand for which they are moving the company to grow.

Thinking about the two Risk Management which the entreprenuer has to take in life to make the life succesful is

1) Pursuing new opportunity: Now thinking about the growth of the company and wanting the company grow the major thing which the person thinks about is how much risk the company has to go up and how necessary is to take that risk and achieve the goal so that the company gets the growth for it, and how the company can establish the brand name for the same.

Lets understand when the company is been formed at that moment of time the company thinks about the growth, and to acquire new customers through which the company can perform and they can achieve what they want to acheive from the market, now lets understand if the company needs to generate a good brand name in the market than the company needs to be so much updated to capture the market, as they need to understand each and every thing through which the company will prosper and catch up the overall risk, if the company is not touchbasing any customer and not getting in touch with the customer, it will be a failure of the company to grow and achieve the target which the company is looking upto.

while seeking the new opportunity the person also needs to understand the market and also should have the clear picture of the market confirming that how they are going to capture the market in the sense doing the SWOT (Strength, Weakness, Opportunities & Threaths), which will help them to make the weakness of the competitors as their strengths, which might be very much necessary for the company to understand and pitch to the client saying that they are owners of the whole process and can make the company reach the required results by management.

So while acquiring the business the person also understand what is the need in the market, hence this need may also can give birth to the new business and it can drive towards success, as this need will help everyone in the market to reach and achieve the goal which is required for the business growth, considering the second point is that the person needs to also understand how to start the whole concept and how to modify the concept into the mind of the people which will make the person grow business and the brand image generated will also be at a good position.

2) To be very much clear on financial risks: The other major risk management which the entreprenuer faces is financial risk, as the person who has started the company has been opted for loan or is been funded by the organisaiton, hence the funder who has funded the money requires the overall explanation of the amount used by the person for the business development, it might be in the positive way or it might be in the negative way, as talking about the positive way it might be the funder needs to know how much cashflow on an average the business is requiring and to what average the business can sustain.

To survive the business the major challenge faced by any entreprenuer is the same, so to avoid the overall process in which the business gets affected the five year of a ten year plan for the business is to be made up which can help the business to grow at the level which the person wants to view the business and through which the person can track the business accordingly which can help the person to understand to what level he can take the risk to sustain the business and to what level the business can specify the needs, hence it can make the person well prepared for taking up the challenge of risk management which will be very much helpful for him to understand the level of risk the person is taking up.

As the entreprenuer has to launch the product in the market and has gone through all the analysis, hence the person needs to think about the growth and also about the competition, as there are many entreprenuers who have started the business, hence to overcome all the competition the person needs to think about the SWOT (Strength, Weakness, Opportunities & Threats) of the company as well as the competitor, hence at that moment of time the entreprenuer has to think about the weakness of the competitor and to make it as it our strength, this will make the person very much helpful in growing and defining USP ( Unque Selling Proposition), the uniqueness of the product helps the person to grow and the overall business will make a brand strategy in the manner saying that this will be very much helpful in getting the overall task in development of the product. The entreprenuer defines the product in such a manner that it has become very much helpful for the people to get it overall the game has made it very challengable and it will be very much towards the whole project and will allign all the points in the manner that it gives the target achievement which is been decided, however, it will become very much deciding for the person in such a manner that it will make the process grow to the length of the long term stability and it will make the process or the business grow more and more

Thinking about the statement that most of the entreprenuers want to make lot of money and to run the show, as the research says that it is tough to do both, however I will say it is possible for getting both done, lets say as there is a business which the entreprenuer is running the major thing the business should run for a long time, and needs to sustain, so to sustain the business the movement of the capital is very much necessary, hence once the company starts, the entreprenuer starts thinking about the whole process, if the company goes for the long run automatically it will reach the destination in the way saying that the movement of the money will sustain the business into the competition, hence I am against the saying of the person that lot of money making will happen once the business will get settle and it will run the show much more.

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