ECONOMIC CHALLENGE paper
ECONOMIC CHALLENGE due by 7:00pm Central Standard Time on Friday, May the 16th. Minimum of four pages (Some content on page 5) but no maximum limitations on page content. Responses must be ample text to directly answer the questions. No Bullet dots – must be sentence structure and within paragraphs.
****Task and/or Project:
Prepare a “Report” which in conclusion would provide an overall course of action as to how your entity will be operating during this “shut down.” This statement must include your course of action if this “shut down” so impacted your operations that it would become necessary for the partial discontinuance of operations of certain activities in your operation. Do not repeat any of the above Case situation statements or facts/circumstances within the minimum 4 pages of your statement.
Deduction of points will result if these statements/facts/circumstances are repeated within the minimum or complete text of pages for this assignment. To emphasize a twice made statement: “Tell me something that I do not know.”
You are the General Manager of an organization of a legal entity (wholly owned subsidiary of the parent company). In addition, this organization is generating over $1 Billion dollars in operational revenue (5%) of the total revenue for the parent company and approximately 8% of the operational profit of the parent company. At your headquarters office, which is about 1,000 miles from the parent company headquarters, you have 500 employees working at this site. It has one elective officer of the company (yourself) 7 directors; about 40 managers who are all classified as exempt (at least have a Master Degree).
It is Thursday morning and you receive a phone call from your direct supervisor who is an Executive V.P. He informs you that the company’s lobbyist (extremely high power attorney) in Washington D.C. has just completed a conference call with the Executive Operating Committee and has informed them that the Federal Government will be “shut down” within the next 48 hours. (Most of you were too young to remember and/or recall this event so you will have to research its occurrence plus the events just before and after. A hint: This was when our “infamous President of the United States” was committing “child abuse” with a young intern that was 1/3 of his age. Later he would lie to a Grand Jury about the event and subsequently be impeached by one House of Congress.” Also, speaks to the issues of ethics and integrity (previous week’s area of interest) which is related to a portion of our lecture this week of leadership.
Your Executive V.P. is indicating that you must be in headquarters on Monday morning to present your strategy and immediate plans of operations as roughly 30% of your business comes from the Federal Government. One particular concern is the expectant cash flow that will not occur due to non-payment of invoices. Per the lobbyist briefing no one will be paid while the Federal Government is “shut down.” In addition, no procurement, installation of equipment, or delivery of equipment will take place during this closure. What is still in a “grey zone” is whether maintenance can and/or will be performed as it appears that certain operations and administrative activities within the government will be performed by staffers that are not “Civil Servants.” Although the lobbyist is very in tune with the “climate” within the Congress; he has stated that it is “anyone’s guess” as to how long this situation will continue but he is very sure that military operations will continue so that segment of the government will be “doing business as usual.”
You and your staff have put in place a contingency plan for this event of government closure. However, this rough draft of such has been in place for a couple of years simply as a what if situation. It actually had come about as the result of a surprise “shut down” by the State of Ohio that caused major disruptions in the operations at that time as the organization was conducting a “major roll out” and installation when the State of Ohio had shut down for about 30 days. Civil lawsuit liabilities claims were still in the court system over that debauchment. However, “more meat on the bones” had been recently been added to this draft contingency plan due to feedback from the lobbyist over the past 30 days. Also, if the Federal Government should shut down it would have much more material impact on business than the two year old experience with the State of Ohio.
The continuity plan is a vital resource that contains information on what must be done during a crisis such as the government shutdown (Savage, 2002). The continuity plan will provide a pathway of how to operate during the shutdown right from the minute it become effective until the time of recovery. Hence, the first thing to do will be to review it together with other line managers so as to get a grip of what must be done to either keep the business going or to shut down certain areas so as to allow the critical areas to operate. In essence, the continuity plan will be the guiding principle over the optimum…………………………………………………
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