SBANC
Small Business Advancement National Center University of Central Arkansas — Conway Arkansas
115H, College of Business - University of Central Arkansas - 201 Donaghey Ave. Conway, AR Issue: 803 - February 5th, 2014
Upcoming Conferences ABR
SOBIE
Who: Academy of Business Re- When: March 26-28, 2014 search Where: New Orleans, LA What: New Orleans Conference
Who: Soc. of Business, Industry, and Economics
When: April 8-11, 2014 Where: Sandestin, FL
What: Academic Conference
ICSB
Who: International Council for Small Business
When: June 11-14, 2014 Where: Dublin, Ireland
What: ICSB World Conference
INTE
ICSM
Who: INTE
When: June 25-27, 2014
What: 5th Int’l Conference on New Horizons in Education
Where: Paris, France
Who: International Conference on Services Management
When: December 10-12, 2014
What: Int’l Conference
Where: Macau S.A.R., China
Announcements SBANC
The Small Business Advancement National Center is pleased to announce that we have revamped our website and newsletter. All questions and comments would be greatly appreciated.
GCSAMA
Central Piedmont Community College & the Charlotte Business Journal will host the Global Competitive Summit and Advanced Manufacturing Awards 2014 on March 12, 2014 in Charlotte, NC. RICE Business Plan Competition
RBPC
When: April 10 –12, 2014 Applications Due: February 21, 2014
AABRI
IETC
AABRI will be hosting a conference in Hawaii, June 12-14, 2014. The conference will be hosted by the Sheraton Princess Kaiulani in Waikiki. The International Educational Technology Conference will be held in Chicago, USA from September 3-5, 2014.
Call for Papers TAF
Who: The Academic Forum
Where: Baltimore, Maryland
What: Spring 2014 Conference
Deadline: February 23, 2014
When: March 23-26, 2014
EUMMAS
ERPA
IETC
Who: European Marketing & Management Association
When: June 6-8, 2014
What: 2014 Conference
Deadline: April 1, 2014
Who: Educational Researchers & Publications Association
When: July 3-5, 2014
What: ERPA 2014 Conference
Deadline: May 6, 2014
Who: International Educational Technology Conference
When: September 3-5, 2014
What: IETC 2014 Conference
Deadline: July 20, 2014
Where: Sarajevo, Bosnia
Where: Istanbul, Turkey
Where: Chicago, USA
Making Decisions for Contingencies & During Crisis Managers must be adept at making decisions related to contingencies and during crisis. Contingency planning is the process of making decisions in advance regarding alternative courses of action to
Tip
of the Week
“We are professional crisis managers in the airline business, and we’re good at it.” - Jeff Smisek United CEO
be taken if an intended course of action is unex-
pact of technical glitches in
gency Management Agency
pectedly disrupted or ren-
computers stemming from
(FEMA) illustrated to many
dered inappropriate. Cri-
their internal clocks’ changing
people that organization’s
sis management, a related
from 1999 to 2000 resulted in
weakness in coping with cri-
concept, is the set of pro-
contingency planning for most
ses. On the other hand, some
cedures the organization
organizations. Many banks
organizations responded
uses in the event of a dis-
and hospitals, for example,
much more effectively.
aster or other unexpected
had extra staff available; some
Walmart began ramping up
calamity. Some elements
organizations created backup
its emergency preparedness
of crisis management may
computer systems; and some
on the day that Katrina was
be orderly and systematic,
even stock piled inventory in
upgraded from a tropical de-
whereas others may be
case they could not purchase
pression to a tropical storm.
more ad hoc and develop
new products or materials.
In the days before the storm
as events unfold.
The devastating hurricanes
struck, Walmart stores in the
An excellent example of
that hit the Gulf Coast in
region were supplied with
widespread contingency
2005—Katrina and Rita—
powerful generators and
planning occurred during
dramatically underscored the
large supplies of dry ice so
the late 1990s in anticipa-
importance of effective crisis
they could reopen as quickly
tion of what was popularly
management. For example, in-
as possible after the storm
known as the “Y2K bug.”
adequate and ineffective re-
had passed. In neighboring
Concerns about the im-
sponses by the Federal Emer-
states, the firm also had
“
scores of trucks standing by
(Continued from Previous Page)
Had relatively vague and super-
Of the organization. These
crammed with both emer-
ficial crisis plans. Now they
may include strategic, tac-
gency related inventory
and most other companies
tical, and operational
for its stores and emer-
have much more detailed and
plans. As part of this de-
gency supplies it was pre-
comprehensive plans in the
velopment process, man-
pared to donate—bottled
event of another crisis. Both
agers usually consider
water, medical supplies,
Reliant and Duke, for example,
various contingency
and so forth. And Walmart
have created secondary trading
events. Some manage-
often beat FEMA by sever-
center in other locations. In the
ment groups even assign
al days in delivering those
event of a shutdown at their
someone the role of dev-
supplies.
