Chapter 1

INTRODUCTION

BACKGROUND OF THE STUDY

According to the International Federation of Red Cross and Red Crescent Societies, a

disaster is a sudden, calamitous event that seriously disrupts the functioning of a community or

society and causes human, material, and economic or environmental losses that exceed the

community’s or society’s ability to cope using its own resources. Though often caused by nature,

disasters can have human origins. Public health emergency on the other hand, is a type of

disaster that can arise from a wide range of causes, including outbreaks of contagious,

life-threatening disease, natural disasters, as well as chemical contamination of the

environment and the release of radiation. Because of these inevitable events, most businesses

are not well-prepared in facing such disruptions that results to large amount of financial losses

especially when the country is declared under the state of calamity or state of public emergencies

where establishments are forced to close down for a few days and in worst cases, months.

One example of this scenario is the arising of COVID-19 pandemic that creates a huge

impact to different industries such as manufacturing, food services, hospitality, and aviation

industries. Closing of international borders, implementation of nationwide curfews, suspension

of flights, and temporarily closure of establishments are some of the major effects of providing

safety measures for containing the spread of such virus. If situations like these are not being

anticipated and companies does not have disaster and public health emergency contingency

plans, it could be a great impact to the business.

Food service industry is one of the most affected industry for such kind of emergencies

especially relating to health and safety. Closures of food service enterprises could cause a ripple
effect among related industries such as food and beverage production, food and beverage

shipping, fishing, and farming. The issues were particularly disruptive in industrialized areas

where large portions of entire categories of food are typically imported using just-in-time

logistics.

Every organization is at risk from potential disasters and emergencies. Creating a disaster

management strategy helps ensure that an enterprise has the resources and information needed to

deal with any type of emergencies. The occurrence of disasters affects the economic

development and social stability. It is a goal of every business to formulate plans and strategies

in order to prevent emergencies, to mitigate destructive effects, and to ensure assistance to

affected parties. If such emergency take place, the business’ system should be capable of

responding to it. Emergency preparedness involves being able to cope with the consequences of

an emergency that includes the recovery and redevelopment of the company that will be able to

adapt to such occurrences after the emergency.

Micro, Small and Medium Enterprise (MSMEs) are the most vulnerable and least

prepared for disasters. In the Philippines, MSMEs account for 99.5% of the private sector and

employs 62.8% of the labor force. It also contributes 35.7% of the total value added to the

economy. The limited resources make MSMEs more vulnerable to disasters. They are more

likely to lose greater portion of their assets or capital base. With limited resources, it is more

difficult for MSMEs to recover which is critical to the economic recovery of the affected

locality. The Philippines’ Disaster Risk Reduction and Management Program has no clear

guidelines for supporting MSMEs affected by disaster and since MSMEs are a key driver of

local economic development, adapting to both natural and man-made disasters should look not

just into the community disaster risks but also in terms of business continuity.
 The development of a public health emergency and disaster management strategy could

help in assuring that micro, small and medium enterprises particularly in food service industries

to seek different opportunities during crisis, determine possible problems, reduce losses and

disruptions, and to prepare for emergencies for the continuation of their operations without the

expense of anybody’s safety and health. It is important to account for saving the business and at

the same time, prioritizing the importance of the safety of the individuals under the enterprise.

STATEMENT OF THE PROBLEM

This research aims to determine possible problems during public health emergencies and

disasters that could affect businesses particularly the micro, small and medium food service

enterprises, and provide solutions to prevent great disruptions in the overall operations of the

company and prioritizing the safety of the employees and customers. The purpose of the study is

to answer the following questions:

1. What are the problems encountered during public health emergency and calamities?

2. What are the factors that will be affected in the business during emergency situations?

3. What solution/s can be proposed to solve/overcome the problems encountered?

4. What safety measures should be implemented to assure the safety of the employees and

customer?

SCOPE AND LIMITATIONS

This study was only within the scope of the supply chain, service process, work skeletal,

mode of service, pricing strategy and safety precautions or policy of the micro, small and

medium food service enterprises.

SIGNIFICANCE OF THE STUDY

 The value of this study will be beneficial to the employees, supervisors, top management

and future researchers.

TO THE EMPLOYEES, this study will serve as a guide for understanding the work skeletal and

the importance of crisis management strategies on their safety and the company.

TO THE SUPERVISORS, this will serve as a tool for effective management and initiation of

actions in a crisis situation, and for developing effective communication at the workplace.

TO THE TOP MANAGEMENT, the result of the study can be used to determine the

effectiveness of the current contingency plans in terms of public health emergencies and

disasters, and to resort issues that could affect the overall operations.

TO THE FUTURE RESEARCHERS, this will serve as a guide and additional reference for

future study.