and Managing Risk
The purpose of this assignment is to assess how potential
value-enhancing strategies may pose risk to a firm.
Review your instructor's feedback on the Strategic Alternatives
Assessment and the Financial Analysis assignments. Use that feedback to guide
your analysis of the strategies that you believe will provide the most
significant opportunities for your firm to manage risk and add value.
Keep in mind that increasing value for the firm does not
necessarily mean expanding the business. Acquiring other firms, conducting
research and development, or introducing new products and services might fall
under the umbrella of value enhancement, while in other cases it may mean
downsizing, rightsizing, or even refining the products and services the firm
In a paper of approximately 1,500 words, revisit the strategic
alternatives and financial analysis recommendations that offer the greatest
opportunities to add value to your firm and assess the risks of each. Use the information
you have learned about your company's business model, industry, competition,
and target market in conjunction with the feedback you received on your work in
the previous two topics to assist you in addressing the following.
In the Strategic Alternatives
Assessment, you evaluated potential growth opportunities and strategies for
your firm, using a SWOT analysis to assess the advantages and disadvantages of
each. Recapitulate your findings here in conjunction with any instructor
feedback received, identifying how you determined your proposed strategic
alternative(s) and calculated potential inhibitors to each. Expand upon your
initial proposed alternatives to include financial considerations.
Throughout the course,
you have developed and submitted reports for your firm based on information
that you and your CLC group have acquired and assessed. However, it is equally
important to consider what other information, had you been able to locate it,
would have been of value in formulating recommendations. What information are
you lacking that might assist you and your team in developing and suggesting
value-enhancing strategic alternatives? What information are you lacking that
would assist you and your team in better assessing and managing possible risks
of the proposed alternatives?
When it comes to making
strategic recommendations to management, financial considerations weigh
significantly on the feasibility and viability of the available options.
Revisit the Financial Analysis assignment and, with the incorporation of any
instructor feedback received, reiterate your findings on the financial
condition and performance of the firm respective to the risks and benefits of
forming a strategic alliance, profitability ratios, and possible
Given your instructor's
feedback and considering how the financial markets have changed since you
submitted your Financial Analysis assignment, how would you refine or update
your assessment of the organization's current performance and financial strategies?
How would you use a
decision matrix to determine the risks of your suggested strategic alternative
and the potential financial implications for your company of pursuing this
alternative? Is the decision matrix an effective tool for predicting risk? Why
or why not? How does the application of the decision matrix alter what you
previously chose as the most advantageous strategy?
Utilizing a risk matrix,
identify a minimum of 10 unique risks associated with the strategic alternative
you believe will provide the most significant opportunity for your firm to add
value. Choose two or three of the most critical risks and discuss their
potential impacts on your selected alternative.