OL 645 Article Anaysis Performance Management

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Southern New Hampshire University *

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Management

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Apr 3, 2024

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1 3. Executive Summary Project Phase I: Imagine your company is planning and strategizing for the future and that you have been asked by the executive team to brief them on the state of the risks and opportunities in the industry. Prepare a 2- to 3-page analysis of the Executive Summary by Ernst and Young Business Pulse 2013, along with a review of the Modules 1-5, your textbook, and other research. Your analysis will help the top executives create a comprehensive strategic plan that includes risks and opportunities that could impact employees and other stakeholders. Make sure your paper clearly addresses the following questions: • What are the top legal, safety, environmental, and financial risks and opportunities identified? • What situations are influenced by society, culture, politics, health, safety and security? Connect to Federal and State laws when appropriate. • In the global market, what are challenges businesses face when identifying risk for forecasting?

2 Introduction/ Article Summary Crisis management is defined as “a series or processes to identify, study, and forecast crisis issues, and set forth specific ways that would enable and organization to prevent or cope with a crisis” (Kash & Darling, 1998). Kash and Darling also discuss preventative strategies a business can take such as “strategic forecasting, contingency planning, issues analysis, and scenario analysis”. Also discussed are the four stages of a crisis. The first stage of a crisis is the Prodromal stage where the signs that there is a problem begin to show themselves. The second stage is the acute stage where the problem reaches a point where it needs immediate attention. In the third stage known as the chronic stage, the problem is clear and ever present. The last stage in a crisis is called the crisis resolution stage and is an attempt to solve the problem. Preventative or Intervention of a Crisis In business, failures and bankruptcies are not the intended result of a research and development project and do not generally happen overnight. However, they are more often caused by the lack of attention given to symptoms of a crisis more than any other reason. These symptoms can alert the executives that there is a problem that needs to be addressed. Some of these symptoms include “slipping market share, losing strategic synergy and diminishing productivity per man hour, as well as trends, issues and developments in the socio-economic, political and competitive environments” (Kash and Darling, 1998). Nike In June of 1997, Nike redesigned its Summer Hoops brand of basketball shoes which had the word air written in flaming letters. There were complaints by the Islamic-American Relations which stated that the logo resembled the Arabic word or God or Allah. Global boycotts of the company’s products were threatened. Nike apologized and recalled 38,000 shoes as well as

3 discontinued the entire line (Brindley, 1997). Even though Nike spent a lot of money to create the shoe line, they did not look forward ensuring that any controversies could withstand the scrutiny. McDonalds This is an example of the Prodromal stage of a crisis. At McDonalds, an elderly woman spilled a cup of hot coffee in her lap and caused severe financial losses for the company and tarnishing the company’s image. The company did not pay attention to the symptoms of the problem before it happened to prevent this crisis from occurring. Many customers complained about the temperature of the coffee being too hot before this incident happened. Intel Intel is the maker of computer chips. In this situation, the Pentium chips were proving unreliable on certain calculations. At first, Intel first said that they were not going to recall the chips. However, after the problem had reached the acute stage, the company decided to initiate the recall. Accusations were made that the Pentium chips were not as fast as stated. The company then apologized and recalled the unreliable chips. The examples set by all three of these companies show interventional means of dealing with a crisis (Kash & Darling, 1985). The companies involved did not see the symptoms of the crisis until it happened and then just reacted to the issue instead. There was no prevention because the symptoms were ignored. If the three companies would have planned for worst case scenarios, they could have averted all these crises. In the case of Nike, when looking at the key issue, if the issue was addressed proactively instead of reactively, the risks would change because more time would have been taken to research all the possible pros and cons of bringing out this design on this product line. The

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