A Process Develop a Business Continuity Plan - Essay Example

Name : xxxxxxxxxxx Institution : xxxxxxxxxxx Course : xxxxxxxxxxx Title : Business continuity planning Tutor : xxxxxxxxxxx @2010 Table of Contents Table of Contents 2 Introduction It is essential for organizations to develop a business continuity plan. These management plans is a criteria that is holistic and fundamental in the management process. The development of a business continuity plan involves the identification of the threats that may be facing an organization and the implications of these particular threats on the normal operations of the business. If the threats towards the business are identified a framework is provided for dealing with incoming threats (Robert 2007).The basic aim of the process is structuring organizational reliance which is the ability to effectively respond to and safeguard the basic interests of the organizations stake holders , its activities , operations and its reputation. Objectives of the Report The aim of this particular report is to develop business continuity plan for the Boots pharmaceutical Company which is categorized under category 2 of the Civil Contingencies Act 2005. Just like many other organizations, this particular company is at risk of threats such as flooding, electrical or gas faults, flooding, saobotage of products and terrorist attacks that may cause serious damages to the company. Being a very potential investor in the country , it essential for the company to ensure that preventative procedures that are satisfactory are out in place, for the purpose of ensuring that the investment of the organization are secure. Insurance coverage can be termed as very sufficient due to the fact that many businesses do not actually survive some disasters in despite of being comprehensively insured. This particular presentation will therefore focus on developing a well outlined business continuity plan that will essential be useful for the organization in terms of disaster preparedness and further ensuring the safety of the organization. Scope of the Report The scope of the report will revolve around the analysis of the organizations operations and devising an effective business continuity plan that will assist in the elimination of threats that can result to disruption of the normal functioning of the organization. In order to exercise an effective business continuity plan, it is essential that the plan must be subjected to validation and verification through carrying out self assessment and an audit of the organization in order to ensure that the continuity plan is fit for the purpose it was intended. The Plan should also cover aspects of raising awareness concerning business continuity to the organization. Other important aspects to be covered verification that all the critical activities have been involved in the plan and lastly is to analyzing the effectiveness of the proposed plan in ensuring that normality is restored to the organization incase of disruption. Boots Pharmacy Operating Environment Boots limited, which is commercially referred to as Boots, is basically the leading pharmaceutical chain in U.K. The organization has outlets country wide in many of the high streets. The organization has also extended its operations to countries such as Norway and the Republic of Island. Currently the organization has 2,600 stores with are largely beauty and health stores. In addition the business is part of the Alliance Pharmacy which is composed of the very best pharmacies referred to as the Boots business. The Boots pharmaceutical is one organization with a long history. It was first instituted in 1849 by John Boots. In 1920 it was later sold to the United Drug Company located. In1888 the company was reconstituted to as a pure drug limited which had a number of subsidiary companies like the Lancs Cash boots chemists. By the end of the century the organization had 180 shops. The management further bought the Metropolitan drug company and the southern drug company which jointly formed a business chain of more than 60 shops .Within the period 1914 and 1901 the total number of shops opened were 510 this included prestigious locations such as the Prince Street, Regent Street .In 1920 it was later sold to the United Drug Company located In America, by Jesse Boot. However as a result of the weakening economic circumstances in North America, the company was sold back in 1933 to British management and Edinburgh (Britton 1988). The company has since expanded its productivity by opening a manufacturing plant in Cramlington. Boots also began to diversify its operations in 1990 by buying the Halfords, the car and bicycle parts business. However In 2002 the organization decided to sell the Halfords business. The Boots Company is a private owned company. The shares of the business are not listed or traded on any stock exchange programs in the country. However the Alliance Boots Plc was listed on the stock exchange markets in London , however a withdrawal was made in 2007 June. The aim of the pharmaceutical company is the provision of exceptional health care services and products for the customers and patients (Buckley 1994). The aspect corporate social responsibility is very essential for this particular company. The company has also formulated a website that that gives details of the initiatives, process and performance within United Kingdom. As one of the members of the Boots Alliance, the organizations link will is activated on a new window. The link covers aspects such as the social corporate responsibility process and activities that are performed by the whole group. Some other interesting initiatives undertaken by the organization in terms of (CSR) fall under four basic activity areas; environment, community, workplace and market place. The specifications for these areas were announced in 2007 autumn as part of the report for the corporate social responsibilities. Some of the initiatives undertaken in the financial year 2008/2009 include positively contributing to the community. The center of the community based activities is community health. Through the establishment of a network of pharmacies and varies independent pharmacies the organization can reach out to millions of people in the country through its supplies. The organization also tries to be a good neighbor by encouraging their employees to share their highly qualified expertise to help people in terms of leaving lifestyles that are healthier. This is the reason why the organization has devoted their energy and time to support matters that are essential for the community benefit. In terms of