Activity 4 G

Activity 4

A PEST analysis

Political risk

Regulations of massage businesses, business licenses, customer rights and business contracts are very strict and regulated thoroughly

Stability of the political status is even

Many laws and regulations (trade practices act, Consumer Act, ACCC and ASIC)

Taxes

Economic risk

Australian Economy is not stable

High GDP per Capita

Low unemployment rate

Economy is growing slowly

Social risk

Sydney CBD is densely populated

many competitors specific to the products

Convenience is key for the CBD market

Many type massage to socialise

Wide variety of products for consumers to choose from

Products are too common and known to the Australian market

Technological risk

Technology impact the business significantly

Online booking can cancel all the time

Online information might be not updated

Promotions on mass media for other competitors is more effective

Production need to be improved though technological advancements in equipment

Financial Risks

This is a very important type of risk that can put a company in danger. Financial risks are risks that relate to the companies money. These could be normal transactions or other financial problems. If a company does have a financial risk, it is important to get assistance from banks or other partners.

A financial risk is referred to more as a financial transaction that the company cannot be sure it will generate profit or loss. This is usually a type of investment or strategy that requires a fair bit of money but has a chance of generating a lot more if the strategy is successful.

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l generate profit or loss. This is usually a type of investment or strategy that requires a fair bit of money but has a chance of generating a lot more if the strategy is successful.

Operational Risks

These are risks that occur within the operations of the company. These types of risks are very broad and cover a big range of risks that occur in a company. This risks applies the people and processes within the company.

Compliance risks

These are risks that could cause conflicts and problems with the regulators of businesses such as the OH&S committee, ACCC and ASIC. All these organisations were created to make sure that all organisations are operating by certain guidelines and rules that protect everyone including the company, customers and competitors. It is important that all strategies are made sure that they comply with the guidelines set by the government.

Other risks

These are any other risks that occur on a regular basis but do not come in the categories of the other types of risks. These risks could be uncontrollable such as natural disasters or unique to some industries.

Internal Risks

Project managers must identify and prioritize risks to the project at hand that are internal to the organization. When looking internally, risks to the project may involve the financial solvency of the company, the ability for the company to have required equipment and other resources on hand in time to support the project. Personnel issues such as the sickness or unanticipated termination of a key team member also can be considered as internal risks to the project.

Internal risks can also involve infrastructure problems such as the availability of servers, software, and IT support as well as more elementary ingredients such as the supply of electricity to team members. Obviously, the volatility of essential infrastructures will vary depending on the location of the team, so it may or may not warrant consideration during the risk assessment process.

External Risks

External risks are outside the control of the project team and its host organization. Because of this, external risks are generally more difficult to predict and control. Factors such as a key vendor going bankrupt, economic upheaval, wars, crime, and other events may directly impact the project’s effectiveness. Some risk may be difficult to foresee such as a mine in a foreign country providing essential elements for the project being taken over by a revolutionary government. This kind of event directly threatens the project, but often takes project managers by surprise because of a deficient analysis of external threats.

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