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Managing threats in the global era: The impact and response to SARS
Author(s) -
Tan WeiJiat,
Enderwick Peter
Publication year - 2006
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.20107
Subject(s) - futures contract , scenario planning , variety (cybernetics) , flexibility (engineering) , business , crisis management , balance (ability) , business continuity , supply chain , futures studies , economics , industrial organization , marketing , computer science , management , finance , computer security , medicine , artificial intelligence , physical medicine and rehabilitation
In early 2003, the SARS virus brought disruption of public and business activities in many areas of the world, particularly Asia. As a result of its impact, SARS quickly established itself as a new kind of global uncertainty and posed challenges for traditional methods of risk management. This article examines the impact that SARS has had through means of a case study and builds on this to provide recommendations for how uncertainty may be managed in an increasingly globalized world. Reconsideration of strategic and risk‐management approaches have become necessary. Supply‐chain management and corporate strategy require a fundamental rethink to balance the pursuit of efficiency with increased responsiveness and flexibility. Unpredictability and turbulence in the international business environment suggest that traditional planning approaches that assume linear growth may give way to more scenario‐based planning. This will encourage firms to contemplate a variety of possible futures and better prepare them for unanticipated events. Similarly, contingent‐based continuity plans help businesses continue running even during a crisis. © 2006 Wiley Periodicals, Inc.