Impact of the Risk on Tiger Golfs Efficiency and Product Quality Case Study

Impact of the Risk on Tiger Golfs Efficiency and Product Quality - Case Study Example This paper illustrates that in addition to the probability and impact of each risk, Magness should determine the risk proximity for each identified risk. This approach would enable Magness and his team to avoid certain risks whose timing may be predicted or anticipated with a reasonable degree of accuracy. Supplier 1 poses some unique risks for Tiger Golf. These risks relate to both product quality and timeliness. The new product line represents the proprietary and intellectual capital of the company. However, as Supplier 1 produces successful knock-offs of golf clubs, there is a risk of lost revenue if the supplier produces replicas of the Tiger Golf line of golf clubs. Secondly, delivery is made FOB Origin and Port Kelang after which the cost and risk during transit would be borne by Tiger Golf. This would expose the company to the risk of damage in transit and delay. Risk of delay further increases because of the transit through the congested Malacca Straits. Moreover, there is a moderate risk of piracy in waters near Indonesia. Supplier 2 presents the risk of product loss and damage because of the lengthy overland distribution route. Disruption at any point in the distribution chain could lead to delays in product delivery causing the company to fail to launch the product at the PGA merchandise show due in six months. Trucks and rails transporting the goods could break down resulting in equipment malfunction and further delays. Supplier 3 poses the risk of supply chain interruption due to a capacity shortage. A delivery delay may also arise due to port congestion. Nonetheless, they promise to meet deadlines.