Pacy & Wheatly Business Strategies - Example

BUSINESS CONTINUATION PLAN: PACY & WHEATLY CONSTRUCTION COMPANY LTD. Management Report Student’s Name Instructor’s Name Course Title Date Table of Contents COMPANY BACKGROUND 3 Social Responsibility 4 Resources 5 Company’s Clients 6 Services and Critical Activities 6 Economic, Legal and Political Aspects 7 POSSIBLE DISASTERS AND RISKS 7 METHOD OF BUSINESS IMPACT ANALYSIS 8 Scores 8 Hazard Matrix 10 INCIDENCE BASED ACTION PLAN 10 IT and Communications Services Failure 11 Effects on Stakeholders 11 Recovery Time 12 Loss or Illness of Key Staff 12 Effects on the Stakeholders 13 Recovery Time 13 Building Loss and Building Access Restrictions 14 Effects on Stakeholders 14 Recovery Time 14 Fuel Shortage or Lack of Fuel 15 Recovery Time 15 TESTING THE BUSINESS CONTINUITY PLAN 16 References 17 INTRODUCTION When choosing the company, there are several factors that I had to put into consideration. The company should be one that has a good reputation together with a proven track record of having been in business for a period of not less than two decades. The company of choice must show total regard for the rules and regulations set out by the Government and other authorities that govern the industry in which the company operates in (British Standards Committee 2006). The company must have good relations with the society in which it operates. The products and the resources used by the company must demonstrate that the company embraces and acknowledges technological advancement to foster growth. The company must also demonstrate good working conditions for its employees. This plan will analyze the continuity plan of Pacy & Wheatly. This involves various aspects that it undertakes for its survival and ensures continuity of its operations even after external or internal interferences. COMPANY BACKGROUND Pacy & Wheatly was founded in the year 1968 by John Pacy and David Wheatly. The two established a good reputation of quality workmanship and excellent customer service. In the year 1972, John Spacy left the company so that he could pursue other different goals. This left David Wheatly as the Managing Director of the company. The company grew and released more growth enabling it to increase its resource base and venture into other challenging fields in the construction industry. Currently, Wheatly is the chairman of the board, though he still plays an active role in the daily running of the company. Anthony, the eldest son of Wheatly, is currently the Managing Director while Craig Wheatly and Paul Coleman sit on the board of directors (Pacy & Wheatley 2012a). The company is committed to ensuring safety of the society which comprises of their employees, the clients and the community at large who are the customers of their clients. This is done by ensuring that all buildings are technically correct when construction is being undertaken (Pacy & Wheatley 2012a). All its buildings meet the set national safety standards and regularly evaluated so as to ensure that they fit for use. The company is responsible to the society as it takes accountability for their action and provides helpful remedies to problems that may arise before, during and after the completion of the project. Social Responsibility Pecy & Wheatly regards its responsibility to the local community as an integral part of its business. The company actively seeks to be involved work together with the local people, the suppliers, local businesses, charity groups and other establishments. The company also keeps open communication lines with the community either through its website, newsletters and personal visits. Its employees often work with local schools and colleges to ensure student development. The company also has a system through which students are hosted and mentored on different specialties in the construction business. Pacy & Wheatly is involved in various projects with an aim of giving back to the community. This is by way of providing sponsorships to various community projects and sports for the youth (Pacy & Wheatley 2012a). The community also benefits in that its young members are prepared to be future leaders. As a construction company, Pacy & Whealty recognizes and acts on its Corporate and Social responsibility in regard to ensuring the welfare of the environment and ensuring that the environment is well preserved. Many construction companies are marred with allegations of being un-environmentally friendly as they are seen to destroy the environmental resources as they do their business (Pacy & Wheatley 2012a). Resources Pacy & Wheatley get most of their physical resources from a variety of sources. These include the use of modern construction methods such as timber frame, infill walling, pods, light steel and modules. The materials that can be recycled for reuse are also recycled in an off-site station and emphasis is placed on waste reduction during the construction process. The company is involved in research together with other players in the construction sector and many scientists to maintain and develop the physical resources without causing any harm to the environment. For this reason, most of his physical resources are manufactured and recycling is done for all materials that can be recycled for re-use. The