Mega Ltd. was manufacturing water-heaters. In the first year of its operations, the revenue earned by the company was just sufficient to meet its costs. To increase the revenue, the company analyzed the reasons of less revenue. After analysis, the company decided
(i) to reduce the labour cost by shifting the manufacturing unit to a backward area where labour was available at a very low rate.
(ii) to start manufacturing solar water-heaters and reduce the production of electric waterheaters slowly.
This will not only help in covering the risks, but also help in meeting other objectives too.