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MBA IV SEM- Assignment – Strategic Management & Business Policy-MB0036

Assignment Set- 2

Name : AJAY KUMAR
Roll No : 510932435
Learning centre : ACIIT INSTITUTE,LUDHIANA (01788)
Subject : Strategic Management & Business Policy
Assignment Number : MBA – IV SEM/MB0036/Set 2
Date of Submission :
at the Learning Centre

AJAY KUAMR (510932435) Page 1 of 30 MB0036

MBA IV SEM- Assignment – Strategic Management & Business Policy-MB0036
Assignment Set- 2
Q1. What is the purpose of a business plan? Explain the features of the components of
the plan dealing with the company and its products description (10marks)

ANS: Purpose of Business Continuity Plan: Recent world events have challenged us to prepare to manage
previously unthinkable situations that may threaten an organization’s future. This new challenge goes beyond
the mere emergency response plan or disaster management activities that we previously employed.
Organizations now must engage in a comprehensive process best described generically as Business
Continuity. It is no longer enough to draft a response plan that anticipates naturally, accidentally, or
intentionally caused disaster or emergency scenarios.

Today’s threats require the creation of an on-going, interactive process that serves to assure the continuation
of an organization’s core activities before, during, and most importantly, after a major crisis event.

In the simplest of terms, it is good business for a company to secure its assets. CEOs and shareholders must be
prepared to budget for and secure the necessary resources to make this happen. It is necessary that an
appropriate administrative structure be put in place to effectively deal with crisis management. This will
ensure that all concerned understand who makes decisions, how the decisions are implemented, and what the
roles and responsibilities of participants are. Personnel used for crisis management should be assigned to
perform these roles as part of their normal duties and not be expected to perform them on a voluntary basis.
Regardless of the organization – for profit, not for profit, faith-based, non-governmental – its leadership has a
duty to stakeholders to plan for its survival. The vast majority of the national critical infrastructure is owned
and operated by private sector organizations, and it is largely for these organizations that this guideline is
intended. ASIS, the world’s largest organization of security professionals, recognizes these facts and believes
the BC Guideline offers the reader a user-friendly method to enhance infrastructure protection.

Business Continuity Plan, Business Impact Analysis, Crisis Management Team, Critical Functions, Damage
Assessment, Disaster, Evaluation and Maintenance, Mitigation Strategies, Mutual Aid Agreement,
Prevention, Readiness, Recovery/Resumption, Resource Management, Response, Risk Assessment, Testing
and Training.

Alternate Worksite – A work location, other than the primary location, to be used when the primary location
is not accessible.

Business Continuity – A comprehensively managed effort to prioritize key business processes, identify
significant threats to normal operation, and plan mitigation strategies to ensure effective and efficient
organizational response to the challenges that surface during and after a crisis.

Business Continuity Plan (BCP) – An ongoing process supported by senior management and funded to
ensure that the necessary steps are taken to identify the impact of potential losses, maintain viable recovery
strategies and plans, and ensure the continuity of operations through personnel training, plan testing, and
maintenance.

Business Impact Analysis (BIA) – A management level financial analysis that identifies the impacts of
losing an organization’s resources. The analysis measures the effect of resource loss and escalating losses
over time in order to provide reliable data upon which to base decisions on mitigation, recovery, and business
continuity strategies.
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MBA IV SEM- Assignment – Strategic Management & Business Policy-MB0036
Assignment Set- 2
Q.2.Write short notes on

(a) Sales projections:- Sales Projections:Your business plan is not just a funding tool, but also a
blueprint for how your business should operate. The following are steps for developing sales projections.

Step I:

Estimate

For each product or service, estimate the number of people who are likely to buy and when they will buy it.
You can get this information from asking your likely customers about their possible use of your business, or
you can base your estimates on your knowledge of the market.

Step 2:

Use a Calendar

Estimate your sales and number of customers served during one week. Using the totals for a week, make
projections for each month. For the first few months, keep in mind that business will start off slowly before
people become more aware of your business. Use will most likely increase as people learn about your
products and services. Seasonal variations may affect your business as well. You will use these numbers to
project your equipment, supply and staffing needs, as well as income.

Cost Account Heads:

· Organizational Start up Costs

· Product Design/Development

· Research & Development

· Legal/Licensing Expenses

· Property & Facilities

· Land/Building Purchase

· Initial Lease Deposit

· Building Repairs/Improvements

· Equipment/Machinery

· Production-related

· Administrative/Office Equip.
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MBA IV SEM.) · Legal & Accounting · Marketing · Equipment Maintenance/Supplies · Facility Maintenance AJAY KUAMR (510932435) Page 4 of 30 MB0036 .Assignment – Strategic Management & Business Policy-MB0036 Assignment Set.2 · Materials & Supplies · Personnel · Key Employees · Contract Labour/Temps · Training Expenses · Marketing Expenses · Advertisements · Brochures/Literature/Other · Insurance Premiums · Distributor Contracts · Contingency (5%) Expenses: Costs of Goods Sold · Materials/Supplies · Labor · Rent · Utilities · Insurance · Admin. Exp. (PT Sec.

Assignment – Strategic Management & Business Policy-MB0036 Assignment Set.2 · Fees/Miscellaneous Debt / Equity Investment: · Equipment Loan · Building Rehabilitation Loan · Grants · Owner Equity Expenses · Cost of Goods Sold · Wages & Benefits · Materials · Supplies Overhead Expenses: · Rent · Utilities · Building Maintenance/Security · Marketing · Accounting · Legal · Administrative Expense · Interest Expense · Depreciation The Business Priorities are based upon six top-level objectives. AJAY KUAMR (510932435) Page 5 of 30 MB0036 . these are: · To make Business data available both to decision-makers and as much as possible available in the public domain. MBA IV SEM.

