Set2

1. What is the purpose of a Business Plan? Explain the features of the

component of the Plan dealing with the Company and its product
description.
Ans : Purpose of Business Continuity Plan

Recent world events have challenged

us to prepare to manage previously unthinkable situations that may threaten an
organization’s future. This new challenge goes beyond the mere emergency response plan
or disaster management activities that we previously employed. Organizations now must
engage in a comprehensive process best described generically as Business Continuity. It
is no longer enough to draft a response plan that anticipates naturally, accidentally, or
intentionally caused disaster or emergency scenarios.

Today’s threats require the creation of an on-going, interactive process that serves to
assure the continuation of an organization’s core activities before, during, and most
importantly, after a major crisis event.

In the simplest of terms, it is good business for a company to secure its assets. CEOs and
shareholders must be prepared to budget for and secure the necessary resources to make
this happen. It is necessary that an appropriate administrative structure be put in place to
effectively deal with crisis management. This will ensure that all concerned understand
who makes decisions, how the decisions are implemented, and what the roles and
responsibilities of participants are. Personnel used for crisis management should be
assigned to perform these roles as part of their normal duties and not be expected to
perform them on a voluntary basis. Regardless of the organization – for profit, not for
profit, faith-based, non-governmental – its leadership has a duty to stakeholders to plan
for its survival. The vast majority of the national critical infrastructure is owned and
operated by private sector organizations, and it is largely for these organizations that this
guideline is intended. ASIS, the world’s largest organization of security professionals,
recognizes these facts and believes the BC Guideline offers the reader a user-friendly
method to enhance infrastructure protection.

a) Developing the Plan

This section addresses the process of preparing a Business Continuity Plan (BCP),
including readiness, prevention, response, and recovery/resumption. It details the specific
BCP elements and provides step-by-step plan preparation and activation guidance. The
specifics of this guideline are appropriate for a mid- to large-sized organization. By
understanding the concepts and procedures described, it will be possible to effectively
adapt the guideline to smaller-sized organizations. The level of effort may vary widely,
but the basic approach of preparedness and response should be constant.

The following steps are important:

1. Assign Accountability

It is essential that senior leadership of the organization sponsors and takes responsibility
for creating, maintaining, testing, and implementing a comprehensive Business
Continuity Plan (BCP). This will insure that management and staff at all levels within the
organization understand that the BCP is a critical top management priority. It is equally
essential that senior leadership engage a ‘‘top down’’ approach to the BCP so that
management at all levels of the organization understand accountability for effective and
efficient plan maintenance as part of the overall governance priorities.

Corporate Policy

In the event of a crisis, an organization-wide BCP Policy committed to undertaking all

reasonable and appropriate steps to protect people, property, and business interests is
essential. Corporate policy should include a definition of a ‘‘crisis.’’

Ownership of Systems, Processes, and Resources

Responsibility for systems and resource availability and key business processes should be
clearly identified in advance.

Planning Team

A Business Continuity Planning Team with responsibility for BCP development that
includes senior leaders from all major organizational functions and support groups should
be appointed to ensure wide-spread acceptance of the BCP.

Communicate BCP

The BCP should be communicated throughout the organization, to ensure employees are
aware of the BCP structure and their roles within the plan.

b) Perform Risk Assessment

Step two in the creation of a comprehensive BCP is completion of a Risk Assessment,

designed to identify and analyze the types of risk that may impact the organization.
Assessment should be performed by a group representing various organizational
functions and support groups.

Review Types of Risks That Could Impact the Business

Using available information about known or anticipated risks, the organization should
identify and review risks that could possibly impact the business, and rate the likelihood
of each. A Risk Assessment matrix can aid identification of risks and prioritization of
mitigation/planning strategies.
c) Conduct Business Impact Analysis (BIA)

Once risks have been identified, any organizational impacts that could result from an
interruption of normal operations should be examined in a Business Impact Analysis
(BIA).

Identify Critical Processes

Business critical processes should be identified and documented. They could include
purchasing, manufacturing, supply chain, sales, distribution, accounts receivable,
accounts payable, payroll, IT, and research and development. Once the critical processes
are identified, an analysis of each can be made using the evaluation criteria described
below. Processes should be ranked as a High, Medium, or Low.

Assess Impact if Crisis Were to Happen

· Human cost: physical and psychological harm to employees, customers, suppliers, other
stakeholders, etc.

· Financial cost: equipment and property replacement, downtime, overtime pay, stock
devaluation, lost sales/business, lawsuits, regulatory fines/penalties, etc.

· Corporate image cost: reputation, standing in the community, negative press, loss of
customers, etc.

Determine Maximum Allowable Outage and Recovery Time Objectives

· Determine how long process can be non-functional before impacts become

unacceptable.

· Determine how soon process should be restored (shortest allowable outage restored
first).

· Determine different recovery time objectives according to time of year (year-end, tax
filing, etc.)

· Identify and document alternate procedures to a process (manual workarounds or

processes, blueprints, notification/calling trees, etc.)

· Evaluate costs of alternate procedures versus waiting for system to be restored.

