Himachal Case Part 3

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Himachal Live Case Part 3 Jenise D’Cruz Southern Illinois University at Edwardsville

1. What do we know right now about the company and the situation? What are the potential scenarios at play at this point in time (e.g., what could have caused the current issue)? Right now, we know that there are leaks being caused by the pipeline that was being fixed. Potential scenarios that could be causing this issue is that the new source of naphtha is too potent for the pipes, especially at the seams where the leaks are happening. It could actually be eroding the seams. Another scenario is that the pipes are able to handle the naphtha but are not built properly. There could have been some parts loose that caused seams to weaken. 2. What should be Patel’s next move? How should Patel respond to the reporter and the tv station? Patel should try to figure out what is causing this issue and the best way to alleviate it. He should also figure out a way to pay for all the hospitalizations and get everyone in the area that could be affected checked out by doctors. This is the first pillar of business continuity, to respond personally to customers/victims (Sweida, 2023, p. 23). Then, Patel should respond to the reporter and the tv station with their plan of action regarding the workers affected and any updates about what could be causing the leaks and the company’s plan to fix it. 3. Consider the stakeholders who are involved in this case. List them and describe how and why they are important stakeholders to be considered? The stakeholders in this case are Ajay Patel, the head of public relations, the CEO, and the board members that Patel sat down with. Ajay Patel is the logistics general manager that seems to be in charge of the local plant and pipeline. Patel is an important

stakeholder because any issues with the pipeline lead back to him. He is in charge of any work with the pipeline, and it looks like he is not doing his job if there are any problems with the plant or the pipeline. The head of public relations has to deal with the backlash of this issue. His job is to keep the company in good graces with the public and a scandal like this sends the company backwards. The head of public relations has to work hard to find ways to make the company look good again. The CEO is linked to anything that has to do with the company and is usually the spokesperson for the company. The CEO is also usually blamed for any issues or scandals. The CEO needs to answer for this issue and its effects. The board members make decisions and are held liable for any decisions that lead to issues. They will be held liable for any mistakes that may have occurred that caused this issue and will need to make a justification for it. 4. Consider the 8-hour window and the 10 Pillars of business continuity. Develop a crisis response plan specific for this case for the next 72 hours. Go into specific details, supported by course materials, not just a broad-based generic plan. The first step should be to make a list of everyone affected and how much they are affected. The next step should be to set up visits with all those that were affected to check in on them, to let them know that the company cares. Next, a spokesperson should be assigned to let the public know what has happened and what the company is doing to take care of this, outline a draft for the big three questions, and have statements ready for the telephone operators . These steps make up the 8 Hour Window (Sweida, 2023, p. 20- 22). Checking in on victims personally is the first pillar of Business Continuity (Sweida, 2023, p. 23). All employees need to be informed of their next steps and priorities. They also need to be informed about their statements in case anyone asks them about the issue

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with the pipeline. One of the pillars of business continuity is to keep “contradictions to policies and rumors” to a minimum (Sweida, 2023, p. 24). Every employee needs to have the same answer, so they are not contradicting themselves when asked about the leak. After everything is solved, they need to test their fix before letting the public know that everything has been fixed and make a “detailed, post-crisis assessment of recovery, success, system failures, and opportunities to improve” (Sweida, 2023, p. 26). In order to be prepared if another situation like this happens again, they need to look at how they responded and how quickly they were able to find the issue and come up with a fix. 5. What should they do if it is discovered they are not liable for the problems? What should they do if they are, either in whole or in part? If they discover that they are not liable for the problems, the company should still keep their plan of action and check in on those affected. They should also still help pay for the medical expenses of the members of community affected. This will keep the company in good grace and show that they go above and beyond for the community that is involved with their business. If they are in any way responsible for the problems, in addition to keeping their plan, they should ensure that an issue like this never happens again. They would be practicing the commitment to resilience to stay mindful and manage the unexpected (Sweida, 2023, p. 11). They would learn from their errors and “move past them” (Sweida, 2023, p. 11). They should thoroughly check all their vendors to make sure everything is up to code, and that everything is running as it should be. They should make sure that the public knows that they are doing everything in their power to ensure that nothing like this will happen again. It is also good practice for the company, in case an incident like this does happen. They will know how to respond to the public

and have practice for locating the issue and coming up with a solution. This will help with the disaster preparedness for the business (Sweida, 2023, p. 5).

References Sweida, G. December 10, 2023, Crisis Management. [Powerpoint Slides]. MBA-522-50B. Southern Illinois University at Edwardsville. https://bb.siue.edu/ultra/courses/_92361_1/cl/outline Sweida, G. December 10, 2023, Decisions Under Uncertainty and Mindfulness. [Powerpoint Slides]. MBA-522-50B. Southern Illinois University at Edwardsville. https://bb.siue.edu/ultra/courses/_92361_1/cl/outline

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