Question

There are always risks associated with the experimentation of a new manufacturing process or with the entry into a new global market, the risks of failure. How should one decide to proceed or not to proceed with a risky venture? What is the proper level of risks to take? Book Title Engineering Management Author C. M. Chang ISBN 978-1-4987-3007-5

Answer 1

Risk assessment should be done before taking any step to enter the international market place. International Marketplace requires property assessment of the specific region and understanding of the customer requirement. Many times assessment of best organisational structure such as franchise or subsidiary have to be determined before entering and international market. Paying capacity of the customers as well as regional diversity and available competitors with their overall cost level would also be assessed for specific entry in international markets by the organisation. This type of approach helps in organisation to be more productive and to reduce the risk of entering International markets as well as implementation of new manufacturing process. As this is specific situation helps an organisation to maintain its brand identity by creating positive brand structure, high level of forecasting and serving definitely helps an organisation to be risk free in the international markets by choosing correct operating mode.