Risk Assessment Plan

Risk Assessment Plan

For

Apple Chain store

Introduction

This particular paper attempts to provide an insight into the case of Joining-in Apple store. The paper is split into two parts i.e. Part 1 and Part 2 each highlighting different aspects of risk management at Apple.

Part 1

Stakeholder analysis

Stakeholder analysis is basically the method of recognizing the people or groups which are likely to have an impact on or be impacted by the proposed action and categorizing them as per their affect on the action as well as the affect the action would have on them. The stakeholders of Apple include employees, customers, investors, top management, directors, suppliers, distributors and many other people who facilitate company to carry out its procedures smoothly. The company has responded well to the needs of all its stakeholders up till now and would continue to do so in coming years as well (Volberda, 1999). Our store is also leading the charge with respect to fair salary for its contract staff members. Moreover, also pays high attention on the needs and wants of the customers at the cost of employees. Such a view might be regarded as a fair evaluation of an organization which is taking a balanced look at offering an even-handed stakeholder experience from customers to staff (Volberda, 1999). Moving ahead, this doesn’t represent an entire list of stakeholders. The list could be expanded to take in the community.

Scope of risk management

Apple has a huge number of third party applications developer, movie studios and musicians which they represent via their iTunes store. Moving ahead, as a generalized evaluation apple has utilized its ‘walled community’ quite strategically in order to safeguard these stakeholders. Our store takes a step to protect music piracy which is to keeping control all through the internet. Additionally, in doing so the company was able to bring together the whole music industry and protect it from not collapse. With a confirmed software and hardware solution the company was able to offer a similar solution to movie industry and software developers. Moving ahead, this doesn’t represent an entire list of stakeholders. however it does set up a general comprehension of Apples impact as well as concern for all its key stakeholders. Moreover, in all the well-known examples, Apple has undertaken a proactive strategy for maintaining a good association with all the stakeholders. It’s also persisting to actively follow actions to additionally enhance these associations taking in the struggle for fair salaries and human rights issues within foreign factories which are managed by the contractors.

SWOT analysis

The continuing sections now provide SWOT (strengths, weaknesses, opportunities and threats) Analysis of Apple.

Strengths

• Robust Aftermarket performance
• High-end products including iPhone, iPad, iPod, computers, laptops etc. and good brand image.
• Worldwide presence and recognition
• Apple Company is a highly-renowned and one among the most established IT firms within the world.
• It holds a set of loyal buyers who support for new brands.

Weaknesses

• The firm’s product iPod Nano has been detected to have a faulty screen. This compares with the previous issue with the early iPod that had faulty batteries.
• Apple is getting pressure from the Music companies to perk up the prices of music download files.
• During the beginning stages of 2005, the organization reported that it will finish up its long standing association with IBM for its chip supplies.
• Product recall and patent infringement.

Opportunities

• Apple Company holds a good opportunity to build up iTunes, video and music player techniques into the format usable through the telecommunication handsets.
• New technologies along with alliances can offer Apple Inc. prospects to discover new technologies and products.
• Smart phones

Fashion elements

Threats

• IT firms such as Apple are facing high threats from the cut-throat competition within the technology marketplace.
• Huge and successful organizations draw competition from all areas however the Apple Corporation has devised strategies for protecting this mode of threat.
• Apple also faces high threat of product substitution effect within its innovation techniques.
• Dependence on particular suppliers
• Uncertain global economic conditions
• Declining pc sales

PESTEL Analysis

Political factors

The company faces several political issues like government regulations and rules

Economic factors

The economic factor affecting apple is increasing income of people

Social factors

The social factor affecting Apple is changing customer preferences

Technological factors

The company needs to update technology (i.e. machinery, equipments, procedures, IT etc) on continuous basis.

Environmental factors

Apple needs to ensure that all business operations are carried out in environmentally safe manner

Legal factors

The shop needs to follow local rules and regulation related to employees, work environment, product quality etc set by industry regulators.

Analysis of context of risk of the organization

Inner contexts:

Inner context of the risk includes organizational structure, organizational culture, organizational resources, power relationships, strategy, risk perception and motivation. The organizational structure of Apple is horizontal and is developed taking into consideration the firm’s operations and procedures. Employees are treated equally and are offered equal growth prospects. Moreover, the culture of the business concentrates on facilitating customers with best products and services. Thus, it is vital that the staff members employed fit properly in the method and capable enough to adapt to that culture. Our store is open to taking risks when it comes to going an extra mile to offer customer with better and superior services. Further, strategic risks might come up from scoping, planning and resourcing the needs of the business. The employees must be motivated on regular basis to ensure the effectiveness and quality of the products and service offered.

