Business

Plan

Submitted to:
Ms. Valerie Joy Manicap

Submitted by:
Arzadon, Jay-ar G.
Badongen, Leah G.
Capinpin, Trixia Micah B.
Crismo, Jovanni C.
Dolores, Jobert G.
Luizon, James Paul P.
Ngayan, Jhon Mathew S.
Mendoza, Princess Jennesse C.
Tiburcio, Kristine Joy R.

Quirino State University - Cabarroguis Campus

Zamora, Cabarroguis Quirino
I.
Table of Contents

I. Introductory Page …………………………………………………………………………………… 1

A. Name and address of business…………………………………………………………………… 1
B. Name(s) and address(s) of principals…………………………………………………………… 1
C. Nature of business…………………………………………………………………………………… 1
II. Executive Summary…………………………………………………………………………………. 1
III. Industry Analysis………………………………………………………………………………………. 3
A. Future outlook and trends………………………………………………………………………. 3
B. Analysis of competitors…………………………………………………………………………… 3
C. Market segmentation…………………………………………………………………………….. 5
D. Industry and market forecast……………………………………………………………………. 5
IV. Description of Venture……………………………………………………………………………… 5
A. Product(s)………………………………………………………………………………………… 5
B. Service(s)……………………………………………………………………………………………. 5
C. Size of business…………………………………………………………………………………… 5
D. Office equipment and Personnel………………………………………………………………… 5
E. Background of Entrepreneurs…………………………………………………………………… 6
V. Production Plan………………………………………………………………………………………… 6
A. Product process…………………………………………………………………………………….. 6
B. Physical Plant………………………………………………………………………………………. 6
C. Machinery and equipment……………………………………………………………………….. 6
D. Names of suppliers of raw materials or retail products……………………………………. 7
VI. Operations Plan………………………………………………………………………………………… 7
A. Description of company’s operation……………………………………………………………. 7
B. Flow of orders for goods and/or service(s)……………………………………………………. 8
C. Technology utilization……………………………………………………………………………… 8
VII.Marketing Plan………………………………………………………………………………………….
A. Product……………………………………………………………………………………………….
B. Price…………………………………………………………………………………………………….
C. Promoton……………………………………………………………………………………………..
D. Place…………………………………………………………………………………………………
VIII. Organizational Plan…………………………………………………………………………………
A. Form of ownership…………………………………………………………………………………
B. Identification of partners or principal shareholders……………………………………..
C. Authority of Principal………………………………………………………………………………
D. Management team backgrounds…………………………………………………………………
E. Roles and responsibilities of members of organization……………………………………
IX. Assessment of Risk……………………………………………………………………………………
A. Evaluate weakness(es) of business……………………………………………………………
B. New technologies…………………………………………………………………………………….
C. Contingency Plans…………………………………………………………………………………
I. Introductory Page

A. Name and address of business

Ÿ The business name is “Savemore Market”, it is located at California, USA.

B. Name(s) and Address(es) of principal(s)

Name(s) Address(es)
Arzadon, Jay-ar G. Luttuad Diffun, Quirino
Badongen, Leah G. Buenavista Maddela, Quirino
Capinpin, Trixia Micah B. Gundaway Cabarroguis, Quirino
Crismo, Jovanni C. Rizal Saguday, Quirino
Dolores, Jobert G. Gamis Saguday, Quirino
Luizon, James Paul P. Sanpedro Maddela, Quirino
Ngayan, Jhon Mathew S. Palacian Aglipay, Quirino
Mendoza, Princess Jennesse C. Burgos Cabarroguis, Quirino
Tiburcio, Kristine Joy R. Calaocan Alicia, Isabela

C. Nature of business
It’s all in the spirit of customer service. We are bringing in the convenience and reliability of
an SM supermarket closer to our customers. Here, we can offer them a wide range of quality
products, competitive price, in a clean and air-conditioned environment, with our trademark
customer service.

