Quick: Risk management analysis

Résumé du document

Quick is the largest European chain of fast service restaurants. But if we compare quickly with its main competitors – Mc Donald's and Burger King – we could say its major risk is to be eaten by those two “big burgers”. This report is going to treat the difficulties for such a “small” company to expand oversees by analyzing two majors risks.

Enterprise-wide risk management is a key issue for boards of directors worldwide and Quick does not escape to this view. Its proper implementation ensures transparent governance with all stakeholders' interests integrated into the strategic equation. Furthermore, risk quantification is the cornerstone of effective risk management, at the strategic and tactical level, covering finance as well as ethics considerations.

That is is why, in this report we are going to analyze first the situation of QuIck, which could be considered as a “baby” on the fastfood market. With 423 restaurants worldwide and existing since 30 years, Quick really needs to expand in order to remain and be competitive on the international market. Purchased by a french OPA in 2006 – OPA realized by the CDC CI, which a French financial organism – Quick is then in a strategy of internationalization. Thus, in this report, I am going to analyze two major risks Quick has to be face. First risk I analyze is the risk of European disease and the second risk is the strategy of internationalization – I use Quick Russian project of expansion as an example. Both downside and upside risks are assessed to select the most efficient risk control measures and to set up efficient risk financing mechanisms.

Extraits

[...] Their recruitment is based on their experience and sense of responsibility, along with two years of training at an institution of higher learning. As proof of the opportunities for career growth at Quick, more than two- thirds of its managers start out as team members. Regarding directors are the result of internal promotions. But Quick also recruits from outside the company, seeking highly-trained persons possessing commercial and interpersonal skills as well as solid capacities for listening, communication and organisation. Quick also seeks people with real management talent. [...]

[...] More than 90% of the company contracts are contracts of indeterminate length. Quick puts considerable effort into inspiring loyalty from its workers by following them on their career path and guaranteeing their growth at the company. Quick's success at this is proven by the relative low turnover at Quick: More than 30% of employees in France and close to 40% of employees in Belgium have more than two years' seniority with the company. Operational objectives: middle management SMART: Specific, Measurable, Acceptable, Realistic, Told. [...]

[...] Whatever, it could be difficult for Quick to come back then 4. Interaction effects If QUIck loses the confidence of banks, it could affect its future international development for a long period. Then, considering the Russian government, we could imagine that Quick would have to choose other country to develop and be back in Russie when it is the right moment. Solution analysis get the strategy 3.1 Solution Identify “solution tree” Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of these four major categories: Avoidance (elimination) Reduction (mitigation) Retention (acceptance) Transfer (buying insurance) In this case, we could imagine that the best way to act is to accept the risk. [...]

[...] Analyse: qualitative analysis Does it fit in strategies? Operating a russian partnership fits the global strategy of Quick. Indeed, Quick searches to penetrate in the best way different market by adaptating itself to culture and customers. SO we could consider that, if QUick keeps its part of decision, this strategy will be efficient. Will it be accepted into culture? If we consider the russian culture, I think it is the best way for Quick to integrate it. Making a partnership with a local company means you get a network in this country (banks, government, public relations, etc.) and then you get credibility for customers. [...]

[...] Cause In this case, causes are generally difficult to define. Indeed, if we take as an example the case of the mad cow disease, people firstly killed the cows in precautionary principle. The source of this disease was discovered few times after animal Feedstuff Factors (drivers, hazards) This type of event is difficult to forecast because of its unknown origines we could think of foot-and-mouth disease, bird flu, etc. Drivers of these diseases are really unpredictable Measure: quantitative analysis 1. [...]