Risk Management Essay Example | Topics and Well Written Essays - 2000 words - 5

Risk Management - Essay Example This data is often the first input to decision makers to gage whether risks should be avoided and the most suitable and cost-efficient risk management procedure. Risk analysis involves the identification, evaluation as well as management of various risks (John n.d.). The type of risk in an organization depends on the industry to which the organization operates (John n.d.). Financial risk assessment and management is of economic worth. This is especially to firms using financial tools in managing exposure to risks. Other financial risk may include inflation and volatility risk (Andersen 2012). Just like general risk management, the financial risk management necessitates identification of its sources, its measurements, as well as plans to avoid them in future. Financial risk analysis, assessment and management can both be quantitative and qualitative. Financial risk management emphasizes on the time and the means to evade the financial risks by using the specific financial instruments used in managing costly exposures to risk. In the finance sector, the Basel Accords is an instrument that has been adopted generally by internationally banks for tracking, recording and revealing the operational risks, credit risks and market risks (Andersen 2012, p. 7). Financial risk management usually assist in clearing profits through cost evasion, cost inhibition and time savings. An inclusive financial risk management platform can avert wastefulness and replication that decreases needless costs, increases productivity, and enables reliability and communication. An integrated system often permits several departments to accumulate information and cooperate amongst themselves. This can help in communication and understanding, thus reducing and containing risk while cutting costs and adding process consistency (Andersen 2012, p. 15). The first step in financial risk analysis is the inherent risk assessment, which involves assessing the financial statement

Mountain Dew Essay Example | Topics and Well Written Essays - 2000 words

Mountain Dew - Essay Example It has gained the position of No. 1 competitor of Coke, which stands for kinship and a brand that nation cares for. Come year 2000 and Pepsi Co, along with BBDO, its advertising agency for decades are facing a challenge to change it advertising strategy to suit the market needs. Close rivals in CSD and non CSD segment are increasing their advertising bumdgets, which Pepsi Co. is reluctant to. Extreme sports and alternative sports have been over used and left with less fizz to be continued as an advertising strategy. The decision becomes even more crucial in light of decreasing sales of Pepsi and Diet Pepsi, partly due to increase in prices of 5% across market segment and partly due to the increasing awareness of the consumer base of what marketing strategies are and why brands are popular. On the other side, functional drinks market is fast picking up with brands like Redbull creating a niche for itself. The board of senior members of Pepsi Co and BBDO are brooding over the decision of selecting and producing adverts which will convey that idea of Mountain Dew standing for an Exhilarating experience without overexposing extreme sports. SWOT Before analyzing the situation in deep it is important to keep in mind what Mountain dew as a brand and as a product stands for. Following is the SWOT for Mountain Dew which will be considered while making the final decisions Strengths ïÆ'Ëœ Mountain Dew is a product offered by Pepsi Co., a company with very strong market presence and very high brand value ïÆ'Ëœ Brand can be identified with terms like ‘advernturous’, ‘exciting’ ,‘cool’, ‘Daring’, ‘Courageous’ due to which it has a niche in the market segment of 18 – 29 year olds... s The teen KPIs are encouraging & an opportunity to create a better brand awareness exists It’s a product in flavored drink segment which is growing unlike the CSD cola market Threats Other companies have used the Extreme sports as a communication medium and increasing their budgets for advertising and communication Introduction of functional and non CSD drinks which today’s consumer is drifting to provide its health benefits and current ethos Other copy cat flavored drinks More stress on the managerial judgment for selecting the best communication strategy rather than relying on hard data. Though it has worked in part, this decision might or might not lead to desired results and is risky. Issues 1) Eight years of exploiting the theme of Extreme sports has left it with no juice. Other companies have started to exploit it, even those who are not in the beverages industry like GE, Mars and FedEX. Mountain due is also in need of broadening its consumer base from 18 - 29 ye ars olds to overlap with 20 – 39 year olds. It needs a more generic appeal and hence use of extreme sports is questionable 2) Pepsi Co. since ages have believed in keeping the content right rather than flooding the media with its ads. They believe in game of content rather than volume. This means Mountain Dew has a limited budget to spend on its media communications as compared to nearest competitors who are ramping up their spends on the same. 3) When Mountain Dew was bought in 1964 by Pepsi Co. it had its own niche of ‘flavored’ soft drink. Today not only has it lost its niche, but also is facing competition from non CSD drinks like Getorage and functional highly caffeinated and sugary drinks like Redbull. It is hence crucial to take this brand to a next level by broadening the target market