Table of ContentsList of illustrations. 2Crouhy, M., Galai D., & Mark, D. (2001). Risk Management. McGraw-Hill companies. 27Crouhy, M., Galai D., & Mark, D. (2006). The Essentials of Risk Management. McGraw-Hill companies. 28Culp, C. (2001). The Risk Management Process: Business Strategy and Tactics. New avenue: John Wiley and sons’ ltd. 28Fragnière, E. & Sullivan, G. (2007). Risk Management: Safeguarding Company Assets. Boston: Thomson learning. 28Frenkel, M., Hommel, U. & Rudolf M. (2002). Risk Management: Challenge and Opportunity. Heidelberg: Springer. 28Haslett V. (2010). Risk Management: Foundations for a Changing Financial World. Hoboken: John Wiley and sons’ ltd. 28List of illustrations. Executive SummaryManufacturing industries are currently facing different forms of risks in their operations.
They are faced with financial risks, market risks, and economical risks. Multi national companies are currently facing great threat due to market volatility and global market uncertainties. Procter and gamble company has had advanced ways of dealing with market uncertainties’ like starting production units in different countries as opposed to distributing from one single unit. For a new product development it is necessary for the company to identify, assess. Evaluate and mitigate potential risks to have effective success in their product development.
The paper addresses on risk management and the mitigation measures required in eliminating the potential risks possible, associated with new product creation especially in Procter and Gamble Company. It will analyze how the company will identify potential risks associated with its new venture through risk management process and assessing and analyzing the risk potential using the risk assessment techniques. IntroductionProcter and Gamble is an American multinational company which manufactures broad range of consumer products. The company has been inexistence since 1837. It is a multinational company operating globally with more than 30 product brands.
The company has a customer base of over 5000million customers in over 140 countries. In 2011 it recorded a sale of 82.6billion Dollars making the company to rank position five on the most admirable companies in the world. P& G has it’s headquarter in united states of America at Cincinnati with marketing and sales channels in Australia, china, Europe, Africa, Asia, northern America, India and Latin America. The company has been striving fully in achieving the customers’ needs globally by establishing proper communication in administering their needs.
The company works by the philosophy of thinking globally and working locally. The company has recently been striving in achieving the brand equities, innovating in new products as well as using strategic techniques in achieving their goal of being a global leader. P& G has remained to be very competitive throughout the world; though globalization creates complexity and uncertainty in business. The company deals with production of the daily individual consuming products and other products involving food, pharmaceuticals, detergents, soap products, paper product and beauty products. Recently the company has established production units in different countries which enhance the way the company diversifies its risks as different countries have different laws and regulations in business operations. Manual’s Purpose: The purpose of the manual is to provide the necessary guidelines in creation of a new beauty product in Procter and Gamble Company based on the risk analysis and identification and assessment of the product viability (Crouhy, Galai & Mark, 2001).
It will also give standards necessary for risk management when innovating or introducing new product to the market. This will be necessary for the project managers as they will be in a position to manage future risks effectively with use of the manual in reducing risks associated with new product creation.