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Documente Cultură
During
the
natural
disasters,
the
companies
can
provide
care
for
their
supply
and
chain
employees,
find
raw
materials
elsewhere,
use
different
transportation
routes,
and
receive
and
provide
help
from
the
customers
and
local
people.
After
the
natural
disaster,
companies
can
reconstruct
supply
chains
while
building
temporary
new
ones,
allocate
their
employees
to
places
in
need
of
help
and
also
partner
up
with
other
companies
to
work
together
in
integrating
their
supply
chains.
Natural
disasters
also
affect
the
sales
of
global
businesses.
Natural
disasters
positively
impact
sales
by
increasing
the
demand
for
necessary
items.
They
also
enable
businesses
to
increase
their
product
prices
by
increasing
the
scarcity
and
demand
for
items.
Not
only
do
natural
disasters
positively
impact
the
sales
of
certain
items,
but
also
they
also
negatively
impact
the
sales
of
products.
Natural
disasters
can
cause
a
decrease
in
the
demand
of
inessential
products
and
also
affect
the
buyers
themselves
or
the
buyers
purchase
intention.
Some
solutions
in
fighting
and
using
the
impacts
of
a
natural
disaster
is
to
use
this
opportunity
of
disaster
to
boost
the
companys
image,
increase
stock
shares,
increase
consumer
loyalty
and
transform
the
customers
into
walking
advertisements.
Part
I:
What
is
it?
--
Background
Information
About
Natural
Disasters
Natural
disasters
are
natural
events
that
cast
huge
damage
in
affected
regions.
Natural
disasters
may
affect
a
damaged
areas
economy,
population
and
social
stability.
The
most
notorious
characteristic
of
a
natural
disaster
is
its
unpredictability.
Our
lack
of
ability
to
predict
when
and
where
natural
disasters
will
strike
greatly
intensifies
the
damage
caused
by
natural
disasters.
Once
a
natural
disaster
strikes,
local
problems
such
as
refugees,
scarcity
of
emergency
supplies
and
social
disruption
crop
up.
But
how
could
we,
a
global
business,
be
affected
by
a
natural
disaster,
which
occurred
thousands
of
miles
away
and
even
on
another
continent?
Economic
Loss
Natural
disasters
are
costly
these
days
and
continue
to
increase
in
their
damaging
costs.
Chart
1
shows
the
number
of
global
billion-dollar
loss
events
by
region
from
2003
to
2013.
In
the
year
of
2013,
natural
disasters
cost
a
total
of
$192
billion.
The
Top
10
of
the
most
severe
natural
disasters
added
up
to
a
huge
economic
loss
of
an
astounding
$100
billion,
accompanied
by
about
$12
billion
insured
loss.
Another
critical
factor
that
incurs
significant
economic
loss
is
stock
market
fluctuation.
A
destructive
event
could
deeply
hurt
the
publics
confidence
in
economic
growth,
which
might
induce
severe
and
fast
stock
market
drop.
In
this
case,
every
company
in
the
stock
market,
however
relevant
to
the
affected
region,
would
undergo
unpredictable
economic
loss.
Corporations
are
affected
by
natural
disasters
through
their
negative
economic
impacts.
Financial
difficulties
may
arise
due
to
employee
loss
or
inventory
loss,
especially
if
the
majority
of
the
losses
could
not
be
covered
through
insurance.
Investments
might
be
completely
devoured
because
of
failed
projects.
Financial
instability
could
lead
to
trust
issues
between
corporates
and
banks.
Natural
disasters,
with
their
massive
power
and
unpredictability,
often
create
integrated
problems
rather
than
any
of
the
individual
problems
listed
above.
Thus,
natural
disasters
cause
great
severe
impact
on
global
corporations.
Infrastructure
Loss
Infrastructure
loss
is
another
form
of
damage
caused
by
natural
disasters.
Infrastructure
loss
greatly
impacts
business.
Major
natural
disasters
such
as
tsunamis,
floods
and
typhoons
destroy
and
damage
all
surrounding
buildings.
Damaged
infrastructures
leave
behind
many
countless
number
of
refugees
and
twisted
roads.
These
broken
roads
render
the
transportation
of
any
supplies
an
impossible
mission.
Damaged
and
broken
electric
grid
and
telecommunication
stations
cause
poor
communication
conditions.
