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strategies strategies Document Transcript

  • 3.11 STRATEGIES Risk is the probability that a harzard will turn into the disaster or in the other word, risk also can defined as the possibility of suffering injury or a loss by Ferrel and Hirt (1993). There are two types of risk, first is speculative risk which refers to exposures or actions taken that may result in a possible gain or loss. This risk offers three outcomes; no change, gain or loss. Speculative risk is related to business decisions. In order to reduce this type of risk, the business needs a plan. If not, they will face failure. The second type of risk is pure risk and it is contra from the first type of risk. Pure risk involves the possibility of no change or loss with no potential for a gain.Furthermore, the risk have direct losses to property , indirect losses to income , liability losses and loss of key personnel. For example, fire destroys business whereas flood may damage the products. Based on the type of business that we had interviewed, the owner, Mr Zaini bin Hassan use evaluating alternatives and select the best techniques as his risk management. He practiced risk avoidance in his business, which is the best technique that he had chosen. At first, when Mr Zaini bin Hassan decide to start up this business they only sell their product on cash, this is to prevent the business from gain any loss because he had start up this business with small amount of capital. There are many types of customer desire that the owner must fullfill it, to make sure that they will not loss their customer. Thus, the owner of INANI CRAFT has to do something to attract more customers to choose his product. One of his methods is by giving his customer the best quality of services. Every single request or demand that the customer make, he will give the best service so that the customer are fully satisfied with his product. Mr Md shahir ensures that his services are always up to date. In order to catch up with the latest taste and preference of the society, he usually make a survey among his customer to get their feedback about their product. Then, he will discuss with his family and his employee to make improvement to their product.
  • The other strategies that he use is in term of pricing, where he will set a competitive and suitable price in other to makesure that their customer are get the lower price but the high quality of the product that they want. The reasonable price will maintain and attract more customer to his business services. Thus, the customer will realise that the price that are been offer at INANI CRAFT are reasonable and affordable. On top of that, he also have an insurance as a backup plan if something unexpected occurs to his busines like fire damage to the business property and other. The business propety insurance will cover the financial loss due to the property damage. In our conclusion, Mr Zaini Bin Hassan have done a great job in handling risk that may occurs in his business. It showed that Mr Zaini Bin Hassan is high awareness and really alert on what can happen in the future of his business. So he always be prepared a necessary precaution to bear any misfortune on his business.