company also does get some if its timber from the acceptable sources as set by the Government (Pacy & Wheatley 2012a). The human resources comprise of a big team who possess a variety of skills in different areas of construction. In the team there are engineers, carpenters, IT experts, building and design professionals and other support staff. All of these work and as a team and they all have tremendous respect of reach others contribution to the success of the company. Most of the employees in the managerial positions have been working for the company for since they entered into the job market (Pacy & Wheatley 2012a). For this reason, they are very conversant with the mission, vision and policies of the company which is a private company which has set its standards high in the construction industry. Company’s Clients Pacy & Wheatly has numerous customers across many fields. The company engages in healthcare projects. Boasting of a wealth of experience and big portfolio in the healthcare arena, the company is fully customer focused services in the different sector of the sector such as physical health care, mental health care, residential care, primary care, care villages and construction of health centers using modern construction methods. The company also has stakeholders in the education sector. In this sector, the company constructs school buildings, sporting facilities and living complexes for the students and the teachers (Pacy & Wheatley 2012a). Services and Critical Activities Since its inception, the company has been involved in construction projects in the education sector helping it establish an enviable portfolio in the education sector. The company also has stakes in the design and the building sector. This sees the company integrate construction with good design hence creating engineering concepts which are value added ensuring effectiveness and reduction in project time. The company is also in the manufacture of acoustics which can be used in various premises including homes, museums, theatres, lecture halls, shopping malls, libraries, hospitals, board rooms, entrance halls, hotels and offices. In the field of acoustics, the company offers quality work that is well finished and that allows easy cleaning and maintenance. Their acoustic products are non hazardous and hence are environmentally friendly which is in line with their policies on the environment. Economic, Legal and Political Aspects The company has been able to achieve tremendous growth through the years it has been in business. The range of products it produces has grown from simple construction of buildings to the manufacture of building fittings such as acoustics and several medical equipments. Its customer base has also been growing with it over the years. As regards the legal framework of the company, the company is still a private company and has yet to go public. Being a private company, there is no political influence on the company operations at all. The affairs of the company are governed by the board and those in managerial positions in the company (Pacy & Wheatly 2012a). POSSIBLE DISASTERS AND RISKS In any business venture there always risks and disasters that may occur. They include both external and internal unforeseen occurrences affecting both the physical resources and the human resources. This may cause a disruption of service delivery and hence not only affecting the clients, but also jeopardizing profitability of the business Pacy & Wheatly. The promise made to the clients will also not be delivered and this has a very negative effect on the economy as a whole, as it continues to engage in its usual business, Pacy & Wheatly is faced with a variety of disaster risks. These risks include: IT and communications failure Loss or illness of key staff members Shortage or lack of fuel Loss of a building and restrictions to building access Power cuts Utility failure Vandalism and/or theft of company property Fire to premises METHOD OF BUSINESS IMPACT ANALYSIS Scores As stipulated in the BSI (2006), “the analysis of the potential risks and disasters, is based on the frequency, probability and the ensuing consequences if in case the does happen. The effects of these events occurring would adversely affect the business and the clients.” In quantifying the potential impact of the crisis, a numerical scale is used. A scale of 1 to 5 is used to rate the probability and the possible consequences of all the factors. The results are multiplied, giving an action score which itself is then analyzed. Rating of the analyses is classified in three different categories: Green status: this is a score of 1 to 5. In this range, everything is viewed as working in order. Here the cost, the cost for planning against any occurrence is outweighs the potential cost of correcting the incidence. Ember status: this is a score of 6 to 20. In this range a few things are considered not to be operating as required. This calls for some planned action to ensure that the status is back to green. Red status: scores of ranging above 20 (21+) are considered to be in this category. The risk at this stage is very high calling for the mobilization of the crisis team, to initiate a recovery process and to avert any disruption of the business activities. The scores