Swot Analysis of Risk Management Plan
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Alternative Course of Action 3: Improve business and investment strategies Improving business strategies might have saved the company’s profitability as they will be able to tactfully assess the company’s investment decisions. This is time efficient because the firm only needs to update and improve their existing business strategies, although its sustainability is low because the firm is already on the brink of bankruptcy and it is still uncertain if the firm’s new strategies will solve the crisis the company had experienced Also, improving strategies will assess the increasing cash outflow of the company through the years. This course of action considering the companys status would most likely not help the company in time for it takes a considerably long time of research and huge amount of data not just from within the company but also of competitors to come up with a better business and investment strategy that would be feasible in the long run.Strengths-Provides tactful assessment of company’s past decisions in investment. -Provides tactics to address identified problemsWeaknesses-It can be expensive-This action impedes flexibility as future opportunities outside the plans will not be taken.
Opportunities-This action can assess the increasing cash outflow of the company by determining what previous business and investment strategies do not work out properly-This action can envision the company’s future in 3 to 5 years Threats-This action may bring the company down more if the future does not unfold as anticipated and strategies are not done as planned-As business and investment plans are for the long-term benefit of the company, chances are it may not solve the immediate crisis of the company in a short span of time.Strengths of this course of action includes the providing of a tactful assessment of the company’s past decisions in investment. It also provides methods and tactics to address identified problems. Weaknesses include the cost that will be considered. Providing an improved business or investment plan can be quite expensive as the company will not only rely to its management, but also to external financial consultants.STRENGTHS-Provides tactful assessment of company’s past decisions in investment. -Provides tactics to address identified problems-Provides framework for management decisionsWEAKNESSES-It can be expensive as the company will also rely to external financial consultants and advisors-Impedes flexibility as future opportunities outside the plans will not be taken.OPPORTUNITIES-Can assess the increasing cash outflow of the company by determining what previous business and investment strategies do not work out properly-Can envision the company’s future in 3 to 5 yearsTHREATS-May bring the company down more if the future does not unfold as anticipated and strategies are not done as planned-As business and investment plans are for the long-term benefit of the company, chances are it may not solve the immediate crisis of the company in a short span of time.Through this action, the company will have the opportunity to assess the increasing cash outflow of the company as they will be able to determine what previous business and investment strategies do not work out properly. It can also envision the company’s future in three to five years, shaping the company’s subsequent management decisions. However, this action may bring the company down more if the future does not unfold as anticipated and strategies are not done as planned. Also, as business and investment plans are for the long-term benefit of the company, chances are it may not solve the immediate crisis of the company in a short span of time.