以下文字节选自历年真题，划线部分为结合案例进行分析的部分，未划线部分为通用文字（需要熟练掌握），考试时结合案例进行具体分析。

 

具体分为以下几个角度：

（1）Over reliance on supplier：

Product shortage   reputation 受到影响，sales下降

 

There is a high dependency on overseas suppliers to continually provide SmartWear with the necessary clothing items to sell in its European retail outlets. These manufacturers are based a considerable distance from the core sales markets, which can make the supply lead time very long and reduces the company’s ability to respond to changing customer demands. This could lead to the added risk that if goods are over-ordered from the manufacturers then any surplus over demand may need to be sold at a discount, thereby reducing profitability.

 

解决方法:

To reduce the company’s exposure to these operational risks, SmartWear needs to focus on the skills of the professional buyers who work closely with the marketing and sales teams to accurately predict the continuous demand levels for all clothing items.

公司内部准确预估市场需求，按需订货。这样既不会出现库存过多的情况，也不会出现缺货的情况。

This should ensure that there is neither a ‘stock-out’ where any goods demanded are unavailable to customers, nor excessive inventory held. An effective inventory management system would provide information on levels of stock held in each retail outlet so that these could be internally re-distributed to meet volatile sales demands, rather than requiring new products to be ordered.

建立一个有效的库存管理系统提供每个仓库里的库存情况，在不同的仓库间实现分配以应对不断变化的市场需求，而不是去订购新的产品。

 

（2）Over reliance on customer：

Lose of the customer will decrease revenue（根据题目信息看看某位顾客下的订单占公司总收入的比例）

 

发生的可能性很高，影响挺大

解决方案：

Search for more suppliers and customers to reduce reliance寻找更多的供应商和顾客去降低对现有的依赖

 

Can not recruit high calibre staff, 导致percentage of late delivery

发生的可能性低一点，影响大

解决方案：greater empowerment 授权给员工

 

Gearing上涨，interest cover 下降，破产风险增大

发生的可能性大，影响大

解决方法：用Equity融资，gearing变小，financial risk 变小

 

XX company is facing a risk of creating an increased carbon footprint or environmental impact which it is not effectively managing and which may itself create environmental costs and incur a carbon tax liability. This risk could be transferred through carbon offset strategies, avoided by ceasing to manufacture or distribute goods in a way that creates such a significant carbon footprint, or reduced through pursuing tactics or strategies to avoid waste and reduce emissions.

 

The company currently pursues a cost leadership strategy which enables it to competitively price its products in its target markets; which has proved successful to date. However, cost leadership means that SmartWear must be the lowest cost supplier to the market, which is only possible if it can maintain high volume activities to absorb its cost base. However, with the growing emergence of e-retailers in the market, who do not need to employ sales staff or operate costly retail outlets, it

threatens the fundamental cost effectiveness of the current SmartWear business model.

 

解决方法：

To mitigate these risks the board needs to rethink its whole strategic approach. It would not seem feasible for SmartWear to devise a strategy to differentiate its business, as this would cause brand confusion to its core customer base and require significant investment. Therefore, the emphasis should be on cost control, with any avoidable costs extracted from the business model. At the same time the company could continue to invest in those overseas markets which are more receptive to the current business model. This would result in further scale economies, particularly if non-core business functions are centralised rather than duplicated.

 

SmartWear currently operates in Noria and two other European countries, with their own currency. Also, the manufacturers of all SmartWear products are based in Asia and will expect payment in their functional currencies. Therefore, the current business model exposes the company to volatility in the relative movement of exchange rates which could potentially result in higher costs, consume excess cash and reduce corporate profitability. As a listed company in Noria, SmartWear will have to prepare its financial statements in the Norian currency. This requires the value of assets and liabilities held in each operating country to be translated to the Norian currency, again possibly negatively impacting on declared profit. As inflation in Noria is rising in comparison with the countries in which it obtains its supplies, there will be an upward pressure on direct costs.

供应商在不同的国家，汇率波动会造成更高的成本；如果在编制报表的时候需要转换成其他国家的货币，汇率也会对利润造成影响

 

解决方法：

If foreign exchange risk is not managed effectively, any negative effect on reported performance could signal a reduction in SmartWear’s share price to the stock market and this would not be well received by investors. To reduce the possible damaging consequences of foreign exchange movements on SmartWear’s business operations and reported performance, the board should ensure that it has effective treasury management. This will ensure that any transaction exposure, deemed too risky for the company, is hedged using appropriate financial instruments. 有效的进行资金管理，使用合适的金融工具对冲风险。

To minimise any losses on translation of assets and liabilities from overseas operations matching could be employed, with SmartWear ensuring that liabilities are matched as closely as possible with assets for all of the different foreign currencies it deals in.

为了减少报表折算带来的损失，应该尽可能将外币的资产和负债进行匹配。

 

Competition is normally the greatest risk to any commercial organisation, since there is a limited amount of market available for all to compete in. The SmartWear business model has successfully positioned itself at the low end of its target market, where it has become the market leader. However, during the economic recession in Noria, it is likely that many established competitors  will also seek to gain more of the lucrative budget-conscious end of the clothing market. This is directly targeting SmartWear’s dominant position, which has already resulted in an erosion in its market share. The risk is that unless action is taken by the board, the situation will worsen and SmartWear will cease to be market leader.

 

解决方法：

To limit the potential damaging effect of competition, SmartWear need to engage more closely with its customers. By anticipating and satisfying the changing demands from its core markets, the company can stay ahead of competition by successfully adjusting its marketing mix. Although there is no guarantee of customer loyalty, such a proactive approach will make the company more aware of the risks presented by competition and deal with them more effectively.

与顾客保持更加紧密的联系，去预估和满足市场的需求，通过调整其营销组合来获取竞争优势。

 

This relates to the risk of changing conditions in the marketplace, such as the increasing tendency of consumers to shop online. This particular aspect of market risk presents significant challenges to traditional retail businesses like SmartWear, where failure to successfully adapt could make the current business model obsolete over a relatively short period of time.

 

To reduce the market risk, SmartWear needs to adapt and embrace the growing online shopping public as this could result in substantial revenue growth, which is core to achieving its strategic goals. The board needs to commission market research and evaluate the option to develop and manage its own online sales platform.