I'm writing business plan on Bayra juice processing enterprise at arbaminch Ethiopia.

Question

So ▪ Explain the possible risk that your business will face in the future
▪ Explain the level of risk you will accept while the operation of your business
▪ Present the nature of risk you will encounter and prove that there is moderate
▪ Risk for your business.

Answer 1

Possible risks that the Bayra juice processing enterprise may face in the future include:
- Fluctuations in raw material prices: Prices of fruits may fluctuate due to changing weather conditions, market demand, or other factors, leading to increased production costs.
- Market competition: As the juice processing industry grows, competition from existing and new players may increase, affecting market share and profitability.
- Changes in consumer preferences: Shifts in consumer preferences towards healthier or alternative beverage options may impact sales of Bayra juice products.
- Supply chain disruptions: Any disruptions in the supply chain, such as transportation delays or supplier issues, could affect production and distribution of Bayra juice.

The level of risk that the Bayra juice processing enterprise is willing to accept while operating the business is moderate. While the business acknowledges that risks are inherent in any industry, steps will be taken to mitigate these risks and maintain a level of stability in operations. This includes implementing quality control measures, diversifying suppliers, monitoring market trends, and staying flexible in response to changes.

The nature of risks the Bayra juice processing enterprise will encounter are primarily industry-specific, such as raw material price fluctuations and market competition. These risks are considered moderate as the business will have strategies in place to address them, including closely monitoring inventory levels, conducting market research to stay competitive, and establishing relationships with reliable suppliers. Additionally, contingency plans will be developed to address potential disruptions in the supply chain or changes in consumer preferences. Overall, while risks are present, the Bayra juice processing enterprise is prepared to navigate them effectively to ensure the success and sustainability of the business.