In order to ensure that the venture keeps track of the competitive force and extent of competition in the market, the business shall establish a strong and positive link with sales representatives working for various companies in the bike industry. Many suppliers will also be identified and their contacts kept as integral part of the business records which must be updated from time to time. The entrepreneurs will work to ensure that there is an establishment of several key partnerships with various industry experts (MITRE 2009).
This will ensure long-term success of the business venture. Bike riding programs and student riding events will be tracked as an important part of the venture that will enable the business to showcase itself and its products. Business advice is an important aspect of the business operation that guarantees success in the decision made. The venture will have a cordial relationship with professional advisors in matters relating to taxes, financial and accounting matters. 2. Key Risks and Mitigation Strategies
The main source of risk for our business venture is likely to emanate from the product life-cycle. As it is with the contemporary business environment, there is a tremendous paradigm shift that has enhanced significant innovations to be introduced faster in the market. The main risk here is that if such innovations are introduced before our products realize the capital used for establishment and product launch then we stand a risk of losing the part of capital that is unrecovered and any opportunity costs that would have constituted the profits or earnings to the business (Infor 2010).
This risk threatens the strategic financial aims set for the venture. To mitigate this risk, the management shall work to ensure continual product improvements by carefully tracking the moves of the competitors. Thus it will be important to have a strategy for successful new bike products to the market. Another risk is related to the supply of goods especially raw materials from the contracted suppliers. Delay in supply of the raw materials can lead to delayed production.
This risk will be mitigated from the start by tracking the trade record of the suppliers before giving them contract commitments. In addition, the company will maintain a back-up stock to deal with any delayed supply of raw materials. Strong collaboration with the customers and suppliers will also ensure that innovation is increased in line with what the customer needs are. There is risk associated product compliance (Infor 2010). The pace at which changes occur the industry calls for rapid change in legislation which immensely threatens product compliance due to product complexity.
The business venture shall attempt to mitigate these risks of compliance through integration of compliance requirements at all levels of product development. In addition, careful assessment of raw materials supplied shall ensure that only products that meet the required standards are brought into the production system (MITRE 2009). Lastly, as has been seen in the trend in the market that there is more stress on the environmental impact of the products of all types, the venture shall work to ensure sustainability and promote the green campaign.
The business will also use a defect detection and prevention method or tool to curb and reduce defects in the products. Reference: Infor (2010) “Build quality, compliance, and sustainable profit growth into your new products with industry-specific PLM solutions” MITRE (2009) “Common Risks and Risk Mitigation Actions for a COTS-based System” ttp://www. mitre. org/work/sepo/toolkits/risk/taxonomies/files/CommonRisksCOTS. doc.