The drivers are: · Processes – This driver relates to facilitated targeted action on the ground through providing knowledge of resource location. Co-ordination and promotion i) In addition. a series of principle drivers have been recognised. but which does not necessarily fall under the focussed objectives for the Network. · To promote knowledge. · To ensure that the NETWORK Gateway gives access to data on Location and species used to inform decisions affecting Business at local. national and international levels.2 · To ensure all holders of Business information are able to participate. It also has the potential for engaging more partners in the NETWORK. but this work would have to be prioritised against this core activity and separately resourced. To give additional focus to the challenging nature of the task that the NETWORK is setting itself. MBA IV SEM. These are: · It is assumed that the present way of working. Capacity building D. · It is anticipated that other work towards the principal aim of adding content and providing a fully functional gateway will be adopted by the NETWORK as part of its programme. the partners will contribute to the overall realisation of the objectives through work that they initiate on their own account. extent. use and awareness of the NETWORK. i. · To ensure that the data available through the NETWORK are of known quality. pattern of distribution. i) The objectives have cross-cutting themes which are: A. Infrastructure development B. · To enhance the skills base and expertise needed to support and develop the NETWORK. a lead partner approach for each project will be retained. Working with the wider public E. data quality and gaps. Data standards and tools C.e. regional. AJAY KUAMR (510932435) Page 6 of 30 MB0036 . · The plan is not intended to represent all the work that could be undertaken.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. ii) A series of assumptions have been made in formulating the Business Priorities and their associated work programme.

· Operational use – This relates to the use of the NETWORK within the day to day business of agencies as a source of data relevant to local reporting or casework. · Generic enhancement – This driver encompasses capacity building and Recording Schemes and other contributing organisations and user groups.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. They spend most of their creative energy telling manufacturers that they…aren’t creative! Salespeople Are Creative – They are natural born story-tellers. and to communicate the progress and successes of the work programme. MBA IV SEM. The plan also acknowledges the need to co-ordinate activity between the members of the NETWORK and their partners. (B) Imporance of creativity in business:-Creativity:Everyone in business is creative. Some of most creative people are in manufacturing. These lead naturally to three broad areas of work: · Developing the recording network. extent. The annex to the Business Priorities describes a recommended work plan built upon the Business Priorities which contains criteria for the selection of objectives. in order to ensure the continued and enhanced supply and use of information. pattern and quality of Business. milestones against which they might be judged and recommendations for projects. the Network will hold a series of meeting. · Enhancing the Internet Gateway in terms of its functionality and the data it accesses.2 · Environmental Impact Assessment (EIA) and Strategic Environmental Assessment – This driver is concerned with providing ready access to data on location. · Ensuring that the benefits already secured through the earlier work are maintained. · Data contributor engagement – This driver is concerned with accessing sources of data for the NETWORK enabling the assessment of actions and continual improvement in the targeting of actions from the two previous drivers. AJAY KUAMR (510932435) Page 7 of 30 MB0036 . Accountants are creative. They actually CREATE products that change the world. seminars and conferences to arrive at a common view of priorities. Some of the least creative people perhaps are in advertising. Following the publication of Business Priorities.

Technology Last. Story First. It’s only your life’s work. Brainstorming Don’t tell people that their ideas are bad. Look up at people. especially if you don’t have a better one. Never say. AJAY KUAMR (510932435) Page 8 of 30 MB0036 . Your job is to fix problems. “It’s not my job to be creative. Don’t invest in a presentation class called “How to Use PowerPoint”…. Everything.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. · Do not read your speech or presentation. policy. Simple Creative Exercise… Simplify everything.2 Best Creative Exercise Ever Write down your ideas. But most of the time. Your life. your office. your home. Don’t let spelling and grammar issues or relentless self-editing stop you. procedures. your desk. Fixing Problems is Creative. not to complain. …until you’ve taken a class called “How to Tell Stories and Connect with Your Audience”. you can’t remember them by the day’s end. You have a ton every day. Get your ideas on paper (Let someone else edit it. your processes. MBA IV SEM.” How to Lose an Audience… · Show your audience slides with columns of numbers. and calendar into your meetings.) Go retro: Carry a notebook. · Refuse to tell them a story about the meaning of the numbers. vision. pen.

instead of endless (boring) discussions about the superiority of the Macintosh over the PC! The Lame Excuse … “I can’t [write/design/create] because I don’t have the latest [software/hardware/ upgrade]…. Use what works.2 · Instead. Master carpenters use fewer tools than novices. So do cooks. Leave the office building at least once a day. either.the fewer tools you will use. How about a Show? Try “giving a performance” instead of merely “giving a presentation. Get Fresh Ideas. Another Lame Excuse… Designers should put more of their passion into designing great work. …. Don’t Blame the Tool! The more you become a master of your particular creative form….” Everyone in Sales Knows… · Tell stories.” You can’t let a machine take credit for your creativity. · Don’t just provide data. or else you will never get any real creative work done. AJAY KUAMR (510932435) Page 9 of 30 MB0036 . read your audience. Do not attend more than two meetings a day. MBA IV SEM.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. Avoid Meetings. And you can’t blame a machine for your creative failures.

