Question

The international business environment is filled with a number of risks that managers need to be aware of and have strategies to reduce the potential negative impact on their business. I have provided you with four risks. A) Please rank order each from low risk (1), (2), (3), ..to very risky/horrible (4). The four risks to rank and describe are: Cyber thefts (hacking), Terrorism/Hostile Conflict, European Union Disintegration, and Expropriation/Nationalization of property.

Select a company to respond to the next question. B) As a manager of one of the companies, rank order these risks in terms of which ones you believe would impact your business. Give reasons why for your ranking. C) Provide a real example of company that you select confronting one of the risks and describe how the company responded to it. (You will need to do research. ) Do you agree with how the company responded to the risk and what would you have done differently? Some info in Resources is provided but you’ll need to conduct your own research. Use concepts in chapter 1 to help you to develop a criteria/reasons for your rank order. (You can select any company but here are some suggestions: Apple Inc, Samsung, British Petroleum, Ford Motor Co, etc.)

Answer 1

Now days every market is associated with risk, the market is combination of risk and risk assessment, the organisation which are able to analyse and access the risk have a bright future but those who cannot access the risk can incurred loss in there organisation.

A. Ranking of Risk from low risk to high Risk

1. European Union Disintegration.

2. Expropriation / Nationalization of property

3. Terrorism/Hostile Conflict,

4. Cyber thefts (hacking)

As the above two risks can be mitigated, however the last two risks are uncertain and therefore can be mitigated if there is proper system used in assessment of these kind of risks.

B. Being the Manager of Samsung the order of risk having no. 1 as highly sensitive and no. 4 can mitigated risk and its reason :

1. Terrorism/Hostile Conflict : Being working is this word where there is high importance of digital market, every brand tries to catch hold small group and re arrange there product as its own. These days for E.g. there is increase in demand of Apple Products, this is a huge concern for Samsung because if this reality is carried forward for longer then high chances of his risk arise.

2. Cyber thefts ( hacking) : if Samsung is a brand easily available in the market, the rival can try to break this brand either by improving their own product or by destroying the Strategies of Samsung, Theft of data of Samsung can lead to destruction of its brand, moor and more people are engaged in hacking and sometimes due to insider trading as well the data is leaked causing damaged to Brand.

3. European Union Disintegration. : this is again the risk associated with Samsung , in the time of crises the purchasing parity of consumer decreases thereafter decreases the demand which in turn creates excess supply, giving huge loss to buyer.

4. Expropriation / Nationalization of property : this risk can be mitigated by Samsung as being one of the oldest brand it has good tie up with government therefore chances of Nationalization of property are minimized.

C. Out of the above mentioned risk the Samsung has faced two Risk in reality

the one is Cyber Thefts and the other is Terrorism/Hostile Conflict

1.The Samsung Galaxy 7 product was associated with the Theft and Hacking :

The product was easily hacked due to the flaw in its Microchip , due to that the customers felt cheated for which Samsung conduct proper scrutiny and in May 2018 it launched software that should be updated in the phone thereby reducing the risk.

If i was in that place i would always allow sample testing of my products and there by detecting the problem and solving it, As for this customer has suffered , bu sample testing with our in house team would have minimize the chances of hacking.

2. Terrorism/Hostile Conflict

The Samsung Annual Reports clearly explained to there shareholder the reduction in demand of their product and due to which the rate of share and over all growth of organisation were reduced. this increase the Hostile Conflict.

If i would have been at there places would have formed the Oligopoly Market keeping Constant price of certain product that the cattle should have followed the same. That way risk can be minimized because the cattle prices were same so people would have preferred brand on that price there increasing the Growth of the organisation i.e. Samsung.