Brief Analysis Of Coca Cola And Pepsico Business Essay - Free Essay Example

Sample details Pages: 10 Words: 2870 Downloads: 6 Date added: 2017/06/26 Category Marketing Essay Type Compare and contrast essay Did you like this example? Introduction The interest in corporate social responsibility, sustainable business practice, corporate governance, business ethics, and integrity and compliance management has grown markedly in the past decade (Waddock et al., 2002). It is not only stakeholders who expect companies to pay greater attention to norms, values and principles; companies themselves are acknowledging the importance of responsible business practice (Waddock et al., 2002). But what are a companys responsibilities? It is widely recognized that we are in an environmental crisis, no doubt about that. Don’t waste time! Our writers will create an original "Brief Analysis Of Coca Cola And Pepsico Business Essay" essay for you Create order There is nearly unanimous agreement that the earth is getting warmer, and the consensus in the scientific community is that human activity, especially through activities that emit hydrocarbons, is the chief cause of climate change. Business ethic has become one of the strongest news stories of the past decade. Previously renowned companies such as WorldCom, Enron, Wal-Mart, Google and Starbuck have become link to a growing trend of unethical business behavior. Nevertheless the environmental issue has created a big impact on todays business organization. The EU has decreed that capitalism, and hence business practice within capitalism, should be environmentally sustainable. Financial success by itself is no longer sustainable therefore EU environmentally friendly business practices are considered a moral norm and consequently a moral obligation. Although corporations are primarily business organization run for the benefits of the shareholders, they have a wide range set of re sponsibilities, to their own employees, to the customers and suppliers, to the communities which are located, and to the society at large. Most corporations recognize these responsibilities and make a serious effort to fulfill them. Analysis of Coca-Cola and PepsiCo Coca-cola The Coca-Cola Companys website contains sufficient amount of information on their segments of corporate governance, ethic, environmental and sustainability issue. Corporate governance Coca-cola has committed to strive and enforce the establishment of the principles of corporate governance. Corporate governance that has been adopted by them is based on the belief that maintaining and improving management efficiency and the fairness and transparency of their corporate activities is of utmost importance. Ethic and Environmental Sustainability Coca-cola detailed few guidelines about utilization of water on their business operation. They develop few objectives which the main aims are to return the water safely to the communities and nature as what the company consumes for their beverage production. The website also stated their roles on encountering water-scares problem around the globe. The Companys Website and Case Study Relation The Coca-Cola Company and WWF had combined their strength together on preserving nature mainly on conserving water. Several ideas and projects had been stated in order to improve global water efficiency. Focusing on the river Yangtze in China, their collaboration is vital because it is in line with their partnership main objective. The partnership goal in the Yangtze is to inspire better governance and sustainable river management practices across the basin. Coca-Cola Companys website. The Coca-Cola Company and WWF initially planned on these three initiatives: Supply Chain: Working with the supplier in order to sustain agriculture mainly sugarcane, oranges and corn. Water Stewardship: A fresh water conservation relating seven river basins including Yangtze River. The aim is to develop and implement comprehensive water stewardship plans that will serve as models for the Coca-Cola system. River Basin Conservation: To conserve the seven key freshwater basins on which o ur partnership is focused which include Yangtze River. PepsiCo PepsiCo Companys website contains an adequate amount of information on their segments of corporate governance, ethic, environmental and sustainability issue. Corporate Governance Referring to the website on corporate governance segment, PepsiCo has adopted strict corporate standards that govern their operations and ensures accountability of their actions. These corporate social responsibilities are also made as an integral part of their operations. The website of PepsiCo on corporate government segment detailed the corporate standards that have been strictly governed to guarantee the accountability of their action. Ethic and Environmental Sustainability [The] successful company in 2030 will be the one that recognizes the possible outcomes of the global crises we face, and one nimble and tenacious enough to embed this recognition into their strategy and business processes. INDRA NOOYI, PEPSICO CHAIRMAN AND CHIEF EXECUTIVE OFFICER, MAY 2009 The statement by the CEO of PepsiCo above shows the dedication on preserving the environment hence numerous efforts had been done by them for the past few years. Recently PepsiCo had released inaugural water report titled Water Stewardship: Good for Business Good for Society which explain the companys commitment to safeguard and replenish water use in their operations thus provide a better environment for future generation. PepsiCo has proclaimed on their website regarding their goal and commitment to protect the Earths natural resources. PepsiCo state that their part as a dynamic global business operator, they will remain committed in minimizing the impact of their business on the environment . The Companys Website and Case Study Relation PepsiCo and China Womens Development Function had united their forces on one purpose, which is to provide a clean water supply and to solve drinking water shortage especially in rural areas in China. PepsiCo Foundation had donated a sum of $ 1.5 million on Mother Water Cellars Project. The objective of the project was to design pilot water supply systems in order to conceive water and at the same time the project aimed to solve the problem on the difficulties