Conclusion
Corporations or firms are in the business of managing risks. The most adept ones succeed while the others who cannot, fails. While some firms accept financial risks, some might attempt to create a competitive advantage by administering a wise amount of risk exposure. It, however, does not change the fact that risks must be monitored since they have the potential not only for profit but also damage.
The conclusion is that Trubus Bakery has quite a good risk management to deal with situations that might trouble them like the risks mentioned above. They have a good way to avert and avoid risk that might hamper their way to profit since most of the risk that they face has an attribute which could not be utilized or exploited to making profit.
Rabu, 01 September 2010
Trubus Fight the Risk
The Risks
Risk could be defined as an uncertainty about a particular event which could be quantified. There are two things that are needed in order for something to be called risk to exist. The first is uncertainty about the potential outcomes from some event or experiment and the second is that the outcomes have to matter in providing utility. From the interview, some of the risks that Trubus Bakery has are:
1. The price of ingredients for making bread could just suddenly goes up because of the recent year of volatile economic condition. This risk is categorized as business risk which Trubus Bakery has to cope with. Because when this happen, the price of bread might just go up and because of that the number of customer might go down, lthough this risk also affects not only Trubus Bakery, but also the competitor who will have no other choice but to increase the price of the bread.
2. Because Trubus Bakery not only sells bread in its store but also utilizes local workforce to go into the streets and sell bakery, it is liable to have some risk. Anything could happen on the streets for example criminality or accident, the probability is low but this risk cannot be denied of its existence. Furthermore, low probability events almost always yield high level of risk. For example, a severe earthquake has a very low probability but the impact will be devastating. But in order to avert this risk, the Trubus Bakery pairs the selling force one to another so that they would not go to the streets alone, that way the risk is reduced.
3. There’s also the risk of the unsold bread. There’s no way that a bakery store could just store the unsold bread today so that they could be put into stand again the next day or the day after tomorrow. The freshness would be gone and the taste will be bad and if the customers eat such bread it will worsen their health. That is why the Trubus Bakery made the number of the bread based on their average number of sales in the past to make sure they do not made too much but just right.
Risk could be defined as an uncertainty about a particular event which could be quantified. There are two things that are needed in order for something to be called risk to exist. The first is uncertainty about the potential outcomes from some event or experiment and the second is that the outcomes have to matter in providing utility. From the interview, some of the risks that Trubus Bakery has are:
1. The price of ingredients for making bread could just suddenly goes up because of the recent year of volatile economic condition. This risk is categorized as business risk which Trubus Bakery has to cope with. Because when this happen, the price of bread might just go up and because of that the number of customer might go down, lthough this risk also affects not only Trubus Bakery, but also the competitor who will have no other choice but to increase the price of the bread.
2. Because Trubus Bakery not only sells bread in its store but also utilizes local workforce to go into the streets and sell bakery, it is liable to have some risk. Anything could happen on the streets for example criminality or accident, the probability is low but this risk cannot be denied of its existence. Furthermore, low probability events almost always yield high level of risk. For example, a severe earthquake has a very low probability but the impact will be devastating. But in order to avert this risk, the Trubus Bakery pairs the selling force one to another so that they would not go to the streets alone, that way the risk is reduced.
3. There’s also the risk of the unsold bread. There’s no way that a bakery store could just store the unsold bread today so that they could be put into stand again the next day or the day after tomorrow. The freshness would be gone and the taste will be bad and if the customers eat such bread it will worsen their health. That is why the Trubus Bakery made the number of the bread based on their average number of sales in the past to make sure they do not made too much but just right.
The Business of Trubus
The Business
It is already quite clear though what the business of Trubus Bakery delves; that is, of course, bakery. They, like any other bakery business, could also take special order from their customers, and for this, Trubus Bakery impose some tariffs on the request. In other words, the rate based on the existing activities in the production. And based on the interview, the factors that determine the price are:
1. The level of complexity (difficulty)
the more difficult and complicated form of bread being made, the price needed to be paid will also be higher. For example is the price to make a plain cake model will certainly be lower than the price to make cakes that have a purpose of wedding ceremony or birthday celebration.
2. The Ingredients of the bread
the quality of the materials used for the special request will also affect its pricing. They permit special seasonings and change of ingredients as long as it is acceptable and so long as it matched the customer’s preferences. But the main point is, to be blunt, Inexpensive material will yield affordable cake with so-so quality. But Vice-versa, expensive materials will yield expensive cake also with, of course, more delicacy.