Identify Resources Required for Resumption and Recovery

Such resources can include personnel, technology hardware and software (including
telecommunications), specialized equipment, general office supplies, facility/office space
and critical and vital business records. Identifying, backing-up, and storing critical and
vital business records in a safe and accessible location are essential prerequisites for an
effective BCP. The Risk Assessment and BIA provide the foundation on which the
organization’s BCP will rest, as strategies will be formulated and plans will be developed
to meet the needs identified in them. These analyses should be repeated on a regular basis
and/or in response to significant changes to the organization’s operating environment.

d) Agree on Strategic Plans

Strategic planning addresses the identification and implementation of:

· Methods to mitigate the risks and exposures identified in the BIA and Risk Assessment.

· Plans and procedures to respond to any crisis that does occur. A BCP may include
multiple strategies that address a variety of probable situations, including the duration of
the business interruption (short versus long term), the period in which it occurs (peak
versus low), and the extent of the interruption (partial versus complete). It is important
that the strategies selected are:

· Attainable

· Highly probable to be successful

· Verifiable through tests and exercises

· Cost effective

· Appropriate for the size and scope of the organization.

e) Crisis Management and Response Team Development

It is necessary that an appropriate administrative structure be put in place to effectively

deal with crisis management. Clear definitions must exist for a management structure,
authority for decisions, and responsibility for implementation. An organization should
have a Crisis Management Team to lead incident/event response. The Team should be
comprised of such functions as human resources, information technology, facilities,
security, legal, communications/media relations, manufacturing, warehousing, and other
business critical support functions, with all under the clear direction of senior
management or its representatives.

The Crisis Management Team may be supported by as many Response Teams as

appropriate taking into account such factors as organization size and type, number of
employees, location, etc. Response Teams should develop Response Plans to address
various aspects of potential crises, such as damage assessment, site restoration, payroll,
human resources, information technology, and administrative support. Response Plans
should be consistent with and included within the overall BCP. Individuals should be
recruited for membership on Response Teams based upon their skills, level of
commitment, and vested interest.
Contact Information

Contact information for personnel assigned to crisis management and response teams
should be included in the plans. Personal information such as unlisted phone numbers and
home addresses should be protected. The organization should establish procedures to
ensure that the information is kept up to date. Consideration should be given to a BCP
software tool that supports effective change management.

Compliance with Corporate Policy

Compliance audits should be conducted to enforce BCP policies and procedures. Policy
and procedures violations should be highlighted and accountability for corrective action
assigned in accordance with organizational governance regimes.

f) Mitigation Strategies

Devise Mitigation Strategies

Cost effective mitigation strategies should be employed to prevent or lessen the impact of
potential crises. For example, securing equipment to walls or desks with strapping can
mitigate damage from an earthquake; sprinkler systems can lessen the risk of a fire; a
strong records management and technology disaster recovery program can mitigate the
loss of key documents and data.

Resources Needed for Mitigation

The various resources that would contribute to the mitigation process should be
identified. These resources, including essential personnel and their roles and
responsibilities, facilities, technology, and equipment should be documented in the plan
and become part of ‘‘business as usual.’’

Monitoring Systems and Resources

Systems and resources should be monitored continually as part of mitigation strategies.

Such monitoring can be likened to simple inventory management.

The resources that will support the organization to mitigate the crisis should also be
monitored continually to ensure that they will be available and able to perform as planned
during the crisis. Examples of such systems and resources include, but are not limited to:

· Emergency equipment

· Fire alarms and suppression systems

· Local resources and vendors

· Alternate worksites
· Maps and floor plans updated/changed due to construction and internal moves

· System backups and offsite storage.

g) Avoidance, Deterrence and Detection

Avoidance Deterrence and Detection

Avoidance has the goal of preventing a the purpose of deterrence and detection is crisis
from happening. The potential crisis to make a hostile act (or activity) more should be
identified, understood, and difficult to carry out against the addressed and, in doing so,
avoided. The organization or significantly limit, if not Risk Assessment can be used to
identify negate, its impact. The BCP should address the specifics of potential crises,
including and include overall deterrence and any precursors and warning signs. detection
measures. Examples of crises that can have warning signs include, but are not limited to:

· Workplace violence (erratic or threatening employee behavior)

· Natural disasters (hurricanes, wild-fires, etc.)

· Activism, protests, riots

· Product or manufacturing failure

· Hostile takeover

· Terrorism

· Lawsuits.

Employee Behavior to Support Avoidance and Deterrence and Detection

Employees should be appropriately motivated to feel personally responsible for

avoidance and deterrence and detection. Through the proper corporate climate,
operational plans, and management objectives, employees should support avoidance and
deterrence and detection policies and procedures.

Facility Security Programs to Support and Enhance Avoidance and Deterrence and
Detection

· Architectural: natural or manmade barriers.

· Operational: security officers’ post orders; employee security awareness programs;

counter surveillance and counter intelligence as avoidance, detection and deterrence
measures; and Protective Security Operations for the protection of the leadership and
their families.
· Technological: intrusion detection, access control, recorded video surveillance, package
and baggage screening, when appropriate.

h) Potential Crisis Recognition

The first element in a response program is to determine if a potential crisis exists. The
organization should know and be able to easily recognize when specific dangers occur
that necessitate the need for some level of response. A strong program of avoidance and
deterrence and detection policies and procedures as outlined above will support this
process.

