Therefore to not merely survive, but to grow throughout the crisis, K&X must develop mechanisms to benefit from opportunities that this environment has created. Prior to the crisis, K&X should have allocated resources to a crisis management plan that will maintain its current operations in a financially constricted environment with limited allocated of additional resources during the actual crisis. By conducting this preparation in more ordinary financial environments, K&X ensures that it will maintain relevance during challenging times while its industry peers are caught more unaware and must then engage in cost reduction measures to maintain their core business operations (Shim, Siegel & Dauber, 2008).
Having already ensured its relevance and continuance in a challenging environment, K&X will then be poised to better recognize and exploit opportunities as they arise. This is particularly valuable as few new ideas, products, or processes are introduced to market in times of crisis. Most other organisations in the industry will be developing or implementing new services, allowing K&X a unique opportunity to fill that void (Griffin, 2008).
In order to position itself favourable in a challenging environment, K&X must first develop and maintain a crisis management p...
With this in mind, K&X must develop a crisis management plan as a living document that is continuously revised with the most currently available data, particularly when the industry begins to forecast the potential for an economic crisis. The management of the crisis will then involve application of the mechanisms developed and specified in the plan and the updated data will ensure that the organisation is responding to the environment as it actually exists (Kao, 2007). The exact measures of K&X for crisis management have been fully explored in Part II and are aimed at mitigating the effects of the crisis and maintaining continuity of operations. This will allow the organisation to remain fully crisis conscious, making its management of the situation part of its normal operations rather than as a separate issue that is address only after the disaster strikes (Drucker, 2008).
Once implemented, the first stage of the K&X crisis management plan will evaluate the current business environment, specifically to determine potential areas of failure that may have a significant effect on core business operations (Drucker, 2008). This evaluation process is particularly important as failure during this phase may result in an irrelevant plan of action that may contribute to the collapse of the organisation. As such, the evaluation phase will require the heaviest commitment of time and resources to ensure that subsequent phases of the plan remain pertinent and relevant to the current environment. The goals of the evaluation must be a high relevance as this will ensure accuracy and precision in the later actions of K&X (Chesbrough, Vanhaverbeke & West, 2006).
This evaluation process will include an assessment of