Business Continuity Plan Analysis for Pelican Sands - Assessment Answer

Business Continuity Plan Analysis for Pelican Sands

Abstract
This paper explores the business continuity plan that Pelican Sands Company follows in times of natural disasters or issues that hampers the normal workflow of business operations. Recently the company has faced the crisis of late delivery of their organic products to its customers as the shipments were sent to wrong addresses. This led to dissatisfaction of the customers but the company was able to build the trust and loyalty of the crisis through their business continuity plan. The paper details the plans of the company along with different scenarios. We tend to evaluate the different aspects of how the disaster was dealt along with the critical analysis of the business outcomes of the same. Another section of the paper will discuss better ways of improving the business continuity plan to enhance the outcomes and minimize the risks associated with it. We explore the live example of the same scenario and involvement of the company in their execution of the business continuity plan.
Introduction
Pelican Sands industry is known for its timely delivery and high quality products free of pesticides. They are a brand selling organic produce with delivery timeline of daily basis. It is one of the growing companies that are pioneers in organic produce since their establishment. The business continuity plan that has been in place in the company is the solely a decision of the CEO through his practical experiences in business. The business has continued for several years and have been a matured company so far. The business continuity plans have not changed so far as the leadership has not changed over these years. Being situated on the side of the coastal side of the country, it is important for the company to maintain its business even in times of natural disasters. Therefore, we will explore the business continuity plan and how natural disasters are dealt with. In this paper, we will discuss how disasters are dealt ensuring business continuity. Business continuity plans are an important aspect of any business as investment continues within business. Thus, we will initially try to understand the aspects of business continuity and relate it to the context of Pelican Sands crisis.
Business Continuity plans Definition and Concept
A business continuity plan or BCP refers to the plan of ensuring that business operations os carried out even during times of emergency or natural disasters. Disasters may not be only nature based but also hazardous disasters like fire. In such cases, business does not occur in normal conditions but follows an alternate route to continue business operations. Some of the components of a BCP includes -
1. Assessment of threats
2. Lists of tasks to be followed during the period
3. Analysis of first line of contact of managers and employees
4. Alternate business location if any in case disaster occurs at the primary business location
5. Analysis of data back up tools and its efficiency
6. Analysis of different departments of the company and how collaboration should take place.
7. Analysis the outcomes or results of the planned and analyzed BCP
8. Analysis and measurement of risks associated with the plan
It is important to understand all the threats before a BCP is generated. In the context of Pelican Sands, in the wake of a cyclone, as for instance, they should be able to shift to a temporary location for staff or even assist them to work from home. A common communication service is provided to the staff members where they can handle customer issues and queries. The company has also planned for a post BCP strategy to get back to normal operations once issues are resolved. The threats that are likely to be heavy causing agents for the company within the hotel business are mainly the natural hazards since the location is near the ocean. In case of cyclones or storms, the business operations may not be fully functional.
It is important to understand the need for stringent plans that can be immediately executed in order to ensure that the business operations are not hampered. Since it is a food industry, standards of quality should be maintained adequately so that there is no compromise on the consumption of quality food. It is obvious that a company may end up having logistics issues since it depends on several departments and not just one. Lack of coordination or lack of support during times of bad weather can lead to delay in delivery. Apart from this, the chances of contamination of the organic food or even fungal infection due to delivery delay can lead to customer dissatisfaction. Therefore, a stringent BCP did help the company to tackle problems that hinders the business operations.
Crisis A case study
Crisis 1 Delay in product delivery
The logistics department delayed the shipment and delivery of the organic products that the customer ordered. The reason was the wrong delivery addresses printed on the airway bills. The volume of products that were delivered to the wrong addresses were of considerable volume. The executive board called in for all the products when customers started complaining about the shipment. The addresses of the shipment that was yet to be delivered were rectified and they were continued to be sent to the right addresses after address verification. Meanwhile, another team was set to modify the addresses as soon as possible and send the correct shipments to the right addresses on an expedited basis.
Crisis 2 Detection of pesticides in organic products
Another crisis that occurred on the companys side was the detection of pesticides in the organic products when delivered to a customer. The customer registered a complaint on the executive board forum. The leadership took immediate action by recalling all the products that was delivered within the same shipment day and tested for pesticides. Since the complaint was registered, they decided to destroy all the products. It was wise on their part not to even sell the produce to the non organic market. This restored trust on their commitment to maintain the organic standards of their produce. Apart from this, they did provide a discount on the goods next time their customers purchased as a compensatory measure to regain customer loyalty. They even notified the press with complete transparency on the actions taken by them and the replacement they made immediately.
