Crisis management in business refers to the activities of identifying vulnerability, predicting the risks that might materialize because of the vulnerabilities and the formulation of contingency plans to mitigate the risks. Therefore, crises management entails the three areas of a business: products, services, and operations (Bernstein, 2011). Crises management helps one to find out the business vulnerability, predict possible risks, and plan on how to mitigate the losses in case the risk materializes.
The case of the ex-hotel manager who now runs a dog-walking business, several applications of crises management may be considered. The business was previously run by the owner alone, but with the increase in the number of customers, he hired one assistant. Like any other business, the dog-walking business may have vulnerabilities in terms of the products, services, and operation it partakes (Crandall, Parnell, & Spillan, 2013). Therefore, it is imperative that the owner assesses the risks and vulnerability that might face each of these critical areas of his business.
face the service, product, and operations aspects of the new business. In
particular, substandard services, lack of enough personnel to walk all the dogs
in time and lack of proper customer service. The owner may mitigate these risks
by ensuring that the owner has adequate, well-trained workers with excellent
people skills (Jolanta, 2015).
The product aspect faces the threats of the dogs being infected with contagious
diseases or being injured while in the care of the business owner all the
assistant. The owner should ensure that none of the dogs are infected.
Moreover, instill in his workers the need for observing diligence in the course
of their work (Kaplan, &
Mikes, 2012). Finally, the operation of the business may be adversely
affected by lack of proper business permits and lack of observing all the
relevant regulations regarding the business
(FEMA – Federal Emergency Management Agency., 1993). The owner should
ensure that he has paid all the necessary fees to ensure that his business is has
observed all the regulations to continue with its operations.
Bernstein, J. (2011). Manager’s guide to crisis management. McGraw Hill Professional.
Crandall, W. R., Parnell, J. A., & Spillan, J. E. (2013). Crisis management: Leading in the new strategy landscape. Sage Publications.
FEMA – Federal Emergency Management Agency. (1993). Emergency Management Guide for Business and Industry #141. http://www.fema.gov/pdf/library/bizindst.pdf
Jolanta, M. A. J. (2015). Diversity Management’S Stakeholders And Stakeholders Management. In Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE (Vol. 9, No. 1, pp. 780-793). Faculty of Management, Academy of Economic Studies, Bucharest, Romania.
Kaplan, R. S., & Mikes, A. (2012). Managing risks: a new framework.