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Homework answers / question archive / Running head: CORPORATE SOCIAL RESPONSIBILITY 1 Contingency BA61170G619 Mahammad Shaik Campbellsville University Contingency Definition Contingency planning has been defined as the advance preparation of a course of action to meet events that are not expected, but will have a significant impact on the organization if they occur (Hopkins, 1986)
Running head: CORPORATE SOCIAL RESPONSIBILITY 1
Contingency
BA61170G619
Mahammad Shaik
Campbellsville University
Contingency planning has been defined as the advance preparation of a course of action to meet events that are not expected, but will have a significant impact on the organization if they occur (Hopkins, 1986).
Though contingency plans are used very rarely or sometimes not at all it is very important for any business to have a contingency plan. Contingency plan can also be called as plan B to run a business when plan A fails or has any hurdles. Human or non-human actions can cause hinderance to the operations of an organization and this needs to be addressed without any delay and that is where an organizations CP is brought into picture. If the organization doesn’t have an existing CP then to recover from the effect of the event will cost time and money. The article explains about the need of CP for manufacturers and distributors to full fill the supply chain, it also explains the consequences of not having a CP. With today’s growing number of production and distribution activities being assigned to geographically dispersed facilities globally amplifying the risk of supply disruptions, it is imperative for firms making these complex decisions to identify all potential threats that can impede income streams and product flows, inflate prices, and lower profits in supply chains (de Matta, 2016).
The article further discusses about alternative way of meeting supply chain by using additional resources. The product produced by using additional facilities and resource during a good period acts as a buffer and will help in meeting the supply chain. While this is one way of handling supply disruption it does have its drawbacks, they have presented other CR model than can be used in the preliminary planning stage.
Some of the common question’s organizations have are, is CR really necessary? Is crisis management not sufficient to handle the unplanned event? What is the use of having a CR if it is not used? So, to answer these questions one need to truly understand the effect an unplanned incident has on an organization. Not only does the unplanned event cost money sometimes it also costs lives. While many discussions are underway about the important of the CR, as (Miller, 2020) says detailed contingency planning is an essential feature of any project move and having the right team in place is the key.
As the article details that CR must be brought into the plan right from the beginning of the supply chain that means one must think of all possible ways in which an uneventful event can occur and come up with a plan. Formulation of a CR plan needs deep insight into business and analysis of the business being set up so as state above pulling in right people will also play a major role in the success or failure of the CR.
References
de Matta, R. (2016). Contingency planning during the formation of a supply chain. Annals Of Operations Research, 257(1-2), 45-75. doi: 10.1007/s10479-015-2085-0
Hopkins, W. (1986). A Timeless Organizational Question: Crisis Management or Contingency Planning?. American Business Review, 3(2), 46-53.
Miller, M. (2020). Contingency planning key to any project move: Detailed contingency planning is an essential feature of any project move and having the right team in place is the key. American Journal Of Transportation, (700), 24-27.
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