Strategic Risk Management

Strategic Risk Management

a) Summarize the business of Visa Inc. and identify the strategy it is pursuing. Consider relevant competitive forces and use SWOT Analysis to analyze the company. Identify, describe and evaluate the key strategic risks(2-3 risks)the company is facing as well as their potential upside/downside implications.

(b) Recommend approaches to mitigate the risks you identified. Identify one strategic risk that is common to both companies. (Mastercard and Visa) Contrast the different ways both companies address this risk.

(c) Determine which company’s strategy is more likely to be successful, and state the rationale for your decision.

(d) Based on your overall assessment in this memo, focusing on the strategy and the strategic risk posture of the firms, should the Pierre Group complete the acquisition of Mastercard, Visa, acquire both companies or neither. Why?

Answer preview

According to the Visa Inc strategy report in 2013, the company operates the largest payment network globally (Shain, Rojo, & Gentili, 2013). Visa Inc has achieved to create numerous partners, achieve financial solidity, and increase its size.  The company has helped facilitate commerce through a secure and seamless payment experience for consumers and businesses. This paper explores the appropriate business strategy within competitive forces and risks within the payment services industry.  Visa Inc strategy has a comprehensive global expansion strategy within a competitive market. Hence, it is important to consider a differentiation strategy in addressing major risks such as marketing its operations.