Question

5. Taste Buds Pvt. Ltd. is a popular food and beverages maker in India. It is planning to launch two new soya based snack brands ‘Mingle’ and ‘Tingle’ in order to tap India’s fast-growing health cautious traditional snacks market. This strategy will help the company take on domestic major Hariram Foods International Pvt. Ltd, which is the largest brand by value in the sweet as well as savory snacks market with a 28% market share.
In context of the above case:
a) Define the term ‘Business Risks’.
b) What type of business risk is involved in the decision of Taste Buds Pvt. Ltd. to launch two new brands in snacks market?
c) Briefly outline any three features of business risks.

Answer 1

Answer:

A) Business risk is like a possibility of loss or inadequate profit because of uncertainty.

B) Strategic risk

C) Strategic risk

Reputational risk

Financial risk

Explanation:

Answer 2

We are provided with a comprehension of Taste Buds Pvt. Ltd. and we have to answer the questions that are given below based on the comprehension.

• The answer to the first question is Business Risks are those which prevent the business from being successful. Threats of policies, changes in taste, material costs increase and inflation are examples of business Risks.
• These risks sometimes cause a business to shut down.
• The answer to the second question is Tasty Bud Co has the challenge to take away a market share of the already established brand of Hariram.
• Brand loyalty by customers is a big risk.
• Price power is limited due to established competition.
• Dealer's loyalty may be a big risk.
• The answer to the third question is Three features of business risk may be:
• The long-term risk may lead to insolvency.
• Risks may prevent profit targets from being met.
• Risks from policy and government may lead to surprise to survival.

PROJECT CODE:#SPJ3