With time, businesses tend to undergo global changes in their strategic and operational activities. Alterations are inevitable in the case of different companies, especially in the case of those founded over a hundred years ago. Changes are usually associated with risks. Therefore, when a company faces the need to reconsider its activities and has several alternatives, the assessment of the alternatives can be performed with the use of risk management approaches.
In the case of Ford Motor Company, four options that would allow to enhance its performance have been identified. Although those options open new opportunities for the business, each of them is associated with particular threats or risks. Thus, in order to decide which alternative is the best, an integrated analysis should be conducted. The first step is to analyze the environment. For example, a PEST analysis and such criteria as opportunities and risks could be utilized to perform the environment analysis. Further, risks related to every alternative should be determined. After that, every risk should be evaluated by determining the probability of its occurrence and the negative impact of that occurrence on the company (Heagney, 2011, p. 59). A number-based scale, for instance, could show the potential losses the company would incur in case the potential risks become reality. In addition, the analysis of the opportunities each alternative offers should take place. The aforementioned indices should be gathered into a large table. The best alternative will be the one with the lowest risk rate and the greatest number of opportunities.
When the alternative is chosen, it is necessary to design a detailed project of its implementation. Once the project’s goals are formulated, a sequence of processes or steps that will lead to the execution of the whole project will be determined. The results of each step should undergo an intermediate evaluation for the situation to be under the control of the company’s managers.
Thus, every alternative should be analyzed from different perspectives in order to consider every factor that may influence the company’s activity. Other types of analysis, such as a SWOT analysis, also could be used. Most importantly, the evaluation of the factors should be complex and profound.
About the author: Madilyn Glover is 24 years old. She like to photograph, especially nature. Also, she like read about description of nature in literature,too. But her main hobby is her work. She is a freelance writer at https://papermasters.org Madilyn like to see glad people,when their get their order. She has many good reviews,which show,that she know,what she doing. Theme of nature not leave at writing, too. Madilyn writing essays about environment and literature.