of people in rural area to obtain safe drinking water. Water Cellar Sketch of a water cellar The main idea of the Water cellar is to accumulate rain and reserve the water for man and farm animals. It is also a kind of water-storing facility in Chinas rural areas. In relation on the case study, the PepsiCo has provide a huge-scale effort and this has been proven by the website and a report title Land of Love, Water Cellar for Mothers done for PepsiCo. They also had launched the project in 2000, and since then many water cellars has been built. PepsiCo believe that the planet is for all human kind to share and is their obligation to be a good citizen to the world. This project may have solves some environmental ethical issues that became a responsibilities among the big corporation. Differences in Experience and Perception China viewing Coca-Cola Morality consists of rules of human behavior and also specifies that certain actions are wrong while others are right. Actions can be seen and evaluated from moral perspective even in business since they involve human activity (George.R. 2005). Coca Cola has shown concern for the environment in China. The partnership between Coca Cola and WWF to protect Yangtze River is a non-profit one, which again reiterates Coca Colas concern about environmental issues. According to W. Michael Hoffman, a business has an obligation to keep the environment clean beyond what the law states. Companies should find methods to eradicate environmental problems caused by their production. Teleological ethics theory states that the consequence of an action will determine whether the action is good or evil. In the case of Coca Cola, if the teleological theory is applied, China will view Coca Cola as bad if the latter is polluting the environment. Moreover, Coca Cola owns around 33% of Chinas soda mar ket. The companys representatives have predicted that there is still the possibility to grow. Products are being tailored only for the Chinese citizens. Given that Coca Cola is planning to grow, this will create more employment in China. By operating in China, Coca Cola has a moral right towards the government and the citizens, and the company should aim should aim at improving their standard of living. (Shaw, Barry) However, China needs to take into consideration what happened in India. The company had to close down for causing water shortages, and also for ignoring social and environmental foundations of consumer trust. A company may have different factories around the world, but its vision and mission statement should be the same. Given that we can consider Coca Colas actions as unethical, theres a reason for the Chinese government and citizens to worry about the Coca Cola Company established in China. What has happened in India can again be connected to the teleological ethic s theory since the problems caused by Coca Cola has led to the closure of the company. As prescribed in this theory, only the ends or consequences of an action can determine whether the latter is good or evil. Coca-Cola viewing China Coca-Cola has experienced thoughtless ethical troubles with its affiliation amid their stakeholders in China. It is eager to expand its business in china and one of the ways has been the partnership with WWF with intentions of creating a relationship of trust favorable in increasing its market in china. The company launched a communication program aimed at educating people along the Yangtze River about environmental concerns, river basin management and water management. This shows the companys intention in exploring the moral responsibility to the community in situations people lack enough knowledge about. One of the principles which separate this right action from wrong is utilitarianism which emphasizes on bringing most happiness for everyone if not majority of the people through our actions ( Shaw.W, Barry.V,2010). Hence, this program is beneficial to farmers and the ongoing three Gorges dam construction which will be providing electricity to the community. Furthermore, Coca Cola is under the broad view of corporate social responsibility which identifies this company as one pursuing profits as well as having other responsibilities to its consumers and society at large. As argued by Konosuke Matsushita any business should make service to society as its objective and while serving society, profits will be generated automatically (George.R, 2005). For example the company has helped WWF contribute a major role in the Yangtze River Forum through uniting on a recommendation to deliver the Chinese government for implementing pollution regulations, which apparently are fairly uneven in the country. We support the case of Coca Cola viewing China because companies are motivated to become more socially responsible to their most important stakeholders such as consumers and the community because they expect them to understand and address the social issues relevant. In this case, Coca is contributing towards the conservation of the environment through the water se curity in China. Cross Cultural Ethical Decision-Making The business culture of a country is shaped by business practices and ways of thinking over a long period of time. Countries such as USA and China have different business cultures and ways of conducting their business partly because of their differences in history. Thus, it is absolutely vital for Coca-Cola and WWF to understand the cultures and practices of the Chinese society. In our point of view, Coca-Cola and WWF have been successful to a certain extent in cross-cultural ethical decision making. The Chinese society believes that everything should be in harmony (Kaptein, 2004). The efforts of WWF in collaboration with Coca Cola to clean the waters of the Yangtze River can be viewed as a decision based on the value of harmony within the Chinese society. This effort would thus be viewed as an ethical business conduct and improve the relationship between WWF and Coca Cola and China. The Chinese place high importance on human relationships or guanxi. As a result, the Chinese str ive to work in groups to accomplish a common goal (Pitta, Fung Isberg, 1999). The groups in this scenario include a non-profit organisation, WWF, a profit making organisation, Coca-Cola, and the Chinese society. The common goal of these three groups is