Wednesday, May 22, 2013

Vulnerability Assessment & Precautionary analysis



Retail organization Vulnerability assessment G-Star
This project will be based on the SWOT analysis where the details will help determine the vulnerabilities that are negative and positive to G-Star. The SWOT analysis is basically the Strength, Weakness, Opportunities and threats.
The process conducting vulnerability assessment of G-Star organization shows that assets experience threats. This helps to determine the vulnerabilities that are faced. The organization has many upside and downside risks. Market risk has both speculative and pure implications that may at times bring mix outcomes. The upside risks is somehow beneficial in that it focuses on issues that prevent upside benefits achieved.
The vulnerability assessment will help G-Star company in assessing and proposing appropriate solutions to those risks that affect the organizations. This technique will help in strategic planning, analysis and intelligence of the organization. (Müller, 2009) This technique helps to define the business assets and understand all the possible threats. The critical success of the organization can be considered s the assets of the organization.
Assets and credible threats contribute towards credible vulnerability which through protection ends to residual vulnerabilities. The risk of threats is then matched systematically against the assets to get the ones that are threats. The assessed vulnerabilities are the only with the chance to get control effect directed to them.  (Dealtry, 2008)This helps to reduce the resources misapplication to the threats and not the vulnerability.
Critical success factor of the assets
These are factors that help the organization to create its image to the society. Public image and confidence helps to reduce threats from the competitors and hence the company remains to be the leader of the market.
The capability of a company to perform its function is another factor that contributes towards reduction of threat and increases the chances of asset success. Through this effect the company is able to increase its output and profitability level goes up.
Loyalty to the customer is another critical factor that helps to increase the assets of the company. By adapting this factor, the company is in a position to retain its truthful customers and attract many more. Marketing costs are minimized and the since the customers find the switching cost high.
Physical resources and facilities improve the company’s’ resources and in this case G-Star will therefore be keen with its physical appearance. The architectural designs and the interior finishing contribute towards the success of the asset of the company. (Böhm, 2009) Growth will be contributed by investment on the structure of the organization. G-Star should take this advantage since it is a big company.
G-star should invest on personnel to increase its asset profitability. Well trained and remunerated personal improves the quality of services offered to the customers. Growth starts with the appreciation of the staff by even offering them training within their daily tasks.



Threats
Fire
Failure of suppliers
Shifts in taste and preference of consumer
Market demand changes
 Presence of substitute products
 New regulations
Environmental effects
Reputation
Information Trojan
Theft and robbery
Fire may destroy a company into ashes and therefore G-star should consider this as a great threat.  This could be caused by faults in electrical circuits or a malicious person can simply burn down a company. To reduce this kind of threat the company needs s to install fire alarms and smoke detectors. Fire extinguishers should as well be installed where they can be accessed in case of such emergencies.
Failure of major supplier is a great threat to any company in its financial operation. This can cause a company lose major of its clients therefore, causing financial losses. A company needs to have several suppliers for cases such when one fails the other one will substitute. This will also reduce the risk of the competitors from taking over.
Critical plant failure leads to liquidation of the organization. This is the worst threat that a company can experience. More financial resources are needed to bring up the plant. (Wylie, 2009) Expertise on using the machinery in the organization is needed to reduce the threat of the company failure.
Accessing Vulnerability
Assets
Goods&
Service Quality
Customer loyalty
Public image & Reputation
Cash
Staff
Env’t
information
Oper- ability
Totals
Threats
6
4
4
6
7
5
6
3
41
Reputation
3
4
5
7
3
4
5
2
35
Theft & Robbery
2
5
1
9
8
0
6
1
32
Failure of supplier
7
6
8
8
7
4
3
7
50
Trojan
0
2
4
3
7
3
10
2
31
Competition
9
7
8
7
4
5
4
5
49
Non-compliance
2
1
0
2
9
4
3
10
21

The above vulnerabilities are ranked according to reputation, finance, operability staff, public environmental habitat, information and customer loyalty. Under reputation, contamination is the most hard. Research shows that it has high chances of taking place within an organization and therefore precautionary measures should be adopted to minimize the risk.  (Böhm, 2009) G-star company has a reputation of producing high quality products that are of high quality.
The vulnerable threat from the operation is non compliance to statutory requirements. This is mostly felt by failure to comply with the taxation laws of a country. The penalty is great and therefore the employees should be advised not to fail to comply. This is also experienced by lack of employees to follow the set down work ethics.
The most vulnerable threat among the staff is biomechanical cases, discrimination, intimidation, defamation, assault and suborning employees for fraud. These include injury to the employees that affect their performance. This reduces the value they add to the organization and hence the profitability of the firm is affected.
The worst threat that the public can cause to be vulnerable to the company is creating competition to the products of the company. (Wylie, 2009) This can bring down a company and leave it out of operation. G-Star should in this case be cautious with this threat knowing about their competitors and use game theory to react.
Information can cause industrial espionage to be a vulnerable threat. Through information and communication a company can leak information that private and confidential. The effect of this is that the competitors can take advantage of the information and leak the market. This can be avoided by taking an oath not to dispose any confidential information. Committee should be selected to discuss such sensitive matters.
List of vulnerabilities
Bad public image
Poor quality of goods and services
Failure to comply with the set down regulations
Financial loss
Loss of potential customers