Outer contexts:

The outer contexts of risks include political, legislative, economic, social, technological, market and lastly, environmental forces. Legislative and political forces require fulfillment of legal requirements such as policies, rules, standards, codes of conduct and licensing requirements of the store. Market and economic forces have an impact on the growth, economic viability, commercial success, marketplace feasibility, commercial success and lastly, diversification of the business. Moreover, technological forces take in execution, management, continuation and advancement of technology as well as the risks related to them. Additionally, social forces such as increasing income of people and changing customer preferences. Further, environmental factors increase the risk of sustainability of an organization.

Part 2

Risk management objectives and critical success factors for the organization

The chief objective of the apple is to provide its customers with an exceptional range of products and services. Their aim is to attain competitive advantage by ensuring excellence in products and services they offer. The main success factor for the company like Apple is its strategy of product differentiation. No company in this sector has been able to offer products matching the features and standard of the product offered by Apple. The company lays emphasis on developing value for its employees, customers as well as stakeholders.

The main purpose of risk management of Apple is to prepare the business and the employees to face any unanticipated risks if it takes place (Frame, 2003). The financial goal of store is to remain profitable while providing exceptional products and services to customers at reasonable prices. Taking into consideration the goals of the business, it’s vital to carry out risk management and strategically view it as an investment to safeguard the company and its procedures from any unanticipated risks. Further, safety of the staff is vital for Apple since it would help it to encourage and retain them and also, build up a culture wherein staff members are justifiably treated.

Risks associated with the business operations

There are distinct methods for analyzing risks such as market analysis. An environmental analysis of Apple is carried out through SWOT and PESTEL analysis. The analysis offers good insights for risk recognition from distinct factors affecting the operations of the store. Documentation is essential to make sure suitable administration and management of the whole organization.

Risk analysis for the organization

Risk analysis would aid in recognizing and managing the risks which the store is going through and determining the business initiatives to prevent the risks. For this the manager need identifying the risks, recognizing the likelihood of the occurrence of a particular risk, categorizing the risks as low, medium or high and lastly, recognizing the timeframe in which itcould be handled.

Fish Bone Diagram:

Risk treatment plan and schedule

Risk treatment plan and schedule takes in averting the risk, managing risks, transferring risks and mitigating risk. According to Boggs (2008), when treating the risks, all individuals accountable for treatment, expenses involved, probability of success and means of evaluating the success of treatment should be properly recognized.

The figure below highlights the risk treatment plan.

Risk action plan

Based on the above analysis a risk action plan is prepared.

Implementation of risk assessment plan

Efficient training programs are very essential to ensure effective implementation of the risk assessment plan. According to Diggs (2009), this is vital since adequate involvement of the staff is needed for executing the plan and equipping them to face and alleviate the risks. Moreover, for this, the staff needs to hold a proper understanding about the risks and their possible impact.

Monitoring and evaluation of risk management plans

Monitoring and evaluation of risks on a regular basis is highly vital. Third party audit is a measurement technique for preserving the trust amid two parties holding interest. After evaluating all the risks the auditor proposes alterations accordingly and suggests action plans. The report is then passed on to the top management for their consent and budget sanction in order to alleviate the risks.

Relevant legislation, codes of practice and national standards

Offering products that are of good quality and safe is a vital condition by the law and set industry standards for all companies. These standards have been set by the industry regulators and officials and Apple must follow them in any case. Rules have been laid with respect to product quality, employees’ laws, supplier regulations and workplace security. According to Australia Standards and Legislations As ISO15489

References:

National Archives of Australia [Online]

Boggs, C. (2008).Pure vs. speculative risk [Online]

Date Accessed: 28-02-2013.

Diggs, A. (2009).Investing: The difference between speculative risk and pure risk [Online]

Date Accessed: 28-02-2013.

Frame, J. D. (2003).Managing risk in organizations: a guide for managers, Jossey-Bass

Volberda, H. W. (1999). Building the flexible firm: How to remain competitive,

APPLE (Logo):

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