to ensure clean water is running through the lifeblood of millions Chinese, the Yangtze River. Therefore, this is seen as an informed decision by WWF and Coca Cola based on a good understanding of an important Chinese culture. Based on an American culture, business relationships can be separated from personal relationships because business transactions are bounded by legal contracts (Trevino Brown, 2004). In negotiating contracts and business transactions, signing a contract is seen by Americans as the final stage of business association. However, from the Chinese point of view, friendships are seen as lifetime commitments and as a first step to a deeper and improving relationship. The fact that Coca-Cola has been operating in Ch ina for so many years setting up 39 bottling plants is a testimony to Coca-Colas true understanding of the elements of friendship and negotiations within the business conduct of the Chinese society. Communication is seen as a way to bridge the gap that might exist between two different cultures. In their efforts to clean the Yangtze River, WWF and Coca Cola launched communication programs to educate the Chinese communities about environmental issues. According to McWilliams and Siegel, the combination of communication and persuasion can help the understanding of the two parties concerned. This presents WWF and Coca-Cola with cross-cultural benefits as they are able to earn the trust of the Chinese society by making efforts to improve the well being of China as a whole. Recently, the Chinese press were complimenting Coca-Colas effort in sponsoring Project Hope, a program that aims to improve education for disadvantaged children throughout China. The company aims to build 100 Pr oject Hope Schools by 2011. This effort is in line with the Chinese culture of valuing and strengthening relationships. The news also highlighted that Coca Colas partnership with WWF to conserve the Yangtze River showed significant progress by galvanizing local communities to actively participate in river basin conservation (Press Release Coca Cola, 2010). Certain decisions made by WWF and Coca Cola were questionable as it did not fully consider the cross cultural implications. Firstly, Coca-Colas US$ 2.3 billion bid for China Huiyuan Juice suggested that the company was acting in its own self interest of gaining market share and monopolising the beverage industry in China. The Chinese society views a sudden and substantial change such as the takeover as disruptive because it does not consider the notion of harmony. Coca-Cola were acting according to the theory put forward by Adam Smith who advocated the pursuit of maximum self interest or ethical egoism. According to Garrett Ha rdin, the tragedy of commons explains that each individual believes their use of commons only has its own negligible effect. However, the collective result can be of gradual damage or destruction which makes everyone worse off. The fact that Coca-Cola uses 290 billion litres of water a year for production, might indicate that the company themselves might be at fault for causing water pollution at the Yangtze River. https://www.thecoca-colacompany.com/presscenter/nr_20101029_china_investment.html regulation Multinational Companies Balance Between Profits and Environment Multinational companies usually generate huge profits every year while they also need to contribute to the gradual improvement in the environment. One of the ways to balance those two elements, that is profits and good environment, is through sustainable development. The latter should meet the needs of the present without compromising the future generations ability to meet their needs. (United Nations Brutland Report). Sustainable development needs the integration of social, environmental and economic considerations to make long term decisions. As per Milton Friedman theory, the main social responsibility of a company is to increase profits. However, Coca Cola should make sure that it is not compromising the welfare future of Chinese citizens with its current production activities. Furthermore, there is the clichà © the business of business is business. (Business Ethics,, George). A corporation may ignore the moral demands of an individual, but it can hardly ignore the moral demands of the society it conducts its business in. This is because both parties are dependent on each other, for example in Japan, the business of large corporations recently changed, not only to produce goods and services but to also to care for the companys stakeholder such as a guarantee of lifetime employment to employees while providing a conducive environment to the people living in the region it is operating. Multinational Corporations today have a renewed interest towards Corporate Social Responsibility instead of prioritising profits at the apex of their pyramid. Some MNCs use the Corporate Social Responsibility perspective as a strategic tool to attain economic objectives which is ultimately wealth creation. These MNCs follow the approach of economist Milton Friedman who philosophised that the only one responsibility of business towards society is the maximisation of profits to the shareholders within the legal framework and the ethical custom of the country. However, the interests of people who have a stake in the firm also known as stakeholder must not be excluded by MNCs. Satisfying these interests will contribute in maximising the shareholder value (Odgen and Watson, 1999). An adequate level of investment in philanthropy and social activities will allow MNCs to bring in profits (McWilliams and Siegel, 2001). Stakeholders are the people who directly or indirectly affected an organisations actions, objectives and policies. MNCs owe a fiduciary duty towards stakeholders as they can bring profit to the company. There is a social contract between the organisation and society. A straightforward contribution in order to balance these two elements would be by maximising the shareholders value as the highest priority to evaluate specific corporate social activity (Mele and Garringa, 2004). These values of shareholders may be seen from many different perspectives such as a greener environment. However, if this method imposes a cost or hinders the compa ny from earning profit, it should be declined according to Milton Friedmans theory.