Critical Vulnerability review
There are several ways of assessing the vulnerabilities and their characteristics. The control of this threat to the use of n asset can also be determined through matrix workshops. However, the most critical threats are as discussed below.
Among all these vulnerable threats, the most critical are competition and failure of suppliers that may delay the manufacturing process. They are commonly experienced in Australia and this is a good trigger to the G Star company to invest in the precautionary measures by having several suppliers (Müller, 2009).
The second vulnerable threat is statutory non compliance. Big companies fail to comply fully to the requirements of their set down law. This Denys the government the chance of earning revenue through taxation. This can be done fully or partly. To address this threat the company should be strict on following the regulations.
Pollution and spillage to the environment are other vulnerable threats toward any organization. In any manufacturing or processing company experiences this critical threat. Pollution may cause a company to pay fees that are costly. They are charged by the government to help minimize ignorance on the bad act o destroying the environment.
Risk assessment strategies
A risk register can be established to help identify all the problems that affect an organization. The register varies according to the techniques that help to identify and the characterization risk manner.
One of the best ways to avoid the threats is by avoiding risk. G-Star should consider carrying those activities that will help keep off from threats. Such measures involve complaining with the set down statutory measures. This will help avoid the heavy tax penalty from the relevant authorities.
Risk transfer is another considered way of managing threats and minimizing on them. A threat can be transferred to something else that is useful to the society. G star should consider transferring its threat to other companies so as to take advantage of sharing the costs incurred. (Dealtry, 2008) This can be done by transferring to an insurance company that compensate incase of such a threat takes place.
G star company can have the option of accepting to take up the risk. This involves bearing the whole burden of any vulnerability that might occur to the company. Acceptance of the threats is sometimes considered a desperate measure as a company will have to bear the whole burden all alone.
Another measure involves risk control. This is extensive in that it involves proper designing of the structure of the company, improvement of administration and regular training of the employees.
Risk characterization matrix is also used to minimize threats in an organization as they will be determined before the take the better part of an organization. This methodology was adopted by UK Ministry of defense and proved to work out perfectly. The matrix used the Strength weaknesses opportunity and threat matrix. This helps to understand the weaknesses of an organization and work on their improvement by concentrating on the opportunities and strength. In addition, the organization concentrates on minimizing the weaknesses and adopting strategies that help reduce threats to an organization.
Precautionary ranking of the risks
Care need to be taken when selecting a point on a line of constant in characterization of risk. On average what may seem to be vulnerable in general may not be vulnerable to an individual.  (Müller, 2009)Each hazard has a unique risk curve that is prudent to characterize the worst consequences and the likelihood of occurrence depending on the severity of the consequences.
The most appropriate way in considering the ranking of the threats are considered in such matters as absolute severity, absolute risk and finally the greatest reduction of risk per dollar spent.
SWOT analysis

Strengths

 Strength entails many factors ranging from finance to the surrounding environment. Additionally, the retail company may offer unique products compared to other retailers. For example, G-Star store may sell high quality but slightly defective products at cheaper price. The company therefore, needs to make a list of all its strengths vs. potential competitors.

Weaknesses

When reporting weaknesses, G-Star company need to start with the most palpable weaknesses. This is done through market research, they may have discovered that they have a weak brand image versus key competitors.  The company should list all the weaknesses, and make improvements as needed.

Opportunities

Another step in a retail SWOT analysis involves pin pointing key opportunities in the market. There are a myriad of opportunities G-Star can discover through sales and market research.

Threats

G-Star can identify certain threats through a SWOT analysis. Threats can lead to loss of great customers and this may cause the company greater financial recession
Strength;
 quality of products
 unique products Good reputation among customers
Excellent customer service
Better  product performance vs. competitors
Cost advantages
Weaknesses;
Poor reputation among customers
Poor Customer service staff needs training
Administration component that is large
Lack of good procedures to follow
 Small market presence
Opportunities;
 customers need, New technologies
 Market niche
 Loosening of rules and regulations
 Eradication of international trade barriers

Threats
Shifts in taste and preference of consumer
Market demand  changes
 Presence of substitute products
 New regulations
Environmental effects





Conclusion
Threats have proven to be vulnerable to an organization that is looking forward to get into a competitive market. Most threats are from outside forces but there are also threats within an organization that can be minimized through better remuneration of the employees and training. Delegation and rotation of duties should be taken into consideration to help minimize the internal threats from the organization.
Confidential information should not be leaked out of the organization to help minimize competition from other companies in the market. This will help reduce the unhealthy competition. In addition to this, the matrix for assessing risk should be adopted to help use the SWOT strategy in minimizing risk and taking the market advantage. This will increase the profitability of the firm hence contributing to the growth.
Precautionary measures are the key to success of any organization. (Wylie, 2009) This is the best strategy that is not costly and helps minimize threats. Research should be carried out to identify the strategies that are not costly to an organization. This measure helps prevent a risk from going to the extreme that will contribute to the falling down of the company.
G-star is therefore advised to get on the lookout of those activities that will help it minimize risk since it is a big firm. This will help it be the leader of the market and enjoy most of the profits. It will also be in a position to maint6aing employees that are highly trained and will contribute to the profitability of the firm.





Bibliography

Böhm, A., 2009. The Swot Analysis. Berlin: GRIN Verlag.
Dealtry, T. R., 2008. Dynamic SWOT Analysis. s.l.:T. Richard Dealtry.
Müller, A.-K., 2009. SWOT-Analysis for Henkel's Loctite. s.l.:GRIN Verlag.
Wylie, K., 2009. Swot Analysis of Cisco Systems, Inc.. UK: University of Phoenix.







No comments:

Post a Comment

Note: Only a member of this blog may post a comment.