00. The energy sector faces growing competition with lower prices and cyclic variations of demand.) in their key markets and a growing over-capacity in Europe. New technology and enhanced technological innovations will change the life cycle of a giga-investment. i. MBA IV SEM. The capital markets have learned “the American way”. There are lessons learned from the Japanese industry. which point to the importance of immaterial investments. Productivity improvements in these industries have slowed down to 1-2 % p. Giga-investments are large enough to have an impact on the market for which they are positioned: A 3. Technology providers are involved throughout the life cycle of a giga-investment. with gradually more advanced maintenance and financial add-on services. in the heavy metal industry and in other base industries. Create something every day. It’s just been mystified – Own your creativity. profitability and productivity. today face scenarios of slow growth (2-3 % p. Facts and observations Giga-investments made in the paper and pulp industry.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. The core products and services produced by giga-investments are enhanced with life-time service. there is a shareholder dominance among the actors. as its owners are offered other opportunities and the capital will move (often quite fast) to capture these opportunities.2 Creativity: Use it or Lose it.e.000 ton paper mill will change the relative competitive positions. not once in a while. Creativity takes place every day. smaller units are no longer cost effective.a. A new teechnology will redefine the CSF:s for the market. Global financial markets make sure that capital cannot be used non-productively. production technology and supporting technology will be enhanced with immaterial investments. These lessons show that investments in buildings. and that these are even more important for re- investments and for gradually growing maintenance investments. It’s not rare. AJAY KUAMR (510932435) Page 10 of 30 MB0036 . which has brought (often quite short-term) shareholder return to the forefront as a key indicator of success.a .

What factots are to be taken into account in a crisis communications starategy(10 marks) Ans:. The Crisis Management Team may be supported by as many Response Teams as appropriate taking into account such factors as organization size and type. warehousing. securing equipment to walls or desks with strapping can mitigate damage from an earthquake. human resources. The proposition that we can describe future cash flows as stochastic processes is no longer valid.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. authority for decisions. Individuals should be recruited for membership on Response Teams based upon their skills. such as damage assessment. manufacturing. communications/media relations. Response Teams should develop Response Plans to address various aspects of potential crises. Policy and procedures violations should be highlighted and accountability for corrective action assigned in accordance with organizational governance regimes.’’ AJAY KUAMR (510932435) Page 11 of 30 MB0036 . Consideration should be given to a BCP software tool that supports effective change management. and vested interest. location. Contact Information Contact information for personnel assigned to crisis management and response teams should be included in the plans. The organization should establish procedures to ensure that the information is kept up to date. and equipment should be documented in the plan and become part of ‘‘business as usual. legal.Crisis Management :It is necessary that an appropriate administrative structure be put in place to effectively deal with crisis management. information technology. Cost effective mitigation strategies should be employed to prevent or lessen the impact of potential crises. and other business critical support functions. Q. and administrative support. etc. number of employees. Compliance with Corporate Policy Compliance audits should be conducted to enforce BCP policies and procedures. For example. Personal information such as unlisted phone numbers and home addresses should be protected. neither can the impact be expected to be covered through the stock market.2 Customer needs are adjusting to the new possibilities of the giga-investment. technology. information technology. level of commitment. site restoration. sprinkler systems can lessen the risk of a fire. with all under the clear direction of senior management or its representatives. These resources.3. a strong records management and technology disaster recovery program can mitigate the loss of key documents and data. Response Plans should be consistent with and included within the overall BCP. An organization should have a Crisis Management Team to lead incident/event response. and responsibility for implementation. Clear definitions must exist for a management structure. MBA IV SEM. facilities. Resources Needed for Mitigation The various resources that would contribute to the mitigation process should be identified. facilities. security. payroll. The Team should be comprised of such functions as human resources. including essential personnel and their roles and responsibilities.

Such monitoring can be likened to simple inventory management. The potential crisis to make a hostile act (or activity) more should be identified. in doing so. understood. MBA IV SEM. if not Risk Assessment can be used to identify negate.2 Monitoring Systems and Resources Systems and resources should be monitored continually as part of mitigation strategies. Employee Behavior to Support Avoidance and Deterrence and Detection AJAY KUAMR (510932435) Page 12 of 30 MB0036 . wild-fires. but are not limited to: · Workplace violence (erratic or threatening employee behavior) · Natural disasters (hurricanes. Avoidance Deterrence and Detection Avoidance has the goal of preventing a the purpose of deterrence and detection is crisis from happening. The organization or significantly limit. and difficult to carry out against the addressed and. etc. detection measures. including and include overall deterrence and any precursors and warning signs. avoided. The BCP should address the specifics of potential crises.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. riots · Product or manufacturing failure · Hostile takeover · Terrorism · Lawsuits.) · Activism. protests. Examples of such systems and resources include. The resources that will support the organization to mitigate the crisis should also be monitored continually to ensure that they will be available and able to perform as planned during the crisis. its impact. but are not limited to: · Emergency equipment · Fire alarms and suppression systems · Local resources and vendors · Alternate worksites · Maps and floor plans updated/changed due to construction and internal moves · System backups and offsite storage. Examples of crises that can have warning signs include.

· Operational: security officers’ post orders. counter surveillance and counter intelligence as avoidance.2 Employees should be appropriately motivated to feel personally responsible for avoidance and deterrence and detection. The organization should know and be able to easily recognize when specific dangers occur that necessitate the need for some level of response. . but are not limited to: · Unusual or unexplained changes in sales volume · Legislative changes · Corporate policy changes · Changes to competitive environment · Changes to supply based environment · Warnings of natural disasters · Imminent or actual changes in Homeland Security Advisory System threat level · Cash flow changes · Potential for civil or political instability · Impending strike or likely protests AJAY KUAMR (510932435) Page 13 of 30 MB0036 . MBA IV SEM. when appropriate. Potential Crisis Recognition The first element in a response program is to determine if a potential crisis exists. Facility Security Programs to Support and Enhance Avoidance and Deterrence and Detection · Architectural: natural or manmade barriers. and Protective Security Operations for the protection of the leadership and their families. Identification and Recognition of Danger Signals Identification of danger signals coupled with the likelihood of an event is often indicative of an imminent crisis. and management objectives. operational plans. Through the proper corporate climate. Warning signs may include. A strong program of avoidance and deterrence and detection policies and procedures as outlined above will support this process. · Technological: intrusion detection. access control. package and baggage screening.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. employees should support avoidance and deterrence and detection policies and procedures. detection and deterrence measures. employee security awareness programs. recorded video surveillance.

