Evaluate your client company’s contingency plan
Read your client company’s response, see whether it is consistent
with lessons we learned in chapter seven and whether you can improve it
by applying this week’s lessons. Elaborate at least in 200 words and
cite the lessons from the Best Practices 7 assignment.
- Comptus does not have a contingency plan for a long term recession.
This is not an ideal situation for any company. There should be a plan
in effect in case the economy has a downfall. Although, Comptus is a
very small company with very few employees. Their products are always in
need, and cannot go bad necessarily. That does not say that nothing can
go wrong for the company. The Comptus site shows, "Comptus, a producer
of wind and environmental sensors, transmitters, and controls in
Thorton, is now exporting 64% of its product." That is most likely a
large sum of their income, so if the market declines they need a plan. I
do believe that every company should have a plan of action for when the
economy is going into recession. It helps the company know what to do
instantly, rather than stand around just waiting. Companies need to
focus on employees, spending, financing etc. Comptus, is very small, and
a leader in the industry. Although I believe they need a plan, they
could have it all under control.
Business response to the
questionnaire
Graponne
| Please, discuss your contingency plan for dealing with recession, if
you have one. |
Our contingency plan include:
- Tighter control of our inventory levels
- Managing our cash. Making sure we have enough liquid reserves to get
us through the downturn
- Limiting discretionary expenses. Including delaying intensive
capital type projects.
- Keeping our team members fully engaged
- Making sure we have available credit (to finance cars that are not
selling as well as lines to draw down for working capital).
|
Bank of New Hampshire
| Please, discuss your contingency plan for dealing with recession, if
you have one. |
As previously mentioned, we build loan loss reserves and carefully
monitor for signs of economic stress that may impact our business. We
have sources of emergency liquidity available, and other similar tools
to ensure the viability of the bank through a very severe downturn.
Furthermore, we stress test our loan portfolios and entire balance sheet
to determine how the bank would perform in various economic scenarios.
This allows us to determine is additional reserves, liquidity, etc. are
needed. |
Comptus
| Please, discuss your contingency plan for dealing with recession, if
you have one. |
We do not have a contingency plan for an extended recession. |