ENGM 116 Leadership and the Management Assignment Sample
Module code and Title: ENGM 116 Leadership and the Management Assignment Sample
1.0 Introduction
This study is based on the “Leadership and the management of Project Risk, quality and the people”. The risk assessment is the major concern of this study. The factors of the risk assessment are effective for the strategies of the project and it majorly includes the mitigation as well as the contingency plan. The risk, which has been identified for this study, is related to the First solar organization, which majorly deals with the photovoltaic panel. The three major risk includes.
2.0 Risk specification
2.1 Risk 1
“The demand in the market for the PV panel has decreased”
Risk Item Description: The demand in the market for the PV panel has decreased.
Risk ID: 1
Author: Neil Thompson and Jennifer Ballen
Risk Statement Condition: The demand, as well as the need for the Photovoltaic panel, has been reduced in several markets and for that First Solar has been affected.
Risk Statement Consequences: For the reduction of the demand for the Photovoltaic panel in several markets the business of the First solar faced a huge challenge.
Probability: High
Impact: High
Earliest the Risk could have an effect: The reduction of the demand for the PV panel hit the closure of the project on a large scale.
Latest the Risk that could have an effect: Due to the declination of the demand for the Photovoltaic panel, the growth of the First Solar company has been affected. As this risk hit the closure of the project, so the business operation of this organization has been disrupted.
Mitigation Plan: To solve the issue of the demand for the Photovoltaic panel, this organization First Solar must promote its services as well as its product in several markets so that the customers become aware of the facilities of their services and products. This company has to improve its quality of services to increase the demand for PV in the different markets.
Contingency Plan: In another way, this organization First Solar has to enhance its technological aspects to improve its demand for the products as well as services in several markets. The improvement of technology needs “Passive Solar Technology”, “Solar Water Heating”, “Solar Process Heat”, and “Concentrating Solar Power” (Nrel.gov, 2022).
Risk History:
Date
Event
Author
23.8.20222
First Solar needs the improvement of the quality of the system as well as services on a large scale. For conducting that the role of the manager and the executives of this organization are huge. Most importantly, this organization has to give stress its promotional part regarding the services of First Solar.
Neil Thompson and Jennifer Ballen
Current Date:
24.8.2022
Table 1: Risk Specification of Risk-1 (Source: Self-created)
Impact- High
The impact of the “The demand in the market for the PV panel has decreased” is high for First Solar. The business of this organization has been disrupted for this issue on a large scale. The growth, as well as the performance of this organization, has suffered due to this issue.
Probability Ratings- High
The probability of the low demand for the PV panel in the market implies its decline in the business of First Solar. In this regard, the probability is high enough. The probability denotes the high chances of the failure of the business of this organization if this issue has not been solved.
Potential Mitigation
First, this organization First Solar has to improve its quality of services in the market as well as in the minds of the customers the other hand, this organization has to give stress its promotional part to reach a large number of people in several markets (Bertram et al. 2021).
Contingency Plans
The contingency plan in this regard implies technological advancement in order to solve the issue related to the low demand for the PV panel in several markets from the perspective of First Solar (Ma et al. 2019). The technology, in this case, includes “Passive Solar Technology”, “Solar Water Heating”, “Solar Process Heat”, and “Concentrating Solar Power” (Nrel.gov, 2022).
Budget
Factors
Expected Income
Expenditure
Financial Period
Installation of technology
$7,000
$5,000
2021-2022
Quality improvement
$5000
$3000
2021-2022
Promotional expense
$4000
$5000
2021-2022
Table 2: Budget for Mitigating Risk 1 (Source: Self-created)
Risk Statement Condition: From the financial year 2008 to 2011,the supply of silicon in this organization‘s First solar has been reduced. It implies that the decrease in the supply of raw material on a large from the perspective of First Solar.
Risk Statement Consequences: Due to the lack of supply of raw materials like silicon, the business process of this organization becomes slow. That First, Solar become slow in the competition of several markets.
Probability: High
Impact: High
Earlier the Risk could have an effect: This risk regarding the low supply of the raw materials has been detected at the initial stage of the project regarding the First Solar. Most importantly, this phase includes the planning section of this project where the supply is not sufficient for the First Solar
Latest Risk that could have an effect: Due to the shortage of raw materials like silicon, the cost of First Solar has been enhanced. As a result of this, the business process of First Solar became slow.
Mitigation Plan: This organization has to look after its inventory part regarding the supply chain. In order to solve the issue related to the supply chain, it is important for this organization to make a strong collaborate with the suppliers of First Solar.
Contingency Plan: It is important for First Solar to initiate the manufacturing of silicon of their own and through that, the supply issue of silicon such as raw material can be reduced on a large scale (Ramandi and Bafruei, 2020). On the other hand, this organization has to enhance its suppliers at the international level; so that they can maintain the good flow of raw materials such as silicon.
