Nowadays :: Business and Management Studies

Nowadays Nowadays, analysing competition is crucial for managers in order to understand the environment in which the business evolves, its competitors (their goals, plans etc) as well as implement strategies and position their companies. They can use a wide variety of techniques, each having its strengths and weaknesses. According to Prescott and Grant (1988), to select the appropriate techniques, managers have to know the different techniques available, how they are related to each other, the focus and scope of the area and the constraints limiting the extent of analysis. To analyse competition efficiently, they have to combine some of the different techniques available as they all have a specific aim. However, there are limitations that managers have to take into consideration in order to provide a clear and effective work. This essay outlines and evaluates the main weaknesses when understanding the business environment. They vary by nature. They can come from the interpretation of the managers and from the models themselves. However, they are in relation to each other, one flaw leading to another one. When analysing competition, the starting point is to precisely define the industry the firm belongs to and its boundaries. Managers may focus on the market of their company, narrowing their definition of the industry. They then forget or less consider other segments that can change quickly and have impact on the whole industry. According to Zahra and Chaples( 1993) â€Å"an effective definition of industry boundaries requires consideration of four interrelated issues: domain (where does the industry begin and end), customer group (sector to be served and their specific needs), customer functions (customer need and specific patterns) and critical technology (production, marketing and administrative system)†. Each point enables to define the competition more and more precisely. In addition to these issues, managers have to take time into consideration. Reviewing their business’ definition, the shape of the industry and the market over the time is crucial as industries change. Prahalad (1995) states that â€Å"many industries are undergoing massive transformation. Deregulation, global excess capacity, global competition, mergers and acquisitions, changing customer expectations, technological discontinuities [†¦] are changing industries, creating new industries and opening up new and large growth markets for existing businesses.† For instance, chemical companies enter the pharmaceutical industry by making alliances with young biotechnology companies, not considered as a threat by the pharmaceutical companies. This change in the industry led the pharmaceutical companies to redefine the industry and its boundaries as well as their strategy. Managers need to be vigilant in identifying its competitors. A poor identification leads to a wrong positioning and a possible long time response to the different actions coming from those undetected rivals. This identification is dependent on the managers’ perceptions and how

