Risk Management - Hospitality Industry Essay Example | Topics and Well Written Essays - 3000 words

Risk Management - Hospitality Industry - Essay Example Every business entity when initiated will have inherited risk in them as it has to reach the costumers expectations and has to place itself in a competitive environment or it has to create a market demand to its new product to be launched. With out perceiving the risk of venturing into new market arenas the purpose of making profitability does not arise. All organizations will face some kind of risk proportions in their daily activities of their operations as the sectors demands a standard or particular norms and expectations to be met. The risk is inherited with the unexplored option which may turn in to organization benefit or it may crumble depicting that the perceptions were wrong. The common risk concerns areas are: Hazard risk: it is related to sudden incidents like fire eruption, natural calamities. Financial risk: the financial risks deal with the uncertainty of the economic viability of industry. Operational risk: is associated with various factors which has a significant ro le in the processes, methodologies adapted in the running the company. Strategic risk: eludes about the accuracy of the strategy implemented and explains ho far the methods adopted were proper to the company growth within the market.... officials failed in analyzing the sources. The south Indian region has more coffee consumers when compared to North. The Company did not expand aggressively into the north India where there was more corporate culture in cities like Delhi and Mumbai. In a span of six years from 1996 to 2002 it was able to open only 50 outlets major of them in south India metros cities and a few in north India parts like Pune. The lack of aggressive marketing of the cafe coffee day brand allowed other competitors to captivate on the demand created by CCD .There is an inability to choose right market. The south Indian market has already some active players in the coffee shops, as coffee used to be consumed more in South India. Caf coffee day choose to compete in existing market and confined itself to southern region. The negligence of the north Indian market where there are many industrially developed areas like New Delhi, Mumbai gurgoan, Noida, Pune and the consumers who are willing to accept the trendy ambience of the caf coffee day was untapped for a long time. In a booming market a new entrant taking such a long time will certainly allow the competitors to cash the opportunity which the other coffee shops like the barista and qwiky's have done. The CCD lacked professional expertise in the business expansion which can be observed in time lag for five years, before the decision to expansion has been taken place. The workers doesn't know how to analyze the feasibility, how to locate the right market. CCD has entered into a market with other active players who already exists in the South Indian market. A company having an ambitious plan to introduce a new product should do the necessary Market research which depicts the: Type of expected