In
business
corporations,
manufacturers
might
be
unable
to
maintain
their
production
because
of
the
damaged
factories
and
warehouses.
Employees
may
become
ineffective
due
to
their
worry
regarding
their
affected
family
members.
The
product
distribution
capacity
would
be
severely
impaired
due
to
the
closed
transportation
highways.
The
sales
would
become
affected
with
skyrocketing
demands
for
necessities
and
plummeting
demands
for
non-essential
products.
An
entire
enterprise
could
be
shaken
and
disturbed
even
if
the
natural
disaster
struck
an
area
a
long-distance
away
from
them.
Part
II:
Why
Do
Natural
Disasters
Matter?
Natural
disasters
can
occur
anytime
and
anywhere
around
the
globe.
Our
inability
to
predict
natural
disaster
events
renders
them
extremely
difficult
to
prevent.
The
economic
and
manufacture
losses
caused
by
natural
disaster
concurrently
affect
different
aspects
of
multinational
corporations.
When
natural
disasters
occur,
manufacturing
systems,
supply
chains,
and
sales
of
global
businesses
would
suffer
differently.
Manufacturing
Natural
disasters
impact
manufacturing
both
directly
and
indirectly.
Direct
impact
on
manufacturing
occurs
when
a
disaster
in
a
certain
region
damages
the
businesses
manufacturing
factories
in
that
region,
forcing
manufacturing
plants
to
shut
down
for
either
short
periods
of
time
or
perhaps
longer
periods
of
time.
The
products
manufactured
in
the
plants
will
no
longer
be
able
to
be
produced
within
the
duration
of
these
recovering
shutdowns.
Therefore,
the
profits
that
the
manufacturing
company
could
have
made
through
operations
are
now
considered
as
profit
loss.
In
addition,
the
financial
burdens
of
the
company
may
double,
or
even
possibly
triple
as
the
manufacturing
factory
has
to
shut
down
for
an
even
more
extended
period
of
time
while
corporations
have
to
pay
for
facility
restoration.
When
the
magnitude-9.0
earthquake
struck
Japan,
Toyotas
car
production
plummeted
far
below
the
normal
production
level.
The
Toyotas
global
production
in
March
dropped
29.9%,
about
542,465
vehicles,
from
a
year
ago.
Along
with
paying
the
restoration
costs,
Toyota
lost
the
profits
they
could
have
gained
if
they
had
produced
cars
to
sell.
Natural
disasters
can
directly
affect
manufacturing
processes
when
they
may
damage
the
machineries
in
manufacturing
factories.
Damaged
and
unusable
components
would
hinder
normal
operations
of
the
plant,
causing
further
long-term
loss.
Natural
disasters
also
indirectly
impacts
the
manufacturing
process.
Even
if
the
manufacturing
factories
themselves
were
not
damaged
by
natural
disasters,
they
may
still
be
negatively
affected
by
natural
disaster
damages.
One-way
in
which
natural
disasters
negatively
and
indirectly
affect-manufacturing
factories
is
that
they
can
take
away
a
factorys
power
source.
Power
and
electricity
are
the
most
important
utility
needed
by
every
manufacturing
factory
in
the
world.
If
natural
disasters
strike
areas
where
power
sources
are
located,
then
thousands
or
perhaps
millions
of
manufacturing
factories
will
be
affected
due
to
the
lack
of
electricity
and
ability
to
operate.
For
example,
the
United
States
relies
heavily
on
power
plants
for
their
source
of
energy.
As
seen
in
the
chart
below,
the
United
States
depends
heavily
on
nuclear
power
plants
to
generate
electricity.
Therefore,
when
the
power
goes
out
due
to
any
natural
disaster,
manufacturing
factories
are
severely
and
indirectly
impacted.
They
lose
their
ability
to
function
and
operate.
The
employees
are
also
severely
impacted,
either
mentally
or
physically,
by
natural
disasters.
These
affected
employees
may
hinder
the
smooth
flow
of
the
manufacturing
system
and
process.
When
natural
disasters
strike
in
a
particular
region,
local
employees
may
not
be
able
to
work
in
the
manufacturing
plants.
The
damage
to
the
community
may
make
it
difficult
for
the
employees
to
go
on
and
continue
about
with
their
everyday
normal
work
routine.