And as for the number of employees that work in the Trubus Bakery, the number is approximately about forty until fifty employees consisting of the 15 people in the production department and the selling department about 20 people. And the rest of the worker does packaging in the company.
Trubus Bakery is also not without its competitors like Bread Talk, Parsley, and another local bread stores. So the question is that how does the company managed to survive? Of course the answer is competitive edge. And what is its competitive edge? It is the long years of local existence (maintaining tradition) and the quality and the delicacy of the bread and also the specific market segmentation (most of Trubus’ customers are senior people).
It is already quite clear though what the business of Trubus Bakery delves; that is, of course, bakery. They, like any other bakery business, could also take special order from their customers, and for this, Trubus Bakery impose some tariffs on the request. In other words, the rate based on the existing activities in the production. And based on the interview, the factors that determine the price are:
1. The level of complexity (difficulty)
the more difficult and complicated form of bread being made, the price needed to be paid will also be higher. For example is the price to make a plain cake model will certainly be lower than the price to make cakes that have a purpose of wedding ceremony or birthday celebration.
2. The Ingredients of the bread
the quality of the materials used for the special request will also affect its pricing. They permit special seasonings and change of ingredients as long as it is acceptable and so long as it matched the customer’s preferences. But the main point is, to be blunt, Inexpensive material will yield affordable cake with so-so quality. But Vice-versa, expensive materials will yield expensive cake also with, of course, more delicacy.
And as for the number of employees that work in the Trubus Bakery, the number is approximately about forty until fifty employees consisting of the 15 people in the production department and the selling department about 20 people. And the rest of the worker does packaging in the company.
Trubus Bakery is also not without its competitors like Bread Talk, Parsley, and another local bread stores. So the question is that how does the company managed to survive? Of course the answer is competitive edge. And what is its competitive edge? It is the long years of local existence (maintaining tradition) and the quality and the delicacy of the bread and also the specific market segmentation (most of Trubus’ customers are senior people).
Summary of the First Risk Management Assignment
1st Risk Management Assignment
The Risk of Trubus
Company Profile
The company that was chosen to be interviewed was the local bread making and selling company by the name of Trubus. The location is at Poncowinatan street number 17 and the telephone number is 517295. Trubus Bakery has been around in the city of Yogyakarta for quite some time although it is not clear since when. The Founder of the Trubus Bakery was named Ms. Trubus. Respondent that was interviewed was Ms. Ivony as the manager of Trubus Bakery.
Trubus Bakery also has some branches, for example in the Panti Rapih Hospital in Yogjakarta. Trubus Bakery also utilizes the local workforce to work outside Trubus’ store in order to take the product to the streets so that every level of customer could enjoy the delicacy of Trubus breads and cakes. That way, the need for marketing will decrease and at the same time will bring profit.
Types of products produced by Trubus Bakery are types of cakes, breads, pastry and other types of food although most of it is mainly bread. The growth of Trubus Bakery looks good and promising; it can be seen from the number of customers flooding into the store every day. The respondent, Ms Ivony, also said that they keep innovating without removing the old (traditional) ways that has been Trubus' identity since it was founded by Ms Trubus back in the day.
The Risk of Trubus
Company Profile
The company that was chosen to be interviewed was the local bread making and selling company by the name of Trubus. The location is at Poncowinatan street number 17 and the telephone number is 517295. Trubus Bakery has been around in the city of Yogyakarta for quite some time although it is not clear since when. The Founder of the Trubus Bakery was named Ms. Trubus. Respondent that was interviewed was Ms. Ivony as the manager of Trubus Bakery.
Trubus Bakery also has some branches, for example in the Panti Rapih Hospital in Yogjakarta. Trubus Bakery also utilizes the local workforce to work outside Trubus’ store in order to take the product to the streets so that every level of customer could enjoy the delicacy of Trubus breads and cakes. That way, the need for marketing will decrease and at the same time will bring profit.
Types of products produced by Trubus Bakery are types of cakes, breads, pastry and other types of food although most of it is mainly bread. The growth of Trubus Bakery looks good and promising; it can be seen from the number of customers flooding into the store every day. The respondent, Ms Ivony, also said that they keep innovating without removing the old (traditional) ways that has been Trubus' identity since it was founded by Ms Trubus back in the day.
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