Identification and Recognition of Danger Signals

Identification of danger signals coupled with the likelihood of an event is often indicative
of an imminent crisis. Warning signs may include, but are not limited to:

· Unusual or unexplained changes in sales volume

· Legislative changes

· Corporate policy changes

· Changes to competitive environment

· Changes to supply based environment

· Warnings of natural disasters

· Imminent or actual changes in Homeland Security Advisory System threat level

· Cash flow changes

· Potential for civil or political instability

· Impending strike or likely protests

· Hostile labor negotiations.

Responsibility to Recognize and Report Potential Crises

Certain departments or functions are uniquely situated to observe warning signs of an

imminent crisis. Personnel assigned to these departments or functions should be trained
appropriately. The responsibility to report a potential crisis (including the notification
mechanism) should be communicated to all employees. The general employee population
may also be an excellent source of predictive information when there is a documented
reporting structure and where attention is paid to what the employee reports.
Notify the Team(s)

A potential crisis, once recognized, should be immediately reported to a supervisor, a

member of management, or another individual tasked with the responsibility of crisis
notification and management.

Parameters for Notification

Specific notification criteria should be established, documented, and adhered to by all

employees (with the timing and sequence of notification calls clearly documented). The
actual activation of a response process should require very specific qualifications being
met.

Custody and Updates to Contact Information

Qualified personnel should have ready access to the updated, confidential listings of
persons and organizations to be contacted when certain conditions or parameters of a
potential crisis are met.

Types of Notification

Notifications in a crisis situation should be timely and clear and should use a variety of
procedures and technologies, with recognition that devices used have advantages and
limitations.

Remember: In some types of crises, the notification systems are themselves impacted by
the disaster, whether through capacity issues or infrastructure damage. Thus, it is
important to have redundancies built into the notification system and several different
ways to contact the listed individuals and organizations.

Assess the Situation

Problem assessment (an evaluative process of decision making that will determine the
nature of the issue to be addressed) and severity assessment (the process of determining
the severity of the crisis and what any associated costs may be in the long run) should be
made at the outset of a crisis. Factors to be considered include the size of the problem, its
potential for escalation, and the possible impact of the situation.

Declare a Crisis

The point at which a situation is declared to be a crisis should be clearly defined,

documented, and fit very specific and controlled parameters. Responsibility for declaring
a crisis should also be clearly defined and assigned. First and second alternates to the
responsible individual should be identified.

The activities that declaring a crisis will trigger include, but are not limited to:
· Additional call notification

· Evacuation, shelter, or relocation

· Safety protocol

· Response site and alternate site activation

· Team deployment

· Personnel assignments and accessibility

· Emergency contract activation

· Operational changes

In certain situations, there may be steps that can and should be implemented, even
without officially declaring a crisis.

Execute the Plan

BCPs should be developed around a ‘‘worst case scenario,’’ with the understanding that
the response can be scaled appropriately to match the actual crisis. When initiating a
response, it is important to insure that the goals protect the following interests listed in
order of their priority:

· Save lives and reduce chances of further injuries/deaths

· Protect assets

· Restore critical business processes and systems

· Reduce the length of the interruption of business

· Protect reputation damage

· Control media coverage (e.g. local, regional, national or global)

· Maintain customer relations.

Prioritized classifications can be set up as relative indicators of the magnitude, severity,

or potential impact of the situation. These levels may aid organizations that are
developing response plans and implementation ‘‘triggers’’ for use during a crisis.
Determining the initial level of the crisis and the progression from one level to the next
will normally be the responsibility of the Crisis Management Team.
i) Communications

Remember: Effective communication is one of the most important ingredients in crisis

management.

Identify the Audiences

Internal and external audiences should be identified in order to convey crisis and
organizational response information. In order to provide the best communications and
suitable messages for various groups, it is often appropriate to segment the audiences. In
this way, messages tailored specifically for a group can be released.

Internal External

· Employees and their families

· Customers/Clients, present and potential

· Business Owners/Partners

· Contractors/Vendors

· Boards of Directors

· Media

· Onsite Contractors/Vendors

· Government and Regulatory Agencies

· Local law enforcement

· Emergency responders

· Investors/Shareholders

· Surrounding communities

Communicating with Audiences

The following items should be taken into account in the crisis communications strategy:

· Communications should be timely and honest.

· To the extent possible, an audience should hear news from the organization first.

· Communications should provide objective and subjective assessments.

· All employees should be informed at approximately the same time.

· Give bad news all at once – do not sugarcoat it.

· Provide opportunity for audiences to ask questions, if possible.

· Provide regular updates and let audiences know when the next update will be issued.

· Treat audiences as you would like to be treated.

· Communicate in a manner appropriate to circumstances:

– Face-to-face meetings (individual and group)

– News conferences

– Voice mail/email

– Company Intranet and Internet sites

– Toll-free hotline

– Special newsletter

– Announcements using local/national media.

Preplanning for communications is critical. Drafts of message templates, scripts, and

statements can be crafted in advance for threats identified in the Risk Assessment.

Procedures to ensure that communications can be distributed at short notice should also
be established, particularly when using resources such as Intranet and Internet sites and
toll-free hotlines.

Official Spokesperson

The organization should designate a single primary spokesperson, with back-ups

identified, who will manage/disseminate crisis communications to the media and others.
This individual should be trained in media relations prior to a crisis. All information
should be funneled through a single source to assure that the messages being delivered
are consistent.

