turning crisis into opportunity responses
I need 2 responses to classmates. Each with a minimum of 100 words. I highlighted about the responses in the word document. The very last post is mine.
ANSWER
I need 2 responses to classmates. Each with a minimum of 100 words. I highlighted about the responses below. The very last post is mine.
Chapter 34: Turning Crisis into Opportunity
Answer all of the following questions. Use examples from outside of the textbook.
- Organizations often give employees additional responsibilities that may be outside their normal activities. Assume a company wanted to start an Enterprise Risk Management team, but could not afford to hire people to staff. The company hired a risk manager and assigned 4 employees to the team. The employees were told they would be acting as part time risk associates. What are the advantages and disadvantages of assigning full time employees additional responsibilities as part time risk associates within their organizations?
- Paying attention to external stakeholders is important for organizations to remain competitive. Identify one organization (not listed in the textbook) whose strategy failed because management did not consider the actions of external stakeholders. Explain the failure and what the company could have done differently. Note: Do not use GM, Blockbuster, Toys R Us or Nokia.
- Should organizations need to experience a crisis to prepare adequately for risks? Provide examples no found in the textbook to support your answer.
Required:
- Provide an initial posting of 400 to 600 words by Thursday. Then provide two responses of at least 100 words each that extend or provide alternate views for the initial posts of at least two students by Sunday. Repetition of the questions and the reference list are not included in the word count.
- Do not access the threads until you are ready to post your entire answer. If you make a mistake, do not edit the response; reply to your own answer with the revision.
- Use formal writing. Errors will reduce your grade.
- Respond to the initial posts of at least two students, extending the discussion by adding new insights, different examples from your experience, or from other sources. Add value to responses to classmates and provide support in the form of a reference and citation in at least one of the responses. Videos, articles and information from other credible sources are useful to accomplish this part.
- Apply critical thinking. Probing questions or challenging assumptions are strongly encouraged for maximum points. Agreement, quoting other learners, or repeating the case content will count as zero words and zero points. It’s great to ask questions in your responses to classmates, but also provide substance and do not ask questions after 8pm on Sunday, as you cannot expect responses to them that late on the last day of class for the week.
- The textbook is not considered common knowledge. If you use information from the book in your answer, citation to the book is required.
- Post answers directly in the discussion box instead of attaching documents.
Jennifer Carfagno posted May 24, 2022 11:58 PM
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Chapter 34: Turning Crisis into Opportunity
1. What are the advantages and disadvantages of assigning full time employee’s additional responsibilities as part time risk associates within their organizations?
One advantage to the organization is it helps reduce costs associated with new hires. Such as recruiting, training, and other payroll costs associated with each employee (unemployment, benefits, etc.). In addition, the organization would benefit from someone that is already familiar with the organization as well as its policies and procedures. By utilizing current employees, the organization will have insightful and experienced personnel. Which gives the employee the ability to conduct an in-depth analysis from an informed perspective. Which makes this an advantage to both the organization and employee. The employee will gain more knowledge in risk management making them a more valuable asset to the organization.
Some disadvantages from the employee’s perspective are more responsibilities that will likely put more workload on the individuals involved causing them to feel over worked, underappreciated and under paid. These can be disadvantages for the organization because it could potentially lead to low morale and/or employee burnout. Another disadvantage to the organization is poor risk analysis because the employees do not have the knowledge or expertise in risk management like a professional would.
2. Identify one organization (not listed in the textbook) whose strategy failed because management did not consider the actions of external stakeholders.
One organization is Kodak. Kodak was an industry leader in film, cameras and chemicals and ironically was the first company to develop digital photography which was their ultimate demise. With support of Kodak’s CEO, a research study was conducted on digital photography. “The results of the study produced both “bad” and “good” news. The “bad” news was that digital photography had the potential capability to replace Kodak’s established film-based business. The “good” news was that it would take some time for that to occur and that Kodak had roughly ten years to prepare for the transition” (Mui, C. (2020, July 14)). Poor management decisions on how to be proactive in this situation was very costly for Kodak.