We also offer other services such as bills payment, so that our customers will be able to pay their
household bills on time and at their convenience.

a. Attentive and well-mannered employees.

b. High quality products at low prices (SM Bonus)
c. Courteous staff – always happy to serve!
d. Low prices everyday – Our Total Lower Cost (TLC) promo offers discounts on basic items
on a daily basis, all-year round.
e. Clean, well-lit store
f. Promotions ongoing everyday – Yellow Tag
g. Convenient
h. Quick and friendly service
i. Variety; wide range of products that fit everyone’s budget.
j. You get the SM shopping experience without having to go to the mall. SM being just next
door.
k. Our assurance on the safety of our food products for consumption.

II. Executive Summary

Savemore is SM’s way of bringing in the SM shopping experience nearer to where the
shoppers live and work. It is a neighborhood store that prides itself on great merchandise
selection, convenience, and excellent customer service. Instead of customers having to go to the
mall, SM is now becoming part of the customers’ neighborhood. Over the last decade, Savemore’s
accelerated expansion was achieved despite severe competition from both old and new retail
players. Save More is a discount grocery store that makes meal planning and grocery shopping
on a budget by offering savings up to 40% every day. The company is proud to offer fresh meat,
quality fruits, vegetables, and all your grocery store needs. It believes in quality and offer s a
100% Money Back Guarantee. If a customer is not satisfied with their purchase, they can return
it for a full refund.

Because they are smaller, with an area of not more than 5,000 square meters, they can
put them up almost anywhere, bringing them closer to where the customers live and work.
Despite its smaller selling area, merchandise listing is still complete, but limited to about 25,000
articles. The business company open Savemore in areas where they feel that they are welcome to
be part of the customers’ lifestyle. The businesses main message to them is “Good food need not
be expensive.” – Henry Sy

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 In 2009 the first Save More supermarket on Aruba opened its doors in the town of San
Nicolas. From the beginning the supermarket was a great success. The way Save More works was
quickly embraced by the people of Aruba. In short Save More stands for: A clean and tidy
supermarket were there are sold high-quality products at low prices. On the bottom of this text,
you will find the Save More Vision on which every Save More store is based.

In 2012 a second Save More store on Aruba opened. In the district of Boegoeroei
Oranjestad. This second store was also a success. Because of this second Save More on Aruba,
many customers did not have to travel all the way to San Nicolas anymore. Without the
customers, Save More would not be where it was today.

They always try to meet the demands of their clients. One of their main goals is to raise
their customer satisfaction even more. You can help them accomplish that by telling them what
you like in their stores and what you miss or dislike. With your help, you can improve their
supermarket. Maybe in the future, a third Save More Food Store on Aruba becomes a reality
because of your help.

The Save More

Vision: We help our customers to live richer, fuller lives by saving them money and time. The
time-saving set-up of Save More stores, combined with high-quality discount groceries, allows us
to offer great food at great prices from great people, every day.

Great Food: We procure, distribute and market a carefully selected assortment of high-quality
food and household needs, emphasizing our own exclusive brands.
Great Prices: Our highly efficient supply chain enables us to sell at prices well below other
retailers, and our customers can use the money they save for other things that are important to
them; necessities or fun times.
Great People: We strive to provide a positive shopping experience in stores that are clean, well-
stocked, fresh and staffed by friendly, helpful and respectful associates. Our Guiding Principle
Our guiding principle is to be shopper-centric. While we are always mindful of costs and
efficiencies, in the end, our decisions and actions are guided by how we can best meet the needs
and wants of the value-seeking shopper.

Mission: To deliver world-class, relevant products and services which are accessible, affordable,
aspirational, and fashionable. The business company do this by fairly partnering with the
businesses suppliers, establishing the best practices in developing and growing their talents, and
improving the quality of life in the community that SM partners with.

Goals

Short term goals

Ÿ Create a social media platform that will be used for advertising and marketing.
Ÿ Set a strong foundation in the United states by getting its 10% overall sales of products
in the next 2months after launching.
Ÿ Implement vouchers, discounts and monthly giveaways to loyal customers.
Ÿ Know the ideas, interest, and preferences of the customers in the United States.

