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

gamble and uncertainty - Essay ExampleIn contrast, there is an uncertainty when individuals atomic number 18 not certain of the core or of its distribution. Some authors suggest that put on the line is about the outcome of events whereas the uncertainty is specifically related to its probability.An effectual inventory management is essential to ensure the better function of goods and serve of inventory. If the prevailing economic and market conditions are favourable, the make-up may use the inventory at its best level to generate more profits. Likewise, the stanch should not choose to use inventory on a large scale when the existing personal line of credit conditions are not promising.Businesses should use their redundancy susceptibility once they identify an emerging opportunity to boom out their market territory or to make up 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 seasons like Christmas, New Year, and Easter because there will be an increase in the market demand of cake during these seasons. By using the excess capacity, the company can mitigate its production capacity to meet the increased 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/u ncertainty exposure to a great extent. The business can make use of the wide popularity of the social