Crisis and Risk Management

Crisis and Risk Management

Crisis and risk management are important strategies that organizations need to put in place to ensure that they solve disasters efficiently. Organizations are prone to various disasters and therefore, they must have in place a well plan of dealing with such disasters. This paper seeks to provide a solution to the problems that Mark and Spencer faces.

The crisis that Marks and Spencer faces is failure of card system and shoplifting (Marks &Spencer 2012). The security system of the stores failed and this made the store to lose a considerable number of customers. This problem was a result of failure to the main security systems. This failure also allowed shoplifting as all the security systems such as camera were not working. Therefore, the company suffered huge losses in the one hour that the system had failed. The solution to these problems is to restore the confident of the customers who were disappointed and to avoid any other problem of such nature at the same time enhancing the image of the organization.

In developing a disaster plan for this problem, it is important to put consideration the press because, it plays a fundamental role in promoting the image of the organization or may impact negatively on the organization. Therefore, Mark and Spencer Company must relate well with the press by releasing information to their customers apologizing for the inconvenience and assuring them that such problems will be restored.

Various theories can be used to provide amicable solutions to these problems. This includes; fishbone analysis, decision-making grid and Pareto chart. In solving the problem of card failure and shop lifting, Mark and Spencer Company will use fishbone analysis. Fishbone analysis requires that problem is solved through various stages. The first stage is identifying the problem, reach consensus that indeed there is a problem, brainstorming on possible causes of the problem, and scrutinize the likely causes that resulted to the problem and then reaching to the best solution that can help prevent reoccurrence of such problems in future. In reaching this solution, it requires involvement of people, environment, methods and materials (ASQ, 2013).

The solutions of failure of credit card and shoplifting will be arrived at after a thorough investigation of the likely causes of the problem. The causes of credit card as indicated may have resulted due to lack of skilled personnel to man the security system. To avoid future reoccurrence of this problem, the company will be required to employ an additional security manager who is experienced to work in shifts with the existing officer. This will ensure that, there are no such problems in future as the security personnel will be always available. Incase of sickness or any unavoidable circumstance, the other officer will have to man the security system. Therefore, services will not be interrupted. Another solution to this problem is to consider installation of new security system and reintroducing new credit cards to ensure that the problem does not reoccur again. If this option is to be adopted, the new machines should be tested and verified to be efficient and reliable. Furthermore, the cost of installation and repairing the current security machines in relation to the impacts on the productivity of the company should be weighed.

Problem of shoplifting also requires amicable solutions to ensure that it does not reoccur again. This problem causes the company to loss a lot of money hence affecting its profitability. The solution to this problem is to employ security personnel that will be stationed at every entrance to verify whether the customer coming out of the store has paid or not. This will help to ensure that such problems does not occur incase of blackout and camera failure. Another solution is to install backup generators that will ensure that incase of blackout, the lights and systems continues to run to avoid interruption of the operations.

These solutions will do a great deal in curbing such problems in future. The confidence of customer will be restored and the company will enjoy economies of scale because of customer loyalty resulting from provision of better services.

References

ASQ. (2013). Fishbone diagram. Retrieved from: http://asq.org/learn-about-quality/cause- analysis-tools/overview/fishbone.html

Marks &Spencer 2012, About us. Retrieved from: http://corporate.marksandspencer.com/aboutus/company_overview