Long term goals

Ÿ Hire 100 new employees
Ÿ Open 2 or more branches throughout the country
Ÿ Increase the distribution rate in 2 years after launching by 400% more than the first
production rate.
Ÿ Create, launch, and develop 5 new products based on the interest of consumers.
Ÿ Expand and allow all the other retailers in the United States to franchise the business.
Ÿ Get the sales to increase over 70% by the next 4years.

Objectives
Ÿ To ensure a fair price and better quality product for customers.
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 Ÿ To create a variety of new products through collecting ideas from employees and
consumers.
Ÿ To use profits in raising the capital to strengthen the business.
Ÿ To improve brand reputation and grow production size to meet the demand of the United
States consumers.
Ÿ To get the brand name be known throughout the United States.

III. Industry Analysis

A. Future Outlook of Trends

The proposed business planning process has provided a basis to identify issues and
operational difficulties and explore ways and means to undertake more effective actions to
improve its performance to meet the future challenges. The company will continue to develop the
possibility to expand the market among other countries and adjacent cities, to become the
leading supermarket, and to grow into the market.

To achieve this, Savemore must develop and enhance its product at all times; incorporate
new flavors, drink products, a superior taste but has a cheap price is key to creating a strong
product experience that will encourage consumers to buy our product again and again. Designs,
introduce new promotional plans or strategies, and expand.

This will help the company achieve its goals and secure its long-term viability. And in the
years ahead, Savemore will have a lot larger establishment with more storage for raw materials
and production, allowing the company to gain growing number of clients.

B. Analysis of competitors
Savemore Competitor 1 Competitor 2
(Walmart) (Costco)
Company Save More was founded Founded in Arkansas in Costco Wholesale
Profile in 1994. The Company's 1962 by brothers Sam Corporation operates an
line of business includes and James “Bud” international chain of
the retail sale of a range Walton, Walmart Inc. is membership
of canned foods and dry a chain of stores, warehouses, mainly
goods. usually very large in under the "Costco
size, that sells Wholesale" name that
everything: clothing, carry quality brand-
fragrance, footwear, name merchandise at
jewelry, accessories, substantially lower
cosmetics, home prices than are typically
furnishings and found at conventional
groceries. wholesale or retail
sources.
Key Provides a new varieties Selling Low Priced Has its own private
Competitive of products. Easier Goods, Satisfying label, its discount
Advantage access to all kinds of Customers through prices, and its
products for customers Providing Best Customer membership dues. This
and selling low priced Services, Unmatched has provided customers
goods. Supply Chain with a product that they
Management, Rapid can rely on at low
Global Expansion, and prices. It is also the kind
Market Monopoly in of stable business model
Small Places. that investors seek.
Target Market Mass market Mass market Mass market
Market Share 12% 41% 32%
Marketing 1. Building the 1. Selling low priced 1. Costco uses
Strategies businesses influence by goods bulk/wholesale
creating online 2. Better customer discounts as a form of
platforms service sales promotions to lure.
2. Paying low cost artist 3. Focusing in consumers to its
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 for commercials. strengthening the warehouses/stores.
3. Putting supply chain 2. Members are
advertisements on 4. Keeping the guaranteed low prices
applications and sites operational cost low for products sold per
4. Putting up billboards 5. Making global pack or in wholesale
that contains the presence stronger amounts.
company's offered 6. Expanding the 3. Uses direct marketing
vouchers, benefits and operations to E- through emails to
types of products that commerce members, as well as The
are sold. Costco Connection.
4. Costco’s marketing
mix applies public
relations to boost the
corporate and brand
image.
Product/ Groceries, household Clothing, fragrance, Grocery, appliances,
Services care, personal care, footwear, jewelry, automotive supplies,
accessories, cosmetics, toys, hardware,
home furnishings and accessories, furniture,
groceries. and office/ school
supplies.
Distribution • Wholesalers • Wholesalers • Wholesalers
Channels • Retailers • Retailers • Retailers
• Distributors • Distributors • Distributors
• Internet • Internet • Internet
Strenghts • Provides a large • Strong brand name • Strong brand image
variety of products • Lots of loyal • Strong brand name
along with customers • Lots of loyal
competitive prices • Have a large number customers
and convenience. of followers on social • Have a strong
• Has a lot of source media. foundation in the
of capital from other • Have a lot of industry.
branches. branches • Offers a large variety
throughout US. of products.
• Offers a large variety
of products.
Weakness • Weak brand image • Dependent on low • Limited product
• Low number of price limited selection.
employees. international • Difficult to manage
• Lack of online growth. once fall in
shipping and e- • Gender bankruptcy.
commerce. discrimination- • Vulnerability to
female employees is economic
discriminated in downturns.
regards to
promotion and pay
scale as per this
lawsuit.
Opportunities • Numerous number • Easily adopt to new • Emerging trends
of Filipino technologies • Easily adopt to new
population resides • Emerging trends technologies
in US that has a • Increased • Rapid global
potential of being adaptation of expansion.
familiar to the augmented reality • A significant
company's brand (AR) and virtual increase in the
name. reality (VR) tools for number of people
• Technological better shopping using the internet
advancements that experiences. and shopping
the company can • The e-commerce through e-commerce
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 take advantage of. market is forecast to sites.
• Wider range of reach US$6.3 trillion
target markets. by 2024
• Setting up a
company in US is
relatively easy even
for non resident.
Threats • Large number of • Financial crisis or • Lots of competitors
competitors that economic crisis • Lots of strong brand
offers the same • Environmental names in the same
products and disasters industry.
services. • The emergence of • Financial crisis or
• Lots of strong other other competitors economic crisis
brand company • Low threats for new • Low threats for new
names entrants in starting entrants in the
• Environmental a company industry
disasters • Environmental
• Financial crisis or disasters
economic crisis

