MGT503 Assignment # 2 Solution

SOLUTION FILE
ASSIGNMENT # 2
MGT503
LECTURE 18 TO 24
IMPORTANCE OF PLANNING
As the news of influenza pandemic broke out, it was witnessed that the government and
health officials rushed to purchasing medicines, conducting disaster drills and taking such
initiatives that would limit the spread of these diseases.
However, one survey indicated that 72% companies had not even begun to prepare for
the bird flu pandemic. Most of the business officials in United States stated that they had
nobody in charge of a plan that could identify the severity of the issue and its impact on
operations. On the contrary, Asian and particularly Southeast Asian countries had
planned for this situation, as they previously had to deal with the SARS outbreak in 2003
which brought the regions’ commerce to a standstill. But they were well prepared this
time. A survey of 80 corporate officials held by American Chamber of Commerce in
Hong Kong found that nearly every company had someone incharge of such catastrophic
situations and 60 percent stated that they had clearly mapped out plans that could be
implemented immediately in such a crisis situation. For instance, HSBC, a global bank
took steps to help and prepare its employees work from home and also prepared to divide
work among multiple sites. Even FedEx said it had prepared contingency plans down to
every district or market in Asia Pacific.
But what about those businesses that had not yet prepared for a potential outbreak? A
report on the outbreak of such a deadly flu reported. “In a world where the global supply
chain and real-time inventories determine almost everything we do, down to the food
available for purchase in our grocery stores, the importance of advanced planning can not
be overstated.”
1. What role do you think goals might play in a company’s planning for any possible
pandemic outbreak? List down some goals that you might will be important 10
2. What type of plans might companies need for this situation ( for instance short
term, long term or both) Explain why you think these plans are important in this
situation 10
3. Being a manager what planning tools would you recommend to deal with this
type of situation effectively? 10
KEY
1. Goals and measures required to achieve them must be outlined in phases to
deal with each progressive phase of a pandemic outbreak effectively. Some
of the key goals for such a situation would be:
• Efficient global pandemic inspection by special committee with
allocated budget
• Revisions in company policies on health care facilities, infrastructure
• Trainings for personal hygiene, quarantine initiatives
• Contingency plan for changes in staff availability, morale and core
functions.
2. Combination of short-term plans that lead progressively to long term
capacity development. This is because incase the disease does not transmit to
humans then it is not pandemic and would not require execution of longterm
plans. However, incase the disease is endemic in some or all regions, it
would require long-term plans.
3. Quantitative forecasting of Time series and Explanatory models would be
effective to develop forecast for the future.
Explanatory Model would help to identify major causal factors which, if
changed, can be used to predict future circumstances. This would help
managers to identify and take necessary action to change those factors
appropriately.
Time Series would be beneficial as it predicts broad environmental factors
and possibly some of the factors in the past leading to pandemic outbreaks
would resemble those in the future.