Essay on Benefits And Risks Of A Business
The coexistence of the rewards and the risks in diversification may maximise business value or depreciate it (Markides 1997). Accordingly, to reduce the uncertainties involved in this high-stake transition, healthy potion sole trader could apply SWOT analysis to the business in a structured way (Martín-Collado et al. 2013).
Initially, the business is likely to encounter internal situations which are strengths and weaknesses (Hill and Westbrook 1997). In terms of the strengths, healthy portion business has achieved product differentiation, since it sells an exclusive beverage, requiring plant extracts from north-western China. The raw materials are unique and the production technology is confidential that cultivated the core competence (Needle 2010 cited in Ji 2015, p. 6). Moreover, compared to soft drinks that are popular in the market, plant…