Choose a company to analyze. 2. Identify the different business to which it is exposed to. Provide reasons why they are exposed to these risks. 3. Create a risk assessment matrix for the identified risks in item (2). 4. Provide suggestions/recommend

Analysis and Risk Control Matrix for Gucci

The French corporation "Kering" owns the Italian fashion house Gucci. Guccio Gucci
launched the company in 1921. Inspired by the high-end goods he saw while working in luxury
hotels, Guccio Gucci set out to create his line of high-end goods. Purpose of this analysis is to
identify the businesses that Gucci is exposed to and analyze the risks that come with it.
Gucci's activities expose it to a wide range of industries. As a company, Gucci takes part in
various community, social, and environmental initiatives. "Chime for Change" and "Unicef"
have worked together for a long time (Kim et al., 2013). As a high-end fashion brand, it was
only natural for the company to branch out into automobiles. In the past, Gucci has created a
variety of automobiles, each with a distinct combination of efficiency and style.
Reasons and risks are that Gucci's major benefit over other high-end fashion brands is that it
does not wait for a specific occasion before launching new products. This strategy ensures that
the shop layout always appears fresh and trendy. In today's market, Gucci faces competition
from other sectors as well. Others are as well-known, if not as well-known, like Gucci. Like
Christian Dior, Ralph Lauren, and Burberry, several high-end fashion businesses have frequently
irritated Gucci.
Risk Assessment Matrix for Gucci (Embry et al., 2014)

Consequence
Insignificant Minor
Likelihood Low-Medium Low - Medium
Low -Medium Low - Medium
Low Low -Medium
Low Low - Medium

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Low Low
Generally, to deal with the risk, Gucci can grab the opportunities to counter the threats.
For instance, as wages climb and more individuals find themselves in well-paying jobs, today's
youngsters are practically demanding luxury products hence more market for Gucci. Also,
because of the predicted surge in demand for ultra-premium products, China and India are
hotspots for luxury brands like Gucci. Finally, Gucci has a big edge in that fashion never goes
out of style. Being at the front of the line, it will not have difficulty achieving sustainability.

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References

Embry, Michelle R., et al. "Risk assessment in the 21st century: roadmap and matrix." Critical
reviews in toxicology 44.sup3 (2014): 6-16.
Kim, Dong Hoo, and Yongjun Sung. "Gucci versus Old Navy: Interplay of brand personality and
regulatory focus in advertising persuasion." Psychology & Marketing 30.12 (2013):
1076-1087.