Yo Short Story and Yolanda Garcia Essay examples - 777 Words

In Julia Alvarezs Yo!, Yolanda Garcias family and friends get their chance to tell the truth about Yo. They express their feelings and their stories about Yo, including how shes always told lies, how she stole the plot for a story from a student, and how her college professor kept trying to prevent her from ruining her life and her talents. Alvarez tells Yolandas story through other characters, while Yo is denied the privilege of defending herself. It is ironic because initially, the novel is based on Yolanda and how angry her loved ones are after she publishes a book that exposes personal things about each of them. In this novel, these very people are working to set the story straight and portray the true Yolanda Garcia that they†¦show more content†¦Only difference was this Yo-yo lady had made all his characters Hispanic, changed the sport to baseball, and written up the story nice than Lou had been able to write it, (181). After Lou found his story in one of her published books, he grew very skeptical. His whole outlook on her changed. Lou combed through the rest of the book, reading the stories that sounded familiar. Maybe shed lifted stories by other kids in the class? (181). In Julia Alvarezs Yo!, Lou is given the chance to at least set straight the fact that he had written the story that Yolanda Garcia entitled Return from Left Field. One person who never gave up on Yo was Professor Garfield. She constantly would ask for recommendations or help to get her life back on track. Of course he would help her. Once in a career there comes a student, (73). Garfield was inspired by her and had a bigger dream for her than it seemed she could she for herself. Most teachers would give up on a student after the dropped out of several educational programs, but not Professor Garfield. He never seemed to lose hope, even after all that she had done, or not done. In Yo, Professor Garfield shares his view of Yolanda Garcia, a very gifted girl who did not use her t alents the way he had planned for her, but who followed her own path to success. Yolanda Garcia is an outgoing, intellectual, and gossipyShow MoreRelated The Character of Yolanda Garcia in How the Garcia Girls Lost Their Accents and !Yo!2539 Words   |  11 PagesThe Character of Yolanda Garcia in How the Garcia Girls Lost Their Accents and !Yo!  Ã‚        Ã‚  Ã‚   Julia Alvarez develops the character of Yolanda Garcia in some different and similar ways in her two books How the Garcia Girls Lost Their Accents and its sequel !Yo!. The reasons for the differences in the two characterizations of Yolanda is that there is almost no continuity concerning her character in the two books-meaning that all the specific details of Yolandas life given to the reader in the

Pintura Ecuatoriana Free Essays

SALLY SWANSONG CASE Possibilities – Alternatives for both parts: Sally (1) and Lyric Opera Company(2) 1 2 Sally should not sing in this opera, she could do that in other opportunity| Lyric Opera Company should contract to other young opera singer to the principle role| She could teach to any another young opera singers. | It could contract an opera singer with experience or anyone whose it could not have to pay a lot of money| Looking for the principle role in other musical| Looking for another cheap principal singer with experience. Looking for a job in others places or public activities related to the art world in order to be recognized once again e. We will write a custom essay sample on Pintura Ecuatoriana or any similar topic only for you Order Now g. TV commercials. It could be accessible, because of her experience. | Contracting a very well-known opera singer, not only national, so international one. Announcing that by press conference to reduce extra marketing expenses. | Having the principal role as the opera singer, collecting not a high salary because of the uncertain result of the audience. Offering the main role to a secondary opera singer, emphasizing that it would be a great opportunity to her career. | 1. Two possible alternatives: Sally: (-) Looking for another title role in another place by another company, using their experience and she would be able to relaunch her career in this way. (+) Getting the contract with this company. As a result, having successful and getting recognition. Lyric Opera Company: (-) Hire another opera singer in the title role as cheaply as possible (it is mportant to emphasize that she would have only three weeks to the opening) (+) To win time, it can contract to Sally with a little mar gin of negative answer of the audience because of her experience, possible conventions and good benefits in terms of money (because it is not a good show, it could pay the minimum to Sally) 2. Lyric Opera Company, Sally and us – Interest LYRIC OPERA COMPANY: * $ (All related to money) Winning more than they