Please help me to correct it. I'm not good at business English.
Investment risks
Business and operational risks
(B1) Brain drain (high probability, high impact)
Human capital flight or replicate designs to PNJ competitors as DOJI or SJC is one of the major reasons to lose the key designer, have negative impacts on quality product and reputation.
• Mitigant: PNJ can build the attractive compensation policy, take care of employee’s spiritual life and focus on company culture.
(B2) The safety of goods in retail stores (low probability, high impact)
During 2015, PNJ is located at the head of jewelry retail and the characteristic of goods have small size but high value. PNJ may have difficulty keeping safety for jewelry products.
• Mitigant: PNJ retail stores both were equipped with security systems and had insurance for goods in safe.
(B3) Focusing on wholesale jewelry by big competitors and expansion of foreign competitors (high probability, medium impact)
The market have maintained a high degree of dispersion in retail sector with 10.000 small retail stores accounted for 80% of market share. It suggest that the attractive market will gravitate towards many domestic and foreign competitors.
• Mitigant: Target PNJ’s high-profile while complete comprehensive management quality products.
Regulatory risks
(R1) Change of policy Government (low probability, high impact)
The economy always has the potential risks, especially sensitive market as gold market. It is inevitable of changing the economic policy of a government which brings positive or negative effects of company’s business result.
• Performance: Since the State Bank of Vietnam issued a decree No.24 on gold bullion trading management in 2012, the opposite of trends had been happening between gold bullion and gold jewelry demands. It made a huge opportunity for PNJ to change strategy and grow in jewelry market.
Market risks
(M1) Input raw material price volatility (medium probability, medium impact)
The core business of PNJ are wholesale gold and silver jewelry. That’s why the more input raw material price volatility especially gold price, the pricing strategies and supply are more than unstable.
• Mitigant: PNJ use an amount of 5% on their gross profit margin to minimize this risk.
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