Question six: Navy stakeholder-opportunities
- Risk assessment for the internal and external operations environment
Assessing risk forms one of the major critical aspects of the organization. Organizations face internal and external risks that depend on the type of environment the firm operates. Risk assessment is a decision-making tool used by organizations in determining the best strategies to follow, and those to avoid (Hester 2). Navy should improve its risk assessment and reporting of internal and external controls in order to win a competitive advantage in the diverse business world. The firm must identify its stakeholders and their respective roles in the form, and then consider their behaviors. The respective behaviors of stakeholders determine the type of risks that faces the firm. The risk assessment process for the internal operation environment will involve identifying the event that causes risk and determining its magnitude, probability, impact, cost/benefits analysis, and its level. Figure 1 shows the risk assessment model for analyzing internal and external operations environment risks for Navy Corporation.
Figure 1: Risk Assessment plan for Navy business
- Navy opportunities
Navy Depot Maintenance is the best firm providing critical support maintenance support to different defense operations worldwide. The firm has the potential of growing its business by utilizing the stakeholders’ opportunities. Stakeholders offer the best available source of innovations and strategies that would help the organization achieve its goals, mission, and vision within the shortest time possible. The firm wishes to make use of stakeholders’ knowledge in promoting its businesses across the world. One of the best strategies of achieving its objective is by allowing stakeholders an opportunity to invest their resources to the company. In addition, the firm has signed contracts with other companies like Triumph to join their operations in order to promote productivity. The company can use the money invested by stakeholders and other interested parties for improving productivity.
- Leverage with contracting firm
The Department of Navy awarded Triumph $1,911,671 in a contract for Program Management and Support Services. The contract was awarded on September 2010 and ended on September 2014. Navy had the opportunity of increasing its revenues and profits because of high performance recorded during that period.
- Areas of interest
Navy and Triumph have coincident interests in areas of production and maintenance. Triumph is involved in manufacturing and overhauling aerospace structures, systems and components. Navy Depot Maintenance is involved in maintaining marine ships and air force machines. The contract between the two companies offers each an opportunity to learn from each other and promote their respective businesses to win a competitive advantage.
Navy has the potential of negotiating future contracts with Triumph. The amount of orders and revenues maintained by Navy offers the organization an opportunity to seek more contracts with other companies in the future. On the other hand, Navy invested approximately 2 million U.S. dollars with Triumph, meaning that the company can invest more revenues to the business for the purpose of achieving high returns.
Injecting competition into future programs offers Navy greater opportunities of winning the global competition. The firm’s business strategy helps in identifying potential threats and barriers to the international market. Navy invited contracts with Triumph, which is an internationally recognized company for its brand name and productivity. Navy stands a better chance of competing with Triumph in the future and overcoming it in the global market.
A close look at the assigned company reveals that Navy could implement different contracting strategies to yield more results. Triumph acted as a stakeholder for Navy, which means they share profits equally. Navy sign a contract with another firm and acquire it for a specific time. The following contracting strategy allows the firm to take full control of the acquired company including profit sharing, interests on investments, and other benefits.
Question seven: Navy stakeholder-Risk
- Identifying risks
Navy faced significant risks to existing contracts as described. Navy shareholder-opportunities led to both internal and external risks that affected the future contracts of the company with other firms. Firstly, stakeholders pose great internal risks when they behave as investors. Investors always invest their money in a business that yields highest returns for a given risk factor. When stakeholders behave like investors, they pose risks to the organization because they focus more on return on their investments and not the benefit of the firm. By investing with Navy, stakeholders increase chances of the firm acquiring future contracts. Investment increases the revenue of the firm and allows it has more capital to conduct its business operations and look for contracts with other firms. Mobilization of capital increases tangible gains because of the high number of investors in the firm (E.T. Jackson and Associates Ltd. 15). The high number of investors introduced by stakeholders also provides better avenues for seeking future contracts with other businesses.
Secondly, stakeholder-opportunities pose external operations environment risks. Stakeholders sell the name of the organization to the outside world and at the same time destroy the reputation of the organization. Introducing competitive poses a great external risk to the external operations of Navy business. Stakeholders involve in acquiring clients from the organization and referring them to other firms. In addition, stakeholders take the opportunity of their position to give leak Navy’s production plans and strategies to competing firms leading to more business risks. The following risk affects future contracts with other firms in that the organization fails to sell their strategies because they have already leaked to unwanted destinations.
There was no significant reduction in business base because of reduced funding. Navy had accumulated enough revenues that would take care of the poor economy for at least five years. In addition, the high number of investors and contracts with other firms like Triumph made the company more stable and continued improving its business output.
The corporate direction changed because of the introduction of other forms of business operations. Navy signed a contract with Triumph. Triumph conducts the same operations as Navy leading to a change in corporate structure for the whole of the contract period. The change in corporate direction has no significant impact on Navy’s business activities because each firm performed their duties to achieve set targets.
Presence of capacity limitations does not contribute to the elevated priority to commercial work. The role of shareholders in Navy was to promote innovations and growth, but some collided with competitors and limited the ability of the firm to invest to the outside world. Navy conducts commercial services and its operations are demanded worldwide. Capacity limitations introduced by selfish investor and stakeholders reduced chances of the organization protecting its commercial position.
Technological changes have tremendous effects on the operations of a firm especially where the management fails to prepare for changes. Some changes in technology and skills challenged operations at Navy Depot Maintenance affecting its capability to achieve its goals. Introduction of automated machines posed a threat to some employees who had to undergo extensive training on how to operate such machines.
Works Cited
E.T. Jackson and Associates Ltd. Accelerating Impact: Achievements, Challenges and What’s
Next in Building the Impact Investing Industry. The Rockefeller Foundation. 2012. Web November 12, 2014
http://www.rockefellerfoundation.org/uploads/images/fda23ba9-ab7e-4c83-9218-24fdd79289cc.pdf
Hester, Ronald E. Risk Assessment and Risk Management. Cambridge: The Royal Society of
Chemistry, 1998. Print.
