The management team at National Furniture has critically analyzed the company and the market and has identified two major areas of risk for the company:

>   Diversion from core competency.

National Furniture is in the process of starting up, and part of this entails the aggressive promotion of it’s consulting services division.  Being is a new company, there is the danger that this booming service division will grow very quickly thereby distracting the company from it’s mission statement of providing fine quality furniture and consulting services.

>   Implications of fast growth.

The current start up plans call for rapid growth in both consulting and furniture sales.  These goals, coupled with modern production process, will lead to a fast pace of activity.  This will have profound implications in terms of it’s employment possibilities, it’s computer systems, and it’s management structure.  There is a danger that National Furniture will expand it’s sales orders and accounts faster than the company can adapt to it’s environment.