Risk Management - Individual Research Report - Free Essay Example

Sample details Pages: 6 Words: 1651 Downloads: 4 Date added: 2017/06/26 Category Management Essay Type Narrative essay Did you like this example? Risk management Task One – Individual research report Introduction Risk management is a identification process of upcoming threats and danger to an organisation. In an organisation risk can enter through many ways, it can come from project failure, financial market, an accident in organisation such as flood, earthquake, cyclone, power failure, public health and safety and legal risk etc. Risk can be low to medium, or medium to high. It is difficult to say that an organisation can solve all the upcoming risks to the organisation like earthquake, we can just assume that earthquake can damage the business, but we cannot say how much, but there are some alternatives of upcoming threats like in power failure we can use generator to keep running the business. 1 Purpose of risk management within an enterprise-The purpose of risk management in an organisation to identify problems before they enter and create problems in the organisation, so that risk ma nagement handling process may be planed. It is a continuous looking ahead process so it is an important part of a business. Early detection of risk is important because it is easier, not much expensive, and changes can made easily in the planned process. It is easy to maintain a strategy and solve the risks when they are in early stage. A successful manager can monitor risks before they create problems in a business. The lack of information can is dangerous in a business so the staff of the organisation should be well training so that they can assume the risk when it is in early stage and report to the management as soon as possible. 2 Benefits of risk management within an enterprise-An effective risk management program can help the organisations to manage their risks and maximise success opportunities .There are too many benefits of risk management to an organisation, like less time consuming, less costly, less labour. The managers of an organisation should train the staff th at they can discuss the risks with the management when it is in early stage. Communication is a beneficial way for an organisation it helps to understand the most important risk areas. Staff can provide information in written or discuss with the management. So it can be early identification for the management and an alert to the management about the upcoming threats. The potential risk management benefits are ; supporting business planning, use of resources in effective ways, continuous improvement in the business, fewer dangers and threats, increase of new opportunities, increasing communication between staff and management, helps and focus internal audit programme etc. 3 A Reviewing of activities and internal environment-By reviewing the internal environment of a organisation we can assume that how we can identify the risks and found risk in the organisation is acceptable or unacceptable, if it is unacceptable then how can we manage that risk to avoid an upcoming danger or thre at. It can be found by an audit committee or by a group. Risk can affect the internal environment of the organisation .It depends on the organisations staff that how well they are trained by the management, it depends on the skills of the staff that how they will handle it or will they handle it themselves or will report to management of the organisation. The staff and management should perform their duties with responsibilities and complete their assignments on the given time frame by the management. There should be a continuous monitoring of activities in the organisation and the management should do something for the development of the staff and give them a proper and continuous training so they can be perfect in performing their duties. B. Setting objectives-All the organisations face the risks from internal and external environments. Objectives should be exist before the management can identify risks affecting the achievements of the organisation. An agency should develop related objectives. There are three broad categories of objectives †operations, reporting, and compliance. In operations the company should do all the operations and work very effectively and in a progressive way, there should not be the minor faults in the formulations of the products and services of the company. If there are any risks around the operation the management should make a report and find the solutions of the involved risks. If they will avoid the so there will not be compliance risks for the company, and the company can achieve their target successfully. There are some questions that what risks should a company not accept for example quality compromises and environmental and rules and regulations set by the government. They must not accept the legal risks. All the product and services should be a standard quality. Always worst outcomes should be assessed for the development of the company. c. Event identification-An event is a incident arising from externa l and internal sources that can affect implementation of strategy. There are some external and internal factors through which we can identify events. Economic changes can affect the company financially. Ups