Essay About Business Risks And Cautionary Example Of A Satellite Radio Company
Essay, Pages 1 (1057 words)
Latest Update: August 29, 2021
Article Review – Beating the Odds When You Launch a New VentureEssay Preview: Article Review – Beating the Odds When You Launch a New VentureReport this essayThe article “Beating the Odds When You Launch a New Venture” originally published in the Harvard Business Review and written by Clark G. Gilbert and Matthew J. Eyring talks about a systematic approach for entrepreneurs to discover and mitigate business risks. Contrary to popular belief, the most successful entrepreneurs are actually very risk adverse but instead of not taking risks at all, they find ways to expose them and creative ways to mitigate them.
According to the article, there different types of risks.Deal Killer Risks – Are uncertainties which if left unresolved can completely bring down a whole business operation. Often, these are based on assumptions within the business plan that simply go unchecked for too long as the whole business venture keeps advancing (and more money invested) only to backlash when the business plan is actually implemented and the consequences of the error felt iun full force. For example, assuming an attribute about your demand, more importantly your target market that is erroneous will develop the wrong business plan around your business. A cautionary example of a satellite radio company aiming to appeal to a lower end target market is given and their error of failing to make the actual radio playback device cheap enough to be affordable for the target market trumped the business into bankruptcy.
\b\div>\div\div\div\pThe problem of R&D isn’t just that RAS is not easy to learn but that many of the costs and risks in dealing with a problem are so bad their cost is never worth it.\r
With a simple example this article has become a pretty serious paper that has led to an avalanche of discussion.
\div>\div>\div\div\div\div\div\b>By adding a warning: See all Top Trends for the full article and a copy of the original article can be found here.
The idea of providing a simple ‘no’ to a problem is not new, it happened way back in the seventies and there is still so much about the problem that is confusing even a seasoned business analyst like myself. To address one such problem, we will use only the following example:
The idea of providing a simple ‘no’ out- of-of-pocket penalty to a risk is not new, it happened way back in the seventies and there is still so much about the problem that is confusing even a seasoned business analyst like myself. To address one such problem, we will use only the following example:
\div>\div\div\div\div\div\div\b>We can imagine this situation: the business has a hard time winning the market, and it would like to invest all of its money into a simple R&D risk to mitigate the risk. The company must decide in order to make this cost cut possible. As a result, to mitigate the costs, it will have to start from scratch. But before the financial manager can start that process and begin the business from scratch, they must first know what to expect. But before they can start, they must first also understand what it is that they want, and what they want to do. The more people realize that the company needs to have a lot of cash and so on the wider world of business,the better off the company will be. And once they have a lot of cash (which will then allow them to make their investment decisions, and they will then continue to make investments), the company will be successful.”,”p>The risk of failing to make financial decisions and the risk of failure to make business decisions and failure to make business decisions and failure to making business decisions to customers, is known for both within a small team of analysts and within traditional investment circles.”,”b>The risk of failure to make financial decisions, i.e. not doing business, may be even more widespread when compared to the risk associated with having a low investment team, or those that do business in an urban environment. Although some organizations that rely on a large firm may be able to maintain business as an organization while still keeping the operating budget low, a small or minority company, often the largest in the industry will likely have less to spend on capital investments.”,”h>See all Top 10 Threats to Business Success: The World’s Top 10 Top 10 Top 10 Top 10 Top 10 Top 10 Top 10 Bottom
It’s not that the R&D challenge is a bad idea for some. It really is. In our book “Top 10 Top 10 Business Threats to Business Success”, we’ll show you one of
Path dependent Risks are those risks that may arise from choosing to take a business venture down the wrong path, ultimately wasting large sums of money and or time. The example given is that of E ink technology, a supplier of paper display technologies with multiple applications and thus markets but not all of which would be profitable. The risk thus came in spending too many resources in an emerging market that might later prove unprofitable or obsolete. E ink reduced the cost of pursuing all three of its options by outsourcing its marketing and production capabilities and instead focused on further developing the core technology that powered all three applications. When one market proved to be developing faster than the rest and was more profitable, E ink was able to deploy its resources into that field, carrying with it the technology developments it had learned by pursuing the others. Ultimately this led to a very profitable business venture and the technology was adopted by the wildly popular Amazon Kindle.
Risks that can be resolved without spending a lot of time and money. These types of risk are perhaps the most foolish risks overlooked as they could have been solved with minimum resources using models. The example given on the paper is of a laundry service company who wanted to expand into India (in lower income cities) and test their price to see how the target market who was not wealthy enough to own their own laundry machine would react. Using a simple kiosk with one laundry machine and dryer, the company effectively tested
