This website uses cookies to ensure you have the best experience. Learn more

Heblon Essay

2190 words - 9 pages

ACCT5919 Business Risk Management
Syndicate Report


Semester 2, 2013
Wenjia Wu 3489021
Wing Kin Lam 5011203
Xuan Zhang 5024642
Xin Su 3468927

1. Introduction
This report will examine the key risk management issues in Heblon PLC (Heblon), with emphasis on the risk identification process. Established in 1950s in the UK, Heblon provides high quality wooden furniture in traditional manufacturing industry. After several decades of development, it currently has 250 employees, and relies on individual craftsmanship and labour intensive production processes. Heblon achieved sales revenues of £10 million in the previous year and occupied ...view middle of the document...

Due to limits in time, money and human capital, managers have to focus on key risks to improving business performance.
Based on the facts provided in Heblon, various types of risks, including strategic, operating, financial and legal risks are identified as followed.
Risks | Types of risks |
| Strategic | Operating | Financial | Legal |
Competitive pattern | √ | | | |
Expertise of management | √ | √ | | |
New technology | | √ | | |
Human resources | | √ | | |
Wood supply (raw material) | | | | √ |
Financing structure | | | √ | |
Increasing cost | | | √ | |
Unsatisfactory customers | | √ | √ | |
Bargaining power of retailer | | | √ | |
In risk identification, it is necessary to analyse the situations and sources of the risks. Five most significant risks, namely, environmental issue, change in consumer behaviour, technology development, higher competition in industry and concentration of distribution, are identified from Heblon’s business environment.
Environmental issue
The protest of deforestation due to global warming has caused the reduction of hardwood supply in furniture manufacturing. Therefore, the lead time for the delivery and the price of materials would increase. As the pressure is expected to grow continuously, the risk is likely to occur in the future.
Change in consumer behaviour
Since consumers are becoming more fashion and design conscious nowadays, the demand for the traditional or reproduction style furniture may be reduced. Although there is no real impact on company currently, this will change price and cost structure of the business in the future.
Technology development
The development in manufacturing process and management and control system would improve Heblon’s productivity and efficiency in business process. However, this would increase the financial pressure to the company because of lack of financial resources to support those developments.
Higher competition in industry
The entries of overseas competitors are intensifying the competition in furniture industry. This has induced more competitors from lower price section to differentiate their products by emphasizing quality, design and delivery. Therefore, the competitive advantage of Heblon will become less significant and the future sales will decrease.
Concentration of distribution channel
As the market share of distributors as manufacturers has been growing in the last decade and the bargaining power has been shifted from manufacturers to retailers. This imposes negative effects on profit margin and terms of supply to the small manufacturers like Heblon.
Managers’ response
The performance and studies of Heblon suggest that the company have not properly applied method in risk identification, and consequently the pace of development was slowed down.
Risk identification may be conducted in formal and informal approaches, with the former primarily made up of past losses and safety system techniques. The...

Other assignments on Heblon

Course Syllabus Essay

2610 words - 11 pages [pic] COURSE SYLLABUS Semester: Fall, Year: 2012  College Mission Statement Richard J. Daley College provides high-quality education which leads to academic success, career development, and personal enrichment that fulfill diverse community needs. Mathematics Department Mission Statement Our mission is to deliver excellent service and to provide learning opportunities by offering a wide range of mathematics courses, which will help our

Management Essay

1477 words - 6 pages Boeing Management Planning Heather Oetzel MGT 330 October 22, 2012 Joe Cheng Abstract Boeing is known as “the world’s leading aerospace company and the largest manufacturer of commercial jetliner and military aircraft combined ("The Boeing Company: About Us", 2012). Every company uses different types of management techniques including how the planning function of management is used. Planning allows organizations to develop how the

Assisted Suicide

1015 words - 5 pages Should physician-assisted suicide be legal? While I believe if one chooses to end his or own life through physician assistance for reasons that they chose, the choice should be up to the individual. Physician-assisted suicide should be at one's discretion. “Assisted Suicide, also called Voluntary Euthanasia, is currently a contentious issue in many countries. Because Euthanasia is legal in a few modern democracies: the Netherlands, Belgium

