Management 12th edition by Richard L. Daft. Please review the section from Chapt

Question

Management 12th edition by Richard L. Daft. Please review the section from Chapter 7 on Crisis Planning (pgs 236-238). Be sure to review the Innovative Way – Western Digital Thailand story. How did Western Digital Thailand use both prevention and the preparation stages of crisis planning. Chipolte recently executed a crisis plan after several cases of food poisoning from their restaurants were reported in the news. Feel free to Google this story if you’re not familiar with the situation. If you were part of the management team, what are some examples of prevention and preparation you would recommend to avoid this in the future?

Explanation / Answer

Managers and the entire functional head at the western digital had anticipated well in advance the consequences that are in the near future. As a result Western digital took stocks out the JIT processes to a safe and nearby location- this was ensured a few days in advance before the actual disaster took place. Apart from this the company ended up creating a qualification guidelines for the new suppliers that was very short efficient and speedy. This was to ensure if there are new suppliers to be brought into the system then it must take the minimum time. The company also ensured an adequate crisis budget that ensured rebuilding or recreating production lines for the new suppliers.

At the end it was all the relationship that western digital holds with its clients both external and internal that helped it in the time or turmoil’s.

Although chipotle has been trying a lot to prove the fact that it keeps people before the profits, the actions speaks otherwise. When chipotle removed carnitos off the menu it was the time they should have hired external food audit agencies to mark off its production facilities. The consumers in the food industry demands and expects a lot of transparency.

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