Point of sale and inventory documentation Essay

Point of Sale and Inventory System is a process wherein the business could monitor the movements of the products as well as the sales transactions. It is important for the company to take account inventory of the products as well as the sales. Inventory refers total amount of goods and/or materials contained in a store at any or factory at any given time (Inventory, 2011) Even though technology is available, still many companies use manual system. Operating manual inventory is a time-consuming task, lots of paper works and slow date processing (Hamlet, 2011). It also problematic in terms of communication streams. Each update or removal from the inventory must be updated daily (Cruz, 2010). Manual sales and inventory process was prone to errors that required time to rectify discrepancies (â€Å"Inventory†, nd.). Since manual inventory consumes a lot of time and is susceptible to errors, it would be helpful to build a system that will automate the transactions from acquisition of the product description to updating the inventory database. Work efficiency of employees is defined as how productive they are in their work (â€Å"Inventory†, nd.). The causes of the discrepancies in the records are many, and some of the commonly observed ones are: stock loss; transaction error, inaccessible inventory, and incorrect product identification. Stock loss, also known as shrinkage in industry, includes all forms of loss of the products available for sale. One common example is theft, which can be committed by both shoppers (external theft) and employees (internal theft). With these problems of manual inventory system, businesses emerged with computerized Point of Sales and Inventory System. It tracks purchases and sale transactions thought an organization. Point of Sale and Inventory System is a tool used by retail businesses such as stores, supermarkets, and restaurants. It can register the purchase and keep track of inventory. It also records information on the purchase including time and store location. It also manages the sales of retail goods. It makes a business much more efficient, lowering the costs of running the business while improving customer service and making the business more pleasant to work in (Smith &  Harris, 2011) According to Hendeson (2011), that effective tracking of inventory is an imperative component to a small business successful operation. By having up-to-date data regarding all needed stocks for sale, the organization will drastically increase its bottom line. The amount of time that can be saved by the company is the biggest benefits of using a computerized point of sale and inventory system. Another benefit of a computerized point of sale and inventory system is the accuracy it ensures. The companies operation will be more effectively. The business owner or the manager can ensure that the reports, purchased order and other documents related to sales and inventory are uniform regardless of two created the reports (What are the benefits of Computerized Sales and Inventory, n.d.). According to ruffling (2009), senior director of retail services for BBK Ltd., the trends in Sales and Inventory System are not just inventory accuracy but the use of pricing models to allow for markdown management. Based from the problems encountered in a manual point of sales and inventory system, developers come up with this computerized point of sales and inventory system. Developers have chosen Thirsty Teddy Refilling Station and The Sierra Spa started its operations in the year 2012 by Mr. Randy S. Quiniones. It is located at Sierra Heights Place, Sierra Madre St. Highway Hills, Mandaluyong City. The company is currently using a manual inventory system but aims for improvement to be competitive. In small businesses, inventory system is still applicable because of the advantages it provides the management. Inventory system makes the management of stock levels mush easier and more organized. It improves profits by accurately identifying the flow of stocks. The developers have come up with an idea developing a system that will improve the process and at the same time comes up with an idea developing a system that will improved the process and at the same time comes up with an efficient result of Inventory. The developers aim to eliminate possible problems due human errors that might occur during manual handling, like erroneous tallying and recording of items and other products during the actual inventories. The proposed project entitled â€Å"Thirsty Teddy Refilling Station and The Sierra Spa Point of Sale and Inventory System† deals with the tracking of regular costumers, supplies and delivery’s inventory system. This system will be made actually for the management to reduce their work with concrete and consistent handling of data. Also it  aims to build a consistent inventory system for the company that will surely help the company for stability and profitability. Statement of the Problem Sales and Inventory has always been an issue in the part of manual procedures. Thus, the study seeks to answer the following: 1. How to Design, develop and implement a Point of Sale and Inventory System? 2. How to develop a module that will be used for keeping and storing the entire item’s information? 3. How to develop a module for counting all the sales of the sold items? 4. How to develop a Computerized Point of Sales and Inventory System that will lessen time spent in processing of the payment? 5. How to generate reports faster on-time? Objectives of the study The developers aimed to designed, developed and test Point of Sale and Inventory System for Thirsty Teddy Refilling Station and The Sierra Spa, for them to become more competitive and to attract more customers specifically, it sought to answer the following objectives. 1. To identify the existing processes in terms of a. Sales and b. Inventory 2. To determine the software and hardware requirements of the system. 3. To enumerate the features of the system; and 4. To test the acceptability of the system. Significance of the Study The system will bring innovations and modernization for Thirsty Teddy Refilling Station and The Sierra Spa, and an effective way in providing a means of convenience and faster service. The following will be the beneficiaries: Thirsty Teddy Refilling Station and The Sierra Spa. The system will give the company another asset to be used for them to attract customer by providing better services with regards to their improved point of sale system. Also it increases the company’s competitiveness among other competitors. In this way, it may able to improve the Thirsty Teddy Refilling  Station and The Sierra Spa image and professionalism through a better and well organized business. Manager. The system will help the manager perform more efficient ways to operate the business. The manager will receive reliable and accurate reports on inventory status and sales report. Through these reports the manager can create a good business decisions, determine products that contribute to sales and create new business strategies and enhancement. Inventory Clerk. The clerk will be more productive in checking the stock-in and stock-out of the company. It will also help the inventory clerk in doing reports for the system will generate stock reports Cashier. Upon implementing the system, the cashier will be more productive and efficient in doing work, providing reliable reports for manager and giving the customer quality service. The cashier will not worry about doing manual calculations, for the system will generate sales reports. Developers. In creating the system, developers will be able to apply knowledge acquired in school and discover new facts and ideas that will be a big help in the long run being in the world of business particularly in a system and software development. Other Developers. This will serve as the great significance to other developers that will have similar studies. These developers may further improve and revise the outcome of this research. Scope and Limitations The study focused on the manager and cashier’s requirements. The proposed system included only stocks monitoring process. The System is able to provide inventory reports and sales reports. There were two modules aim to developed- the administrator or manager module and the cashier module. In the Manager module, the manager can view, edit and delete user account as well as supplier accounts, view inventory as well as reports such as the stock in and stock out and the list of suppliers that can provide the stocks needed. The manager can also view stock that needs to be purchased as well as the status of each purchase order. In the Clerk module, the inventory clerk can add and edit information of stocks being delivered by the supplier. The said module enables the generation of information on the status of stocks, the bad orders, the stocks needed to be purchased and the suppliers that can provide the stocks. Inventory clerk is not allowed to delete supplier’s information. In the Cashier model, sales transaction  receipt generation and purchase order is also included as one of the features of the system. The cashier can only view and add transactions, but is not allowed to delete and edit information made by the manager and the inventory clerk. Security measures were also included. The user will simply login the user name and password to gain access in the system. Conceptual Framework The developers aim to use Input-Process-Output (IPO) to present paradigm of the study that illustrates the relationship between the input and output. The paradigm of the study exhibits the skeletal framework of the research study. The input consists of existing process of Thirsty Teddy Refilling Station and The Sierra Spa in terms of inventory and sales. Problems of the existing process are also needed in the development of the system. The developers also identify the features of the system and test the acceptability of the system. The phases of Waterfall Model will be the basis for the development of the system. This includes the following phases; requirements, analysis, design and implementation. The output of this system is Thirsty Teddy Refilling Station and The Sierra Spa Point of Sale and Inventory System. Figure 1.1 in the succeeding page, shows the paradigm of the study to be conducted, to come up with the output of the propose system.

