Question

First, spend a couple of sentences summarizing the Concepts in Action video you watched this week. Then, answer the following.   In the Concepts in Actionvideo you watched this week, what do you think the president of the bagel company mean when they called the Atkins diet unsystematic risk (note that risk here refers to financial risk, not health risk)? Do you agree with them? Explain why or why not.

Requirements:

• Your discussion board response should be approximately 200 words. APA format for all references is expected

Answer 1

The president of bagel company refer the problem of Atkin's diet unsystematic risk which was basically financial risk in terms of surviving in the market. The president meant that we all were well aware of the systematic risk which are actually controllable risk, the risk that basically arise in the business due to business, or in other words, the chances of loss from various factors that can be reduced or avoided altogether. It can be controlled such as the risk of introducing a new product. But the unsystematic risk, and the knowledge of it is also very important and it is what they ignored. The unsystematic risk is like the market condition, the recession in the market. They are not well aware on the other cost may involve to run the business. One of the expense mentioned were generator expenses of additional $100,000 due to electrical issue which they have not calculated at all.

As per my opinion, it was not the correct time to start a new business in such a critical situation when survival in the market was the major problem. They would have been tried to reduce the additional cost involvement in the business. They should have identified those branches which was providing more profits. they should have also identified those branches which were making loss and they would have identified why they were in loss to make them into profit. Once internal problem reduces and all analysis (i.e. market analysis, demand, supply, capex, opex) then only business should go for a additional portfolio.