• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Discuss the view that contingency planning is a waste of time and money

Extracts from this document...


Discuss the view that contingency planning is a waste of time and money. (12 marks) Not all the opportunities and events that a business faces will go to plan, and some may prove destructive to the continuity of the business (such as a huge downturn in demand for their products). Contingency planning means preparing for these unwanted and unlikely possibilities. A business may produce a contingency plan in case of: a severe recession; an environmental disaster; or a sudden strike by its workforce. Contingency plans enable a business to be in a better position to manage a crisis, rather than to try and simply cope with it when it occurs. ...read more.


Planning for a crisis does take a lot of time and consumes a lot of money. Large firms may have contingency funds set aside to deal with any problems that may arise. Such as liquidity, fire, flood or natural disasters. If there are interruptions in production, a back up manufacturing system should be in place. A business may be able to outsource some of its work to other producers or be able to switch production from one machine or one factory to another. This is easier if the production lines and workforce are flexible. ...read more.


While contingency plans are important, a business must not give them too much time and money. The contingency plan must not affect the objectives or corporate plans of the organisation. For example, keeping large amounts of money in the contingency fund may reduce the money available or investments or expansion. Overall, I don't agree that contingency planning is a waste of time and money. I agree that it is time consuming, but if the business ever did fall into a crisis situation, the more time and resources put into the contingency plan, the more the business will get out of it in the long run. A contingency plan for some sort is essential for every organisation, as you cannot predict what the future will bring. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays


    the clothing and traditional customers demand, as well as appeal to younger customers. Now designers use days computer aided design, this is an interactive computer system, which is capable of generating, storing and using geometric and computer Graphics. A wide range of designs can also be shown on the computer screen.

  2. Business Aims and Objectives.

    * Sales data recorded on special accounting software which then updates the company's accounts and enables invoices and other accounts documents to be produced automatically. * Electronic funds transfer (EFT) systems are used in the following situations: - When a customer pays using a debit card, such as switch or delta in a Tesco store.

  1. Strategic Planning of IS/IT: View on Strategic Resources

    As Ferguson et al point that, in the literature, the terms 'resource', 'skill', 'competence/competency', 'capability' and 'assets' are frequently used in different ways, often without precise definition and sometimes interchangeable. According to their classification (Figure 1), resources cover all the elements including tangible and intangible.

  2. business plan and organise event

    2.4 - Secondary research Secondary research is the research which others do and which you look to gain further information on, looking into and examining published information i.e. in the media (newspapers, radio, TV), internet, business directories (Yellow pages, Thomson local), textbooks, looking at other businesses primary research, statistics published by research organisations such as mintel, mori etc.

  1. Business planning

    a solid, financially sound growth based on customer request and product demand. My product I have selected a restaurant because there is high demand in the UK as well that there is a reasonable amount of profit, which can be made if the business is planned out correctly.

  2. business planning

    is a success in the first or second year I want to open more branches around the UK. The business will be fully equipped with top range equipment and computer technology. I believe that by having the right physical resources, then the staff can work to an extent to provide that excellent service.

  1. City Kebab - Business Planning

    choosing the sweet food because according to my investigation in Stratford there are not a lot of shops selling the products I am which would mean a big change in the area. Q5. What is the most important element for you buying at City kebab?

  2. ICT analysis - Park view veterinary surgery

    Outputs- Form of Outputs It will be an A4 that would fold into an A5 booklet. The leaflet must be in colour and attractive and give a really good impression of the surgery. The leaflet will have fours sides and they are: front of the leaflet, the two middle pages

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work