MBA IV SEM. should be immediately reported to a supervisor. the notification systems are themselves impacted by the disaster. Thus. Responsibility to Recognize and Report Potential Crises Certain departments or functions are uniquely situated to observe warning signs of an imminent crisis. it is important to have redundancies built into the notification system and several different ways to contact the listed individuals and organizations. Personnel assigned to these departments or functions should be trained appropriately. and the possible impact of the situation. Custody and Updates to Contact Information Qualified personnel should have ready access to the updated. Types of Notification Notifications in a crisis situation should be timely and clear and should use a variety of procedures and technologies. or another individual tasked with the responsibility of crisis notification and management.2 · Hostile labor negotiations. The general employee population may also be an excellent source of predictive information when there is a documented reporting structure and where attention is paid to what the employee reports. Factors to be considered include the size of the problem. Declare a Crisis AJAY KUAMR (510932435) Page 14 of 30 MB0036 . The actual activation of a response process should require very specific qualifications being met. Remember: In some types of crises.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. Parameters for Notification Specific notification criteria should be established. confidential listings of persons and organizations to be contacted when certain conditions or parameters of a potential crisis are met. a member of management. whether through capacity issues or infrastructure damage. The responsibility to report a potential crisis (including the notification mechanism) should be communicated to all employees. once recognized. and adhered to by all employees (with the timing and sequence of notification calls clearly documented). Assess the Situation Problem assessment (an evaluative process of decision making that will determine the nature of the issue to be addressed) and severity assessment (the process of determining the severity of the crisis and what any associated costs may be in the long run) should be made at the outset of a crisis. with recognition that devices used have advantages and limitations. documented. Notify the Team(s) A potential crisis. its potential for escalation.

The activities that declaring a crisis will trigger include. MBA IV SEM. national or global) · Maintain customer relations. When initiating a response. regional. Responsibility for declaring a crisis should also be clearly defined and assigned. local. documented. First and second alternates to the responsible individual should be identified. but are not limited to: · Additional call notification · Evacuation. and fit very specific and controlled parameters. or relocation · Safety protocol · Response site and alternate site activation · Team deployment · Personnel assignments and accessibility · Emergency contract activation · Operational changes In certain situations.2 The point at which a situation is declared to be a crisis should be clearly defined. shelter. even without officially declaring a crisis.g. it is important to insure that the goals protect the following interests listed in order of their priority: · Save lives and reduce chances of further injuries/deaths · Protect assets · Restore critical business processes and systems · Reduce the length of the interruption of business · Protect reputation damage · Control media coverage (e. there may be steps that can and should be implemented. Execute the Plan BCPs should be developed around a ‘‘worst case scenario.’’ with the understanding that the response can be scaled appropriately to match the actual crisis.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. AJAY KUAMR (510932435) Page 15 of 30 MB0036 .

What elements should be included in a marketing plan under Due diligence while seeking investment in for your company(10 marks) AJAY KUAMR (510932435) Page 16 of 30 MB0036 . In this way. severity. messages tailored specifically for a group can be released. or potential impact of the situation. Identify the Audiences Internal and external audiences should be identified in order to convey crisis and organizational response information. it is often appropriate to segment the audiences. Determining the initial level of the crisis and the progression from one level to the next will normally be the responsibility of the Crisis Management Team.2 Prioritized classifications can be set up as relative indicators of the magnitude. These levels may aid organizations that are developing response plans and implementation ‘‘triggers’’ for use during a crisis. present and potential · Business Owners/Partners · Contractors/Vendors · Boards of Directors · Media · Onsite Contractors/Vendors · Government and Regulatory Agencies · Local law enforcement · Emergency responders · Investors/Shareholders · Surrounding communities Q. MBA IV SEM. Communications Remember: Effective communication is one of the most important ingredients in crisis management. In order to provide the best communications and suitable messages for various groups. Internal External · Employees and their families · Customers/Clients.4.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set.

for instance). and the handling of media inquiries by the company. and the general employee population. and third party vendors – should be familiar with relevant parts of the BCP. as described in the next section. and reveal weaknesses in the BCP that should be corrected. Educate and Train Teams The Crisis Management and Response Teams should be educated about their responsibilities and duties. Such training could include procedures for evacuation. which involves training and exercises. should be built into the testing cycle for the BCP. . the Response Teams.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. MBA IV SEM. Goals and Expectations The first step in testing should be the setting of goals and expectations. Other less obvious goals can be to test capacity (as in the case of a call-in or call-out phone system. Testing can keep Teams and employees effective in their duties. Educate and Train All Personnel All personnel should be trained to perform their individual responsibilities in case of a crisis. arrangements at alternate worksites. Education and training are necessary components of the BCP process. Public Health. It is recommended that any external resources that may be involved in a response – such as Fire. The BCP is only as valuable as the knowledge that others have of it. as well as actual incidents experienced. Check lists of critical actions and information to be gathered are valuable tools in the education and response processes. Test the BCP Benefits of Testing The benefits and necessity for testing. using repeated drills to shorten response times). check-in processes to account for employees.2 ANS: This section of the Guideline contains those functions and tasks required for the Business Continuity Plan to remain a living document: one that grows and changes with the organization and remains relevant and actionable. to reduce the time necessary for accomplishment of a process (for example. clarify their roles. Teams should be trained at least annually and new members should be trained when they join. They should also be briefed on the key components of the BCP. They require a time commitment from the Crisis Management Team. as well as the Response Plans that affect them directly. These Teams should also be trained with respect to prevention of crises. Police. Lessons learned from previous tests. and to bring awareness and knowledge to the general employee population about the BCP. cannot be overemphasized. A commitment to testing lends credibility and authority to the BCP. An obvious goal is to determine whether a certain crisis response process works and how it can be improved. Planning and Development AJAY KUAMR (510932435) Page 17 of 30 MB0036 . shelter-in-place.

