A Case Study Related To Risk & Value Management

A Related To Risk & Value Management - Case Study Example The major risks of the company may arise to decrease in sales of plastic products, reduction in per unit price of plastic products, difficulty in coping up with the competition in the market, economic scenario, regulation and intervention of authorities, political intervention, social climate, competitive technology, environmental surroundings and legal issues. Let us consider each of these categories of risk separately for AutoPlast Ltd (Jones, 2010, p.19). Considering the present scenario of chemical leakage from the storage plant of AutoPlast Ltd. and contamination of water of River Cruze and subsequent outbreak of fire leading to the health problem of the surrounding housing estates, village and fish market, there is a dominant upheaval from the local community against the operation of AutoPlast Ltd. It is evident that there would be political intervention due to mismatch and fulfilment of interest of the political parties leading to several agitations and discussion between the management of AutoPlast Ltd. and the political entities. Political intervention would lead to demand of hefty compensations for the health-affected people and any disagreement on mutual points would lead to unplanned expenditures of the company that is likely to affect the profit margin of AutoPlast Ltd (Coleman, 1988, p.11). Economic Although AutoPlast Ltd. is considered to be a major player in the local economy employing several local people surrounding the river Cruze, the present scenario of fire outbreak due to the operations of the company leading to respiratory and health issues of local mass would generate a sense of disloyalty and hatred towards the brand of AutoPlast Ltd. and hence they would have a tendency to reject its products leading to the fall in production and price of AutoPlast Ltd. Thus, the economic risk of AutoPlast Ltd. in the present scenario needs to deal with in a strategic manner by the management of the company (Shapiro and  Glicksman, 2004, p.106). Soc ial Considering the present scenario of AutoPlast Ltd., the society has shown some tolerance to the company as it employs a majority of the workers in the local community. But considering the extent of damage in terms of life and death and the psychological impact on the society due to presence of stimulants, the extent of risk that AutoPlast Ltd. is going to bear in terms of goodwill and subsequent volume and value of sales is considerable. Technological Considering the present scenario, AutoPlast Ltd. would run the risk of devaluation and distrust of the technologies used in its industrial operation and process of manufacturing plastic products. The company would need to reconsider its cost on research and development of the technologies used. The up-gradation of technologies would need to be looked upon by the management so that there is no further chemical leakage from its storage during operation. The decisions of the management would ensure that AutoPlast Ltd. adheres to its c orporate social responsibility. Legal Due to the present scena