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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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SBANC Newsletter February 5, 2014