It should be stressed that personnel should be informed quickly regarding where to refer
calls from the media and that only authorized company spokespeople are authorized to
speak to the media. In some situations, an appropriately trained site spokesperson may
also be necessary.

10. Resource Management

The Human Element

People are the most important aspect of any BCP. How an organization’s human
resources are managed will impact the success or failure of crisis management.

Accounting for All Individuals

A system should be devised by which all personnel can be accounted for quickly after the
onset of a crisis. This system could range from a simple telephone tree to an elaborate
external vendor’s call-in site. Current and accurate contact information should be
maintained for all personnel. Consideration should be given to engaging the company’s
travel agency to assist in locating employees on business travel.

Notification of Next-of-Kin

Arrangements should be made for notification of any next-of-kin in case of injuries or

fatalities. If at all possible, notification should take place in person by a member of senior
management. Appropriate training should be provided.

Family Representatives

The organization should implement a Family Representative program in case of severe

injury or fatality. The Family Representative should be someone other than the person
who performed the notification. This Representative should act as the primary point of
contact between the family and the organization. Comprehensive training for the
Representative is a necessity.

Crisis Counseling

Crisis counseling should be arranged as necessary. In many cases, such counseling goes
beyond the qualifications and experience of an organization’s Employee Assistance
Program (where available). Other reliable sources of counseling should be identified prior
to a crisis situation.

11. Financial Support

A crisis may have far reaching financial implications for the organization, its employees
and their families, and other stakeholders; these implications should be considered an
important part of a BCP. Implications may include financial support to families of
victims. Additionally, there may be tax implications that should be referenced and
clarified in advance.

Payroll

The payroll system should remain functional throughout the crisis.

Logistics
Logistical decisions made in advance will impact the success or failure of a good BCP.
Among them are the following:

Crisis Management Center

A primary Crisis Management Center should be identified in advance. This is the initial
site used by the Crisis Management Team and Response Teams for directing and
overseeing crisis management activities. The site should have an uninterruptible power
supply, essential computer, telecommunications, heating/ventilating/air conditioning
systems, and other support systems. Additionally, emergency supplies should be
identified and kept in the Center.

Where a dedicated Center is not possible, a designated place where the Teams may direct
and oversee crisis management activities should be guaranteed. Access control measures
should be implemented, with the members of all Teams given 24×7 access. A secondary
Crisis Management Center should also be identified in the event that the primary Center
is impacted by the crisis event.

Alternate Worksites

The organization should have alternate worksites identified for business resumption and
recovery. In the absence of other company facilities being available and/or suitable,
access to alternate worksites can be arranged through appropriate vendors. Planning
concerning the identification and availability of alternate worksites should take place
early in the BCP process. Alternate worksites should provide adequate access to the
resources required for business resumption identified in the BIA.

Offsite Storage

Offsite storage is a valuable mitigation strategy allowing rapid crisis response and
business recovery/resumption. The off-site storage location should be a sufficient
distance from the primary facility so that it is not likely to be similarly affected by the
same event. Items to be considered for off-site storage include critical and vital records
(paper and other media) necessary to the operations of the business. Procedures should be
included in the plan to ensure the timely deliver of any necessary items from offsite
storage to the Crisis Management Center or the alternate worksites.
2. Write short notes on : a) sales projections b) importance of creativity in
Business.

Ans : Developing Sales Projections

Your business plan is not just a funding tool, but also a blueprint for how your business
should operate. The following are steps for developing sales projections.

Step I:

Estimate

For each product or service, estimate the number of people who are likely to buy and
when they will buy it. You can get this information from asking your likely customers
about their possible use of your business, or you can base your estimates on your
knowledge of the market.

Step 2:

Use a Calendar

Estimate your sales and number of customers served during one week. Using the totals
for a week, make projections for each month. For the first few months, keep in mind that
business will start off slowly before people become more aware of your business. Use
will most likely increase as people learn about your products and services. Seasonal
variations may affect your business as well. You will use these numbers to project your
equipment, supply and staffing needs, as well as income.

Cost Account Heads:

· Organizational Start up Costs

· Product Design/Development

· Research & Development

· Legal/Licensing Expenses

· Property & Facilities

· Land/Building Purchase

· Initial Lease Deposit

· Building Repairs/Improvements
· Equipment/Machinery

· Production-related

· Administrative/Office Equip.

· Materials & Supplies

· Personnel

· Key Employees

· Contract Labour/Temps

· Training Expenses

· Marketing Expenses

· Advertisements

· Brochures/Literature/Other

· Insurance Premiums

· Distributor Contracts

· Contingency (5%)

Expenses:

Costs of Goods Sold

· Materials/Supplies

· Labor

· Rent

· Utilities

· Insurance

· Admin. Exp. (PT Sec.)

· Legal & Accounting

· Marketing
· Equipment Maintenance/Supplies

· Facility Maintenance

· Fees/Miscellaneous

Debt / Equity Investment:

· Equipment Loan

· Building Rehabilitation Loan

· Grants

· Owner Equity

Expenses

· Cost of Goods Sold

· Wages & Benefits

· Materials

· Supplies

Overhead Expenses:

· Rent

· Utilities

· Building Maintenance/Security

· Marketing

· Accounting

· Legal

· Administrative Expense

· Interest Expense

· Depreciation

The Business Priorities are based upon six top-level objectives; these are:
· To make Business data available both to decision-makers and as much as possible
available in the public domain;

· To ensure all holders of Business information are able to participate.