) can be leveraged. tests should become increasingly complex. participants should be allowed to interact and discuss issues and lessons. as well as the BCP itself. Future testing. etc. Timeline A test schedule and timeline as to how often the plan and its components will be tested should be established. In their infancy. Test Monitoring When feasible. and small components of the BCP. assign observers to take notes during the test. should then be modified as necessary based on the test results. Test and Exercise Roles There are several roles that test participants can fill. and the exercise should involve all participants. tests should start out relatively simple. Test and Exercise Scenarios Testing scenarios should be designed using the events identified in the Risk Assessment. Scope of Testing The scope of testing should be planned to develop over time. can participate in the tests: Test and Exercise Evaluation After completion. MBA IV SEM. The evaluation should include. All participants should understand their roles in the exercise. Larger organizations may consider establishing a Test Team. If possible. among other things. the effectiveness of participation.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. the expertise of external resources (consultants. Ongoing Development of Test Schedules AJAY KUAMR (510932435) Page 18 of 30 MB0036 . If videotape and/or audiotape devices are not available. the test should be critically evaluated. and whether the BCP itself will function as anticipated in the case of a real crisis. Where appropriate. Test and Exercise Participation Various groups from the organization itself. an assessment of how well the goals and objectives of the test were achieved.2 The responsibility for testing the BCP should be assigned. then a person should be assigned to document the chronological list of events during the testing. arrange to videotape and/or use audiotape devices for further appraisal at the conclusion of the exercise. local emergency organizations. simple exercises. becoming increasingly complex as the test process evolves. as well as from the public sector. up to a full-scale activation of the entire BCP. Early tests could include checklists. As the test schedules evolve. As part of the exercise. including external participation by public safety and emergency responders.

new roads or changes to existing traffic patterns. etc.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. · Test/Exercise Results: Based on test/exercise results. The results of the Risk Assessment can be used to determine whether the BCP continues to adequately address the risks facing the organization. and documentation of the review should be maintained as necessary. General trends in the sector/industry and in business continuity planning techniques can be used for benchmarking purposes. the BCP should be modified as necessary. Clear responsibility for BCP maintenance should be assigned. etc. personnel turnover. and results from previous exercises.2 Design of tests should be evaluated and modified as necessary. The following are examples of procedures.) AJAY KUAMR (510932435) Page 19 of 30 MB0036 . taking into account changes to the BCP. how it worked. · Event Experience: A review should be performed following a response to an event. They should be dynamic. · Sector/Industry Trends: Major sector/industry initiatives should initiate a BCP review. · Regulatory Requirements: New regulatory requirements may require a review of the BCP. If the plan was activated. Develop BCP Maintenance Schedule Regular maintenance of the BCP cannot be overemphasized. actual incidents. Develop BCP Review Schedule The BCP should be regularly reviewed and evaluated. systems. . Reviews should occur according to a pre-determined schedule. The following factors can trigger a review and should otherwise be examined once a review is scheduled: · Risk Assessment: The BCP should be reviewed every time a Risk Assessment is completed for the organization. MBA IV SEM. If the plan was not activated. the review should examine why and whether this was an appropriate decision. Maintenance can be either planned or unplanned and should reflect changes in the operation of the organization that will affect the BCP. the review should take into account the history of the plan itself. whether the BCP was activated or not. why it was activated. or processes that may affect the plan: · Systems and application software changes · Changes to the organization and its business processes · Personnel changes (employees and contractors) · Supplier changes · Critical lessons learned from testing · Issues discovered during actual implementation of the plan in a crisis · Changes to external environment (new businesses in area. .

2 · Other items noted during review of the plan and identified during the Risk Assessment. including development and maintenance? 6. Has a BCP Team been appointed. Has your organization conducted a Risk Assessment? 2. Has the person responsible for critical systems and business processes been identified? 3. If a major disaster occurred today. and is it up to date? 3. Has the likelihood for each type of risk been rated? Business Impact Analysis 1. Has the BCP been communicated throughout the organization? 5. Check List Developing the Plan Overview 1.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. Has the BCP been tested. Have the initial audit. has your organization planned for survival? 2. Has senior management approved the BCP? 4. Does your organization’s policy include a definition of crisis? 2. security. and insurance departments reviewed the BCP? 7. Does your organization have a Business Continuity Plan (BCP). Has a person been assigned with the responsibility to update the BCP? Risk Assessment 1. Have the types of risks that may impact your organization been identified and analyzed? 3. Does senior management support the BCP? 5. including a surprise test? Accountability 1. Have the critical business processes been identified? AJAY KUAMR (510932435) Page 20 of 30 MB0036 . Has the cost of the BCP been determined. MBA IV SEM. and does it include senior business function leaders? 4.

Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. Have methods to mitigate the risks identified in the Business Impact Analysis and Risk Assessment been identified? 2. Has the length of time your organization’s business processes could be non-functional been determined? 6. been assessed? 4. medium. Have the maximum allowable outage and recovery time objectives been determined? 5. Have response plans to address the various aspects of the crisis been developed and incorporated into the organization’s overall BCP? 4. Has contact information been included in the plan for the Crisis Management and the Response Teams? Prevention Compliance with Corporate Policy & Mitigation Strategies 1. and administrative support? 5. Are the strategies attainable. in terms of human and financial costs. Have strategies that address short and long term business interruptions been selected? 4. payroll. Have the recovery time objectives been identified? 7. Do the response plans address damage assessment.2 2. Have the resources required for resumption and recovery been identified? Strategic Plans 1. site restoration. has the impact. Have the business processes been ranked (low. including personnel. Have Response Teams to support the Crisis Management Team been organized? 3. and cost effective? Crisis Management and Response Team Development 1. Have the systems and resources that will contribute to the mitigation process been identified. high)? 3. tested. technology. Is the Crisis Management Team comprised of members from human resources? 2. Have compliance audits been conducted to enforce BCP policy and procedures? 2. human resources. and equipment? AJAY KUAMR (510932435) Page 21 of 30 MB0036 . information technology. facilities. Have plans and procedures to respond to any incident been developed? 3. MBA IV SEM. If a crisis were to happen.

including notification. Has the responsibility for declaring a crisis been clearly defined and assigned? 3. Will the response program recognize when a crisis occurs and provide some level of response? 2. with first and second alternates. Are employees motivated to be responsible for avoidance and deterrence and detection? 2.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. Have the systems and resources been monitored to ensure they will be available when needed? Avoidance. relocation. Have the activities that will be implemented in event of a crisis been identified. Has an assessment process to address the severity and impact of the crisis been developed? 2. evacuation. Have facility security programs to support avoidance and deterrence and detection been established? 3. MBA IV SEM. including redundant systems? 5. Have the criteria been established for when a crisis should be declared? 2. Have operational policy and procedures to protect the facilities been developed? 4. Have the danger signals been identified that indicate a crisis is imminent? 3. been assigned? Declare a Crisis 1. Is it ensured that sufficient physical security systems and planning are in place to protect the facility? Response Potential Crisis Recognition and Team Notification 1. Is the notification contact list complete and up to date? Assess the Situation 1. Have personnel been trained to observe warning signs of an imminent crisis? 4. operational changes. Has a notification system been put in place. Has an alert network for BCP Team members and employees been established? 4. Is it ensured that there is an alternate means of warning if the alert network fails? 5. and Detection 1. alternate site activation. team deployment. Deterrence. etc? Execute the Plan AJAY KUAMR (510932435) Page 22 of 30 MB0036 . Has the responsibility for declaring a crisis.2 3.

What must be done to restore data to the same previous point in time within the recovery time objective? AJAY KUAMR (510932435) Page 23 of 30 MB0036 . Has consideration been given to developing the BCP around a ‘‘worst case scenario?’’ 2. Are communications with all employees occurring at approximately the same time? 4. Have alternate worksites for business resumption and recovery been identified? 3. and objective? 3. Have critical and vital records been stored at an offsite storage facility? 4. honest.2 1. protect assets. Have arrangements been made for next-of-kin notifications? 4. Will the financial systems for payroll and support of facilities and employees remain functional? Resource Management – Logistics 1. including notification of when the next update will be issued? 5.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. Has the BCP been prioritized to save lives. Are communications timely. Can crisis counseling be arranged as necessary? 5. reduce the length of the interruption. MBA IV SEM. and does it have necessary life support functions. including uninterruptible power supply and communications equipment? 2. control media coverage. Has a primary spokesperson and back-up spokespersons been designated who will manage and disseminate crisis communications to the media and others? Resource Management – Human Element 1. Is there a system to ensure current and accurate contact information is maintained? 3. and maintain customer relations? 3. Are regular updates provided. Has a system been devised by which all personnel can be accounted for quickly? 2. Has a crisis communications strategy been developed? 2. protect reputation. restore critical business processes and systems. How long can each business function operate effectively without normal data input storage processes? 5. Have the severity of the crisis and the appropriate response been determined? Communications 1. Has a designated Crisis Management Center been identified.

Has the organization returned to normal operations? 7. Process Resumption. Has a damage assessment been performed as soon as possible? 2. are they legally sound.2 6. properly documented.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. Has a checklist of critical actions and responsibilities and duties been developed? 3. after the initial data recovery. Is the schedule of the processes to be restored in accordance with the prioritization schedule? 5. and Return to Normal Operations 1. Suppliers/Service Providers. Have transportation alternatives been arranged in advance? 4. Has business process recovery been prioritized to recover the most critical business processes first? 4. to speed the forward recovery to the present time? Resource Management – Financial Issues and Insurance. Have critical vendor and service provider agreements been established? 5. Has the appropriate insurance coverage been identified and obtained? 2. Have mutual aid agreements been established? 6. Are the Crisis Management and Response Teams educated about their responsibilities and duties? 2. Do Teams receive annual training? AJAY KUAMR (510932435) Page 24 of 30 MB0036 . and understood by all parties? Recovery and resumption Damage and Impact Assessment. MBA IV SEM. Transportation. If so. Is there documentation of when the processes were resumed? 6. Can any alternate data storage processes be used. Has the decision to return to normal operations been documented and communicated? Implementing and maintaining the plan Education and Training 1. and Mutual Aid 1. Are cash and credit available to the BCP Team? 3. Has the Damage Assessment Team been mobilized to the site? 3.