expected a percentage of 85%. Saving as much as possible ($). Hiring a principal opera singer at the lowest price possible for avoiding budget problems * They want to designate the primary role of the play at the shortest possible time because the premiere would be in three weeks. * Maintain its prestige * In monetary terms, To be successful is necessary to sell over 85% of the locations * No problems during the premiere with the principal opera singer SALLY: * To be recognized, resurging as the phoenix bird. It could be possible if she had only the principle role, * Relaunching her career. Achieving contract with Lyric Opera company to access better paying to future roles * To succeed, it is necessary that the play could have the necessary promotions and marketing suitable for proper ticket sales (over 80%) * Having the TV Contract to $ 45000 WE: * Having recognition for Sally case, being this our first job. * Achieving a commission in line with sales and the success of the play * Give all the benefices to Sally in this case, to satisfy her necessities and be recommended later, so it is important to achieve the contract with the TV to $ 45,000 or projecting her career in the future * If we manage a ood bargain in the case of Sally, we could achieve reputation 3. WIN TO WIN options What happen if Sally performs the Opera? Result: Both WIN WIN TO WIN| Sally| If Sally does the title role of the opera, she will get the revival and recognition. And she will have more than commissions, which was looking for futures contracts and other activities, immersed in the art world. Lyric Opera Company| Hiring Sally who has experience, thus reducing the time of pre paration for the premiere of the soon play; it is more predictable for the company, so it could solve the main problem of â€Å"looking for the principal opera singer†| Us (legal representatives)| Being our first case, the success of Sally, will benefice us in terms of recognition. | Additionally: * As marketing program, it could be a good option to make agreements with institutions such as the educational, cultural in order to increase ticket sales for the play and it would be possible to achieve the 80% provided by the company to be considered a success. As Sally does not charge commission for this agreement, Lyric Opera Cia could be benefited from the sale of tickets, without having invested heavily in promotions. * In terms of money, Opera Company can hire Sally with a fixed value that is 15% or 20% less than market price. So, Sally could have her contract, and Opera Company hires someone before the premiere of the play at a lower cost * If it gets 85% predicted, it will be given to the respective payment to Sally and commissions. If it is not possible â€Å"sales expectations†, it could represent less payment or the minimum to Sally. But the company must comply with the relevant marketing, then If Sally gets the lead role, and she could relaunch her career for futures contracts, she may make donations to Lyric Opera Cia. * Because of her experience, and the success he had in the past, there are people who continue following her so the Company can use his name for marketing campaigns. What happen if other Soprano performs the Opera? Result: WIN TO WIN| Sally| . | Lyric Opera Company| | Us (legal representatives)| | How to cite Pintura Ecuatoriana, Essay examples

Supply Chain Management MyAssignmenthelp.com

Question: Discuss about theSupply Chain Managementfor Detected and Mitigated. Answer Introduction Turker and Altuntas (2014) portrays that Supply Chain Risk Management is a process in which the threats tosupply chaincontinuity and profitability is identified, monitored, detected and mitigated. Managing authorities are implemented effective strategies to manage both exceptional as well as everyday risk in supply chain management. Chan et al. (2017) also depicts that supply chain risk management is key to supplier management as it allows organization to avoid risks like cost volatility, non-compliance fines and supply disruption. The prime objective of this business report is to critically analyze the supply chain risk management process for a fashion industry along with the potential benefits of managing risk in a supply chain. Discussion Ho et al. (2015) highlighted the fact that marketers often misinterpret that supplier risk is only one aspect of supply chain management risk but other factors like countries originate from or flow through for supply products, sourced items, sensitivity of the intellectual property and the logistical hubs can also be the reason for risk. Thus, it is essential to protect supply performance outcomes and set performance metrics for monitoring the progress in the supply chain management (Christopher, 2016). One such performance metric is to formulate a "balanced scorecard" for product sourcing beyond cost. Supply Chain Management Risks Wisner et