Free Business Dissertations - 1.0: Introduction: Risk Management Is Becoming An Essential Factor For Every
1.0: Introduction:
Risk Management is becoming an essential factor for every organization in order to maintain stability in the business and to increase their potential through effectively identifying and controlling the risks so identified. Alongside, Risk Management is also necessary for the harmonic operation of any business since the fact that risk affects the business at any time without prior notice. This paper aims to identify the potential areas of risk in Brand Plc, a leading car and speciality vehicle rental organization operating across the globe. This paper is aimed to supplement a two-day workshop on risk management in the organization to create the awareness and importance on risk management to the managerial staff within the company.
2.0: Key issues faced by the company
Brand Plc is a global car rental company that provides car and other speciality automobile rental service to the customers by operating in key locations like airports, business centres, etc. The key issues faced by the company are
Increase in the operating costs of the business
The company’s expenditure in repair and maintenance of the cars has increased to a very high level. This is mainly because of the increase in damages of the vehicles that are rented by the customers. The high level of damage is mainly because of bad drivers who rent the cars. The flexible terms and conditions of the rental agreement is the root cause for the damages in the vehicles rented. Failure to verify the driver’s credibility whilst renting the car is the main reason for the cars to be rented to drivers with rancid driving experience. This apparently reduces the number of cars available for rental at any given occasion eventually reducing the usage of the vehicles for business.
Poor Customer Satisfaction
The reduction in the availability of the cars in driving condition has increased the number of dissatisfied customers since the customer demand was not met by the company even with the high level of resources in the company. One has to realise that the customers are the heart for any business (Philip Kotler, 1988) and hence poor customer satisfaction apparently reduces the number of customers in due course. Also the poor customer satisfaction is adversely affecting the brand image of the company eventually hindering new customers. The potential to increase global market share is reducing due to the reduction in customer turnover due to the poor customer service.
Competition from Local vendors
The poor customer satisfaction is the major reason for the growth of the local vendors who have now become major competitor in the operating geographical regions. The competition is not addressed effectively because of the poor usage of the vehicles in the business as well as the reduced customer turnover. The competition is also intense in terms of pricing as well as the quality of service.
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