· To ensure that the data available through the NETWORK are of known quality;

· To ensure that the NETWORK Gateway gives access to data on Location and species
used to inform decisions affecting Business at local, regional, national and international
levels;

· To promote knowledge, use and awareness of the NETWORK;

· To enhance the skills base and expertise needed to support and develop the NETWORK.

i) The objectives have cross-cutting themes which are:

A. Infrastructure development

B. Data standards and tools

C. Capacity building

D. Working with the wider public

E. Co-ordination and promotion

i) In addition, the partners will contribute to the overall realisation of the objectives
through work that they initiate on their own account, but which does not necessarily fall
under the focussed objectives for the Network.

ii) A series of assumptions have been made in formulating the Business Priorities and
their associated work programme. These are:

· It is assumed that the present way of working, i.e. a lead partner approach for each
project will be retained;

· The plan is not intended to represent all the work that could be undertaken;

· It is anticipated that other work towards the principal aim of adding content and
providing a fully functional gateway will be adopted by the NETWORK as part of its
programme, but this work would have to be prioritised against this core activity and
separately resourced;

To give additional focus to the challenging nature of the task that the NETWORK is
setting itself, a series of principle drivers have been recognised. The drivers are:
· Processes – This driver relates to facilitated targeted action on the ground through
providing knowledge of resource location, extent, pattern of distribution, data quality and
gaps. It also has the potential for engaging more partners in the NETWORK;

· Environmental Impact Assessment (EIA) and Strategic Environmental Assessment –

This driver is concerned with providing ready access to data on location, extent, pattern
and quality of Business.

· Data contributor engagement – This driver is concerned with accessing sources of data
for the NETWORK enabling the assessment of actions and continual improvement in the
targeting of actions from the two previous drivers;

· Operational use – This relates to the use of the NETWORK within the day to day
business of agencies as a source of data relevant to local reporting or casework;

· Generic enhancement – This driver encompasses capacity building and Recording

Schemes and other contributing organisations and user groups, in order to ensure the
continued and enhanced supply and use of information.

These lead naturally to three broad areas of work:

· Developing the recording network;

· Enhancing the Internet Gateway in terms of its functionality and the data it accesses;

· Ensuring that the benefits already secured through the earlier work are maintained.

of all kinds to contribute data and to participate in the Network so that the information is
the best available, keeping pace with changes in wildlife.

The Promoters of the Network will:

· Promote the recording and validation of Business information by establishing minimum

and acceptable standards of quality assurance;

· Promote the establishment and maintenance of up-to-date and authoritative checklists of

all the departments together with agreed standards for describing their locations;

· Establish standards for the most effective and accessible forms of data storage and
promote the establishment and increased effectiveness of a network of data custodians,
and local records centres operating to agreed minimum and acceptable standards of
quality control for data storage, access and exchange;

· Aim, in principle, to provide free access to all information available through the
Network;
· Establish standards and procedures for making information available through the
Network and to safeguard the intellectual property rights (IPR) of those who originally
made and hold that information;

· Ensure that access to sensitive information is controlled reducing the risk of irreparable
loss or damage to organisms or Locations;

· Encourage the intelligent interpretation of Business information and make both the data
and their interpretation available in an accessible form as metadata for use in educational
establishments of all kinds, or by other users.

In the execution of these tasks, the Promoters shall assign such priorities as seem most
expedient to them in order to establish the Network as rapidly and effectively as possible
and, thereafter, to maintain it in accordance with the vision of the Network.
Role of the Network:
Roles in respect of the Network:

· As guardian and promoter of the vision of a national network linking the recorders of
Business information to the users of the information;

· As a participant within the Network; this largely, but not entirely, relates to its
‘ownership’ of the Gateway and the underpinning standards of the Network;

· As a facilitator through bringing together partners who undertake work to develop

aspects of the Network, or organising meetings at which issues can be discussed and
resolved;

· Although some aspects of the Network’s functioning are within the realm of others, for
example obtaining data and managing them, nevertheless, the Promoters could and
should act as an advisor on procedures and protocols that might make this element of the
Network more robust e.g. by providing model licences.

Member organisations and other stakeholders will also take forward the NETWORK’s
development as part of their own remits in addition to those elements for which the Trust
is directly responsible.
3. What factors are to be taken into account in a crisis communications
strategy?
Ans : crisis communications strategy

Remember: Effective communication is one of the most important ingredients in crisis

management.

Identify the Audiences

Internal and external audiences should be identified in order to convey crisis and
organizational response information. In order to provide the best communications and
suitable messages for various groups, it is often appropriate to segment the audiences. In
this way, messages tailored specifically for a group can be released.

Internal External

· Employees and their families

· Customers/Clients, present and potential

· Business Owners/Partners

· Contractors/Vendors

· Boards of Directors

· Media

· Onsite Contractors/Vendors

· Government and Regulatory Agencies

· Local law enforcement

· Emergency responders

· Investors/Shareholders

· Surrounding communities

Communicating with Audiences

The following items should be taken into account in the crisis communications strategy:

· Communications should be timely and honest.

· To the extent possible, an audience should hear news from the organization first.
· Communications should provide objective and subjective assessments.

· All employees should be informed at approximately the same time.

· Give bad news all at once – do not sugarcoat it.