Education Essay Essay

Education? is? not? only? conditioning,? but? conditioning? for? the? future? and? conditioning? for? the? mind.? Somewhere? along? the? way? the? strive? to? learn? has? been? lost? on? education.? Its? hard? to? determine? where? this? all? went? wrong.? Like? many? in? the? past,? those? who? have? the? drive? to? learn,? earn? an? education.? Drive? and? determination? can? not? be? taught? in? a? classroom.? Some? of? the? most? important? subjects? that? should? be? taught? in? class,? are? not.? The? purpose? of? education? is? to? condition? youth? for? the? challenges? they? face? in? the? future.? Students?  are? trained? not? educated.? I? have? never? had? to? overcome? a? language? barrier.? I? have? never? had? to? overcome? a? racial? barrier? either.? As? long? as? I? can? remember? learning? has? been? a? part? of? my? life.? Not? just? learning,? but? education.? The? struggles? Richard? Rodriguez? and? Fredrick? Douglass? went? through? do? not? apply? to? me.? Rodriguez? and? Douglass? were? both? lucky? enough? to? discover? education,? where? as? education? found? me.? Fredrick? Douglass? once? said,? â€Å"Without? struggle? there? is? no? progress. †? This? quote? really? sums? up? Douglass? and? his? message.? Douglass? went? through? his? fair? share? of? struggles? and? became? a? better? man? because? of? it.? If? what? I? face? now? in? my? life? is? a? struggle,? how? much? can? I? really? progress At? least? I’ll? always? have? education? to? take? advantage? of.? All? Americans? are? given? the? right? of? an? education.? Depending? on? the? person,? this? right? can? either? be? used? or? ignored.? A? large? part? in? why? so? many? immigrants? travel? to? the? US,? is? because? it? offers? free? public? education.? Because? of? taxes? no? child? has? to? pay? to? learn.? There? are? also? no? restrictions? on? who?  has? the? right? to? an? education? in? the? United? States.? Yet? education? is? not? appreciated? by? most? like? it? should.? Learning? is? a? power.? Not? a? power? that? all? people? have? but? the? ones? that? do? have? it? need? to? use? it,? completely? use? it.? Fredrick? Douglass? realized? how? powerful? the? ability? to? learn? could? be.? So? did? Maya? Angelou.? Neither? of? them? would? have? lived? the? lifes? they? did? without? the? power? of? learning.? To? make? mistakes? and? learn? from? them? so? they? don’t? recur.? Read.? Comprehend.? Write.? Read.? Comprehend.? Write.? And? repeat.? I? create?  sentences? so? I? can? reap? the? benefits.? Until? a? student? becomes? proficient? in? reading,? comprehending,? and? writing? that? student? won’t? be? successful? in? the? educational? system.? The? goal? isn’t? to? learn.? Education? used? to? be? about? learning.? Different? people? learn? in? different? ways.? Education? is? interesting? to? some? but? boring? to? others.? For? one? to? be? educated,? they? first? have? to? learn.? The? ability? to? learn? is? not? a? strength? all? people? are? born? with.? It? is? an? important? skill? most? people? develop? throughout? their? life.? Frederick? Douglass? was?  not? taught? as? a? child.? Douglass? did? not? go? to? school,? but? the? fact? that? he? is? educated? can? not? be? argued.? Based? off? that? fact? alone,? it? is? proven? that? one? does? not? need? to? be? schooled? to? be? educated.? Douglass? was? determined? to? learn.? He? was? steadfast? in? educating? himself? to? have? a? brighter? future.? Being? a? slave? in? the? 19th? century,? a? bright? future? does? not? exist.? Through? his? determination,? Douglass? shows? how? the? importance? of? an? education? is. Education? does? not? always? occur? in? the? classroom.? It? can? be? found? almost? anywhere.? Frederick? Douglass? mentions? in? his? narrative? Learning? to? Read? that? the? little? boys? who? taught? him? how? to? read? will? be? free? at? twenty? one? years? old? men,? whereas? Douglass? just? wishes? to? be? free? more? than? anything.? Learning? does? not? only? occur? in? the? classroom.? It? happens? in? many? everyday? experiences.? Sometimes? the? only? way? to? learn? something? is? to? do? it? personally.? Maya? Angelou? once? said:? â€Å"Words? mean? more? than? what? is? set? on? paper.? It? takes? the? human? voice? to? infuse? them? with? a? deeper? meaning. †? Just? because? a? student? reads? from? a? book? does? not? guarentee? they? will? receive? the? full? effect? of? the? writing.? Words? need? to? be? said,? plays? need? to? be? acted,? speeches? need? to? be? read.? Most? american? scholars? today? dredd? the? idea? of? reading.? High? schoolers? all? across? the? country? will? try? to? find? anyway? to? get? around? actually? having? to? read.? For? education? to? be? successful? in? teaching? a? student? a? lesson,? the? attitude? of? the? student? must? be? appropriate.? Students? who? don’t? want? to? learn? won’t,? it’s? really? that? simple.? Students? need? to? be? taught? how? to? learn.?   