C. Market Segmentation
Geographic Psychographic
• California, US residents • Vegetarians
• Consumers that live in warm and cold • Meat eater
environment. • Customer that seeks branded products.
• 94% Urban • Consumers that hates waiting in lines.
• 6% Rural
Behavioral Demographic
• Consumers that prefer shopping rather Age – from age 13 to 80 years old
than buying products online on weekends. Sex – Male and Female
• Consumers that doesn't have the time to go Occupation – No specific target customer
shopping on weekdays. occupation
• Large quantity buyer Income – Low and middle class income
• Small quantity buyer Race – for every race
• Variety seekers
• Last minute shoppers
• Budget conscious
• Customers that are enticed by benefits and
rewards

D. Industry and Market Forecast

Industry Analysis
• Industry Overview: The market is currently at PHP17.3 billion and is estimated to be
at PHP20.414 billion in 2024 and is expected to grow at 18% annually.

IV. Description of Venture

A. Product(s)
• Food
• Bevarages
• Tools
• Home Appliances
• Clothes

B. Service(s)
• Bills Payment
• Grocery Delivery
• Self Checkout
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 • Left Over Food Donation

C. Size of Business
• With a regular Savemore store typically covering 1,500 to 2,500 sqm. In floor area,
the new format’s smaller size makes it more versatile in delivering basic essentials to
customers.

D. Office Equipment and Personnel

Personnel
• Arzadon, Jay-ar G.
• Badongen, Leah G.
• Capinpin, Trixia Micah B.
• Crismo, Jovanni C.
• Dolores, Jobert G.
• Luizon, James Paul P.
• Ngayan, Jhon Mathew S.
• Mendoza, Princess Jennesse C.
• Tiburcio, Kristine Joy R.

Office Equipment
OFFICE EQUIPMENTS MARKETING EQUIPMENTS
Computers Shelves
Printer Shopping basket
Paper shedder Push cart
Fax Barcode reader
Stationary Cashier desk countertop
Table Money counter
Chairs Cashier drawer coin tray
Router Calculator
Telephone Eco bags/ paper bags

E. Background of Entrepreneur(s)

V. Production Plan

A. Product Process

B. Physical
Plant
• Land
• Buildings
• Furnitures
• Equipments
• Machineries

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 C. Machinery and Equipments
• Shelves
• Bar code reader
• Beverage coolers
• Upright and glass lid freezers
• Cabinets
• Box Cutters
• Display Signage
• Shelving
• Upright Freezer and Cooler Doors
• Walk in Coolers and Freezers
• Grocery Shopping Carts
• Stock Trucks and Carts
• Open Air Merchandiser Display Coolers Freezers

D. Names of Suppliers
• Global best produce
• Fruits and vegetables
• Location: Vernon California

• Vesta food service

• Dairy products
• Location: Los Angeles California

• M&M farm INC.