· Provide opportunity for audiences to ask questions, if possible.

· Provide regular updates and let audiences know when the next update will be issued.

· Treat audiences as you would like to be treated.

· Communicate in a manner appropriate to circumstances:

– Face-to-face meetings (individual and group)

– News conferences

– Voice mail/email

– Company Intranet and Internet sites

– Toll-free hotline

– Special newsletter

– Announcements using local/national media.

Preplanning for communications is critical. Drafts of message templates, scripts, and

statements can be crafted in advance for threats identified in the Risk Assessment.

Procedures to ensure that communications can be distributed at short notice should also
be established, particularly when using resources such as Intranet and Internet sites and
toll-free hotlines.

Official Spokesperson

The organization should designate a single primary spokesperson, with back-ups identified,
who will manage/disseminate crisis communications to the media and others. This
individual should be trained in media relations prior to a crisis. All information should be
funneled through a single source to assure that the messages being delivered are
consistent.

It should be stressed that personnel should be informed quickly regarding where to refer
calls from the media and that only authorized company spokespeople are authorized to
speak to the media. In some situations, an appropriately trained site spokesperson may
also be necessary.
4. What elements should be included in a Marketing Plan under Due
Diligence while seeking investment in for your Company?

Ans : A business which wants to attract foreign investments must present a business plan.
But a business plan is the equivalent of a visit card. The introduction is very important –
but, once the foreign investor has expressed interest, a second, more serious, more
onerous and more tedious process commences: Due Diligence.

"Due Diligence" is a legal term (borrowed from the securities industry). It means,
essentially, to make sure that all the facts regarding the firm are available and have been
independently verified. In some respects, it is very similar to an audit. All the documents
of the firm are assembled and reviewed, the management is interviewed and a team of
financial experts, lawyers and accountants descends on the firm to analyze it.

First Rule:

The firm must appoint ONE due diligence coordinator. This person interfaces with all
outside due diligence teams. He collects all the materials requested and oversees all the
activities which make up the due diligence process.

The firm must have ONE VOICE. Only one person represents the company, answers
questions, makes presentations and serves as a coordinator when the DD teams wish to
interview people connected to the firm.

Second Rule:

Brief your workers. Give them the big picture. Why is the company raising funds, who
are the investors, how will the future of the firm (and their personal future) look if the
investor comes in. Both employees and management must realize that this is a top
priority. They must be instructed not to lie. They must know the DD coordinator and the
company’s spokesman in the DD process.

The DD is a process which is more structured than the preparation of a Business Plan. It
is confined both in time and in subjects: Legal, Financial, Technical, Marketing,
Controls.

The Marketing Plan

Must include the following elements:

· A brief history of the business (to show its track performance and growth)

· Points regarding the political, legal (licences) and competitive environment

· A vision of the business in the future

· Products and services and their uses

· Comparison of the firm’s products and services to those of the competitors

· Warranties, guarantees and after-sales service

· Development of new products or services

· A general overview of the market and market segmentation

· Is the market rising or falling (the trend: past and future)

· What customer needs do the products / services satisfy

· Which markets segments do we concentrate on and why

· What factors are important in the customer’s decision to buy (or not to buy)

· A list of the direct competitors and a short description of each

· The strengths and weaknesses of the competitors relative to the firm

· Missing information regarding the markets, the clients and the competitors

· Planned market research

· A sales forecast by product group

· The pricing strategy (how is pricing decided)

· Promotion of the sales of the products (including a description of the sales force, sales-
related incentives, sales targets, training of the sales personnel, special offers, dealerships,
telemarketing and sales support). Attach a flow chart of the purchasing process from the
moment that the client is approached by the sales force until he buys the product.

· Marketing and advertising campaigns (including cost estimates) – broken by market and
by media

· Distribution of the products

· A flow chart describing the receipt of orders, invoicing, shipping.

· Customer after-sales service (hotline, support, maintenance, complaints, upgrades, etc.)

· Customer loyalty (example: churn rate and how is it monitored and controlled).
Legal Details

· Full name of the firm

· Ownership of the firm

· Court registration documents

· Copies of all protocols of the Board of Directors and the General Assembly of
Shareholders

· Signatory rights backed by the appropriate decisions

· The charter (statute) of the firm and other incorporation documents

· Copies of licences granted to the firm

· A legal opinion regarding the above licences

· A list of lawsuit that were filed against the firm and that the firm filed against third
parties (litigation) plus a list of disputes which are likely to reach the courts

· Legal opinions regarding the possible outcomes of all the lawsuits and disputes
including their potential influence on the firm
5. Distinguish between Joint Ventures and Licensing, explaining the relative
advantages and disadvantages of each.
Ans : Licensing

A licence is a grant of permission made by the patent owner to another to exercise any
specified rights as agreed. Licensing is a good way for an owner to benefit from their
work as they retain ownership of the patented invention while granting permission to
others to use it and gaining benefits, such as financial royalties, from that use. However,
it normally requires the owner of the invention to invest time and resources in monitoring
the licensed use, and in maintaining and enforcing the underlying IP right.

The patent right normally includes the right to exclude others from making, using, selling
or importing the patented product, and similar rights concerning patented processes. The
license can therefore cover the use of the patented invention in many different ways.