Analysis of USEC Inc.

USEC is the world’s leading supplier of enriched Uranium to nuclear power plants. Due to the expiration of long term energy cost savings contracts, USEC is examining the possibility of taking on a new project called the American Centrifuge Project. This project will utilize a different process for Uranium enrichment, which is the core business process of USEC. The new technology process uses much less energy, which will reduce manufacturing costs and keep USEC on the leading edge of technology in the enrichment market space. As with any major energy industry project, the ACP project comes with a huge price tag of around $1. billion. Investment of this size cannot be made without due analysis. We have taken in to account all the details given while calculating key statistics for this project. A thorough analysis is in the best interests of USEC as the project will provide them with the freedom to implement new technologies in the uranium enrichment process in their own plant. W ithout this, USEC is constrained to lease the government owned plants which usually comes with its own restrictions. We will be calculating the individual cash flows of its existing Paducah operations and the ACP project it is planning to invest in.Our decision will be based on the incremental NPV and IRR. This report will walk us through all the important aspects of our analysis and ultimately to our final decision of whether accepting or rejecting the project. Background USEC is pursuing ACP for several reasons, most of which can be attributed to an increasing gain by its competitors in the market space. USEC’s long term contract for a lower cost power supply for their current process had expired. This left USEC with much higher costs for electricity, which is heavily used in the current process for Uranium enrichment, gaseous diffusion.This jump in energy cost reduced the margins USEC was receiving on sales, as compared to their competitors. This is driving the need to com e up with an alternative solution to the current process. The ACP technology is being looked at because it could give a competitive advantage to USEC against its competitors. ACP will lower the production costs and improve USEC’s technology position in the market. If the company takes on the ACP project, USEC will reach 6. 5 million units in production by 2013. A minimal level of maintenance would be required due to the improved technology and better facilities.ACP would also double the size of USEC as a whole. Cash Flow Calculations We are providing below the assumptions and other calculations we used while computing the WACC and the cash flows. * Net working capital of 5% of sales will be used for both Paducah and ACP project * Inflation is assumed to be 3% * Flotation costs are ignored for cost of equity. * We assume a risk-free rate of 5. 09%. This number comes from the current yield of the 30 year T-bond as shown in Exhibit 5. * 50% reduction in enrichment cost start fro m year 2011 (for ACP project).Without the 50% reduction, the enrichment cost in 2011 would have been $50. 15. We are going to start at 50. 15/2=$25. 07 (50%) from year 2011 as enrichment cost and from there it will again increase at the rate of inflation which is 3%. In 2011, the total capacity will be 3. 5M (2. 5M from ACP and 1M from Paducah). While calculating the enrichment cost for the year 2011, we used the reduced cost for the ACP capacity which is 2. 5 million and the original enrichment cost for the scaled down Paducah plant capacity which is 1 million. * Change in NWC for 2006 will be 0.The NWC will be recovered at the end of he final period which is at the end of year 2025. * The CAPEX and the depreciation cost for the Paducah plant in the year 2011 will be prorated to the reduced capacity of 1 million while calculating the cash flow for the ACP project. * Market Risk Premium will be assumed as 6% * CAPEX for Paducah, Paducah depreciation, and lease expenses are fixed and prorated where required but is not adjusted for inflation. Weighted Average Cost of Capital To calculate the weighted average cost of capital, we first calculated the market value of debt and equity.The case exhibits provided the necessary data to calculate the market value of debt and equity. The weight of debt and equity were calculated to be around 32 and 68 percent respectively. Appendix will provide the detailed steps we used to calculate the WACC, individual cash flows for Paducah and ACP and the incremental cash flows. A risk free rate of 5. 19%, a Beta of 1. 3, and a market risk premium of 6% were used to calculate the cost of equity using CAPM. For cost of debt, we used the given 9. 04%. We came up with the after tax WACC of 10. 57%Analysis and Recommendation. We are comfortable in using the WACC as the discount rate for cash flow calculation. NPV calculation using the WACC as the discount rate will provide us some idea about whether this project is at least worth or not f or the cost of capital. But to make our final decision, we would really look at the incremental IRR and NPV to see how much more or less it comes up when compared to the discount rate. We will be expecting an IRR which is at least 2 percent above the discount rate as a justification to recommend a project of this size. We calculated the NPV for ACP to be $1,910,199,999. 1 which is greater than the NPV for Paducah at $1,615,996,848. 88. The incremental internal rate of return and NPV of this project are 13. 12% and $294,203,150. 14 respectively. The incremental IRR of 13. 12% is 2% more than the discount rate of 10. 57% (or WACC in our case). Current stock price of $10. 80 is based on USEC’s current business model. We believe that the current stock price is undervalued as it does not reflect the potential of the ACP project. As a result, the stock price will increase. So based on the NPV and incremental IRR, it would be in USEC’s best interest to accept ACP.The ACP proj ect will help the firm to double its capacity and improve the technology to gain the competitive advantage in the industry. The long term prospect of USEC will be bright as a result of ACP project. Though the ACP plant will be completely depreciated at the end of its life cycle of 15 years, it will provide USEC with more opportunities to further improve on the technology which has proved profitable already and to invest in more lucrative future projects which will ultimately improve the financial bottom line of the organization.