can be tabulated as follows: Description Very unlikely Unlikely Very Possible Likely Highly Likely Probability 1 2 3 4 5 Description Minimal Slight Moderate Significant Severe Consequence 1 2 3 4 5 Score 0 to 5 6 to 10 11 to 15 16 to 20 21 & above Action None Plan and review Plan and review Plan and review Mobilise crisis team Hazard Matrix The risks that Pacy & Wheatly construction company faces can be illustrated as follows in a hazard matrix: Negligible Marginal Critical Catastrophic Certain Likely IT & communications failure Possible Power cuts Shortage/ lack of fuel Unlikely Utility failure Shortage/ staff ilness Rare Loss of a building and restrictions Vandalism & theft of company property Fire to Premises INCIDENCE BASED ACTION PLAN The Managing Director has the full authority to this plan. In case of any event occurring, he is charged with the responsibility of executing it. The absence of the Managing Director, the Board will appoint an authority to activate the plan and oversee the implementation. According to Elliot et al (1999), during the implementation, all consideration should be taken to ensure that each and every employee is well covered, as stipulated in the plan. The review is to be done annually by the company Director. Each review should be subjected to testing so as to ensure feasibility and implementation in ensuring business continuity. IT and Communications Services Failure 24/7 IT Solutions Ltd is the provider of Cloud Services and maintenance. The company is located in Unit D3 Armstrong, Preswick Park, Newcastle Upon Tyne, NE20 9SJ. The contact person is D. Towart, 01915689238 (Pacy & Wheatley 2012b). Our server operating system is Windows Server 2008 R2 Standard. This is the one used to operate the virtual network. The desktops are provided with a Windows 7”look and feel” RDS Server Session which is very much similar to the operating system Windows 7 desktop. The software we have rented are covered by the Microsoft Software Assurance for contract life, this grants us unlimited access to new releases and previous versions of the Windows operating system. The Cloud contract has a provision for backup and restores services. The backup images should be taken every night on the working days (Monday to Friday), using Microsoft Data Protection Manager. Of the images taken, five should be retained so as to enable recovery of a one working week. Storage of the backup data is in the data centre, which gives the option of replicating. All servers and the desktops are hosted in the datacenter (Pacy & Wheatley 2012a). They can be accessed from any computer as long is it has a suitable internet connection, enabling recovery in case of a disaster. With this provision, the staff can work from their home as the company looks for an alternative premise. Effects on Stakeholders An IT and communication failure would bring to a stop most major operations of the company. This would adversely affect all stakeholders of the company. The customers would not be able to reach us so that they can request for goods and services or even find out how far we have gone with the projects we are undertaking on their behalf. The suppliers would find it difficult to know the resources that we need. The office would also find it difficult to communicate with the people in the field and assess the ongoing projects so as to give feedback to the customers. Recovery Time In the event of any disaster, such as the breakdown of the office software, the resolution period should be a period not exceeding two hours. Our IT consultants, 24/7 IT Solutions Ltd, would be able to rectify the problem since they have access to the computer systems. The target is to have the problem fixed in a period that does not exceed one hour. During the period of one hour, should there be need of conducting any deals; the other forms of communication at the disposal of the company should be used. Loss or Illness of Key Staff The loss of a key staff includes passing away of staff, resignation or termination of duties. Illnesses considered are those that render a staff unable to carry out their normal duties on behalf of the company. The position left vacant will be filled through internal appointment of a staff member conversant with the responsibilities that fall under the vacant position. This will ensure continuity of work and that the company is still able to fulfill its contractual obligation to all of its clients. Effects on the Stakeholders The company relies on its staff to ensure the deliver of goods and services to the clients. Pacy & Wheatly has spent a lot of resources in the training and the development of its staff to ensure that they are up to the tasks given to them. The loss of a staff, mainly affects the delivery of services to the clients. Communication with our suppliers will also be interfered with hence rendering delivery of resources difficult. Recovery Time In the event where the company loses a staff, the replacement should be done with an immediate effect. The replacement member of staff must have been previously working in the position they are expected to cover. If the situation entails a member of the staff not being able to work for the company any more, the replacement will be made through our agency and other contacts