environmental activities the organization aims at attaining sustainability and the improvement of the carbon management which is an essential priority. The Alliance boots union is determined to be a leading example to other organizations by addressing issues that threaten environmental conservation. The organization additionally believes that its market place activities should involve underpinning the organizations mission as the worlds leading beauty group and pharmacy. Boots Pharmacy is responsible for bringing the organizations values to life for its partners and customers. The organization further aims at developing stewardship and reflecting integrity in every operation that it undertakes. At the work place level the organization aims at helping people in the society to feel better and look better. In addition, the organization ensures that the health and the wellbeing of their employees is major priority. This gives explanations why the organization is eager to take an active role in the aspect of building a sustainable business. Boots Pharmacy develops and trains its employees at all levels in order for them to be fully equipped in terms of dealing with the challenges of the industry. Critical Services The services offered by the pharmacy are actually varied. Since its establishment, the organization has expanded its business activities in diverse sectors. The organization acts as a health supermarket, it provides nutritional advice and supplements, services for photographic development, kitchen and electrical appliances and baby and mother essentials. In addition to the highlighted services, the organization also undertakes hearing care, facilitation of health insurance for instance travel insurance, Photo processing, optician and dental plans. General retail activities have also been undertaken by the Boot’s organization such as homeopathy, nutritional advice, facials, and Botox and eye laser surgery however these services were later abandoned in 2003. The organization has also diversified its activities into manufacturing and research of drugs. For instance it initiated the pain killer Ibuprofen; in 1994.Furthermore Boots developed Nurofen another brand of drug (Hollinger 1996). Critical Activities and Assessment of Maximum Tolerable Period of Disruption These are activities that have huge impacts on the organization within the shortest time. The critical activities are backed by resources such as technology, vehicles, suppliers, stake holder’s information and premises. If these resources are exposed to threats and vulnerability the organization will definitely be disrupted. The process of risk assessment is therefore very vital at this particular stage. Almost all organizations whether small or large have objectives and aims of expansion. However sometimes far reaching obstacles may affect the organizations performance. The consequences attained as a result of a certain incident vary, they may involve aspects such as inability to deliver effectively services, products loss, loss of life, income and assets of the organization. Some of the critical activities that have impacted on the attempts of the Boot’s organization to include; in 1886 one of the business premises located at 160 Pitt Street was critically burned down this lead to the government launching an inquiry to the matter. In the 1990 the organization merged into a joint venture with W.H. Smith unfortunately the housing market feel into a five ear depression which severely affected the sales resulting into adverse losses for both organizations. The organization also faced difficulty in the early years of 1991 due to its small size. It was challenging to compete in the drug industry at this particular time. The organization developed new operating units from the framework of the Boots Pharmaceuticals; Boots contract manufactures company and Boots international Health care. The two formulated organizations become the company’s image for health care products that are privately owed. Boots Pharmaceuticals therefore took up the prescription of a unit with huge drug supplies. However in 1993 this particular arrangement failed, the attempts to develop a breakthrough to keep the organization viable had to be abandoned due to the side effects of the drug Manoplast which was used for heart treatment. Boots therefore quickly made a decision in 1995 to sell the Boots Pharmaceuticals to an organization referred to as BASF at £850 million this particular move ended the companies 80 years drug prescription business (Hollinger 1996). Boots pharmacy has also witnessed a shift in operations in current years. For instance the financial 31 march 2000 to 31 March 2006 the organizations financial performance clearly indicated aspects of disruption in the normal performance. The table below gives a brief highlight; Year ended Revenue Profit before tax Net profit Basic eps(p) 2000 5,187.0 561.7 339 45 2001 5,220.9 492.2 333.2 37.5 2002 5,328.3 595.2 404.3 45.9 2003 5325.2 494.9 301.6 36.0 2004 5325.0 579.9 411.5 52.8 2005 5469.1 427.6 302.4 40.9 2006 5027.4 348.9 303.3 44.5 The table shows that year’s 2000-2006 financial performance of the sales attained from operations that were discontinued were 443.8million, while the profits for the discontinued year were 1, 3707 million. These were basically the financial results before Boots Company made an alliance to merge with Unichem Plc and later rebrand its name to the Alliance Boots PLC (Robert 2007). As indicated by the analysis above the maximum tolerable periods of disruption in the organizations performance were marked by critical activities being underpinned by resources such as stakeholders, supplies, people , technology and information. Time Recovery Objective Boots Pharmacy has strategically laid down objectives that are very much essential in ensuring that the organization gets its fit back on the ground and further improve its performance. When analyzing the current time recover objective, the organization has mainly proposed practical mechanisms that would be essential for the organization. It is evident that Boots has historically undergone a series turmoil’s which have derailed its operations. Therefore one useful recovery objective undertaken by the organization is to change the whole executive team what is referd to in the BCM context as changing the people. The new team is expected to put the organization in a momentum of improving the core buiness activities of the organization. The establishment of the organizations web is also very essential in boositng the recovery of the organization. Expansion of many branches is not very neccessary if the