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D081_Task_2_Template_submission__1_.docx D081 Task 2: Innovative and Strategic Thinking Course Code: D081 A. Discuss at least TWO potential risks that the company from the scenario may encounter in entering the ...

D081_Task_2_Template_submission__1_.docx D081 Task 2: Innovative and Strategic Thinking Course Code: D081 A. Discuss at least TWO potential risks that the company from the scenario may encounter in entering the new market and describe the impact to the company. (Unit 3: Managing Risks.) 1. Economic /Operational risk; One potential risk this company faces is the product costing more than the revenue gained from sales. In order for the company to receive endorsement from the NFDB that would help them in the promotion and sales of the product, they will first need to place a large financial investment into the project by purchasing or leasing/renting warehouse space for production. In addition to a manufacturing site, all of the other costs that are associated with creating a new product in a foreign land,having to use recycled materials that may not be the best quality material; all of these potential overhead costs and more could have a great impacting burden financially on this company, especially since it is young in years, it could affect the future and success of the business, as well as the sales of this product. If the outcome of the production of the boat is not successful the effect on the future of this company is at economic risk. Because the company is new in years, they do not have a large revenue to be risking on a product that does not gain them profit. 2. Competitive risk; to piggyback on the previous risk that covered the risks of the company having too much. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . .

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