Transcription and language creativity Essay Example | Topics and Well Written Essays - 1500 words

Transcription and language creativity - Essay Example Not with ((confused)) exactly with wooden clog, unless it is got a veneer (.) ((laughs)) (xxx) is carefully covered wooden clog that can be a problem ((laughs)) Host: Just the first answer we had ((laughs)) so (.) no answers really from the scientists until Brian came up with clogs ((laughs)) which was unexpecting first Answer today //((laughs)). //I don’t know I don’t where (xxxxx) I don’t know what to say. Host: Oh! Come on lets carry on with the clogs. Host: An easy launch pad,[ a way to go ((laughs)) (.)Anyway back to the science table]. Introduction Conversation has different features that need to be analyzed in order to give a critical account of a piece of conversation. Conversations are mostly spontaneous; the speaker and listener develop their conversation according to the situation, atmosphere, topic and personal relationship that both the listener and speaker share. Conversation is done through language; the use of language however differs from person to person and the type of language used between two persons is a function of the nature of the relationship that exists between them e.g. the closer the relationship the more intimate the conversation will be. In order to analyze a conversation, some technical features of the conversation and linguistics of the words used is necessary. Conversation is an important part of life; it communicates ideas, feelings, intentions and goals. The study of conversation tells about the creativity used in spoken language. The language has various features i.e, context, type, tone, subject, turn-taking, interruptions etc. A study of these features enables us to get an insight into the creativity employed in any piece of work (Maybin & Swann, 2006). Discussion The above transcript is the written script of a verbal conversation. Verbal communication is an act of conveying messages, ideas or feelings by vocal means; non verbal acts are also important part of this phenomenon. This communication is the main and ordinary way of communicating face to face. Apart from these important features other key components of verbal communication are words, sound, speaking, tone and language. By analyzing the technical features, language and creativity of the conversation can be analyzed in a systematic way. The people involved in a conversation unintentionally make use of creativity. This usage is also a very important part of the conversation as it tells about how good a person is at conversation and how good he/she makes use of vocabulary, turn-taking and switching. The written script of a dialogue above is between two people, the host and a person called Paul. The conversation is based on question and answers about a particular subject; as the conversation is in the form of interview; it is supposed to be less intimate and formal. To make a more deep analysis, it is necessary to examine other important features that this piece of written conversation carries. Context is a very important p art of the conversation (Carter, 2004); it is the situation that describes conversation. There