and down in the currency of the country can affect the import and export of the company. Natural environments can also affect the company. Environmental damage can cause by failure in the rules and regulations set by law. Loss of funds through frauds can be a serious problem for the company. Failure to measurement of product can be another deficit for the company. Project delay can affect the company, s reputation. Failure of contractors and partners can be another bad situation for the company. Technical faults can also be costly for the company, It can be time consuming and affect the company, s target and reputation. D. Risk assessment with particular reference to the impact and likelihood of risk-In an organisation it is possible that an event can occur and affect the achi evements of the objectives. It can decrease the value of the goods and services, so that risk should analysed because of their impacts. Management should consider the future events, expected or unexpected. They should always finding that what is worst that can happen or damage the reputation of the organisation. Considering the risk appetite the amount of risk is acceptable or not, most likely the government entities risk is low than the private organisations. Tolerance level is high in the private organisations. Risk assessment can use quantitative and qualitative methods. If the management already miss to give notification to the controller and it can be failure to recover the funds. Lack of notification can result in investigation. E. Risk response-Management determines that how can be respond to the risk, reviewing and impact, evaluating costs and benefits and selecting options within the entity, s risk tolerance. Management should keep trying to avoid the risk if there are o ther alternatives in front of company. By doing that the risk management we can find out what is good for the company. If the risk occurs the specific actions should taken by the management to reduce the risk level. Reducing risk by sharing the impact of the risk can be beneficial for the organisation. If the organisation will accept the risk without doing anything then the results can be dangers. It is easy to analyse the cost side in spite of benefit side. Management should first find the risks in each division or in each business unit. A view of risk can be depicted in several ways focusing on major risks and event categories across divisions. If the risk is in the program unit can be tolerated but it depends of the level of the risk. F. Control activities- there is a major role of effectiveness and efficiency in control activities. Control activities should be tested to ensure that there is not material weakness or difficulties. Management also should ensure that control a ctivities are carried out in a timely manner. Internal auditor can also support management by providing assurance on the effectiveness and efficiency of control activities. In an organisation they must provide the receipt to customers, cash should be handle with care, information system and data processing system should be strong enough, financial reporting, accounts receivable , and investments should handle with care. Misuse of company, s assets, corruption and fraudulent reports should be should be probe properly. The management should focus on the core areas like information system, contracts, purchasing, grants and other programs, services provided to the community, revenue collection, salaries of employees, and property. Risk with large and moderate impacts should be addressed with control activities. G. information communication-Information is major source to identify risks, and respond them in a appropriate way even is external or internal. Information should available for widespread use, all the transactions should recorded and tracked in actual timing, management should have immediate access to operating and financial information more effectively. If the risk is in tolerance than that, s all right otherwise an action should take immediately. Data reliability in information system should assessed carefully, poor assessment or bad management decisions can affect the targets. Communication is another way to be safe from risks, managers and staff needs to discuss the matters with each other, and tries to find the solutions for the problems. If necessary they should take actions immediately. H. Monitoring- In an organisation ongoing monitoring activities should be continuous process. Ongoing monitoring activities will occur through management activities. Division head, Line manager, controller, senior management, internal auditor, and external auditor can evaluate the monitoring process. A variety of evaluation techniques are available like check list, questionnaire, flowchart techniques, performance steps etc. Reporting to the management about the risks is a good way to keep an eye in the organisation it will be far seeing process which can keep safe the organisation from unwanted danger and threats. Conclusion: savoury aroma coffee shopee should identify threats coming in the way of achieving objectives and start creating hazards. They should do proper assessment and need to find solution. This solution should be bigger than problem. They have to be very competent and efficient. Don’t waste time! Our writers will create an original "Risk Management Individual Research Report" essay for you Create order