• Meat: chicken, beef, cow, goat, duck
• Location: Los Angeles, California

• Pacific Rim Produce

• Grocery products, school supplies
• Location: Alameda California

• Nature’s produce
• Wholesaler
• Location: Vernon California

VI. Operations plan

A. Description of Companies Operation

The retail sector in the Philippines has seen a sudden rise in big players over the last few
decades attracted by the sustained growth in consumption and employment either from overseas
or of late, from the information technology-business process outsourcing (IT-BPO) sector.

The proliferation is most apparent in the high-density Metros where penetration remains
moderate compared with the Philippines’ more developed neighbors in the Asian region.

This is true for some Savemore stores, SM’s mid-size food retail format, particularly, the
store on the ground floor of Mezza Residences in Sta. Mesa was opened in 2009 in a thriving
neighborhood. On any given day, the store and the surrounding restaurants are frequented by
the Mezza residents probably out to buy something to cook for dinner, students from the nearby
universities who want to hang out, or even passers-by from the neighborhood simply looking to
stock the “fridge”.

Savemore: Seizing unique opportunities for accelerated growth

Savemore Candon, Ilocos Sur is one of the branches that act as the main shopping
centers for remote communities. Just a couple of blocks away, another Savemore store sits on
the TV complex of Broadway Centrum on Aurora Boulevard in Quezon City. This store was
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opened earlier in October of 2009, and like other branches, serves residents nearby as well as
commuters that pass the store every day. However, it has recently seen a dramatic surge in foot
traffic from the phenomenal following of the popular noontime segment “Kalyeserye” or “Aldub”
tandem.

This set-up is mirrored in suburban and even provincial areas where Savemore stores
have sprouted in locations not normally accessible to large retailers. Spanning 1,500 to 2,000
square meters, Savemore President Jojo Tagbo says the company’s ability to accelerate the
rollout of stores is largely due to its size, making it the fastest growing format in SM’s food retail
brand portfolio.

True enough, in less than two decades since it opened its first store in Riverbanks,
Marikina in 1998, Savemore has expanded to 130 stores nationwide as of September 30, 2015.
From sales of PHP 300 million in 1998, Savemore has also recorded PHP 33 billion in sales in
2014.

Originating from the SM Supermarket concept, Savemore emerged to address a need.

Towards the start of the new millennium, shopping habits of Filipinos evolved as Metro Manila
also became more congested. People looked for more last-minute essentials or smaller purchases
which prompted the concept of a compact neighborhood store similar to the SM Supermarket.
The idea back then was to bring SM closer to communities where trusted neighborhood stores or
the presence of formal retail don’t exist.

“We wanted to bring SM’s brand of shopping experience nearer to the consumer and
nearer to the neighborhoods. We can only do that if we put up standalone stores. This is part of
SM’s calling to go to areas where you can serve better,” Savemore President Tagbo said.

Savemore is present in communities and complements the main supermarkets by

providing for last-minute shopping needs. This spares the customers the trouble of traveling to
the supermarket for smaller purchases, thus saving time, effort, and transport costs.s