organization can not effectively manage the expanded business. However the utilization of the newly devised website can bring great changes to the organization.Boots.com ensures that customers are well informed about the prducts and also the services offered. Th organizations also aims at adding value to the shareholders this will enhance the accountablitiy of the organization to its partners. Critical Dependencies The critical dependencies of the organization include various necessities which ensure that the operations of the organization are effective they include; People like; opticians, shop assistants, Pharmacies, delivery drivers and the administration staff. Information technology department performs functions such as ordering stocks and general communication in the organization. Premises are also very vital they include administrative centres, stores and warehouses. Vehicles which majorly are for the purpose of delivering the products to various branches of the business. Critical suppliers, the major supplies for the Boots business include drug suppliers and fuel suppliers for vehicles. Strategies for Maintaining Critical Activities/Dependencies For each of the critical dependencies mentioned above, it is essential monitor and give a report concerning how each dependency operates as follows; Strategies for people The business should identify strategies that are appropriate for maintaining core knowledge and skills. This particular implementation should expand beyond stakeholders, contractors and specialists, these strategies involve; Documentation of how activities are performed The use of a third party is also necessary for instance incase the existing workforce is not available A workforce that is multi-skilled is also vital due to the fact that they can handle varied tasks. A succession plan is also very much necessary or the work force Knowledge of management and retention Premises Strategies The organization should ensure that its work sites are not limited, therefore the following strategies can be devised; Home working Remote working Alternative and additional premises inside the organization Substitute premises offered by another organization Alternative place for working given by a third party specialist Strategies for technology Ensuring that the infrastructure is resilient through establishing a back up system Outdoor provision Making the infrastructure resilient through back up systems The technology should be effective in remote areas Strategies for Suppliers/Stakeholder Raising the number of suppliers for the organization Stock levels handed in on time Ensuring that the supplies maintain the robust BCP’S Improving contractual agreements and service levels Procedures for maintain the relationship with of stakeholders should be well formulated Stock pilling Monitoring and Reporting of Critical Dependency Boots Pharmacy had once lost one of its premises as a result of fire attacks. In addition the IT networks were distorted due to virus attacks. It is therefore necessary for the organization to ensure that its critical dependencies are well monitored and reported. In the context of Business continuity management (BCM), it is essential for the organization to carry out risk assessment. One of the fundamental aspects of this process is that the level of risk should be well evaluated and understood in the context of the organizations critical activities. As highlighted earlier, critical activities of the organization are underpinned by resources like people, technology, premises and information. The organization should ensure that the vulnerability of these resources should not lead to the disruption of normal business activities. The risk assessment approach to be undertaken by the organization is entirely up to the organization however it is vital that the approach is appropriate and suitable in addressing all requirements of the organization. Plan Invocation Arrangements This plan involves aspects of incident management, business recovery or basically business continuity. The plan should be initiated in the shortest time possible. The plan is initiated by the authorities after the organization has developed a document with a well stated criteria and clear guidelines. People are contacted through mobilization with a basic aim of providing precise and clear information (Robert 2007). In case of any particular emergency the crisis planning group is contacted. The team responds within the location for incident management . The organization should identify a predetermined and robust location , space or room were the incident will be managed. Once the place is established it should act as a focal point were the organization will use as its response. The team responds by sharing key information, assigning tasks, managing resources, identifying and tracking issues and ensuring that communication is effective. Generic Response Arrangements for Managing Disruption The response arrangements for managing disruptions should involve training exercises for the workforce in order for them to be effectively informed on how to deal with emergencies. It is also essential to make a review of the document used for the incident management plan. The management should further read through the newly reviewed document and ensure that it is well stated and controlled. Embedding the Plan In order to have continuity in the success of a business continuity plan, it is essential for the organization to devise the plan within its culture, this can be facilitated through appraisals, integration of the plan within the company’s bulletins and team briefs. Embedding the culture of BCM within an organization should ensure that the activity of management of business continuity becomes part of the core values of effective management within the organization (BSI 2006). Conclusion The Boots organization should incorporate the business continuity plan within is culture as an effective strategy of dealing with threats that may affect the normal performance of the business by causing disruption. Through devising such a mechanism the company will continue to be the leading Pharmaceutical business in the U.K. Bibliography Britton, N, 1988, "Boots Treads Carefully," Marketing, May 26, p. 22. Buckley, N, 1994,"Divide and Thrive at Boots," Financial Times, July 4, p. 12. British Standards Institution (BSI), 2006, BSI Publication, U.K. Hollinger, P, 1996, “Boots Back on International Stage," Financial Times, October 11, 1996, p. 24. The Civil Contingencies Act, 2005,TSO ,London. Robert, J, 2007, Business Continuity Planning: From Writing to Testing, University of Rochester. Read More