KICC Case Submission

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2. Financial Risk : If our competitor is managing employee costs in a more effective way which is having an impact on our employees Strategy: Reduce It’s a risk we cannot ignore and this is one of our key factors to impact our bottomline. So we plan to reduce it through variable components (E.g.: Tying employee pay with industry performance, providing ESOPs, employing employees on contracts which will prevent them to leave the company too soon) 3 rd Party: Risk: Relationship with existing players , loyalty with existing players Strategy: Transfer Instead of variable contract, we can get into fixed contract with 3 rd party service providers like hotel chain, restaurants. Safety: Risk: This might consume more capital Strategy: Accept New Airline, cannot compromise on safety even if it might consume more non-performing capital

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KICC

Transcript of KICC Case Submission

Page 1: KICC Case Submission

2. Financial

Risk : If our competitor is managing employee costs in a more effective way which is having an impact on our employees

Strategy: Reduce

It’s a risk we cannot ignore and this is one of our key factors to impact our bottomline. So we plan to reduce it through variable components (E.g.: Tying employee pay with industry performance, providing ESOPs, employing employees on contracts which will prevent them to leave the company too soon)

3rd Party:

Risk: Relationship with existing players , loyalty with existing players

Strategy: Transfer

Instead of variable contract, we can get into fixed contract with 3rd party service providers like hotel chain, restaurants.

Safety:

Risk: This might consume more capital

Strategy: Accept

New Airline, cannot compromise on safety even if it might consume more non-performing capital