3. Should organizations need to experience a crisis to prepare adequately for risks?
Should homeowners experience a hurricane to prepare adequately for the risks associated with it? The answer to both questions is absolutely not. To adequately prepare for risks in organizations it needs to start at the top with internal stakeholders and board members. As seen in the Kodak example the internal stakeholders must be open minded to change and preparation. One important thing to understand is not only the difference between crisis management and risk management but the similarities in them as well. Crisis management is reacting to, managing, and recuperating from an unforeseen event while risk management is identifying, assessing and mitigating an activity or event that could cause harm to an organization.
References:
Mui, C. (2020, July 14). How Kodak failed. Forbes. Retrieved May 24, 2022, from https://www.forbes.com/sites/chunkamui/2012/01/18/how-kodak-failed/?sh=6da9de626f27
“Kodak: Is this a Kodak moment?” Marketing, 13 Oct. 2004, p. 28. Gale Academic OneFile, link.gale.com/apps/doc/A123165297/AONE?u=lincclin_spjc&sid=bookmark-AONE&xid=a2fd88ad. Accessed 24 May 2022.
27 September 2016 at 9:58 am Jodie Willmer, Jodie Willmer | @ProBonoNews, & Jodie Willmer is a lead consultant at Conscious Governance. (n.d.). Crisis management versus risk management: Do you know the difference? Pro Bono Australia. Retrieved May 24, 2022, from https://probonoaustralia.com.au/news/2016/09/crisis-management-versus-risk-management-know-difference/
Jennifer Woodard posted May 24, 2022 5:40 PM
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Organizations sometimes five their employees’ additional responsibilities outside of their normal to cover upcoming tasks. If accompany is looking at adding a Enterprise Risk Management team, but could not afford to hire the staff, they would generally need to staff that area. Instead, the company adds an additional work to employees, who are currently working for the company. This type of staffing could potentially have its advantages as well as it’s disadvantages. Some of the advantages are eliminate boredom and learn new skills, encourage development, creates a positive work environment, and cost reduction. If employees have work in a work atmosphere for extended periods of time, they may have a repetitive workload. This would eliminate boredom by allowing the employees to take on new responsibilities and learn new skills. Adding additionally workload can also encourage development will allow current employees to see what they are capable. Some employees may enjoy the additional responsibilities and start looking for job opportunities within the organization. Giving employees additional responsibilities will let them see their worth, which would make them feel valuable. This will create a positive atmosphere within the work environment. An organization can save so much money utilizing the staff they currently have. They will not have to have costs for onboarding, background checks, drug screenings, and reference checks
Some disadvantages a company may occur from utilizing the current staff is facing disgruntle employees, unable to solve the problem and the business could suffer. Companies may have employees who only want to do the bare minimum and may not be fond of the additional workload. This would cause them to be disgruntle and there maybe tension in the atmosphere. The current employees may also not be be trained in the additional work and may not be able to solve the problem. Lastly, the business could suffer if these disadvantages overpower the advantages. It could cause employees to quit or to be less productive.
One company that came to mind that failed, was Toys R Us. The clothing, baby company had been around for years. In 2013, the company had to withdraw from being a publicly traded company due to the decrease in sales (Biron, 2021). In 2015, the companies CEO was tasked to bring the company back to life (Biron, 2021). When the company still continue to struggle, in 2017 the organization filed for Chapter 11 bankruptcy. In 2018, the organization tried to settle with debtors and key stakeholders to solver stakeholder’s recoveries (Amato-McCoy, 2022). This action resulted in the organization to closing its doors in the U.S.
I do not think that organizations to experience a crisis to adequately prepare for risks. If the have an active EMR that will be able to monitor all situations and be ready with a strategy if situations arise. An example is digitalization. Since the slowdown of paper publishing, they should begin to focus on their strategies now before risks occur. Another more common crisis would be preparing for a pandemic. This can be done by making sure the business would be OK if having to close their doors for a few months, how would the business bounce back, and is work from home an option.
