Could a company even plan for this type of situation. If yes, how? If not, why not? What types of plans could companies use in this type of situation? Explain why you think these plans would be important. What lessons about planning can managers learn from this crisis?
When the volcano, Eyjafjallajokull, erupted in April 2010, the plume of volcanic ash that spread across thousands of miles disrupted air travel and global commerce for a number of days. The eruption of the Icelandic volcano, which produced a huge drifting ash, cloud throughout Europe, resulted in flight cancellations that disrupted global commerce. The halting of air travel for several days impacted managers plans for the production and distribution of goods and services and many other scheduled business operations.
As thousands of flights were cancelled across Europe, tens of thousands of air travellers couldn't get to their destinations. For example, Marthin De Beer, vice president of emerging technologies at Cisco Systems, was headed to Oslo to discuss the final aspects of its acquisition of Tandberg, a Norwegian Teleconferencing Company. However, when his flight was cancelled, he and Tandberg’s CEO, Fredrik Halvorsen, used their merged companies’ equipment to hold a virtual press conference. Other businesses weren't as lucky, especially those with high value, highly perishable products such as berries, fresh fish and flowers and medicines and pharmaceuticals. African farmers, European fresh produce importers and flower traders from Kenya to the Netherlands found their businesses threatened by the air traffic shutdown. Even manufacturers were affected. For instance, BMW had to scale back work hours and had even prepared for possibly shutting down production at its South Carolina plant because it depended on trans-Atlantic flights to bring transmissions and other components from German factories by air.
- Could a company even plan for this type of situation. If yes, how? If not, why not?
- What types of plans could companies use in this type of situation? Explain why you think these plans would be important. What lessons about planning can managers learn from this crisis?
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