Risk History:
Date
Event
Author
22.8.2022
The improvement of the inventory system is required for mitigating the issues of the supply chain from the perspective of First Solar. Not only that but also this organization requires proper bonding as well as proper collaboration with its suppliers and through that First Solar can mitigate the issues of supply of silicon
Neil Thompson and Jennifer Ballen
Current Date:
24.8.2022
Table 3: Risk Specification of Risk-2 (Source: Self-created)
Impact- High
The impact of the supply chain issue of silicon became large from the perspective of First Solar. This shortage gives a negative impact on the business of First Solar and decreases its process of business on a large scale.
Probability Ratings- High
The probability of this aspect implies a high effect in the market of competition. Due to the disruption in the supply chain, First Solar organization became slow in the case of competition in several markets. On the other hand, because of this, the operating cost of this organization becomes high (Dolgui and Ivanov, 2021).
Potential Mitigation
In order to solve the problem regarding the supply of raw materials like silicon, this organization has to make proper collaboration with its suppliers on a large scale. Not only that but also it is important for this organization to minutely research its inventory so that this type of risk can be mitigated.
Contingency Plans
This organization First Solar must initiate the international suppliers in the business so that they become able to come out of the issue like the disruption regarding the supply of silicon inside their business.
Budget
Factors
Expected Income
Expenditure
Financial Period
Development of inventory
$8000
$9000
2021-2022
The contract value to supply silicon from the international supplier
$10000
$12000
2021-2022
Investment regarding national supplier
$10000
$13000
2021-2022
Table 4: Budget for Mitigating Risk 2 (Source: Self-created)
Risk Statement Condition: The financial performance of this organization like First Solar is not well. In 4Q it faced a loss of $413 million in the financial year 2011. The per-share loss of First Solar is $4.78.
Risk Statement Consequences: Due to the financial underperformance, the revenue of this organization has suffered a lot. In the market of the competition, this organization becomes slow due to its financial underperformance.
Probability: High
Impact: High
Earlier the Risk could have an effect: This risk regarding the financial underperformance is under the stage of initiation of this project from the perspective of First Solar. From the stage of planning regarding this project, the financial underperformance of this organization can be found.
Latest the Risk that could have an effect: As a result of the financial underperformance, the profit of this organization like First Solar has decreased on a large scale. On the other hand, the generation of revenue has dropped from the perspective of this organization (Rehman et al. 2019). It implies the closure of the business of this organization through several steps.
Mitigation Plan: In order to mitigate the issue of financial underperformance this organization has to make a strong investment in this project. On the other hand, this organization must make pepper collaborate with the stakeholders and the shareholders to invest more in the project on a large scale (Siahaan, 2022).
Contingency Plan: The contingency plan regarding this issue pimples the integral role of the investment of the government in this project. Through the contribution of the government with its huge amount of funding, this issue of First Solar can be mitigated.
Risk History:
Date
Event
Author
21.8.2022
Investment is required to solve the issue of financial underperformance of this organization regarding this project.
Neil Thompson and Jennifer Ballen
Current Date:
24.8.2022
Table 5: Risk Specification of Risk-3 (Source: Self-created)
Impact- High
Probability Ratings- High
Potential Mitigation
The potential mitigation of this issue implies the larger investment of the shareholders as well as stakeholders. Not only that but also it is important for this organization to make the proper collaboration with the investors so that the financial performance of First Solar can be improved. Through the proper investment, this company is able to mitigate this issue on a large scale. From this perspective, it can be said that through financial support this organization is able to increase its profit through its business based on this project on a large scale (Boreiko and Risteski, 2021).
Contingency Plans
On the other hand, regarding the contingency plan, it can be said that this organization First Solar has to look after government support for their business. From this scenario, it can be said that First Solar must take financial support from the government to mitigate its issue related to financial underperformance (Peter et al. 2018). It is important for this organization to take the support of the government to increase its revenue in the competitive market.
Budget
Factors
Expected Income
Expenditure
Financial Period
Investment of shareholders
$50000
$70000
2021-2022
Investment of stakeholders
$60000
$50000
2021-2022
Investment of government
$80000
$65000
2021-2022
Table 6: Budget for Mitigating Risk 3 (Source: Self-created)
3.0 Conclusion
The several risk factors have different professional contexts in relation to the First Solar based on a photovoltaic panel. The mitigation plan, as well as the contingency plan, has been described according to the three major risks, which have been detected from the perspective of this organization First Solar. Most importantly, the impact, as well as the probabilities of each risk, has been identified in these aspects of this risk assessment and the implication of these aspects has been stated in this study. The budget planning has been mentioned according to the risk assessment in relation to the project of this organization named First Solar.
Task 2
1.0 Introduction
The analysis of the risk suggests the stages of detecting the potential factors which are able to impose a huge threat regarding the progression as well as the process of the organization on a large scale. The analysis of risk in general aims to search about the drawbacks of the business of the organization. Based on that, this helps to present the mitigation plan and represents its effect on it the business of the organization on a large scale.