al. (2014) mentioned that supply chain management risk can be of two types- external risks and internal risks External Risk The external risk comprised of demand risk that is related to create due to misunderstanding in customer or end-customer demand, supply risks that is risk in flow of product within the supply chain and business risks that signifies the jeopardy in management financial instability (Mangan et al. 2016). The external risk also comprised of environmental risk and physical risk that resembles outside risk like flood, earthquakes and risk of suppliers physical facilities respectively. Late Delivery of the Fashion Products Late deliveries are one of the crucialsupply chain management risks and require extra cost to the organization in order to meet the customer demands. In such cases, these suppliers have to use air freight as opposed to sea freight, which is much cheaper option (Heizer Barry, 2013). Caro and Martnez-de-Albniz (2015) moreover depicts that missed sales opportunities also results in huge losses. These risks are high for fast fashion industry as fast fashion trends last for weeks compared to usual trends that lasts for months or year. Raid Changing in Customer Demands Fernie (2014) highlight that younger millennial are the major target audience and follower of fast fashion and in most of the cases, they are influenced by superstars and actors. Chopra and Sodhi (2014) on the other hand argues that not all millennial likes a same style. Thus, risk for random change in their demands regarding fashion apparels have to face by the suppliers. Financial Instability The change in rapid demands needs budget for designing apparels and this needs costs for different textile materials, leather materials and other raw items for making accessories. Purvis et al. (2013) depicts that this sudden fluctuation in the budget planning is considered to be as risk. Risk Due to Environmental Calamity It is evident that not all organization has their manufacturing units in their home and sometimes they have to import the final products from other territories (Shen et al. 2016). In such situations, if environmental calamity occurs like flood, earthquake, landslide or hail-storms, the supply chain management also get impacted that result in loss of products and delay. Internal Risk The internal risk comprises of business managerial risks like in personnel, management, reporting structures. Waters and Rinsler (2014) furthermore affirm that internal risk also encompasses manufacturing risks and mitigation risks that resembles disruptions of internal operations and adopted inappropriate solution for occurred risk respectively. Lastly, risk of inadequate assessment and planning is also an internal risk that signifies to the planning and control risks. Poor Manufacturing Line Choi (2017) portrays that improper or outdated technology for manufacturing fast fashion accessories and products not only take much time to formulate new items but it need investment of additional charges for continuous maintenance of the machineries. Shrinkage and Theft In this context, Madhani (2015) state that the materials that is used in fast fashion industry are expensive and hence working personnel have the tendency to theft the raw or completed products from the production line and this results in fewer end products to be reached to destinations. Madhani (2013) moreover depicts that insufficient training in manufacturing goods among the workers also slow down the product line. Steps for Managing Supply Chain ManagementRisk Monitoring the Supplier Base Perry et al. (2014) suggested that fast fashion industrialist should identify each raw material prior to starting the manufacturing of final products. In this way, the managing authorities will able to identify the root cause of the raised risk. Evaluating Supply Chain Vulnerability It is the liability of the managers to identify the future risk relation with their business operations like formulating of raw textiles and leathers, hiring third party outsourcing for raw materials as well as final fashion products (Clark, 2014). Nayak et al. (2015) also said that the scenario for risk occurrence and potential solution should also be listed by an organization. Implementing Mitigation Solution Thus, after assessing all the potential risk factors and their probable solution risk mitigation factors should be implemented so that the identified risk scenario can never be occurred (Li et al., 2014). Benefits of Risk Management Plan Effective risk management plan allows managers to detect the source of risk and that can be avoided in later phase of the business. Moreover Caro and Martnez-de-Albeniz (2015) portrays that risk management plans also provide insights and support to the Board of Directors to identify risks from their experience. However, this result in building a better defense to class-actions that allows