Risk can be defined as the exposition to a potential danger of a situation or a particular activity. It can be said that all activities are linked to risk more or less important. Another general definition says that a risk is "a probability or threat of a damage, injury, liability, loss, or other negative occurrence that is caused by external or internal vulnerabilities, and that may be neutralized through pre-emptive action" .
Thus, in order to have higher chance of success, it is important to be prepared to a risk and to put in place methods to guard against risks.
Modern society highlights this need to be prepared by institutionalizing and by communicating on how to reach risk management and how to protect a project, a business.
Entrepreneurs due to an increasing internationalisation and worldwide competition are more and more faced with risks. As a mission, entrepreneurs have to develop the company's business and at least to ensure the company sustainability.
[...] In order to compete and to face this risk, Danone has to invest a lot and to keep innovation. We can say that thanks to its large presence all over the world, Danone could decrease this risk. A second example of Business Risk is the risk linked with weather conditions and seasonal cycles. We can say that the Group production is dependant on the seasonal cycles. In fact, some of the products made by the Group are more or less consumed according to the season of the year. [...]
[...] The return of to is similar to the yield on a German government bond. Therefore Danone's risk profile is too low. In order to stay attractive to investors, Danone should increase it's risk profile First Suggestion First suggestion was to invest more in local and cheaper production facilities in emerging markets to supply local as well as mature markets (Europe and US) ) Advantages The advantage of this first suggestion is that on long term the activity should be profitable. [...]
[...] http://www.investopedia.com/terms/o/operational_risk.asp Source: Danone. http://www.danone.com/fr/actualites/focus/pays- emergents.html Source : Danone se tourne vers la production locale pour le bio. Guz Trompiz (2010). [...]
[...] Also, it can be risky for some others brand of Danone. In fact, some products would maybe take market shares on the company current products. Lastly, we can say that there is a risk of confrontation of the cultures between the acquire company and Danone ) Advice We would suggest undertaking this option. In fact, if the company evolves all the benefit (positive and negative) of an acquisition before undertaking it, it would have higher chances of success. Moreover, it seems to be the less risky way to enter foreign markets and the company is used to do so and to increase its market shares doing so. [...]
[...] Also the company can benefit from the local Brand image of the products it buy. In fact, it is easier to enter a market with a brand that is known by the local population than to enter the market with an unknown brand. The costs of communication would be less important ) Disadvantages First disadvantage is link to the success of the acquisition. In fact, some acquisitions are defectives; it can be costly and not work. It is sometimes risky to by a brand that is maybe not succeeded. [...]
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