Theme Of Madness In Hamlet - 1507 Words

Hamlet’s madness first appears after his first encounter with the ghost, his father, which is when he begins to reveal his subtle insanity caused by this life changing experience. Hamlet begins making insulting comments such as, â€Å"Seems, madam? Nay, it is. I know not ‘seems’. ‘Tis not alone my inky cloak, good mother, Nor customary suits of solemn black, Nor windy suspiration of forc’d breath, No nor the fruitful river in the eye, Nor the dejected haviour of the visage, together with all forms, moods, shapes of grief, That can denote me truly. These indeed seem, For they are actions that a man might play; But I have that within which passes show, These but the trapping and the suits of woe.† (13) Through this sarcastic comment, Hamlet is†¦show more content†¦Hamlet says,† To be, or not to be: that is the question: Whether ‘tis nobler in the mind to suffer The slings and arrows of outrageous fortune, Or to take arms aga inst a sea of troubles, And by opposing end them? To die: to sleep; No more; and by a sleep to say we end The heartache and the thousand natural shocks That flesh is heir to, ‘tis a consummation Devoutly to be wish’d. To die, to sleep; To sleep: perchance to dream: ay, there’s the rub; For in that sleep of death what dreams may come When we have shuffled off this mortal coil, Must give us pause: there’s the respect That makes calamity of so long life; For who would bear the whips and scorns of time, The oppressor’s wrong, the proud man’s contumely, The pangs of despised love, the law’s delay, The insolence of office and the spurns That patient merit of the unworthy takes, When he himself might his quietus make With a bare bodkin? who would fardels bear, To grunt and sweat under a weary life, But that the dread of something after death, The undiscover’d country from whose bourn No traveller returns, puzzles the will And makes us rather bear those ills we have Than fly to others that we know not of? Thus conscience does make cowards of us all; And thus the native hue of resolution Is sicklied o’er with the pale cast of thought, And enterprises of great pith and moment With this regard their currents turn awry, And lose the name of action.—Soft you now! The fair Ophelia! Nymph, inShow MoreRelatedTheme Of Madness In Hamlet And Ophelia996 Words   |  4 PagesThroughout the centuries, the medicines used to treat madness have varied; however, the ultimate treatment has remained the same: negligence or ignorance. During the 14th and 15th centuries, mental illness was viewed as an inhabitation of an individual by demons or evil spirits; the method utilized to cure this ailment was a combination of exorcism and rituals. The patients were usually placed in hospices then asylums. During the 16th through 20th centuries, mentally ill patients were not often treated;Read MoreThe Theme Of Madness In Franke nstein, Hamlet, By William Shakespeare1193 Words   |  5 Pagesthe state of a madman, and these just so happen to perfectly describe some characters in the works we have read and discussed. The theme of madness is heavily displayed in the literature pieces of Frankenstein, by Mary Shelley, and Hamlet, by William Shakespeare. Victor Frankenstein, The Creature, Hamlet, and are the characters that most express the course theme of madness in the works. These characters display similarities on their way to that unstable state of mind. In the novel Frankenstein by MaryRead MoreEssay about Theme of Madness Conveyed in Shakespeares Hamlet1150 Words   |  5 PagesIn William Shakespeare’s Hamlet, one of the most evident and important themes is the theme of madness. The theme is apparent throughout the play, mainly through the actions and thoughts of Hamlet, Ophelia, and Laertes. Madness is defined as the quality or condition of mental illness or derangement (being insane). Madness is at the center of the conflicts and problems of the play and is conveyed through Shakespeare’s elaborate use of manipulation and parallels between Hamlet, Ophelia, and Laertes toRead MoreTheme of Madness and Causes: Hamlet and Ophelia Essay1788 Words   |  8 PagesIn Shakespeares Hamlet, there are two characters that display qualities of insanity. Specifically, Hamlet and Ophelia, although they both appear to be mad at times, their downfall (or supposed downfall) is quite different. Ophelias madness seems complete while H amlets is questionable throughout the play. Hamlets madness comes and goes; Ophelias does not. Ophelia tells no one that she is mad; on the other hand, Hamlet shows everyone about his madness. Hamlet turns his madness on and off dependingRead MorePoison Motif Within Hamlet By William Shakespeare1227 Words   |  5 Pagesthroughout Hamlet The concept of poison is all around society: poisonous people, poisonous ideas, and poisonous environments; however, the poison in society cannot be avoided, it’s inevitable some would say. As Michael Uhl once put it â€Å"you’ve got to pick your poison†, and hope for the least of the evils, which unfortunately is not always the case. In Shakespeare s Hamlet, the motif of poison functions to be the symbol of corruption throughout the play that highlights the theme of death, madness, and theRead