Risk and uncertainty Essay Example | Topics and Well Written Essays - 500 words

Risk and uncertainness - Essay ExampleIn contrast, there is an uncertainty when individuals are non informed of the outcome or of its distribution. Some authors adumbrate that risk is about the outcome of events whereas the uncertainty is specifically related to its probability.An effective inventory management is essential to ensure the better engross of inventory. If the prevailing frugal and market conditions are approbative, the organisation may use the inventory at its best level to generate more profits. Likewise, the firm should not choose to use inventory on a large scale when the existing railway line conditions are not promising.Businesses should use their excess capacity once they identify an emergent opportunity to expand their market territory or to increase sales volume. For instance, firms may use their excess capacity in peak seasons to take advantages of the favourable market situation. A cake manufacturing company must use its excess capacity in festival sea sons like Christmas, New Year, and Easter because there leave behind be an increase in the market demand of cake during these seasons. By using the excess capacity, the company can improve its production capacity to twin the change magnitude supply needs. In addition, a company can use its excess capacity when demand conditions are favourable. To illustrate, a company would experience increased demand for its products/services following a positive review by reputed agencies and therefore the company must increase its capacity to benefit from this particular business situation.A number of strategies can be used to minimise risk/uncertainty exposure during the product launch (Harley Davidson low-to-the-ground hover bikes). It is clear that the organisation would not be informed of many risks and uncertainties when it launches the product into the market. A prior market survey can really assist the organisation to minimise its risk/uncertainty exposure to a great extent. The busines s can make use of the wide popularity of the social