Risk Management Essay Example | Topics and Well Written Essays - 2500 words

Risk Management - Essay Example Introduction The risks that a business encounters in the course of its duties affect their performances in several ways. Investors are likely to shy away from businesses that have high risks unless the returns expected are very high when compared to the risks (Ayling, 2010). The relationship between the risks a business faces and the returns expected helps in determining the prices for their commodities. The risk in this case is the risk the business faces as a result of floods damaging their equipment and premises. The loss of property resulted in the company encountering losses and disruptions in the execution of their daily activities. Step one: Risk identification Risk identification is the process of identifying threats to the operations of a business. It involves evaluating the conditions affecting the business and the damage it experiences. Risks can be considered as either stand alone or in the context of a portfolio (Ayling, 2010). Risks are termed as stand alone when the fl ows of cash from an asset are analyzed on their own. The risks can also be considered in the context of a portfolio. This implies that the impacts of the flows of cash from all the organization’s assets are considered (Crouchy, Galai and Mark, 2000). The risks facing the organization will be considered in the context of a portfolio to determine the effects of losing cash from all the assets destroyed. This will assist in revealing any risks and relationships that get lost as a result of the disaster. The identification of risks involves the use of both the top-down and bottom-up approaches (Ayling, 2010). The management will collaborate with the heads of various departments in the identification, assessment and prioritization of the risk involved. The threats identified should be the ones that affect the organization’s attainment of their strategic goals. The identification process will additionally assists the management in deciding which risks will be dealt with. The bottom-up approach involves the whole organizations’ staff involvement in the management of the risks (Ayling, 2010). On the other hand, using the top-down approach involves using the senior managers to develop strategies to counter these effects. The organization will opt for the bottom-up approach as they will get diverse opinions on how they can counter the risks specified. In order to counter the effects of the floods, the organization will come up with several measures. This will include issues such as establishing warning systems, the construction of dams and building defenses along the rivers and coastlines. The implementation of these strategies will become an expense for the company (Crouchy, Galai and Mark, 2000). The hotel will however benefit from these moves since they will be able to salvage their property in the event that similar events occur. The implementation of these measures will assist the hotel in meeting their objectives without disruptions due to flo ods. There are currently no measures that have been put in place to counter the effects of similar disasters. Step two: Risk Measurement The measurement of risks involves estimating the impacts of the risks to an organization. It also involves the process of ascertaining the consequences of the risk (Ayling, 2010). The measure to be used in calculating the effects of these risks will be the

Customer Perception and Brand Loyalty Essay Example | Topics and Well Written Essays - 1500 words

Customer Perception and Brand Loyalty - Essay Example Pomerantz, (2003) defined perception as a process of attaining awareness or understanding environments by interpreting information. This statement is based on normal human psychology that can be related to the customer perception. Customer perception is a process that is based on the information collected from wide arrays of sources and resources. It can be the case that customers using the existing product or service may create awareness along with changing the level of perception about that particular product or service. Organisations need to understand the perception of customers in order to market their products and services along with offering them something that will exceed the level of perceived perception. Customer perception decides their buying behavior to an extent. Considering the fact that good and valid perception about a product often creates a positive image that allures customers to get associated with that product or service in the short as well as in the long run. Customer perception can be considered as the first stage of buying behavior where there is a difference between the reality and perception. Until and unless, customers use the product; ascertaining the reality can be a cumbersome task offering irrelevant attention and importance to perception (Reichheld, 1993). Customers’ perceptions can be influenced through reference groups and opinion leaders but should offer desired and more than perceived results in order to create long term value and mutual benefits in the competitive business environment.... In short, brand loyalty is driven by effective customer relationship management programs and initiatives offering mutual benefits and advantages to organizations and customers. The research is based on identifying the Ducati customer perception and brand loyalty. It needs to be mentioned that in spite of a number of companies manufacturing high quality and attractive motorcycles, a certain group of customers prefer to buy Ducati motorcycles. The research aims at identifying their perception towards Ducati and its motorcycles along with assessing brand loyalty. However, in this particular discussion, only theoretical aspects of brand loyalty and customer perception has been presented and practical implication will be highlighted in the later part of the research in an illustrative and logical manner. A highly satisfied customer will tend to buy more product and services of the brand with whom he can relate to in the short as well as in the long run. It needs to be understood that bran d loyalty is often useful and economical for the buyer and seller. The buyer can stick to a particular brand without investing much in competitors brand along with availing great benefits of brand loyalty offered by organizations. Loyalty is awarded and rewarded in different ways depending on the structure and policies of organizations. When it comes to expensive products and services, customer perception and loyalty is driven by wide arrays of variables. Price can be considered as one of the most important variables deciding the perception and loyalty level of customers. Ducati Motorcycles come with a hefty price tag and with a positive perception of motorcycles; customers are willing to invest their money in it. If the actual and real performance and services of