MoreAppearence vs. Reality in William Shakespeares Hamlet Essay1671 Words   |  7 Pages amp;#65279;Appearance vs. Reality nbsp;nbsp;nbsp;nbsp;nbsp; In Shakespeare’s tragedy, Hamlet, there is a dominant and overwhelming theme that is concurrent throughout the play. Throughout the play, all the characters appear as one thing on the outside, yet on the inside they are completely different. The theme of appearance versus reality surrounds Hamlet due to the fact that the characters portray themselves as one person on the outside, and one different on the inside. In the play, ClaudiusRead MoreHamlet and Ophelia’s Madness Essay674 Words   |  3 PagesThe Tragedy of Hamlet, Prince of Denmark is one of Shakespeare’s most tragic plays. Most of the characters in this play suffered a heartbreaking death, although, all of the characters faced anger, regret, madness or distress. Madness was a reoccurring theme in this play, two characters portrayed this more than others. Ophelia and Hamlet faced similar fates, with similarities and differences along the way, all to do with their madness. Hamlet and Ophelia were two young people in love and were supposedlyRead MoreWilliam Shakespeare s Hamlet - Conversation Enabler1332 Words   |  6 PagesConversation-Enabler In Shakespeare’s Hamlet, Ophelia is one of the most elusive characters of the play and her importance is very hard to pinpoint and has raised eyebrows for centuries. For example, the scene of her death is one that artists have depicted over and over, yet that iconic moment is merely alluded to and happens off stage. This reflects Ophelia’s character very well considering that she is often at the periphery of the action; more talked about then talked to. There are many questionsRead MoreWilliam Shakespeare s Hamlet And Hamlet1442 Words   |  6 Pagesintegrity of a text. Madness and its portrayal throughout Hamlet and Hamlet’s ruminations endows audiences thoughts into the complex nature of revenge. The impacts of madness, introspection, uncertainty and honour on Hamlet’s ability to enact revenge contribute to the complex nature of revenge in Hamlet. Thus, the textual integrity of Hamlet is linked to the enduring debate over the nature of revenge in the p lay. The enduring nature of a text is analogous to the reception of the themes through a rangeRead MoreMadness, By William Shakespeare1160 Words   |  5 Pages Madness is one of the central themes of William Shakespeare’s Hamlet and has many effects on the characters and the complexity and depth of the plot. Insanity is apparent in small amounts in almost all of the characters in the play. It can range from full on insanity, to only shades of madness. Madness occurs in a character when he or she breaks the social norms, and acts oddly or rashly when spoken to or asked to carry out a task. Hamlet’s storyline revolves around the recurring theme of madness

Case study on Consumer Behaviour for International Brand Coca- Cola

Question: Discuss about the International Brand of Coca- Cola- Consumer Behaviour. Answer: Coco- Cola being an international brand has quite a great reach and the customers have been very much used to its taste. But as the title of the article suggest that besides all the marketing strategies there have been a decline in the sales of Coca- Cola. The purpose of this report to analyze the consumers habits getting shifted and how has Coca- Cola dealing with this. (Roderick 2016) The article talks about that how the tax which will be levied on the aerated drinks and various health reports from authorities have made consumer to shift to much healthier options. With all the innovation and one brand going global strategy, Coca- Cola had a five percent of decrease in its year on year global revenues. (Whitten 2016) As to say Coca- Cola makes sure that they dont do any mistake as far as studying consumer behavior is concerned- they have launched the Coke Zero to deal with the high sugar level reports in many countries. With the articles crux being that they are now looking at targeting what the consumer really wants with the health factor and everything. The marketing concept of Societal Marketing concept is the one which can be directly identified here. This concept deals with the needs / wants of target markets by delivering the value better than competitors which then takes care and preserves the well-being of the whole society. The introduction of Coke Zero was one of the ways through which this concept can be found applied here. But we cant ignore the fact that as the Coca-Cola journey had started from production concept and have gone through the marketing concept as well. The hope by Coca- Cola is now that the new strategy will ensure that the company can quickly adapt themselves with the consumer needs. The learning here is that no matter what is your market share- you need to align with the consumer needs for the betterment of the society, tastes and health preferences and especially consumer is the king. References Roderick, L., 2016, Can Coca-Cola rely on a boost from marketing or must it accept sales decline?, marketingweek.com, 28 July. Available From: https://www.marketingweek.com/2016/07/28/can-coca-cola-rely-on-a-boost-from-marketing-or-must-it-accept-its-vulnerability/ [28th July, 2016] Whitten, S., 2016, Coca-Cola beats on earnings, but cuts revenue forecast., cnbc.com, 27 July. Available From: https://www.cnbc.com/2016/07/27/coca-cola-reports-second-quarter-2016-earnings.html [27th July, 2016]