In this paper, the “Ishikawa diagram” as well as “Riskit Analysis Graph” has been mentioned to present the validation of the correlation among the different factors of risks. The risk which First Solar has detected is the “Financial underperformance”, “Supply Chain issue regarding silicon”, and “Low demand for PV in several markets”. Most importantly, the justification of each risk analysis such as the “Riskit Analysis Graph” and “Ishikawa diagram” has been described in a detailed manner, which implies the “risk management lifecycle”.
2.0techniques to explore risk
Reading the present case study, several risks have been associated with the solar project development. Therefore, it is necessary to analyze the identified three risks with the help of the technical implications. The identified three risks are the demand for the three PV cells being decreased; supply chain disruption regarding silicon and financial disruptions while developing the project (Ajayi et al. 2019).
However, two techniques and models are applied within the case study in order to analyze the project risk, which are the “Risk Analysis Graph” and “Ishikawa diagram”. The RA graph has been helping in improving the risk and negative proportion associated with the solar project. On the other hand, the Ishikawa diagram is able to improve the supply chain performance (Kolluri et al. 2022).
“Risk Analysis Graph”
This model can help the project development by providing several strategies for improving the solar project. First Solar originated as a glass company (Kolluri et al. 2022). Moreover, the specific risk has been associated with the contingency plan as well as the mitigation plan of the risk associated with the project development.
According to First Solar, the need for the Photovoltaic panel has been reduced in several markets. Therefore, it has caused a lower sales rate for the company. In addition, it has also decreased the revenue of the company. On the other hand, it has been also affecting the target market of the company.
Figure 1: Risk Analysis Graph (Source: Bhukya and Pabboju, 2019)
On the other hand, the company has been also facing challenges regarding supply chain disruption. Besides that, from the financial year, 2008 to 2011, the supply of silicon in this organization’s First Solar has been reduced (case study). It implies that the decrease in the supply of raw material on a large scale from the perspective of First Solar.
Therefore, based on the RX graph analysis it seems that implementation of the advanced technology can help the company in improving the supply chain disruption. Real-time data analytics such as big data analytics can help the company in attacking company data and requirements (Suárez-Barraza, and Rodríguez-González, 2018).
Therefore, based on the research it is necessary for the company to analyze the risk with the help of technical provisions. With the help of the perfect proportion, the suppliers of the company can be easily dealt with the requirements of the first solar. Moreover, most of the data area states with the contextual data of the first solar. Therefore, it can be recognised that technical implementation can help the company in mitigating its challenges regarding supply chain disruption and reducing the need for PV cells.
Ishikawa diagram
This model has been helping the project development by identifying the project causes well as providing strategic and in order to mitigate the project challenges (Suárez-Barraza and Rodríguez-González, 2018). The case sts v states that the indemnified risk has left a huge impact on the financial management of the company. Therefore, for both primary as well as secondary causes it is necessary to implement digital technology to reduce the impact of the challenges.
Figure 2: Ishikawa diagram (Source: Luca and Luca, 2019)
As per risk 1, decreasing the need for PV cells in the target market can leave a huge negative impact on the company (Suárez-Barraza and Rodríguez-González, 2018). However, as a strategy, the company has taken the step of improving its inventory management of the company. Besides that, as per the second risk, the supply chain disruption regarding silicon can develop the risk of the company.
It can also help the company in reducing the challenges regarding the lack of raw materials within the workforce of the company (Luca and Luca, 2019). Based on the third risk of the company, it stated that the financial underperformance could create several challenges within the workforce of the company. Therefore, the pepper collaboration can help the company in improving stakeholder engagement while developing the project.
3.0 Conclusion
The definite proportion regarding the “risk management lifecycle” has been presented regarding the utilization of the two risk analysis aspects such as the “Ishikawa diagram” as well as the “Riskit Analysis Graph”. The “Ishikawa diagram” represents the root cause of the issue regarding the low demand for the PV panel in several markets. In that part, it includes the area of failings of this aspect on a large scale. The root cause of this segment has been detected step by step.
On the other hand, the “Riskit Analysis Graph” has been implemented regarding the obstacles, which can be found in relation to this project of this organization. The effect of the risks on the business of this organization has been implemented through the analysis of the risks with the diagram. These two diagrams majorly aim to make the proper understanding about the impact as well as the reason for the adverse situation regarding the risks which can be found inside the organization called First Solar.
From the perspective of this study, it can be said that this study majorly highlights the appropriateness of the plan of mitigation, which implies the investment of the shareholders. It includes the stakeholders of this organization; improvement of quality of services as well as the improvement of promotion of the services of this organization, as well as it includes the collaboration with the suppliers on a large scale from the perspective of the business of First Solar.
It is important for this organization to mitigate the risks in order to make the project of this organization First Solar flawless. The method of the risk analysis supports this organization to exclude as well as dissection of the adverse factors inside the business of this organization. Not only that but also the utilization of the method of a risk analysis helps this organization to take the measurement of the benefits of the contingency plan.
References
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