Tanglewood Case 1

797 words - 4 pages Tanglewood’s staffing strategy requires the organization to make key decisions about the acquisition, deployment, and retention of the organization’s workforce. In order to accomplish this, Tanglewood’s must make thirteen decisions regarding its staffing levels and its staffing quality. One of the first decisions that Tanglewood needs to choose is to acquire or develop talent. Tanglewood should try to develop their current talent because one


1391 words - 6 pages Есе по въпроса: Кои от всички „действащи” лица могат да се разглеждат като морално отговорни и в какво именно? по казуса Форд „Пинто” Корпоративните злодеяния са нанесли повече вреди на обществото от всички улични престъпления взети заедно. Според данни на ФБР сумата от уличните престъпления възлиза на $3.8 млрд. годишно, а загубите от корпоративните измами между $100 млрд. и $400 млрд. годишно

The Penis

1052 words - 5 pages The short story ”The Penis” is written by Hanif Kureishi. The short story is about a penis, which has been separated from its owner Doug, who we hear from later on. At first though we hear about a guy called Alfie who was “a cutter – a hairdresser – and had to get to work”. He is having breakfast with his wife, when she asks him what he did last night, and if he had a good time last night? Alfie can not remember what he did last night, he then

Managed Care Paper

543 words - 3 pages Managed Care and Case Management Care Marvin Lloyd BSHS/402-Case Management 27 August 2012 Virgil Miller Managed Care are techniques employed to help reduce the cost for providing health benefits and a system for improving organizations quality of care


439 words - 2 pages The life expectancy is lower; so people are not kept alive with drugs for decades in a virtual sleep state. There is less state education; so kids don't have it drilled into them that their only goal in life is to make money, at the cost of 'everything' else. The health care is less; so diseases, usually brought by Westerners, kill many more than they do in countries where drug companies can make a fortune from selling medicines that aren't

Chapter 6 International Business

7113 words - 29 pages CGGGG The Political Economy of International Trade Chapter Outline OPENING CASE: Why Are Global Food Prices Soaring? INTRODUCTION INSTRUMENTS OF TRADE POLICY Tariffs Subsides Country Focus: Subsidized Wheat Production in Japan Import Quotas and Voluntary Export Restraints Local Content Requirements Administrative Polices Antidumping Policies Management Focus: U.S. Magnesium

Scope And Goals

279 words - 2 pages Introduction: Kudler Fine Foods is a specialty food store based in San Diego, California with its three locations in La Jolla, Del Mar, and Encinitas. Kudler Fine food prides itself on offering fresh and organic products that are carefully selected from local farmers and around the world. The organization has recently taken the initiative to start a Frequent Shopper Program to market and increase sales. This program will offer the customers a


251 words - 2 pages Meerkat The meerkat or suricate, Suricata suricatta, is a small mammal belonging to the mongoose family. Meerkats live in all parts of theKalahari Desert in Botswana, in much of the Namib Desert in Namibia and southwestern Angola, and in South Africa. A group of meerkats is called a "mob", "gang" or "clan". A meerkat clan often contains about 20 meerkats, but some super-families have 50 or more members. In captivity, meerkats have an average

Similar Documents

Mgt216 Essay

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they

Economy Effect Of Marijuana Essay

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout Essay

2033 words - 9 pages ECONOMY 26 Luring a big firm to town is not the secret to job growth DEFEND YOUR RESEARCH 30 Are morning people wired for success? VISION STATEMENT 32 The social web’s east-west divide COLUMN 38 Warren Bennis looks back on his surprising path to fame New Thinking, Research in Progress New Thinking, Research in Progress FIRST The VC Shakeout Venture capital hasn’t worked for a decade and must be radically

Hospitals Paper

6014 words - 25 pages I hope to provide in this paper a comprehensive understanding for what the term “hospital” has become. Hospitals are an extremely complex system that man has created and shaped and reshaped throughout history. My goal in writing and researching this paper will be to provide those who read it a clear understanding on how the hospital system got to where it is today, and to shed some light on the many organizations that affiliate with and