Maya's Business Post Crisis: Would Contingency Planning Have Helped?
(b) Discuss whether any amount of contingency planning would have saved Maya’s business in the aftermath of the crisis. (40 marks)
A contingency planning is the creation of plans of how particular crises which might affect a business will be dealt with should they arise. In this case study, it can be seen that Maya did not have a contingency planning. She was ill-prepared for such a disaster. A contingency planning could help a business to deal with unforeseen eventualities; it is always good to have a few plans to know what to do to deal with the problems arise to prevent failure.
Firstly, if Maya have a contingency plan, she would not panic and worried about what to do next after the explosion. She could react and solve the problem more quickly; also it would be much earlier for her to follow the plan to deal with the crisis to make sure everything can be solve in the best solution. A well contingency plan allows employees to move quickly into recovery mode rather than waiting for instruction. When everyone knows where to go, what to do and who to turn to for instruction, order can be maintained. Averting panic allows Maya to focus efforts on recovery operations to minimize loss.
Secondly, if Maya have a contingency plan and planned there might be a crisis such as fire, explosion or other incident that will destroys her shop, she will identify that she will lost her put and fall in revenue. There will be costs of rebuilding and replacing her stock, so she might hold contingency funds to deal with the financial implication of crises. She will then be able to rebuild her business again with the contingency funds.
Thirdly, the explosion has damaged her entire stock and none of it was saleable and fixtures and fitting were not worth salvaging. If she had plan for such thing to happen, she might not hold all her stock in the shop, she could either use just in time to order her stock when she needed or do not hold too much stocks. So although she will lost all
A contingency planning is the creation of plans of how particular crises which might affect a business will be dealt with should they arise. In this case study, it can be seen that Maya did not have a contingency planning. She was ill-prepared for such a disaster. A contingency planning could help a business to deal with unforeseen eventualities; it is always good to have a few plans to know what to do to deal with the problems arise to prevent failure.
Firstly, if Maya have a contingency plan, she would not panic and worried about what to do next after the explosion. She could react and solve the problem more quickly; also it would be much earlier for her to follow the plan to deal with the crisis to make sure everything can be solve in the best solution. A well contingency plan allows employees to move quickly into recovery mode rather than waiting for instruction. When everyone knows where to go, what to do and who to turn to for instruction, order can be maintained. Averting panic allows Maya to focus efforts on recovery operations to minimize loss.
Secondly, if Maya have a contingency plan and planned there might be a crisis such as fire, explosion or other incident that will destroys her shop, she will identify that she will lost her put and fall in revenue. There will be costs of rebuilding and replacing her stock, so she might hold contingency funds to deal with the financial implication of crises. She will then be able to rebuild her business again with the contingency funds.
Thirdly, the explosion has damaged her entire stock and none of it was saleable and fixtures and fitting were not worth salvaging. If she had plan for such thing to happen, she might not hold all her stock in the shop, she could either use just in time to order her stock when she needed or do not hold too much stocks. So although she will lost all