Business Risk

1463 WordsMar 16, 20136 Pages
A risky business Dodie: We are all here now. As you know that Zelal Sulen is our new boss now. After she took up the official post, she found that Hi-Style is out of touch with its target consumers and is losing direction. As the member of manager consultants, for this point, today we need to think out at least two options to advise her to improve the situation. Am I understood? And think a while... Okay, let's make a start. Who want to speak first? Lily: Well, in my opinion, Hi-Style could allocate £10m to new investment in the business. For example, it could improve distribution and sales through an exclusive agreement with a major retailer, which could provide a steady marketing channel. Second, to launch new product ranges with major…show more content…
So next, we will discuss which one is best and select the second choice. Let's start with Lily's option. We called the option Organic Growth. What do you think about it ? Kelly: I think ,Such investment, to some extent, costs too much. And it will also undergo financial risks. Besides, the exclusive agreement is a single way, it may get press from the major retailer. In the mean time, not all brand development consultants can make brand image improved. Lily: yes, it's true. Every coin has two sides.it can't be denied that option 1 will offer a chance to heighten its competitive strength. Such investment is obvious in Hi-Style's fovor as to optimize its structure. Employing brand development consultants may also accelerate its brand revolution, improving its former brand or even building a new better one. Dodie: It sounds reasonably. So, what about the second option, the acquisition of smartwear? Ann: Unfortunately, the company is in financial crisis. Last month, Smartwear made deliveries worth 2 million to two new customers in the Far East that have just gone into liquidation and the stock has disappeared. Worse still, there has been bad press about working condition in overseas factories. The financial risk is also a big problem. Serena: But it will offer Hi-Style many new opportunities. Firstly, it can help expand business in the field of work clothes. Moreover, Hi-Style can make full use of its good sale agents and strong
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