in the industry. The company maintains a close relationship with subcontractors and other suppliers who can be contracted to carry out various functions in the event of a shortage. In an occasion where multiple employees are attacked by a virus at the same time, the company has established modalities to be applied to ensure that provision of services is not halted. Among our employees, many of them have stated and demonstrated willingness to be at work an upward of 48 hours in a week. Before the initiation of such an arrangement, the agreed terms should be put in writing. At critical times, the the employees can be able to work for 78 hours calculated as: 168 hours per week – ((11 hours rets period x 6 days) + 24 hours uninterrupted rest) =78 hours. The employees should be alerted as soon as it is evident that there will be a shortfall in the human resources so as to enable timely activation of this plan of action. Building Loss and Building Access Restrictions Access to a building could be hampered by adverse weather such as snow, floods and other natural disasters. The office block may also be rendered inaccessible in the event of incidences such as fires or failure of the utilities. Our IT consultants have ensured that our ability to communicate or keep data records relevant to our clients would not be disrupted. Breakdown in the comprehensive recovery and systems of protection would not last long. The client data will remain secure for the duration until the problems are resolved. To communicate with our clients, the company will make use of the other modes at its disposal. Effects on Stakeholders The loss will affect different categories of people depending on the location or the state of the building. The loss of a building that is still under construction, will mainly affect the particular clients to whom the project belongs. The supply of resources would also have to be stopped so as to allow the matter to be resolved, hence affecting the operations of the suppliers. Recovery Time To resolve the matter of having lost a building or restriction to its accessibility, is more dependent on the cause of the problem. In cases where there are legal matters to be addressed, the company lawyer should take up the matter with immediate effect. It is important to note here that the resolution of court matters is dependent on the court its self and hence the company cannot attach a time frame to resolve the issue. Fuel Shortage or Lack of Fuel Interruption of fuel supply could result from factors such as a decrease in supply, breakdown of the fuel infrastructure and an industrial action by the people working in the energy sector. When these situations arise, panic buying emerges, further worsening the situation. This could lead to exhaustion of supplies at the depots and petrol stations in a period of 48 hours. To restock the depots and the petrol stations to the original levels, could take up to 10 days, further making the crisis be prolonged. Recovery Time Following a reduction in fuel, there are immediate actions that should be taken so as to accelerate the recovery from the problem.. The immediate action should reduce fuel use by encouraging car sharing by our employees and cancellation of all non-essential travels (British Standards Committee 2006). The resilience of the supply chains of the company should be improved. Arrangements have been made to ensure that a quota of diesel that is enough to run the company transport is a reserved with a plant hire to be accessed in times of shortage. Communication should be done to all the staff, suppliers, our esteemed customers and other key stakeholders, about the situation on the ground. The company does not anticipate any major disruption fuel supply in within the next business year, but should occur; the company is in a position to cope well with the situation. TESTING THE BUSINESS CONTINUITY PLAN The company policies are set to ensure that there is continuous business planning and testing annually. The company is engaged in periodic testing of the business plan. Our IT consultants, the 24/7 IT Solutions Ltd company, are involved in the testing of the system in place (British Standards Committee 2006). The tests that have been conducted have proven that the system in place is sufficient enough. The current plan will be tested in two areas: the IT and Communications failure and the lack of fuel or fuel shortage. The responsibility of the deciding when these tests will be carried out rests with the Managing Director, who should ensure that the staff should not be told about the tests. The results obtained will be analysed as indicated in this plan. The result will guide any further review of the plan so as to ensure that the company is able to achieve its goals even in the event of a disaster. References British Standards Committee 2006, Business Continuity Management (BS 25999- 1:2006). Elliot, D., Swartz, E & Herbane, B 1999, Just waiting for the next big bang: business continuity planning in the UK finance sector. Journal of Applied Management Studies, Vol. 8, pp. 43–60. Pacy & Wheatley 2012a, Pacy & Wheatley Construction, http://www.pacy-wheatley.co.uk Pacy & Wheatley 2012b, Pacy & Wheatley Construction Newsletter, http://www.pacywheatley.co.uk/Newsletter Read More