References
Amato-McCoy, D. M. (2022, January 6). Toys ‘R’ us settles with ‘some’ creditors. Chain Store Age. Retrieved May 24, 2022, from https://chainstoreage.com/finance-0/toys-r-us-settles-with-some-creditors
Biron, B. (2021, February 2). Inside the wild and tumultuous history of toys R us, a once beloved children’s brand that just closed its last 2 stores in the US. Business Insider. Retrieved May 24, 2022, from https://www.businessinsider.com/the-tumultuous-history-of-toys-r-us-photos-2020-8#still-the-company-continued-to-struggle-especially-during-the-2016-holiday-season-19
Penny Howard posted May 24, 2022 1:15 PM
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ERM Team Recommendations
Some advantages of assigning additional enterprise risk management (ERM) responsibilities to full-time employees include saving money by utilizing the skills of current staff already available throughout various positions in the organization. Current employees, especially frontline ones, are already familiar with the company and its organizational processes and risk factors through their daily duties. Also, managers’ familiarity with employee skills may enable them to select the most appropriate participants for the team (Fraser et al., 2015). Therefore, it makes sense that current employee knowledge would provide valuable contributions to an ERM team that could ultimately be integrated with the company’s overall strategy.
Alternatively, the disadvantages of assigning full-time employees with additional ERM responsibilities include costs incurred from training the employees on their new ERM duties. Also, additional time spent on supplemental ERM duties may take away from direct customer service or operations. The increased workload may cause heightened employee stress. Also, employees may struggle to complete multiple assignments versus having a single job role. Furthermore, not seeking diverse views from external perspectives could lead to confirmation bias. Therefore, important risk factors or opportunities could be overlooked (Fraser et al., 2015).
External Stakeholder Concerns
Prioritizing external stakeholders’ concerns is imperative when considering organizational strategy. A company’s response to external stakeholders can ultimately make or break it. The fall of Borders bookselling giant, about a decade ago, exemplifies this idea (Noguchi, 2011).
Noguchi from WUSF explains that as technological disruptions emerged, Borders failed to foresee or estimate the impact. When the industry went digital, Borders chose to remain with books, CDs, and DVDs utilizing their electronic inventory system at physical stores. Additionally, when their biggest competitor, Barnes & Noble, shifted to online sales, Borders alternatively expanded its physical presence and outsourced its online sales to Amazon. Consequently, customers browsed at Borders but then bought the cheaper items from Amazon. The results were catastrophic. Despite their attractive stores, Borders failed to show any profits since 2006 and ultimately filed for bankruptcy in 2011 (Noguchi, 2011).
It seems that Borders could have avoided this collapse by staying focused on external stakeholder trends. As technology offered new reader experiences, Borders failed to sustain its unique edge, neglected to adjust to emerging consumer trends in the community, and handed over its online market to Amazon. In hindsight, Borders’ failure to consider the changing needs of customers and actions of external stakeholders ultimately led to its demise.
Risk Preparation
Companies should not need to experience a crisis to prepare for risk. All companies should be prepared for risks, especially to withstand the effects of unforeseen crises like health emergencies or natural disasters. Planning for potential crises could ultimately save property, vital information, money, and lives. Reacting to a crisis could be too late.
An online publication from the Science journal supports the idea that crisis management plans are essential for organizational recovery from unexpected crises, a message enlightened by the COVID-19 pandemic. University of Nevada’s Assistant Professor Rice referenced the pandemic while stressing that crises can happen quickly. Therefore, planning first is important because quick decisions need to be made during emergencies. Otherwise, the affected are left powerless (Levine, 2021).
Rutgers University’s Assistant Vice President Gigliotti asserts that a current and detailed crisis management plan is crucial to preparing for catastrophic events (Levine, 2021). Gigliotti suggests proactively brainstorming and hypothesizing about potential crises to determine the best strategies for mitigating their negative impacts. This process could ultimately result in saving lives, safeguarding property, and protecting essential resources (Levine, 2021).
References
Fraser, J. R. S., Simkins, B. J., & Narvaez, K. (Eds). (2015). Implementing enterprise risk management: Case studies and best practices. Wiley & Son, Inc.
