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There are three main threats that the firearms company Smith & Wesson faces according to its 2020 annual report. The first risk is the effects resulting from the COVID-19 pandemic in 2020 (Smith & Wesson, 2020). These pandemic effects are a risk to Smith & Wesson in that the company’s manufacturing processes face reduction or interruption due to the various national and international quarantines and stay-at-home orders. The second risk to Smith & Wesson is restrictive amendments to federal or state firearm legislations. These changes in legislation may pose a risk to Smith & Wesson through the possibilities of further restrictions on the acquiring of firearms or by the “outright ban on private gun ownership” (Smith & Wesson, 2020, p. 22). These restrictions or bans are a risk for Smith & Wesson through reducing the number of sales the company would be able to achieve if its customer base is severely limited. The final major threat for Smith & Wesson is the possibility of unfavorable global economic conditions (Smith & Wesson, 2020). The risk of unfavorable global economic conditions is a risk for Smith & Wesson because it would negatively impact the willingness for consumers to spend money. Out of these three risks, the risk related to COVID-19 is the unexpected risk for Smith & Wesson. This risk is unexpected because retail and manufacturing planners were not expecting states within the United States and countries to have stay-at-home orders that would limit business operations. The remaining two risks are risks that Smith & Wesson expects due to the nature of the firearms industry.

Timothy

References

Smith & Wesson. (2020). Annual report 2020. Retrieved from https://ir.smith-

wesson.com/static-files/ac951aa0-2866-4867-b3e3-48cc464cda13