Entrepreneurship Theory and Practice

Question: Discuss about the Entrepreneurship Theory and Practice. Answer: Introduction The report focuses on the business plan of an organization in Australia, which in turn includes the marketing, finance and operational strategies of the organization. The business plan allows the management of the organization to have a solid roadmap in terms of their operational activities in order to increase the sales of the products and services. The organization for which the business plan is created is Kmart Australia which operates in the Australian industry of the discount retail stores. The organization focuses on providing the products to the customers at discounted price and in the process gaining a lot of loyal customers, which in turn increases the profits of the organization. The report provides a business plan which the management of Kmart Australia can follow in order to have successful business operations in the corresponding market along with increasing the customer base. The current discount retail store market in Australia provides ample opportunity to Kmart Austr alia to increase the customer base both in terms of its size and loyalty. The business plan provided in this report allows the management of the organization to have an effective and efficient business model in place for the Australian market, which in turn allows the organization to have a strong presence in the corresponding market. The business plan also focuses on having moderate to high net profit in the first two years of the implementation, which in turn will act as a base for the organization to build its revenue in the corresponding market. Kmart Australia provides various products to the customers at bargain prices (Drucker, 2014). Market Analysis Kmart Australia provides various products to the customers at bargain prices, which in turn attracts more customers as the products are of good quality. This section of the report analyzes the corresponding industry in Australia and various factors that can affect the business operations of Kmart Australia. Industry trends The data from various surveys and questionnaires have made it clear that the customers present in the Australian markets have a tendency to be attracted towards the products having good discounts on them. The market for the discount retail stores in Australia has a trend of customers making the positive purchase decisions very quickly for the discounted products. The market also experiences a trend of increased sales during various festivals and occasions like Christmas and Easter. The analysis of the market also reveals that the customers from various socio economic classes are influenced to a significant amount by the discounted prices on the products (Kuratko, 2016). SWOT analysis The SWOT analysis of the corresponding market provides an overview of the strengths and weaknesses of the market along with the opportunities and threats for the business operations of Kmart Australia. Strengths The stable economy of Australia allows the business operations to have a lot of financial backing. The customers present in the corresponding market value the quality of the products a lot and the products sold by Kmart Australia are of high quality. The cost of employment is quite low in Australia, which in turn allows Kmart Australia to have cost-effective business processes (Maritz, 2015). Weaknesses A large number of competitors in the discount retail industry in Australia make it difficult for Kmart Australia to sustain. The organization doesnt have a strong brand presence or brand image in the Australian industry of discount retail stores (Chun, 2013). Opportunities The Australian market provides a good opportunity for Kmart Australia to expand its business. The growing economy of Australia allows Kmart to yield a lot of revenue out of the sales of the products. Threats The presence of a large number of organizations in the same industry affects the business processes of Kmart Australia in a negative way. The customers in the discount retail industry in Australia change their buying behavior and trends frequently, which in turn is a threat to the business processes of Kmart Australia (Zielke, 2014). The volatile market trend in the discount retailer industry is also a threat to the business processes of Kmart Australia, which in turn affects the overall sales of the products. The erratic changes in the market demand of the products affects the overall estimates of the products supply and profits of the organization. Competitor analysis Some of the organizations operating in the discount retail market in Australia are Big W, Crazy Clarks, Dimmeys, Clints Crazy Bargains, Franklins, Go-Lo, Sams Warehouse and Target Australia. Except Target Australia, the other organizations arent very big brands with limited worldwide presence. This allows Kmart Australia to have Target Australia as the biggest competitors. The quality of the products sold by Kmart Australia is the biggest advantage it has over its competitors. The existing organizations in the discount retail stores industry arent known for their high-quality