B. Flow of orders for goods and services

C. Technology utilization

Technology has become an integral part of our lives, and it is important that we use it in a
responsible way to maximize its benefits while minimizing its negative impacts. Here are some
ways to ensure responsible use of technology:
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 • Educate yourself and others: Stay informed about the latest trends and issues in
technology and educate yourself and others about responsible use.
• Use technology in moderation: Avoid overuse of technology and take breaks to disconnect
and engage in other activities.
• Protect your privacy: Be mindful of the personal information you share online and take
steps to protect your privacy.
• Be respectful and ethical: Use technology in a way that is respectful of others and their
rights, and be mindful of ethical considerations.
• Practice digital hygiene: Take steps to ensure that your devices and online accounts are
secure and protected from cyber threats.
• Avoid addictive behavior: Be aware of the potential for technology to be addictive and
take steps to avoid addictive behavior.
• Be mindful of the environmental impact: Be mindful of the environmental impact of
technology and take steps to reduce your energy consumption and e-waste.
• Foster digital inclusion: Ensure that everyone has access to technology and digital skills,
regardless of their socioeconomic status or background.
• By following these guidelines, we can use technology in a responsible and ethical way
that maximizes its benefits while minimizing its negative impacts. Ultimately, it is up to
individuals, organizations, and society as a whole to work together to ensure responsible
use of technology.

VII. Marketing plan

A. Product
B. Price
C. Promotion
D. Place

VIII. Organizational plan

A. Forms of ownership
Savemore’s form of ownership is corporation. The supermarket chain is owned and
operated by SM Retail, part of a collection of stores called SM Markets.

B. Identification of partners or principal shareholders

• ACE Hardware International
• Homeworld Shopping Corp. (SM Home)
• International Toyworld (Toy Kingdom)
• Nursery Care Corporation (Baby Company)
• Casamia Furniture Center, Inc. (Our Home)
• Kultura Store
• Star Appliance Center (SM Appliance Center)
• CK Fashion Collection Corp.
• Signature Lines
• Supplies Station
• Sports Central (Manila)
• H & B, Inc.
• Fitness Health & Beauty Holdings Corp.

C. Authority of principals
• Princess Jennesse Mendoza -
• Jovanni Crismo -
• Kristine Tiburcio -
• Jay-ar Arzadon -
• Jobert Dolores -
• James Paul Luizon -
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• Trixia Mae Capinpin -
• Leah Badongen -
• John Mathew Ngayan -

D. Management team backgrounds

• Princess Jennesse Mendoza - Has an experience in organizing and advertising online

products for her mother’s online business. She also has an experience and knowledge in
handling software and hardware computer.

• Kristine Joy Tiburcio - Has an experience in managing a business. A results-driven,

team leadership, determined and drive to achieve success.

• Trixia Micah Capinpin - Has an experience in handling and organizing business. Good
at sales talk and selling. In addition, she has an experience in working in different stores
and have a good performance in selling.

• Leah Badongen -

• Jovanni C. Crismo - Has a different set of skills essential for running a business such
as accounting, finance, managing, and organizing important resources.

• Jay-ar Arzadon -

• Jobert Dolores -

• John Mathew Ngayan -

• James Paul Luizon -

E. Roles and responsibilities of members of organization

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IX. Assessment of Risk
1. Opportunity
Opportunity-based risk materializes when you’re faced with 2 choices, and you select one option
over the other. The risk is that the option you didn’t choose was potentially better for your
organization, hence a missed opportunity. For example, you’re considering opening a new
location of your business in another city, and you’ve narrowed your options down to two cities.
You decide to expand in the city on the West Coast, risking possible greater success if you had
chosen the East Coast instead.

To overcome opportunity-based risk, it might be helpful to increase your confidence in your

business decisions and strive to maximize your efficiency in whatever selection you choose.

2. Reputation
Reputation risk emerges when a situation affects how the public perceives your brand. Negative
feedback can influence your sales, social media engagement or customer satisfaction ratings, for
instance. Public relations practitioners often assess risks to reputation before making a public
statement. For example, to promote a new product, a company wants to hire a celebrity
endorser. Professionals review the celebrity’s reputation to ensure it would be beneficial to
associate them with their company.

Unexpected situations can also cause reputation risks, such as a customer posting their negative
experience with a brand on social media or a newscast discussing how a product malfunctions.
To minimize damage to their reputation, managers might recognize the drawback and practice
crisis communication to address their customers and stakeholders.

