BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A contingency plan allows management to act immediately if an unplanned occurrence, such as a strike, boycott, natural disaster, or major economic shift, renders existing plans inoperable or inappropriate. For example, airlines develop contingency plans to deal with terrorism and air tragedies.

Detailed explanation-2: -“The purpose of any contingency plan is to allow an organization to return to its daily operations as quickly as possible after an unforeseen event. The contingency plan protects resources, minimizes customer inconvenience and identifies key staff, assigning specific responsibilities in the context of the recovery.”

Detailed explanation-3: -Developing Different Scenarios In effect, a strategic contingency plan provides a map for any possible future unknowns while strategic planning charts the overall course and direction a business will take.

Detailed explanation-4: -In evaluating your business strategy, contingency plans should give your company the mobility necessary to shift focus to different aspects of your company and change operating strategies as needs in the market shift. Mobility is an essential element of contingency planning and your business strategy as a whole.