products. This in turn allows Kmart Australia to have a competitive edge in terms of the quality of the products. The existing competitors in the corresponding market also dont focus a lot on providing promotional offers and deals on the premium products sold by the organization in order to attract more customers from the high socioeconomic class (Chun, 2013). Target Market The target market for Kmart Australia is the customers from low to middle socioeconomic classes, who focus a lot on the value for money for each of their purchase decisions. So, the people in the Australian societies with a low or medium standard of lifestyle and income will be targeted by the marketing strategies of the organization. The socioeconomic class of the customers is the biggest segmentation criteria for the marketing strategy of Kmart. Other than the socioeconomic class, the marketing strategy of Kmart will focus on the people who buy similar products frequently (Schaper, 2014). The marketing strategy of Kmart will determine the buying behavior of the customers through online and offline surveys and questionnaires. The efficient segmentation of the market will allow Kmart Australia to have effective marketing strategy for various segments of the market. For example, the marketing strategy of the organization will target the upper-class customers through premium products w ith discounts, whereas it will target the customers from the low to middle class customers through heavily discounted standard products (Choi, 2015). Marketing The products sold by Kmart Australia are discounted products with a wide variety. This in turn will allow the customers of the organization to have a wide range of options for their purchase decisions. The retail stores of Kmart Australia sell a wide range of discount merchandise including greeting cards, toys, dishware, household goods, and candies along with products from a large number of categories. The products are procured from various manufacturers like General mills, American Greetings and Procter Gamble (Reboud, 2014). The marketing strategy will focus on positioning the organization as a brand that provides everyday use products with bargain prices. This in turn will allow the customers to see the brand as a reliable organization providing high quality products. So, the marketing strategy of Kmart Australia will focus on bargain price and high quality of the products (Morselli, 2014). The marketing strategy of Kmart Australia will also focus on the promotional events and offers on the products. The organization will provide free home delivery offers on the purchase of the products with minimum transactional value. The organization will also offer promotional discounts on the premium products during special occasions and festivals in order to attract more customers. The marketing strategy of the organization will focus on setting a brand image of an organization with the lowest price of the high-quality products in the corresponding market (Dukes, 2014). Financial Plan This section of the report provides a financial plan for the business processes of Kmart Australia along with the budget, costs and logical expenses. Some of the key focus points of the financial plan are mentioned below. 15% of the sales to be invested in marketing Moderate growth with steady cash flow NOV projections to be used for cash investments to ensure maximum return and limited risks Residual profits to be invested in the financial markets instead of company expansion (Dukes, 2015) Break-even analysis This section of the report provides an overview of the break-even analysis for Kmart Australia in the discount retail store industry. This analysis considers the average costs including fixed costs, average variable costs and average sales to provide the income per month to achieve break-even (Schaper, 2016). Monthly revenue break-even: $30,000 Average variable cost: 50% (assumed) Estimated monthly fixed cost: $15,000 Projected cash flow Kmart Australia operates in the corresponding market as a medium risk organization with a steady cash flow. Fifty percent of the cash above a certain limit is regularly invested in the financial market in order to decrease the opportunity cost of cash held (Kirzner, 2015). PRO FORMA CASH FLOW YEAR 1 YEAR 2 YEAR 3 Cash Received Cash received from operations Cash received from sales $360,500 $395,500 $450,500 SUBTOTAL CASH FROM OPERATIONS $360,500 $395,500 $450,500 Additional received cash Taxes $0 $0 $0 New borrowing $5,000 $0 $0 Additional liabilities (interest-free) $0 $0 $0 Additional liabilities (long term) $0 $0 $0 Current assets sales $0 $0 $0 Long-term assets sales $0 $0 $0 Received new investments $1,000 $2500 $5000 SUBTOTAL RECEIVED CASH $366,500 $398,000 $455,500 Expenditures Year 1 Year 2 Year 3 Operational expenditures Spent cash $160,500 $187,500 $165,000 Bills $220,000 $215,000 $205,000 SUBTOTAL SPENT ON OPERATIONS $380,500 $402,500 $370,000 Taxes $0 $0 $0 Principal repayment of borrowing $500 $1,500 $2,000 Liabilities principal repayment $0 $0 $0 Current assets purchase $0 $0 $0 Long-term assets purchase $0 $0 $0 Dividends $0 $0 $0 SUBTOTAL CASH SPENT $381,000 $351,500 $372,000 Net cash flow ($14,500) ($6,000) $83,500 Projected profit and loss This section of the report provides an estimate of the profits and losses