Have tests and drills been evaluated. or AJAY KUAMR (510932435) Page 25 of 30 MB0036 . Has responsibility for testing the BCP been assigned with consideration for establishing a test team? 5.explaining the relative advanagte and disadvantage of each(10 marks) ANS:. Does BCP maintenance reflect changes in the operation of the organization? Q. especially when your institute has a public interest focus or an educational role.Joint Venture :Rather than simply exploit your IP rights by licensing or assignment. Does test participation include various groups from the organization and the public sector? 6.2 Testing 1. Is the BCP regularly reviewed and evaluated on a predetermined schedule? 2. These options require much more work on your part than licensing or assigning your intellectual property rights. MBA IV SEM. Are the Business Continuity Plan and appropriate Teams tested to reveal any weaknesses that require correction? 2. Have observers been assigned who will take notes during the test and critique the test at the conclusion of the exercise? 7. you might choose to set up a new legal mechanism to exploit your technology. including assessing how well the goals and objectives of the tests and drills were met? BCP Review and Maintenance Schedules 1. This could be a desirable choice in cases where: – you want to keep your institute’s research activities separate from the development and commercialisation of technology.5. Have goals and expectations of testing and drills been established? 3. Is the BCP reviewed every time a Risk Assessment is completed for the organization? 3. Typically this can be a partnership expressed through a joint venture agreement or a new corporation. Is the BCP modified as needed based on test/exercise results? 4. Has responsibility for on-going BCP maintenance been assigned? 5. Are drills and tabletop exercises conducted on an annual basis? 4.Distinguish between joint venture and licensing. such as a start-up or spin-off company.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set.

as their shares proportionately rise in value. through receiving its share of the profits and growth in assets of the spin-off company. a company is a new legal entity (a ‘legal person’ recognised by the law as having its own legal identity) which can own and license IP and enter into legal commitments in its own right. Investors can purchase shares in the company. you need to check out possible commercial partners and make sure that the objectives of your potential commercial partners are consistent with your objectives. legally binding commitment between two or more partners to work together on a shared enterprise. The company is normally owned through shares (its ‘equity’). If it is a public company. the partners typically agree to share the benefits. An initial public offering is when the shares in a start up company are first made available to the public to purchase. A private company’s shares. a company or a specific institution doesn’t really separately exist as a legal entity. The laws governing partnerships and companies differ considerably from one country to another. Before entering into a joint venture agreement. thus strengthening the institute’s capacity to do scientific research. AJAY KUAMR (510932435) Page 26 of 30 MB0036 . and this discussion is only intended to give a general flavour of the various options. By contrast. you might sign a partnership agreement with a manufacturing company to develop and market a product based on your invention. as well as the risks and liabilities. you will normally need specific legal advice from a commercial lawyer. These effectively represent a portion of the assets and entitlement to profits of the company. For instance. and they will only take on a long-term risk if they can get a share of future profits of the technology. shares in the company can be bought and sold on the open stock market. A spin-off company is an independent company created from an existing legal body – for example.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. and to receive a portion of any profits produced by the company’s operations. In other words. so that the partners remain directly legally responsible for any losses or other liabilities that the partnership’s operations create. or own IP in its own right. A joint venture agreement involves a formal. in a specified way. It is normally created for a specific purpose (for example.2 – you need to attract financial support from those prepared to take a risk with an unproven technology (‘angel investors’ or ‘venture capitalists’). MBA IV SEM. preferably one with experience in technology and commercialisation in your jurisdiction. In the joint venture agreement. At the same time. are not traded on the open market (but can still be bought and sold). A start-up company is a general term for a new company in its early stages of development. a partnership which is not a corporation. the investors stand to benefit from the growth in the company’s worth. commensurate with the number of shares they own. If a company is defined as a limited liability company. which is one way of bringing in new financial resources to support the development of the technology – in exchange. the partners or investors normally cannot lose more than their investment in the company (but officeholders in the company might be personally responsible for their actions in the way they manage the company). the research institute can benefit from the commercialisation of its research. But this kind of partnership isn’t normally able in itself to enter legal commitments. This separate legal identity means that a start-up company can be a useful way of developing and commercialising a new technology based on original research. to commercialise a specific new technology) and for a limited duration. and insulated from the commercial risks and pressures of the commercialisation process. while keeping the main research effort of an institute focussed on broader scientific and public objectives. In working out the right vehicle for your technology. by contrast. if a research institute decided to turn its licensing division or a particular laboratory into a separate company.

you are normally only paying for an entitlement to play the music in a private environment. or a screwdriver – when the person selling the object can’t normally restrict the way in which you use it. when you buy a music CD. development and marketing. For example.2 The option of starting up your own company to manufacture and market your patented invention requires you to have business skills. and sets out conditions on this use. licences covering the technology they are working with. AJAY KUAMR (510932435) Page 27 of 30 MB0036 . You need to make good commercial decisions to benefit financially from your intellectual property rights. and to make only one copy of the disc for back-up purposes. This is unlike the case if you buy other objects – say a computer. understand. or to broadcast the CD on public radio. If you buy a software package. You would need to get a separate license to make and sell copies of the CD. A licence may be free of charge. management skills and substantial capital to draw on for factory premises. the higher degree of risk and commitment of finance and resources you can invest. But it also can offer a mechanism for attracting financial backing for research. This entitlement is normally given in exchange for some form of payment or other benefit. and in practice they can overlap. and the mechanism you choose for commercialisation should take into account the particular features of the technology. Generally speaking. a CD player. a software package or a music CD. or to play the CD in a public restaurant. you may be buying a license for limited uses of copyright material – you normally don’t get an unlimited licence that permits you to do whatever you like with the copyright material. wish to be involved and to invest in the subsequent development of the technology. There are many possible variations on each of these general models. Licenses on IP are literally a part of everyday life. You will need to compare the advantages and disadvantages of each model of commercialisation. and the higher the financial return to your institution may be. Which model of commercialisation is best for you? Each new technology and associated package of IP rights is potentially difference. The license defines certain limited uses of IP material. In deciding which model of commercialisation is best for you. negotiate and enter into. which can improve access to the necessary resources and expertise. the higher the degree of control you can secure over exploitation of the technology invention.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. but could limit the way the licensed IP is used. While these are different in scope and subject matter to the kind of licence that comes with a word-processing package or music CD. Properly managed. One basic consideration is to what extent you. Researchers in the biotechnology field increasingly find they have to read. hiring staff and so on. intellectual property rights should not be a burden but should yield a return from your hard work in creating an invention. you might only be given a licence to use the software only on one computer. Remember that IPRs alone do not guarantee you a financial return on your invention. MBA IV SEM. the basic elements of licenses remain the same. When you buy a book. although we are not always aware of this. as originator of the technology. it is always a good idea to seek commercial or legal advice. You might need to get a separate licence to install the software on a network. or to make numerous copies of the software to distribute within your organisation. marketing skills.