For instance, licences can be exclusive or non-exclusive. If a patent owner grants a non-
exclusive licence to Company A to make and sell their patented invention in Malaysia,
the patent owner would still be able to also grant Company B another non-exclusive for
the same rights and thesame time period in Malaysia. In contrast, if a patent owner
granted an exclusive licence to Company A to make and sell the invention in Malaysia,
they would not be able to give a licence to

anyone else in Malaysia while the licence with Company A remained in force.

Licenses are normally confined to a particular geographical area – typically, the

jurisdiction in which particular IP rights have effect. You can grant different exclusive
licences for different territories at the same time. For example, a patent owner can grant
an exclusive licence to make and sell their patented invention in Malaysia for the term of
the patent, and grant a separate exclusive licence to manufacture and sell their patented
invention in India for the term of the patent.

Separate licences can be granted for different ways of using the same technology. For
example, if an inventor creates a new form of pharmaceutical delivery, she could grant an
exclusive licence to one company to use the technology for an arthritis drug, a separate
exclusive licence to another company to use it for relief of cold symptoms, and a further
exclusive licence to a third company to use it for veterinary pharmaceuticals.

A licence is merely the grant of permission to undertake some of the actions covered by
intellectual property rights, and the patent holder retains ownership and control of the
basic patent.

An assignment of intellectual property rights is the sale of a patent right, or a share of the
patent.
It should be remembered that the person who makes an invention can be different to the
person who owns the patent rights in that invention. If an inventor assigns their patent
rights to someone else they no longer own those rights. Indeed, they can be in
infringement of the patent right if they continue to use it.

Patent licences and assignments of patent rights do not have to cover all patent rights
together.

Licences are often limited to specific rights, territories and time periods. For example, a
patent owner could exclusively licence only their importation right to a company for the
territory of Indonesia for 12 months. If an inventor owns patents on the same invention in
five different countries, they could assign (or sell) these patents to five different owners
in each of those countries. Portions of a patent right can also be assigned – so that in
order to finance your invention, you might choose to sell a half-share to a commercial
partner.

If you assign your rights, you normally lose any possibility of further licensing or
commercially exploiting your intellectual property rights. Therefore, the amount you
charge for an assignment is usually considerably higher than the royalty fee you would
charge for a patent licence. When assigning the rights, you might seek to negotiate a
licence from the new owner to ensure that you can continue to use your invention. For
instance, you might negotiate an arrangement that gives you licence to use the patented
invention in the event that you come up with an improvement on your original invention
and this falls within the scope of the assigned patent. Equally, the new owner of the
assigned patent might want to get access to your subsequent improvements on the
invention.

Joint Venture

Rather than simply exploit your IP rights by licensing or assignment, you might choose to
set up a new legal mechanism to exploit your technology. Typically this can be a
partnership expressed through a joint venture agreement or a new corporation, such as a
start-up or spin-off company.

These options require much more work on your part than licensing or assigning your
intellectual property rights. This could be a desirable choice in cases where:

– you want to keep your institute’s research activities separate from the development and
commercialisation of technology, especially when your institute has a public interest
focus or an educational role; or

– you need to attract financial support from those prepared to take a risk with an
unproven technology (‘angel investors’ or ‘venture capitalists’), and they will only take
on a long-term risk if they can get a share of future profits of the technology.

In working out the right vehicle for your technology, you will normally need specific
legal advice from a commercial lawyer, preferably one with experience in technology and
commercialisation in your jurisdiction. The laws governing partnerships and companies
differ considerably from one country to another, and this discussion is only intended to
give a general flavour of the various options.

A joint venture agreement involves a formal, legally binding commitment between two or
more partners to work together on a shared enterprise. It is normally created for a specific
purpose (for example, to commercialise a specific new technology) and for a limited
duration. For instance, you might sign a partnership agreement with a manufacturing
company to develop and market a product based on your invention. Before entering into a
joint venture agreement, you need to check out possible commercial partners and make
sure that the objectives of your potential commercial partners are consistent with your
objectives. In the joint venture agreement, the partners typically agree to share the
benefits, as well as the risks and liabilities, in a specified way.

But this kind of partnership isn’t normally able in itself to enter legal commitments, or
own IP in its own right, so that the partners remain directly legally responsible for any
losses or other liabilities that the partnership’s operations create. In other words, a
partnership which is not a corporation, a company or a specific institution doesn’t really
separately exist as a legal entity.

By contrast, a company is a new legal entity (a ‘legal person’ recognised by the law as
having its own legal identity) which can own and license IP and enter into legal
commitments in its own right. A spin-off company is an independent company created
from an existing legal body – for example, if a research institute decided to turn its
licensing division or a particular laboratory into a separate company. A start-up company
is a general term for a new company in its early stages of development. If a company is
defined as a limited liability company, the partners or investors normally cannot lose
more than their investment in the company (but officeholders in the company might be
personally responsible for their actions in the way they manage the company). This
separate legal identity means that a start-up company can be a useful way of developing
and commercialising a new technology based on original research, while keeping the
main research effort of an institute focussed on broader scientific and public objectives,
and insulated from the commercial risks and pressures of the commercialisation process.
At the same time, the research institute can benefit from the commercialisation of its
research, through receiving its share of the profits and growth in assets of the spin-off
company, thus strengthening the institute’s capacity to do scientific research.