Analysis of the BCP
The BCP in this first case of crisis was the expedited shipment by a group of shipment specialist. This was a team formed especially during shipment faults or any crisis that occurs which might hinder the usual business operations. The business continuity plan was successful as it did not hinder the shipment to the right addresses even though mistakes happened. By the time the products delivered at the wrong addresses were recalled, the right shipments already reached the customers. This was an immediate action that helped prevent any delay in customer operations and in turn, continued to build the trust as well as loyalty of the customers.
In the second case, the company proved that they are customer focused and ensure ethical business practices so that customers continue to trust them always. They even allowed press to interfere with this regard to show up more transparency in their business practices. The burning of the products instead of sending them off to the non organic market was a sign that they would not make profits at the cost of their customers. Also, if they wished, they would had let the customers with the wrong products to handle the goods however they wanted. But, the company preferred to dispose them by themselves and immediately delivering the right goods ordered. Even though the shipment was expedited at a cost that the company spent, they managed to regain their valuable customers who would now recommend other people owning organic stores to use their products. The involvement of press further helped in the improvement of companys image.
Pros and Cons of BCP
In the first case, the recalling of shipment was the right action taken. However, the correct supplies of the organic goods that were expedited led to considerable cost expenses for the company. This crisis would had been prevent if there was a rectification of the shipment before assigning delivery dates to the orders placed by the customers. The company should still look for cheaper BCP. One way can be a department of quality check that also verifies the addresses of the customers before the products are shipped or transit for delivery. This can prevent the cost and even continue the business with the ultimate prevention of crisis. A cheaper BCP plan would also involve simply recalling the wrong products delivered and next time when the customer order organic products, providing a discount or a freebie can help in continuing business without spending on expedited costs. Although the business continued, the expense on the companys end increased. Therefore, alternative BCP plan for the organization should be planned and the selection should be based up on which costs the company and which is cheaper yet effective.
In the second case, the BCP plan worked well for the company. However, it did cost the organization with the action of connecting to the media as well as burning tons of their products. Burning of the products also became an environmental concern and wastage of the food products. Nonetheless, it did continue to impress their customers through their ethical mode of handling the situation. The crisis could had been prevented by simple doing effective quality check by a quality check department that is solely responsible for the quality testing of the products ordered before being delivered. A BCP plan should be placed in the initial phase before the delivery happens in case the quality of the product for shipment is not meeting the standards rather than customers identifying them. In case the quality check fails, there should be enough products in the inventory that can be shipped alternatively while the other products are discarded.
Enhancement strategy of BCP
The main aim of the business continuity was to maintain a good image of the company even though a crisis has occurred. Being a profit making company, it is important for them to retain their old customers and spread their business mission and vision through their fellow customers. In both the cases of crisis, the business continued even though there were discrepancies in the product delivery when they reached the customers. However, a cost factor was attached to the framed BCP plan that was up to a millions. Therefore, the feasibility aspect of the BCP is not met in both the cases. The organization should thus, find ways to make the plan cheaper when such crisis occurs. In case the crisis is because of bad weather, shipment plans should be carried out in a way that bears no extra cost to the company. This will prevent order delivery delay and even keep customers happy. In case there is a delay, it is often advisable to have a freebie or discount attached to the main order as for instance rather than the company spending a considerable amount of money to meet the shipment date. The involvement of media can be kept optional and the customers can be directly contacted by an expert team to ensure positive interaction. It is through this that the customers would feel that the company cares about them providing them a sense of belonging.
Conclusion
Hence, it can be concluded that crisis in business can be successfully tackled with business continuity plan. BCPs are important for any organization, big or small in order to tackle issues that can lead to problems. BCPs should have all the basic elements including the feasibility which was missing in both the BCPs that were executed by Pelican Sands Company. Nevertheless, the plans were successful in retaining their customers and ensure that they are happy at the end of the day. It is important for the company to have a quality check process before sending shipments to the customers. This will prevent crisis at an initial phase and if crisis still occur, BCPs should be upgraded considering cost too as an important factor.
References
BU (2007). Grounding the discipline of business continuity planning What needs to be done to take it forward online Retrieved from
http//web.ebscohost.com.ezproxy.bu.edu/bsi/pdfviewer/pdfviewersidc60ebc25-2ba4-4efd-92e7-a81f6c395da940sessionmgr111ampvid2amphid122QLD (2009). Business Continuity Planning. Retrieved from http//www.mackay.qld.gov.au/__data/assets/pdf_file/0018/151434/Business_Continuity_Planning_Guide.pdf(2016). Business Continuity Plan. NYU. Retrieved from https//www.nyu.edu/content/dam/nyu/financialOperationsTreas/documents/Resources/erm/BCP_TrainingPresentation.pdf

Looking For Complete Assignment Sample Get It On WhatsApp