of the business processes of Kmart Australia as per the cash flow and expenditures. As per the estimates, the costs of various business processes will go down, which will allow the organization to realize profits out of the business processes (Hassan, 2015). PRO FORMA PROFIT AND LOSS YEAR 1 YEAR 2 YEAR 3 Sales $360,500 $395,500 $450,500 Direct costs $180,250 $197,750 $225,250 Other costs $0 $0 $0 TOTAL COST OF SALES $180,250 $197,750 $225,250 Gross margin $180,250 $197,750 $225,250 Gross margin % 50.00% 50.00% 50.00% Expenses Payroll $140,500 $150,000 $160,500 Other expenses $10,000 $0 $0 Depreciation $1,250 $1,250 $1,250 Rent $30,000 $0 $0 Utilities $4,500 $0 $0 Insurance $4,000 $0 $0 Payroll taxes $21,075 $22,500 $24,075 Total operating expenses $211,325 $173,750 $185,825 Gross profit ($31,075) $24,000 $39,425 Taxes $0 $5,760 $9,462 Net profit ($31,075) $18,240 $29,963 Net profit % -8.61% 4.61% 6.65% Critical Risks This section of the report provides an overview of the critical risks faced by the business operations of Kmart Australia in the corresponding market. The existing organizations in the market of operation has a presence and position of their brands as good discount retailers in the minds of the people in the corresponding market. This in turn is a risk for Kmart Australia to position itself as a better discount retailer and to have a competitive advantage over the organizations which are already operating in the same market for quite some time (Carland, 2015). The frequent promotional offers and deals on the premium products sold by Kmart Australia increases the risks of incurring heavy losses in order to gain competitive advantages over other organizations. The marketing strategy focuses on the promotional offers and deals on the premium products sold by the organization in order to attract more customers in the corresponding market. This in turn could lead to heavy losses that might affect the business processes of Kmart Australia negatively (Bae, 2014). Physical risks to the retail store and products sold in the retail stores can be considered as the critical risks to the business processes of Kmart Australia. These physical risks include various types of risks starting from natural disasters to intentional threats like theft (Gabler, 2017). The volatile buying behavior and trends in the corresponding market is a significant critical risk to the business processes of Kmart Australia. This in turn will require the marketing strategy of Kmart Australia to put more focus on the analysis of the requirements and buying behavior of the customers in the corresponding market of operation. The frequent gathering of the feedbacks and opinions of the customers will help Kmart Australia to gain insights into the market trends and buying behavior of the customers in the corresponding market (Hendrickson, 2015). References Bae, T.J., Qian, S., Miao, C. and Fiet, J.O., 2014. The relationship between entrepreneurship education and entrepreneurial intentions: A meta?analytic review.Entrepreneurship Theory and Practice,38(2), pp.217-254. Carland, J.C., Carland, J.W. and Stewart, W.H., 2015. Seeing what's not there: The enigma of entrepreneurship.Journal of small business strategy,7(1), pp.1-20. Choi, R.I., 2015. Structural Relation Model on Customer Satisfaction of Biggest Discount Retailers.Journal of the Korea Society of Computer and Information,20(2), pp.221-229. Chun, H., Heo, S. and Lee, Y., 2013.Competition in Large Discount Retailers. Sogang University Working Paper. Drucker, P., 2014.Innovation and entrepreneurship. Routledge. Dukes, A., Geylani, T. and Liu, Y., 2014. Dominant retailers incentives for product quality in asymmetric distribution channels.Marketing Letters,25(1), pp.93-107. Dukes, A.J. and Geylani, T., 2015. Dominant retailers and their impact on marketing channels. Gabler, C.B., Landers, V.M. and Reynolds, K.E., 2017. Purchase decision regret: Negative consequences of the Steadily Increasing Discount strategy.Journal of Business Research. Hassan, S., Bucifal, S., Drake, P. and Hendrickson, L., 2015. Australian geography of innovative entrepreneurship.Research Paper,3, p.2015. Hendrickson, L., Bucifal, S., Balaguer, A. and Hansell, D., 2015. The employment dynamics of Australian entrepreneurship.Research Paper,4, p.2015. Kirzner, I.M., 2015.Competition and entrepreneurship. University of Chicago press. Kuratko, D.F., 2016.Entrepreneurship: Theory, process, and practice. Cengage Learning. Maritz, A. and Donovan, J., 2015. Entrepreneurship and innovation: Setting an agenda for greater discipline contextualisation.Education+ Training,57(1), pp.74-87. Morselli, D., 2014.Entrepreneurship teaching in vocational education: a comparative study in Italy and Australia using the Change Laboratory(Doctoral dissertation). Reboud, S., Mazzarol, T. and Soutar, G., 2014. Low-tech vs high-tech entrepreneurship: a study in France and Australia.Journal of Innovation Economics Management, (2), pp.121-141. Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small business. Schaper, M. ed., 2016.Making ecopreneurs: developing sustainable entrepreneurship. CRC Press. Zielke, S., 2014. Shopping in discount stores: The role of price-related attributions, emotions and value perception.Journal of Retailing and Consumer Services,21(3), pp.327-338.