3. Operational
The actions of an employee can influence how a business runs, which allows operational risks to
manifest. For example, a bartender cannot attend their shift on a busy Saturday night, so the
manager assigns a server to make drinks for customers instead. It takes a lot of time for the
server to learn how to fulfill orders and remain attentive to new patrons approaching the bar. To
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remedy the operational risk, the restaurant manager develops a training program that teaches
every employee in the restaurant the basics of every role, so some staff can cover other shifts
efficiently if necessary.

4. Financial
Financial risk refers to a company’s monetary resources. If a business has limited funds, which
can be a product of debt or fluctuations in the economy, then the financial risks can influence its
operations. For example, a small retailer that sells skiing equipment anticipates a slow customer
turnout during the summer months, which can affect how much money they can make during
the off-season. By evaluating the financial risk, the retail managers create a work schedule that
limits the number of new hires during the summer, saving the company funds they would’ve
used to pay hourly wages.

Other business risks can initiate financial risks. For example, damage to a reputation can stall
new customers from buying a product, limiting its monetary growth. Also, a natural disaster
causing physical damage to a company’s headquarters can make managers invest in
reconstruction. As a business owner, it might be helpful to assess the financial state of the
company along with other business risks so you can prepare for every possible drawback.

5. Strategic
A lack of efficiency in a business model can pose a strategic risk for companies. It may be
essential for managers to evaluate their methods and constantly find ways to improve them.

For example, a department store has historically been the destination to purchase high-quality
clothing for affordable prices. As fashion trends change, store managers consider establishing a
partnership with a luxury clothing brand to sell its products at their store. However, the change
in inventory causes a strategic risk, so the managers launch a rebranding campaign to position
the store as a retailer that sells fashion for a variety of socioeconomic classes.

6. Hazard
Hazard risks can affect the health and safety of employees in the work environment.
Manufacturing companies, for example, typically assess hazard risks to ensure professionals
operate heavy machinery properly and limit exposure to dangerous chemicals. The environment
can be hazardous for the workplace, since natural disasters can prevent a company’s operations.
Also, employees can experience a psychological impact from working a strenuous work schedule
To limit hazard-based risks, businesses might perform regular safety audits and prioritize mental
health in professional settings.

7. Compliance
For some industries, state and federal legislation enacts requirements for businesses to operate.
Compliance risks happen when companies don’t meet these requirements. For instance, two
licensed cosmetologists want to open a beauty salon that offers hair, nail and facial services. To
comply with law regulations, they train their staff on proper sanitation procedures, and they
ensure their workstations are clean and safe for clients. Their efforts minimize the compliance
risk, and they’re able to run their business assured they’re adhering to legal standards.

8. Uncertainty
Uncertainty risks are unpredictable circumstances that can impact your organization. For
example, a flash flood occurs the day of a major company event, causing a delay in the festivities
and affecting guest attendance. Another example might be an entertainer becoming ill and
unable to perform at an event.

Although uncertainty risks are out of your control, it may be possible to develop a protocol to
maintain productivity in your workplace and provide assurance to your staff members and
clients. Consider contemplating factors that can go awry and developing a list of steps to assess
the damage and move forward in a positive direction.

9. Security

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If you work for a company that processes confidential information, then you might evaluate
security risks. Businesses typically use extensive security measures, such as assigned login
information, firewalls and pass codes, to safeguard the data in their computer networks. For
example, a company hires a cyber security analyst to assess the database and recommend ways
to make it impenetrable. Organizations that may focus on security risks include healthcare
facilities, who store patient medical records, and credit card companies, who have customer
social security numbers and payment histories.

10.Economic
A change in the economy is another example of a business risk. The market can experience a
downturn, which can influence customer spending habits and decrease the value of goods and
services. Economic risks may be challenging to predict. However, business owners can limit the
burden of a fluctuating economy by allocating a portion of their financial resources to a fund for
emergencies. They can also remain aware of what’s impacting the economy, which can guide
them to new business endeavors. For example, if the housing market can improve, then a real
estate company might set its sales goal lower.

11.Competition
Competition risk occurs when a competing brand has the potential to exceed your company.
Perhaps a new organization has emerged on the market, targeting the same demographics as you
do and offering similar products. Another example is a direct competitor being the first to release
an innovative product.

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