Posted: February 21st, 2022

ms6012 m4a2 response

Arthur Cooper 
   
Duke Vitality is a southern energy firm that was fashioned in 1905by Dr. Walker Gill and his brother however obtained backing from James B Duke who later took management of the corporate (Duke Vitality, 2018). That is thought-about one of many largest energy corporations within the US. Nonetheless, they depend on a number of varieties of pure sources to provide vitality nuclear energy crops, coal-fired crops, typical hydroelectric crops, natural-gas generators to deal with peak demand, and pumped hydro storage (Duke Vitality, 2018). Organizations of this sort are extremely regulated by the federal government and are at all times subjected to developments in know-how. Dangers that Duke might face encompass Political Dangers that creates unfavorable returns on investments attributable to political adjustments or unstable governments (Keat, 2013). With such robust authorities rules, they could happen new insurance policies that prohibit their processes and manufacturing procedures. For example, Duke Vitality was fined and taxed closely due to dangerous practices pertaining to their coal operated crops (Duke Vitality, 2018). Duke can also be subjected to technological dangers the place organizations faces dangers attributable to design, operate and manufacturing of a product. Rivals of Duke are at all times innovating and creating newer and safer methods to provide vitality. The federal government additionally requires organizations to observe sure processes of their energy manufacturing. If Duke is unable to stay aggressive attributable to this new know-how or make a revenue attributable to excessive authorities mandates, they’re subjected monetary troubles.
Ford Motor firm is an American base automaker that stretches internationally with factories in a number of nations. The automotive trade is at all times altering and adopting new applied sciences and improvements. They’re subjected to strict authorities mandates as nicely. They have to additionally stay aggressive within the enviornment of latest automotive improvements and know-how. Persons are demanding safer vehicles with new technological options and environmentally protected. The dangers they face are economical that are created by income not being sufficient to cowl price of manufacturing attributable to below/improper forecasting (Keat, 2013). New know-how and improvements are solely nearly as good because the buyer calls for. Because of this if the folks don’t demand these merchandise they’re on the expense of the corporate. Political dangers are additionally threat that Ford might face particularly since they’ve factories in several nations. The federal government of those nations can collapse or create tariffs that will interrupt earnings. Technological dangers are additionally threat they could face. The persons are demanding electrical vehicles and self -driving vehicles extra. If Ford is unable to stay aggressive or produce these merchandise it will possibly have an effect on their earnings.
Each corporations are topic to all three types of threat. Nonetheless, providing totally different merchandise separates the 2. Okay, as an example energy is taken into account an inelastic good and is much less delicate to cost adjustments (Keat, 2013). Because of this if value will increase folks will nonetheless use this product due to its excessive demand. Nonetheless, with the case of Ford their product is elastic since folks should purchase cheaper vehicles. They each should adhere to authorities rules or be subjected to excessive fines and potential shutdown. The elasticity of demand is what separate the 2 corporations though they share the identical dangers.

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