Levine, A. G. (2021, September 17). Post-pandemic: The power of crisis management planning. Science. https://www.science.org/content/article/post-pandemic-power-crisis-management-planning
Noguchi, Y. (2011, July 19). Why borders failed while Barnes & Noble survived. (W. P. Media, Producer) NPR. https://www.npr.org/2011/07/19/138514209/why-borders-failed-while-barnes-and-noble-survived
Kristina Sainz posted May 24, 2022 12:52 PM
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Kristina Sainz
Professor Bogue
MAN 3503
May 21, 2022
Discussion 2
Risk Management Teams
If a company wants to start an Enterprise Risk Management team and assigns in-house employees to take on as an additional responsibility to their full-time workload, there are some obvious advantages and disadvantages. A disadvantage would be that the employees may feel overburdened to take on the additional task and it may negatively affect their productivity. Similarly, they may not put their best foot forward to the risk team since they are already busy, or because it is not their expertise. Additionally, they may be too entwined in the goings-on of their full-time role to clearly see outside of it for the risk management role. There also may be biases that present themselves, in a conflict-of-interest type manor with a lack of accountability. For an employee to make decisions for the good of the risk management team, for instance, it might implicate their full-time job and no one else is assigned to recognize the bias.
That said, one of the overriding objectives of ERM is to alleviate burdensome scenarios (Fraser et al., 2015). In the case of Deloitte Touche Tohmatsu Limited, the appointment of in-house employees to risk management teams claims more advantages than disadvantages (Deloitte Network, 2014). At Deloitte, their risk management committee is comprised of executive and non-executive board members that take their committee roles on as an additional task (Deloitte Network, 2014). A key part of the responsibility of this dynamic is to foster communication with management, heads of business units and the CRO (if applicable) (Deloitte Network, 2014). Of course, a thriving company like Deloitte could afford to appoint an outsourced risk management team, but another advantage is the reduced cost of recruiting. The full-time employees have more experience in the nature of the work, and so they might be an even better asset in the risk team. Their insight gained on the risk side of things will also extend back into their ordinary operations. And finally, this will start to create a culture of risk management and communication through the organization as a whole, even if the team starts small.
External Stakeholder Importance
Motorola is a cell service company that was once at the top of its game, and now, due to a lack of attention to external stakeholders, the company is nearly obsolete. Motorola’s strategy failed because their success blinded them to the innovation of their competitors, and the needs of the market (Walker-Todd, 2021). At a poignant moment, Motorola released one of the first android phones, but as time passed their products were comparatively overpriced and underdelivering (Walker-Todd, 2021). For instance, the 2020 Motorola Edge only committed to one annual operating system update (Walker-Todd, 2021). In a day an age when security issues are rampant, one update for the entire year is not going to satisfy customers. Motorola seems to have recognized this flaw, but the jury is out as to whether they have learned their lesson about the importance of being in tune with their external stakeholders, because thus far they have not, and they have failed because of it.
Is Crisis Necessary?
Companies should not need to experience crisis to prepare adequately for risks. For example, the camera and printer company, Canon Global, has a very intricate risk management approach to safeguarding one vital piece of their operation: their Shimomaruko headquarters in Tokyo (Canon Global, 2022). This headquarters is the homebase for all Group operations (Canon Global, 2022). Protecting the building and IT system it contains against natural disaster is of paramount concern (Canon Global, 2022). They have never dealt with the emergency, but they have a most intricate Disaster Recovery Center set up to backup information systems in the event of a large-scale disaster such as an inland earthquake (Canon Global, 2022). Natural disasters are a common risk factor that companies prepare for without having had the need to experience.
Another example is the insurance company Aflac. At a time when sales were stagnant and their competitors all had very recognizable commercial campaigns, Aflac was encroaching upon a huge marketing expense to put forth the first Aflac duck commercial (Amos, 2020). Of course, we all know and love that screaming duck, and the crisis was obviously everted. Brand identification went from 13 to 90 percent and sales doubled in three years (Amos, 2020). And so, while a crisis may have been looming, it had not yet happened and with proper risk mitigation, the decision to bite the expensive marketing bullet paid off. This is, inadvertently, is another one of those examples of how risk management sometimes helps companies take risks, as opposed to running from them, and in doing so, yields beneficial outcomes.