main trading centers these
il’s advocate to ask, “But
firms can quickly transfer virtu-
what if…” about each
ally all their core trading activi-
course of action. A variety
ties to their secondary centers
of contingencies is usual-
within 30 minutes or less. Un-
ly considered.
fortunately, however, because
At action point 2, the plan
Seeing the consequences of poor crisis management after the terrorist attacks of September 11, 2001, and the 2005 hurricanes, many firms today
it is impossible to forecast the
that management chooses
future precisely, no organiza-
is put into effect. The
tion can ever be perfectly pre-
most important contingen-
pared for all crises. Indeed, one
cy events are also de-
element of the BP oil spill in
fined. The contingency
the Gulf of Mexico that was
planning process consid-
surprising to many people was
ers only events that are
that the firm did not have a cri-
likely to occur and whose
sis plan in place to cap the spill
effects will have a sub-
immediately.
stantial impact on the or-
energy-related commodi-
The mechanics of contingency
ganization. Next, at action
ties. If a terrorist attack or
planning are shown in Figure 1
point 3, the company
natural disaster such as a
(Next Page).
hurricane were to strike
ganization’s other plans, con-
tors or signs that suggest
their trading centers, they
tingency planning comes into
that a contingency event
would essentially be out
play at four action points. At
is about to take place. A
of business. Prior to Sep-
action point 1, management de-
bank manager might de-
tember 11, 2011, each firm
velops the basic plans of the
cide e that a 2% drop in
are actively working to create new and better crisis management plans and procedures. For example, both Reliant Energy and Duke Energy rely on computer trading centers where trading managers actively buy and sell
“
In relation to an or-
specifies certain indica-
Figure One
Most organizations develop contingency plans. These plans specify alternative courses of action to take if an intended plan is unexpectedly disrupted or rendered inappropriate.
Action Point #1
Action Point #2
Action Point #3
Action Point #4
Develop plan,
Implement plan and formally identify contingency events
Specify indicators for events and dev. plans for each possible event
Successfully complete plan or contingency plan
considering contingency events
Monitor contingency event indicators and implement contingency plan if necessary
(Continued from Previous Page)
If the situation dictates, a con-
ment, by its very nature,
Interest rates should be
tingency plan is implemented.
however, is more difficult
considered a contingency
Otherwise, the primary plan of
to anticipate. But organi-
event. An indicator may
action continues in force. Final-
zations that have a strong
be two consecutive
ly, action point 4 marks the
culture, strong leadership,
months with a drop of .5%
successful completion of either
and a capacity to deal with
in each. As indicators of
the original plan or a contin-
the unexpended stand a
contingency events are
gency plan.
better chance of success-
being defined, the contin-
Contingency planning is be-
fully weathering a crisis
gency plans themselves
coming increasingly important
than do other organiza-
should also be developed.
for most organizations, espe-
tions.
Examples of contingency
cially for those operating in
plans for various situa-
particularly complex or dynam-
Source:
tions are delaying plant
ic environments. Few manag-
Management Skills—
construction, developing
ers have such an accurate view
Assessment and
a new manufacturing pro-
of the future that they can an-
cess, and cutting prices.
Development 1st Edition
ticipate and plan for every-
After this stage, the man-
thing. Contingency planning is
agers of the organization
a useful technique for helping
David D. Van Fleet
monitor the indicators
managers cope with uncertain-
Cengage Learning
identified at action point 3.
ty and change. Crisis manage-
“
Ricky W. Griffin &
Page 296-298
“The best way to predict the future is to create it.” - Peter Drucker
Feature Paper
”
SBANC Staff Director Dr. Don B. Bradley III
Development Intern James Vire
The Impact of Strategic Focus and Previous Business Experience on Small Business Performance
Development Intern Joshua Tucker
This paper was written by Michael Harris, Shanan Gibson, William McDowell, from the East Carolina University. The paper was presented at the 2013 Small Business Institute Florida Conference.
Comments?
Abstract This study examines whether or not having an internal or external strategic focus interacts with prior experience in the small business realm to impact perceived organizational performance. Utilizing a sample of 237 small business owners from the southeast U.S., a factorial ANOVA and Regression Analysis was used to test hypotheses related to these constructs. Results indicated that utilizing an internal focus was associated with higher performance among both experienced and inexperienced small business owners; however, an external focus was only positively related to performance for inexperienced business owners. No overall difference in performance was found for experience itself. (Page 243)
Read Entire Paper Here
The Small Business Advancement National has recently made immense changes to the layout of its website, SBAER.UCA.EDU, as well as its Newsletter. We welcome constructive criticism, comments, and of course, all questions throughout this transition.
Contact Us Email: SBANC@UCA.EDU Phone: 1 (501) 450-5300 Mail: UCA Box 5018 201 Donaghey Avenue Conway, AR 72035-0001
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