Reference no: EM132668695

Describe the risk management framework that Kopie Kopie can use in order to mitigate the risk of potential losses arising from the future aggressive marketing by competition.

Subject - Corporate Admin and Risk Management

CASE STUDY 1

Kopie Kopie is a coffee producer in Johor Darul Takzim since 1975. It is a family-owned supply and wholesale business. In recent years, Kopie Kopie exports its range of coffee to the Asean countries, besides supplying coffee packs to supermarkets and restaurants all over Malaysia. The demand for coffee today is on the rise and the Marketing Manager, Farah, wishes to expand the business into a more marketable variety. She notices that the working class group has a preference for coffee-on-the-go. She wishes to explore this option as the owner of Kopie Kopie, Hajah Sharina encourages for expansions.

Last March 2019, Farah paid a visit to several coffee outlets, such as Starbucks, Coffee Bean, Gloria Jean and a fe other chains. She went to various fast food outlets too. For a good 3 months, she studied the trends, the wants, and the popular menu for typical customers. She came back and presented a new marketing strategy to the management of Kopie Kopie.

The proposal was to start at least 3 healthy-based restaurant serving flavoured iced or hot coffee and iced or hot tea. Kopie Kopie coffee flavours include cappuccino, latte, mocha, whilst tea includes camomile, earl grey and darjeeling, to add to variety to the drinks menu. As for the food menu, it is organic sandwiches with various healthy fillings, made-to-order. No pre-prepared food is kept, all food is fresh. As such delivery service is provided to reach out to the greater customers, those who has no time to leave the office perhaps.

Several questions were asked by the management team regarding the new business venture as some were sceptical as to whther the business can sustain. Moreover, opening outlets can be costly as there will be capital expenditure and high overheads to maintain 3 outlets. This would mean hiring more staff to man the outlets too. Farah is now feeling bad and thinks that her idea is not going to be accepted.