Business Risks Essay
Cost of Structure- The establishment of a certain business entity especially one that is made to face international transactions should and must be based on the financial capabilities of the owner. This particularly pertains to the available capital that is supposed to be the basis of how large or how small the scale of the business would be. As for the network examined herein, it could be noted that the administrative structure down towards the regular members of the business is certainly designed to exist in lesser professional control from the main branch’s official authorities.
Since most of the members are working freelance, the only matter being monitored by the administration is the coming in and going out of the financial funds of the company as well as the production and the distribution of the manufactured food supplements of the company. Competition- Being ready for the already existing companies within the country that goes with the same industry is necessary for an international entrepreneur to be prepared about.
It is necessary to take into clear consideration all the possible effects and impact on the system application used by the company. The international business engagement certainly makes a clear difference on the procedures
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The approval of the food supplements produced by the company was not that easy to claim. This has been much of an extended challenge for the company when they started to accept the chance of being able to operate outside of the country. Human Resource Management- Since the business would involve international engagements; it is simply reasonable to expect that the employees would be coming form international races as well. Managing this type of human resource group should then be carefully given attention by the organizational authorities.
The international operative procedures of the organization made them face the administrative procedures of dealing with a whole new group of human resources. However, through careful usage of the advantage of the matter, the company aims to continuously gain control over the international procedures of dealing with the said business. Clients or Customers- The demographics of the consumers, their interests and their product preferences should be among the main concerns of the business organization.
Their culture and their wants basing on their traditions should be carefully noted by entrepreneurs to ensure their products of the market appreciation that it needs to be able to remain in business. Since for Neon marketing, the consumers range from three major races, it should be noted by the administration that the importance of attending to the needs of the consumers in general is necessary in maintaining the competitive position of the organization within the business industry. To do so, the alternative researches should be considered thinking that the tastes of people from all other nations would certainly differ from each other.
Hence, this should enlighten the administration of the fact that they need to create possibilities by which they could meet the numerous expectations of their market at a reasonable cost of financing procedures. Environmental Risks Economic- The economic situation of the neighboring country where a branch or a trade engagement is prepared to be conducted should be set in balance with the economic status of the original branch of the business. The balance shall help the business operators to set some standard procedures in dealing with the finances of the organization.
Weather- The weather that is currently controlling the activities of the civilians of a certain country should be carefully given attention. This shall also determine the activities that are supposed to be taken in consideration by the business organization. Legalities and the Government- this particular element should be closely given clear attention as it is among the most important factors as well as the most crucial one as it primarily determines if the organization is to remain in a certain country or not, based on the ability of the organization to become connected with the laws of the said neighboring country.
Considering all these elements of risk and being able to understand on how each one affects the business engagements of a certain organization in an International picture shall then help the entrepreneurs create the possibilities and the probabilities of the organization’s success in the multicultural market of consumers. Study upon the Company’s Future Knowing the potentials and the weaknesses of the organization, everyone who are involved in the company are encouraged to take their own steps that would bring the whole business into future progress.
Since the company opts to serve an international market, it has been examined and observed that there is a certain need for continuous research in finding ways by which the products are to be adjusted in accordance with what the cultural demands of the people that they serve imply on the production of the food supplements that the organization distributes. It is through this particular procedure that they are able to expand the market that they ought to give service to.