provide a description of your company. A committee will probably need much more time. and the product or service you plan to offer. Sell your concept! The executive summary may be the first and only section of your business plan that most of your audience will read. If you ever get involved in serious licence negotiations.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. A business plan can be completed by one staff member working full time in as little as a week. Other readers will look to the executive summary as a sample of the quality and professionalism of the overall plan. and establish operating goals and guidelines. attract investment. and the group’s facilitation needs. MBA IV SEM. you should seek expert advice with experience in the national legal system (or systems) you are dealing with.What factots would you weight in choosing an appropriate course(10 marks) ANS:. Now that you have decided who will put together your business plan and have set a timeline for its completion.It is also important to establish a timeline for completing the plan. experience with planning and research. Your business plan should contain the following sections: · Executive summary · Company and product description · Market description · Operations · Management and ownership · Financial information and timeline · Risks and their mitigation A solid business plan will clearly explain the business concept. volunteers. available time. consultants and a board committee may lengthen or shorten the process depending on skill level. you are ready to begin assembling the elements of the plan. Combinations of staff.2 This section discusses the main elements of licensing agreements. Executive Summary In this section of your business plan. But beware: this is only a general introduction to a complex area of law.You wish to commercialize your invention. Q.6. Tell the audience why the business is a great idea. although a thorough market analysis will add several days at least. The executive summary should be no more than one to three pages long and should answer the following questions: · Who are you? (describe your organization) · What are you planning? (describe the service or product) AJAY KUAMR (510932435) Page 28 of 30 MB0036 . the industry you will be competing in. describe the market for your product or service. Some readers will look at this section to determine whether or not they want to learn more about a business.

Provide as much detail as necessary to inform the reader about the particular characteristics of your product that distinguish it from its competition – many nonprofits. Also include a description of your non-profit organization. provide documentation or references supporting your trend analysis such as articles from business-oriented newspapers and magazines. Discuss what will attract consumers to your product or service. manufacturing or service) and the legal structure (corporation or partnership). Give the reader a brief overview of the industry. low end or in the middle of the existing range of prices for a similar product or service.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. describing historic and current growth trends.2 · Why are you planning it? (discuss the demand and market for the service or product) · How will you operate your business? · When will you be in operation? (overview of timeline) · What is your expected net profit? (discuss your projected sales and costs) Although the executive summary is the first part of your business plan. Product or Service After describing your company and its industry context. you should write it after you have written the other sections of the plan in order to include the most important points of each section. explain the steps you will take to provide a service that is better than your competition. and discuss the rationale behind that price. describe the products or services you plan to provide.” If you are providing a service. Include these references in the attachments of your business plan. expect to produce higher-quality housing than otherwise exists in the area. Mention any distinctive elements in the manufacture of the product. for example. such as being “hand-made by a particular people from a specific area. Whenever possible. the role it has played in developing this new venture and the on- going role. An unrealistic price estimate may undermine the credibility of your plan and raise concerns that your product or service may not be of sufficient quality or that you will not be able to maintain profitability in the long run. it will play in operations. AJAY KUAMR (510932435) Page 29 of 30 MB0036 . if any. Focus on what distinguishes your product or service from the rest of the market. MBA IV SEM. wholesale. Company and Product Description In describing your company be sure to include what type of business you are planning (homeownership development. referencing the goals you set at the beginning of the business planning process. retail. You should discuss why you are creating this new venture. Describe where this price positions you in the marketplace: at the high end. Price Provide a realistic estimate of the price for your product or service. research journals or other publications.

you will describe the customer base or market for your product or service. such as its accessibility. race.2 In other sections of the plan you will discuss the target market for your product or service and also provide additional details on how the price of your product fits into the overall financial projections for the enterprise. In addition to providing a detailed description of your customer base. as this will further validate your market assumptions. Discuss the advantages of the location. Place Describe the location where you will produce or distribute your product or provide your service. AJAY KUAMR (510932435) Page 30 of 30 MB0036 . or information gathered by your organization. · Geography – Measures based on location. Who will purchase your product or use your service? How large is your customer base? Define the characteristics of your target market in terms of its: · Demographics – Measures of age. Cite any research forecasting population increases in your target market or other trends and factors that may increase the demand for your product or service.Assignment – Strategic Management & Business Policy-MB0036 Assignment Set. Be sure to list the sources for your data. Customers In this section of your business plan. Depending on your anticipated customer base. surrounding amenities and other characteristics that may enhance your business. · Socioeconomic Status – Measures based on individual or household annual income. neighborhood surveys and group or individual interviews. gender. religion and family size. MBA IV SEM. for a housing business. Provide statistical data to describe the size of your target market. What other businesses exist in your area that are similar to your proposed venture? For example. state or local census data. such as membership lists.Discuss how people identified in your target market currently meet their need for your product or service. you will also need to describe your competition (other local developers or nearby businesses providing a similar service to your potential customer base). what are the local markets for purchase and rental? How much are people currently paying for similar products or services? Briefly describe what differentiates your proposed venture from these existing businesses and discuss why you are entering this market. Include any relevant information regarding the growth potential for your target market if your business is expected to rely on growth. Sources for this information may include recent data from the Bureau of Statistics. Competition: . accessibility to your location via public transportation could affect the marketability of your product or service.