QUESTION 1
PART A
Regulatory Compliance Risks
RSD operates in the alternative energy sector, which is subject to strict environmental and
safety regulations. Non-compliance can lead to heavy fines and reputational damage.
Economic Fluctuations
The South African economy is subject to fluctuations that could affect consumer demand and
the cost of raw materials, impacting RSD’s profitability.
Technological Risks
The use of outdated machinery in the rotor systems division poses a risk in terms of production
efficiency and product quality. Failure to innovate may result in losing competitive advantage.
Social Risks
The male-dominated management structure may lead to social backlash and affect employee
morale and retention, particularly among women and minority groups.
Supply Chain Vulnerabilities
PART B
, Dependence on specific suppliers for raw materials can lead to disruptions in production,
especially if those suppliers face financial difficulties or operational issues
PART A
Regulatory Compliance Risks
RSD operates in the alternative energy sector, which is subject to strict environmental and
safety regulations. Non-compliance can lead to heavy fines and reputational damage.
Economic Fluctuations
The South African economy is subject to fluctuations that could affect consumer demand and
the cost of raw materials, impacting RSD’s profitability.
Technological Risks
The use of outdated machinery in the rotor systems division poses a risk in terms of production
efficiency and product quality. Failure to innovate may result in losing competitive advantage.
Social Risks
The male-dominated management structure may lead to social backlash and affect employee
morale and retention, particularly among women and minority groups.
Supply Chain Vulnerabilities
PART B
, Dependence on specific suppliers for raw materials can lead to disruptions in production,
especially if those suppliers face financial difficulties or operational issues
