Rate the risk factors with the following ratings: 1 -- low- risk; 2 -- medium risk; and 3 -- high risk. Include an explanation for your rating.
| Risk Factors |
Freddy's Fast Food |
Joannie's Jeans |
Tyrannosaurus Theme Parks |
| Profitability |
2
Company is still profitable, although they are starting to make less money.
|
1
Company is profitable and becoming even more so.
|
2
Company is still profitable, although they are starting to make less money.
|
| Product |
2
Product is weak (unhealthy food) and is not adapting to the industry change.
|
1
Product is popular and looks like it will continue to be so for a while.
|
2
Product is okay, but general interest is shrinking.
|
| Market |
3
Market share is shrinking as company is not changing to adapt to customer demand.
|
1
Market share is increasing and looks like it will continue to do so for a while.
|
2
Market share is good, although market itself is shrinking.
|
| Competition |
3
Company is not responding well to competition, and is losing out.
|
1
Company is not challenged by competition.
|
1
Company has a unique product so competition is not a major issue.
|
| Management |
2
Management is not very innovative, but is starting to respond.
|
1
Management is an ideal combination of industry experts and innovative thinkers.
|
3
Management is very weak as all of the strong members have left.
|