References
Amos, Dan. (2020, Feb. 27). Being CEO is more tenuous than ever. I survived 30 years at
Aflac by managing risks. Fortune. https://fortune.com/2020/02/27/aflac-ceo-dan-amos- risks/
Canon Global. (2022). Risk management. CSR Activities. https://global.canon/en/csr/management/
risk.html
Fraser, J.R.S.,Simkins, B.J., & Narvaez, K.(Eds.). (2015). Implementing enterprise risk management:
Case studies and best practices. Wiley & Son, Inc.
Deloitte Network. (2014). Sample risk committee charter. Creative services at Deloitte,
Johannesburg. https://www2.deloitte.com/content/dam/Deloitte/za/Documents/governance-
risk-compliance/ZA_SampleRiskCommitteeCharter_24032014.pdf
Walker-Todd, A. (2021, July 30). Has Motorola lost its edge? Living up to legend | Mixed signals.
Tech Advisor. https://www.techadvisor.com/news/mobile-phone/motorola-edge-2021-mixed-
signals-3807138/
Braxton Theodore posted May 24, 2022 12:29 AM
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1) There are many advantages and disadvantages of assigning full time employees additional responsibilities as part time risk associates within their organizations. Starting with the advantages, as an employees responsibilities increase, they have to work harder in order to learn certain skills they might’ve not had before completing the new task that are at hand. Giving full time employees, and training them to do new things they’ve never done might increase their skills sets, so they will be able to complete the task given to them at hand. This will improve the overall company, as the more people that have the knowledge to complete laborious and difficult tasks, the better. Also, giving an employee extra tasks will help them develop a hard-working mindset. When there’s more work put onto your plate, you may feel more important than you once were before, causing you to want to work even harder to reach that companies common goal. Finally, a company recognizes that you might have a bigger work load than others, and if you successfully complete those goals, you might be offered a reward, whether that be prizes, bonus’s, or even a raise. There are also some disadvantages too increasing an employees workload. For instance, some employees might feel as the work load put onto them is too much, and might not perform as well as they company expects. Being put into that position, at the wrong time without the right experience and training could cause an employee to not do as well. Others may feel like the work load put onto them is just to much, and might worry about the burden that was put onto them, which can lead to bad things, and might eventually cause the employee to leave that company. There’s many different scenarios that can cause advantages, that lead to success, or disadvantages, which might lead to employee and company downfall, it just depends on if the company trains the employee enough to deal with the work load, or not.
2) A very good example of management not considering the actions of external stakeholders is the fall of a UK Bank called Northern Rock. Between the years of 2002 and 2004 billions of dollars were loaned to people who had low incomes, and because of this the US Federal Reserves started to hike interest rates, and many people continue not paying their loans off. A couple years later, the UK stock market became quite unpredictable, to which banks stop loaning to each other because they don’t want to lose money, the risk was way too high. This crisis caused Northern Rock to not be able to produce enough income at the rate which it was expected from its loan. This caused an uproar, causing everyone that had money in this bank to go withdrawal all of their funds from the bank, which is also known as a bank run. Even “the chief executive of Northern Rock, Adam Applegarth, announces his resignation.” (The Guardian, 2008) and eventually left the company because of what was happening. They eventually lost a big chunk of the stakeholders, being the people who withdrew from the bank, and failed as a company. Northern Rock grew too fast as a company, and didn’t have any risk management if a crisis like this ever happened. They also should’ve slowed down and focused more on the company as a whole, instead of becoming so big, so fast.
3) I feel as companies don’t have to go through a crisis in order to prepare for the risks. There are so many different examples of companies going bankrupt because of crisis’s happening out of the blue that they can base their risk management of off, in order to not fall under. If the risk are assessed, the company can create strategies in order to stay strong before, during, and after a crisis.
