The paper “ Risk Management in Duraseat Ltd as an Important Aspect of Organizational Expansion to Other Unknown Markets and New Business Set-Ups” is a pathetic example of a case study on management. Risks are uncertainties when performing a transaction. The uncertainties involving risks can be of either success or failure. Besides, risk can be addressed as a probability since the outcome is unknown (Embrechts et al. , 2002). Risks can be classified as internal or external. External risks are those that cannot be controlled by an organization while internal risks are those that can be easily controlled by the company (Burtonshow-Gunn, 2009).
Risk management is the minimization and control of the effects of risks through identifying and assessing the risks then putting in resources to deal with it (Leland, 1998). All risks whether internal or external need control and managing to ensure quality production of goods and services for customer satisfaction (Basak & Shapiro, 2001). Value chain management can be defined as the process of planning a group of activities that are effective in value creation through the production of goods and services from cheaper resources and raw materials (New & Westbrook, 2013).
The primary aim of value chain management is to increase customer satisfaction by increasing cooperation and communication levels (Petrash, 1996). Risk and value chain management is essential for all organizations. Value chain management is critical to ensuring that risks are managed effectively. Customer satisfaction is important for many organizations and therefore an organization that effectively manages its risks and value chain often achieves its objectives (Kay, 2013). Through identification and acknowledgment of the risks, businesspeople can learn from others who have experienced the same challenges, look for solutions, and proceed with their expansion strategies with confidence (Chopra & Sodhi, 2004).
Risk assessment and value chain management of Duraseat Limited is explained bellow. Duraseat LimitedDuraseat Ltd has been affected by risks because of natural causes which are heavy rain. Some of the risks that can be assessed from the case of Duraseat Ltd include:
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