The Making and Selling of Ice-Creams - Assignment Example

This ice cream has been known for its heavy use of fresh condiments and low overrun. In 1984, the UDF Homemade Brand of ‘Cookies N Cream’ was designated by People Magazine as the Number One Brand of Exotic Ice Cream across Canada and the USA. Following this endorsement, UDF Brand ice creams have increased in popularity and can be found in many states in the mid-central region of the USA. The business has expanded to Georgia, Indiana, Illinois, Florida, Kentucky, Louisiana, Mississippi, Michigan, Ohio, North Carolina, Pennsylvania, South Carolina, Tennessee, West Virginia, and Virginia.

UDF also produces and sells Frosty Malts and Sherbets, Special Recipe ice-creams, yogurts, and milkshakes (UDF Website, History Section). Identification of Risks The making and selling of ice-creams is an exciting business but is nevertheless fraught with different risks. Some of these are natural, but others are artificial. Consequently, some of the risks can be covered by insurance and other safety and security procedures, while others must be borne or dealt with. In my interview with the manager, I determined that the following risks were most relevant to UDF’s ice-cream-related business: a.

Risk of long power failure and melting of inventory; b. Risk of legal action due to foreign objects found in products; c. Risk of contamination of ice cream due to chemical agents; d. Risk of ice cream parlor/ store outlet burning down; e. Risk of rioting, hooliganism, and other disruptive activities; f. Risk of employees going on strike or industrial action; g. Risk of bad service because employees are insufficiently trained; h. Risk of its formulas and recipes being compromised; i. Risk of contaminated supplies of inputs; j.

Risk of contamination or exposure in the delivery process. Steps That Can Be Taken to Mitigate These Risks The risk of long power failure though unheard of is possible in case of a natural calamity like a tornado, blizzard, thunderstorm, or flood striking Columbus, Ohio. Riots and strikes are also covered. Even emergency systems could be affected, and businesses forced to shut down for some time. In this case, keeping the inventory and supplies safe, secure, and ready for consumption will be a challenge.

However, the business has determined its usual stock of inventory and consumption on weekdays, weekends, and public holidays. It has accordingly ensured each store on the average level of stocking and consumption. The backup system at the stores ensures that power is available for three days or 72 hours, but after that, something will have to be done to preserve the merchandise. Insurance has been taken out for possible inventory losses. A contract has been entered into with a cold storage plant to store supplies and goods there is an emergency, ensuring business continuity.

Quality control is strictly ensured as all inputs are checked before inclusion in the production process. If there are signs of low quality, the entire lot is returned and replaced according to the contract with suppliers. The business has also hired local legal and advertising agencies to promote its products via various media, including television, billboard, and internet-based advertising. The legal firm is also responsible for vetting all press releases and protecting against copyright and trademark infringements.

It is Also prepared to take action if anyone sues the company on any grounds. Since it is a family business, the secrecy of the recipes is well maintained (Alexander & Sheedy, 17).The storage facilities are very well maintained, and UDF has the latest engineers and technicians that specialize in cooling and preserving techniques and judging and ensuring quality control standards. UDF even trains its frontline staff and managers on dealing with customers, so a congenial atmosphere is maintained at all times.

Over 60 percent of orders are from returning customers, while 40 percent are new, so there is a healthy mix of old and new consumers. All facilities have also been ensured against risks of fire, earthquake, and other hazards. Although the insurance premiums have gone up ever since introducing UDF fuel stations, we believe that the costs are well worth the increased business opportunities. This has transformed the business from a seasonal to a perennial one.               Commentary on Risk Management and Reduction Techniques         Although some risks can never be totally mitigated, it seems that UDF owners and management have carefully thought of the possible risks and tried to reduce or eliminate them as far as possible.

With this assurance and commitment, you can be sure that the business will not fold anytime soon and will likely last through your lifetime.