The company is normally owned through shares (its ‘equity’). These effectively represent
a portion of the assets and entitlement to profits of the company. Investors can purchase
shares in the company, which is one way of bringing in new financial resources to
support the development of the technology – in exchange, the investors stand to benefit
from the growth in the company’s worth, as their shares proportionately rise in value, and
to receive a portion of any profits produced by the company’s operations, commensurate
with the number of shares they own. If it is a public company, shares in the company can
be bought and sold on the open stock market. An initial public offering is when the shares
in a start up company are first made available to the public to purchase. A private
company’s shares, by contrast, are not traded on the open market (but can still be bought
and sold).

The option of starting up your own company to manufacture and market your patented
invention requires you to have business skills, marketing skills, management skills and
substantial capital to draw on for factory premises, hiring staff and so on. But it also can
offer a mechanism for attracting financial backing for research, development and
marketing, which can improve access to the necessary resources and expertise.

Which model of commercialisation is best for you?

Each new technology and associated package of IP rights is potentially difference, and the
mechanism you choose for commercialisation should take into account the particular
features of the technology. One basic consideration is to what extent you, as originator of
the technology, wish to be involved and to invest in the subsequent development of the
technology. You will need to compare the advantages and disadvantages of each model of
commercialisation. Generally speaking, the higher degree of risk and commitment of
finance and resources you can invest, the higher the degree of control you can secure over
exploitation of the technology invention, and the higher the financial return to your
institution may be.

There are many possible variations on each of these general models, and in practice they
can overlap. In deciding which model of commercialisation is best for you, it is always a
good idea to seek commercial or legal advice.

Remember that IPRs alone do not guarantee you a financial return on your invention. You
need to make good commercial decisions to benefit financially from your intellectual
property rights.

Properly managed, intellectual property rights should not be a burden but should yield a
return from your hard work in creating an invention.
6. You wish to commercialize your invention. What factors would you
weigh in choosing an appropriate course?

Ans :
If you have a technology or the idea for a product that you want to market profitably, you
confront a long, vexing journey across tough terrain littered with the hulks of abandoned
ideas, many of them good ideas. Some new products, however, do survive the trip.
Dozens of them reach the market every year, sustaining the energy of the American
economy and enriching their creators---at least sometimes. The purpose of this document
is to increase the probability that your technology will make it and you will benefit. The
first step in making your idea one of the survivors is learning about the obstacles lying
between you and the market. The second step is learning to plan a strategy that will see
you safely through the barriers----in effect, learning to navigate. The final step requires
actually making such a plan and executing it. We have designed this document to help
you with the first two steps by showing that the major obstacles to commercialization fall
into definable categories. By breaking these obstacles down into their components, and
then translating them into sets of sequenced tasks, you can overcome them. Mastering
this process will provide you with the foundation for step three: systematic, professional-
caliber planning and execution. To get an innovation into the market you must do more
than just develop something that works. You must match technical development to an
appropriately synchronized, increasingly sophisticated assessment of both your market
and the channels through which your product may reach it. At the same time, you must
evolve a business structure appropriate to more than just your stage of technical
development. At the very least, your business structure must meet the needs for market
research, the requirements for capital, and its obligations to government agencies (for
example, paying taxes, meeting environmental regulations, keeping records to support
patent claims). In addition, it must protect your (and other people's) investment in your
technology. This coordinated linkage of technical, market, and business development of a
new technology comprises the “innovation process.” Without comprehending that
process you cannot plan effectively;
unless you plan effectively you have little chance of seeing your idea commercialized.
The innovation process necessitates planning for a variety of reasons, not the least of
which is because without a persuasive plan you will not succeed in attracting the people
and capital. Getting your product to market will almost certainly require a formal
business plan. Long before then you must begin planning, in writing, addressing your
technical, marketing, and business strategies. The sooner you master this process the
better. Moreover, a process of ongoing planning will help you organize your activities
and accustom you to integrating technical, market, and business data. Unless you do these
things, you will ultimately exhaust your resources without having shaped your
technical insight into an attractive investment opportunity. Remember always that relying
on sheer technical merit will surely lead to failure. On the other hand, while systematic
planning based on the innovation process does not guarantee success, it vastly improves
the odds. Systematic planning begins with learning about the process that
confronts you.
In deciding to license or venture, you should accept that, either way, you will have to
give up some measure of ownership and/or control. In a sense, therefore, you’re not
deciding whether to get out, but when, how completely, under what circumstances,
and by what method. In other words, you’re looking for an exit strategy at the same time
you’re looking for a commercialization strategy. In addition, no matter which
commercialization strategy you follow, you will increasingly have to involve yourself
with people from the business world. These folks have different imperatives, different
expectations, and speak a different language from yours. Many of them care nothing
about technology except as a possible money spinner. Like it or not, you will increasingly
need these people, so you have to learn to deal with them pretty much on their terms.
They’re not likely to translate their professional language for you. Understanding
these realities of the business world is just one of the skills of the entrepreneur, a role
you’ll have to understand and that someone----you, a partner, a licensee----will have to
play. Building a business absolutely requires the skills of the entrepreneur: the know-how
to assemble all the components, make them function harmoniously, and sustain
growth. If you yourself have run a business, you have a first-hand idea of what it takes. If
you haven’t, then you have a lot to learn. Whether you have the aptitude for it is
something you have to ask yourself, and answer honestly.