Works Cited
10 businesses that failed due to poor management. e. (n.d.). Retrieved May 24, 2022, from https://www.e-careers.com/connected/10-business-that-failed-due-to-poor-management
Guardian News and Media. (2008, March 26). Timeline: The Northern Rock Crisis. The Guardian. Retrieved May 24, 2022, from https://www.theguardian.com/business/2008/mar/26/northernrock
Mayes, D. G., & Wood, G. (n.d.). LESSONS FROM THE NORTHERN ROCK EPISODE. Retrieved May 24, 2022, from https://www.bayes.city.ac.uk/__data/assets/pdf_file/0006/67308/Mayes-and-Wood-Final-Paper-LESSONS-FROM-THE-NORTHERN-ROCK-.pdf
Kristine Gardner posted May 25, 2022 7:04 PM
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Advantages and Disadvantages of Employee Additional Responsibilities
Assigning employees within the enterprise risk management with additional responsibilities attracts numerous benefits and disadvantages. One of the significant benefits associated with this move is reduced resource usage since the organization does not need to hire new staff members. This enables it to save organizational costs, especially those associated with recruitment, hiring, and training new workers. Another major benefit is improved organizational outcome since the workforce is highly experienced. They can conduct an in-depth analysis of various risk-related issues and introduce quality approaches that averse negative outcome. Therefore, reduced costs and improved outcomes are the significant benefits that the organization stands to benefit from by adding additional roles and responsibilities to the existing workforce. However, this can lead to reduced motivation and job satisfaction based on additional duties. The increased workload can lead to fatigue which consequently affects work motivation (Fan & Smith, 2017). This leads to inadequate organizational growth and development. Another key disadvantage is poor risk analysis approaches because the current workforce is assigned areas beyond their scope. These are the primary challenges likely to emerge when the current team of professionals is assigned additional risk-related roles.
Engaging External Stakeholders
Stakeholder participation is one of the integral approaches that corporate leaders should target and fulfill. Specifically, engaging external stakeholders is a key area of focus as they support a business to remain highly competitive in the market. Failure to engage this segment can attract failure to achieve the desired goals and objectives. One of the companies that failed due to the inability to involve external stakeholders is Comet. The business failed to engage with the consumers to understand their needs, interests, and expectations. Research indicates that its customer service standards were lower (Roberts, 2013). This highlights a lack of consideration for the above-highlighted aspects. Customers remain a crucial foundation for a firm’s growth and development. If an organization fails to involve them, it becomes increasingly prone to massive inadequate outcomes that later lead to closure. Delivering poor customer service exposed the brand to a massive failure. Comet should have engaged with the customers to gain exposure to the primary aspects that needed to be addressed and ensured that it paid greater attention to boosting consumer experiences and satisfaction.
Preparing for Risks
Risks are inevitable, especially in today’s business setting. As the corporate environment changes rapidly, numerous risks and threats occur and pose a crucial challenge for growth and productivity. Companies should not wait to experience risks but should prepare for these occurrences. This is because there are numerous forms of risks that can occur. If a business waits to experience a crisis for it to develop an approach, it can risk encountering numerous challenges. For example, companies are prone to security, financial, and compliance risks. If it awaits to react from experience, it is less likely to overcome these risks effectively. Instead, they should develop proactive risk plans to handle emerging challenges. Numerous unforeseen incidents can threaten a firm’s future and profitability (Salgam, Cankaya & Sezen, 2020). Having an already established plan is key to achieving the desired goals and objectives in the long run. For example, Coca-Cola has a well-established risk management plan that is arrived at through effective identification and assessment of potential risks (Al-Tunaiji, 2019). This means that the brand does not wait to experience risks to develop plans. It lays down strategic plans for countering occurring risks and threats.
References
Al Tunaiji, N. (2019). Coca Cola Strategy Project. 10.13140/RG.2.2.14307.50727.
Fan, J., & Smith, A. P. (2017, June). The Impact of Workload and Fatigue on Performance. In International symposium on human mental Workload: Models and applications (pp. 90-105). Springer, Cham.
Roberts, J. (2013). Comet Has Failed Because It Did Not Put the Customer First. HuffPost UK. Retrieved 25 May 2022, from https://www.huffingtonpost.co.uk/john-roberts/comet-demise-online-retailers-are-not-to-blame_b_2091626.html.
Saglam, Y. C., Çankaya, S. Y., & Sezen, B. (2020). Proactive Risk Mitigation Strategies and Supply Chain Risk Management Performance: An empirical analysis for manufacturing firms in Turkey. Journal of Manufacturing Technology Management.