an organization to avid risk for future disruptions. In addition to that, risk analysis also shows that the risk management plans are not concentrated to the supply of products but it also focuses on the market demands and fluctuations (Clark, 2014). Ho et al., (2015) on the other hand affirms that adversities like supply disruption, cost volatility and non-compliance finesresults in millionsof loss in an organization which furthermore affects the organizational brand and reputation. These understanding can be gained through effective formulation of risk management plans. Risk Mitigation Solution for Fast Fashion Industry Use of Automation Process Fast fashion industrialist can utilize automation software like ERP and PLM systems for managing their fast-paced supply chain operations (Fernie, 2014). Madhani (2013) also highlight the solution for installation of cameras for monitoring all the activities in inventories and factory. In this way, the internal risk of shrinkage can be detected and loss of some raw and final products can be mitigated. This automation software can also alert the brand in real time in case if some order gets delayed. Minimizing Manpower Perry et al. (2014) depicts that supply chain transparency can be improved if an employee is hired for every factory with with a concerned fast fashion organization is associated. This approach allows organization to evaluate the business ethics of their partners and every sourcing location. Conclusion Thus, it can be concluded that, risk management plan are crucial for business and especially in supply chain approaches. It is also concluded that adopting automation and software allows businesspeople to monitor all the activities in the inventories and factories. Internal and external risk can also be overcome through proper risk management plan by the marketers and implement the probable solution to the identified potential risk. Reference List Caro, F., Martnez-de-Albniz, V. (2015). Fast fashion: business model overview and research opportunities. InRetail Supply Chain Management(pp. 237-264). Springer US. Chan, A. T., Ngai, E. W., Moon, K. K. (2017). The effects of strategic and manufacturing flexibilities and supply chain agility on firm performance in the fashion industry.European Journal of Operational Research,259(2), 486-499. Choi, T. M. (2017). Quick response in fashion supply chains with retailers having boundedly rational managers.International Transactions in Operational Research,24(4), 891-905. Chopra, S., Sodhi, M. S. (2014). Reducing the risk of supply chain disruptions.MIT Sloan management review,55(3), 73. Christopher, M. (2016).Logistics supply chain management. Pearson UK. Clark, J. (2014).Fashion Merchandising: Principles and Practice. Palgrave Macmillan. Fernie, J. (2014). 02 Relationships in the supply chain.Logistics and retail management: Emerging issues and new challenges in the retail supply chain, 35. Heizer, R., Barry, R. (2013). Operation Management, Sustainability and Supply Chain management (Vol. 11). Pearson, UK. Ho, W., Zheng, T., Yildiz, H., Talluri, S. (2015). Supply chain risk management: a literature review.International Journal of Production Research,53(16), 5031-5069. Li, J., Choi, T. M., Cheng, T. E. (2014). Mean variance analysis of fast fashion supply chains with returns policy.IEEE Transactions on Systems, Man, and Cybernetics: Systems,44(4), 422-434. Madhani, P. M. (2013). Fast fashion retailing. InFast Fashion Systems: Theories and Applications(pp. 35-55). CRC Press. Madhani, P. M. (2015). Enhancing customer lifetime value in fast fashion retailing with RFID initiatives.International Journal of Business and Globalisation,15(2), 205-237. Mangan, J., Lalwani, C., Lalwani, C. L. (2016).Global logistics and supply chain management. John Wiley Sons. Nayak, R., Singh, A., Padhye, R., Wang, L. (2015). RFID in textile and clothing manufacturing: technology and challenges.Fashion and Textiles,2(1), 9. Perry, P., Fernie, J., Wood, S. (2014). The international fashion supply chain and corporate social responsibility.Logistics and Retail Management, 4th edition, Kogan Page, London, 77-99. Purvis, L., Naim, M. M., Towill, D. (2013). Intermediation in agile global fashion supply chains.International Journal of Engineering, Science and Technology,5(2), 38-48. Shen, B., Chan, H. L., Chow, P. S., Thoney-Barletta, K. A. (2016). Inventory management research for the fashion industry.International Journal of Inventory Research,3(4), 297-317. Turker, D., Altuntas, C. (2014). Sustainable supply chain management in the fast fashion industry: An analysis of corporate reports.European Management Journal,32(5), 837-849. Waters, D., Rinsler, S. (2014).Global logistics: New directions in supply chain management. Kogan Page Publishers. Wisner, J. D., Tan, K. C., Leong, G. K. (2014).Principles of supply chain management: A balanced approach. Cengage Learning.