Chapter 6 Business Continuity Planning and Disaster Recovery Planning Chapter Objectives After reading this chapter and completing the exercises, you will be able to do the following: ■ ■ ■ ■ ■ ■ ■ ■ Distinguish between the business continuity plan (BCP) and the disaster recovery plan (DRP). Follow the steps in the BCP. Inform business executives why planning is important. Define the scope of the business continuity plan. Identify types of disruptive events.
Strategic Pre-Incident Changes: Prevention initiatives are a vital part of business contingency plan and play a key role in eliminating or mitigating potential hazards before an incident occurs. First, SterlingCrest will form a risk management department that will be responsible for conducting risk assessments for each corporate department and for the retail stores. The Risk Management department will be responsible for coordinating the efforts of the risk assessments and for the business contingency planning. Each department and store will be responsible for maintaining the business contingency plans within the guidelines and timelines provided by the Risk Management department. To aid in the risk assessment process, SterlingCrest will utilize a variety of tools to assess several types of risk with a department and prevent losses from occurring.
Those directly involved will also include the Board of Directors and executive leadership. The member of the BCP execution team will be delegated roles and tasks to provide clear understanding and plan execution. The BCP team will be a cross-functional team that covers all critical areas within the department, so in the event of a major business
Businesses require a tool to measure the execution of objectives. As far as the goals of objectives they are supposed to align with a stated vision and mission. Effective objectives ensure that daily activities align with the big picture or if there will be a need to adjust redirect focus. A balanced scorecard is a tool, generated by Robert S. Kaplan and David P. Norton. Authors Pearce and Robinson (2009) suggest, a balanced scorecard “Is a set of measures that are directly linked to the company’s strategy,” “Directs a company to link its own long-term strategy with tangible goals and actions,” and “Provides a framework to translate a strategy into operational terms” (p. 202).
Controlling is when a manager makes certain that a plan is in place and followed by each affected area of the organization. Next would be organizing the staff to make sure each employee has the right skills to work on the plan and making certain that the plans are followed. Next would be organizing and directing and deciding what resources are most effective for the task at hand and how to use these resources. The reason for this is so that the organization runs smoothly and effectively. The last element is decision making and managers must do this after reviewing the choices from the information and the alternatives given in the reports or logs.
This plan will also extenuate the legal risks of you the directors and officers of Riordan and the plan will also address the specific laws or aspects of the law that must be adhered to by Riordan as well as an outline of these steps for employees to adhere to these laws. Risk Management Enterprise There are eight components of the enterprise risk management system that includes internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication, and monitoring (COSO.org). The first step in ERM process is to ensure that Riordan has a comprehensive understanding of its internal environment. Riordan and its associates must be able to identify their operating strategies and the way that they are viewed by individuals as well as other companies. Riordan should have a clear understanding of the benefits of operating with integrity and following all ethical guidelines associated with running a successful business.
4. Is ECCO following the inside-out or outside-in strategic perspective? What are the implications of this choice and how can ECCO increase their sales/marketing efforts? * Inside-out strategy: which is an internal oriented strategy. This strategy emphasizes the company’s ability to utilize its existing internal resources and focuses on streamlining operation through proper sizing and cost reduction.
Dell offered to use Giganet’s switches as well as invested $5million in the company. Dell’s product backing opened up major doors for Giganet starting with a $6million investment from Merrill Lynch and ultimately resulting in an offer to purchase the company for $300 million by Emulex. A worthy product, highly developed technology, and Industry leaders knocking down the doors to invest in Giganet certainly characterizes the organization as a success. But without the experience, expertise, innovative business solutions, and product promoting of Neil Ferris Giganet could have just as easily met its demise. What did Ferris do that contributed to that success?
"What kind of company do we want to become / what kind of company must we become?" • Strategy A strategy is concerned with the actions and resources needed to achieve specific long-term objectives. Some typical questions one might ask at this level are: "What conditions need to hold for our business to be viable?" "What products and services will we offer and to what customers?" "What capabilities and capacities will we require?"
Chapter one analyses Medtronic as a multinational enterprise by addressing”an initial screening of business environment including political environment, economics, culture etc. Medtronic’s competitiveness and abilities is analyzed through a combination of country specific advantages (CSAs) and firm specific advantages (FSAs) and is included in FSA/CSA Matrix and by addressing Porter’s four determinants. In chapter Two in-depth analysis of challenges and issues the company faces as well as risk management plan the company must undertake in a long run for reducing its operational risks. The last chapter is about developing a strategy for the successful operation of Medtronic as an MNE with an overview of IHRM, personal selection, training and development. Recommendations and suggestions for Medtronic on the level of involvement the company should take to increase the likelihood of long term success are included in the conclusion.