People Resourcing and Reward Essay Example | Topics and Well Written Essays - 4500 words

People Resourcing and Reward - Essay Example In turn, effective planning can serve as a potent remedy some of the most pressing problems faced by companies. According to Kohl (n. d.), human resource planning in indispensable as it "serves to stabilize employment levels when demand for a firm's product is variable." In this case this tool becomes important in "reducing the firm's unemployment compensation liability costs due to layoffs, providing more job security to the firm's employees, and minimizing the costs of overtime during periods of peak demand." This highlights the company's ability to source the needed workforce only when they are required. This is done by hiring temporary employees in order to fill up positions during peak seasons. Human resource planning also addresses the company's problem in employee turnover. This tool prevents young college recruits from leaving the business organization after it has spent on expensive training programs primarily because of the lack opportunities for promotion. As human resource planning uses techniques in order to forecast the future organizational needs of the company, training and skill enhancement programs will only be extended when they are deemed necessary in the future. This then also "reduces the problems of managerial succession by permitting plans for replacements to be drawn up in advance in case key executives resign or die" (Kohl n.d.). In the end, human resource planning also helps in enhancing the financial performance of the company by increasing its profits. It makes possible the allocation of financial resources so that departments will have the necessary people to produce the firm's desired output. Human resource planning is seen as tool which is utilized in maximizing the resources of business organization by assigning each of the members of the workforce to the task or assignments where he or she can function more efficiently. Through this, the skills and knowledge of the human resource is utilized to the areas where they are most needed. However, aside from the perceived advantages of human resource planning, it also has its own set of critiques. Firstly, the effectiveness of the tool is directly linked with the business organizations ability to forecast of human resource needs in the future. Failure to exactly estimate the human resource needs will make human resource planning only a waste of time because the company may still face shortages or surpluses of resources. The hardship of effective forecasting technique is even aggravated by the rapidly changing global markets which make it impossible for companies to predict the future of their operations. Kohl (n.d.) also adds the "inherent mathematical complexity associated to model human resource systems." Until now,

'Business Risk Management is beneficial to large corporations and not Essay

'Business Risk Management is beneficial to large corporations and not to small to medium enterprises (SMEs)' - Essay Example At the start up phase of any business, the magnitudes of risks remain the same. However, as the business starts to grow, the risk associated with it also grows. This is primarily because of the fact that, the resources involved in the business also increases proportionately. Hence, large organizations are prone to more business risks than a small and medium sized enterprise. As a result, implementation of risk management technique positively impacts their business. For a large organization implementation of risk management helps them to enhance their shareholder value, reduction in total cost of risk, improves business resiliency and also increases the operational efficiencies (Jolly, 2003). On the other hand, the intensity of risk for the SMEs is less in comparison with large organizations. This is primarily because of the fact that they do not function on a large scale and operates with less resources. Hence, they have less exposure to business risks and thus implementation of risk management techniques will have hardly have any positive impact on the business operation. Moreover, it also increases the operating cost of a business. In response to one of the group members namely Penina, although risk management helps the organizations to assess the business risks, but I believe, it mostly benefits organizations which operate on a large scale. On the other hand, the common risks for the SMEs can be identified without any implementation of risk management techniques. Thus, the notion of risk plays a major role in determining risk management. ... On the other hand, the common risks for the SMEs can be identified without any implementation of risk management techniques. Similarly in this context, the notion of risk intensity plays a major role in determining the importance of risk management. For example, in a large construction company, there are more workers who perform their duties at high altitudes, more number of office staff and more number of cars are required to provide logistic service in comparison with an organization which operates on a small scale. So, the large organization can anticipate having more riskier events, simply due the fact that they have more exposure or opportunity for facing a risk event. In simple words, the probability of risk increases proportionately with the amount of resources involved. Therefore any level of investment pertaining to risk management by the large organizations will have high return on investment. Nevertheless, I agree with Penina with her statement that all business face futur e risks however it is dependent upon the size, industry and operations of that particular company. Now in the context of a small and medium sized enterprise, investment pertaining to risk management has low return on investment. The SMEs employ less number of workers and also involve less quantity of resources. This depicts that, the probability of a risk event is very low in comparison with large organizations. Hence it can be justified that the return on investment pertaining to risk management by the SMEs is low. Penina highlighted that running a business regardless of size can be a dangerous occupation with many different types of risk, as risk is an inherent part of any business, economy and other issues can often increase