They
may
have
to
take
care
of
their
families
and
their
damaged
homes
instead.
Therefore,
the
manufacturing
factory
cannot
operate
at
its
normal
work
pace
to
meet
the
production
quota
due
to
a
loss
of
employees
and
manpower.
Natural
disasters
may
also
lead
to
a
shortage
of
raw
materials
for
manufacture.
When
a
manufacturing
plant
is
not
sufficiently
provided
with
raw
materials,
then
they
will
not
be
able
to
function
in
producing
their
products
properly,
which
will
lead
to
a
loss
of
profits
and
earnings.
If
the
natural
disasters
hit
areas
where
raw
materials
and
natural
resources
are
located,
then
manufacturing
plants
will
not
be
able
to
gain
these
raw
materials
in
producing
their
products.
For
example,
when
there
is
a
forest
fire,
manufacturing
plants
that
use
lumber
as
their
raw
material
will
not
be
able
to
produce
their
goods
of
furniture.
Many
other
and
different
types
of
manufacturing
facilities
are
indirectly
affected
when
their
raw
material
sites
are
damaged
and
impacted
by
natural
disasters.
Supply
Chain
The
supply
chain
consists
of
all
activities
involved
in
the
process
of
moving
products
or
services
from
the
supplier
to
the
customers
and
consumers.
Furthermore,
the
supply
chain
is
responsible
for
transforming
raw
materials
into
components
and
finished
products,
which
are
to
be
delivered
to
the
end
customer.
According
to
Chris
Zobel,
an
associate
professor
of
business
information
technology
at
Virginia
Tech,
a
supply
chain
has
six
key
parts
including
production,
supply,
inventory,
location,
transportation
and
information.
Damage
to
the
supply,
transportation
and
inventory
of
products
can
lead
to
numerous
financial
losses
and
long-term
recovery
issues.
On
March
11,
2011,
a
magnitude
9.0
undersea
mega
thrust
earthquake
hit
the
mainland
of
Honshu
Japan.
The
earthquake
and
the
tsunami
following
this
catastrophic
event
caused
not
only
devastating
human
and
economic
damage,
but
also
heavily
disrupted
the
global
manufacturing
supply
chain.
Suppliers
in
the
earthquake
regions
lost
thousands
of
critical
parts
and
this
inevitably
led
to
a
loss
of
revenue.
Figure
1
shows
the
financial
losses
of
a
few
semiconductor
companies.
The
lack
of
raw
materials
or
inexpensive
components
in
the
early
stages
of
a
supply
chain
will
eventually
lead
to
a
failure
in
manufacturing
and
sales.
Figure
2
shows
the
financial
losses
of
select
Japanese
companies
that
are
further
along
in
the
supply
chain.
This
event
in
Japan
has
clearly
shown
us
that
supply
chains
are
relatively
vulnerable
to
natural
disaster
events.
Supply
chain
disruption
appears
to
be
a
major
threat
to
global
business
both
in
the
short
term
and
long
term.
One
of
the
first
damages
that
natural
disasters
would
incur
is
the
destruction
of
natural
resources,
which
would
interrupt
the
supply
of
raw
material
and
components.
When
the
supply
of
raw
materials
are
in
danger,
this
can
cast
severe
constraints
on
the
manufacturing
process.
For
example,
global
automakers,
such
as
Ford,
Chrysler,
Volkswagen
and
GM,
had
to
place
a
hold
on
a
certain
paint
color
after
the
earthquake
and
tsunami
in
Japan.
The
November
2011
devastating
flood
in
Thailand
destroyed
several
of
Hondas
key
suppliers
forcing
production
delays
to
factories
in
as
far
as
Ohio.
This
flood
also
hurt
the
global
supply
capabilities
of
many
high
tech
sectors.
Intel,
for
example,
said
it
lost
about
$1
billion
in
Q4
sales
because
the
computer
OEMs
were
unable
to
source
the
hard
drives
needed
to
make
new
machines.
Another
form
of
damage
caused
by
natural
disaster
is
transportation
failure
on
ground,
sea
and
even
air.
In
those
cases,
products
will
stack
up
in
warehouses
because
of
the
closed
highways
or
ports.
Moreover,
due
to
the
high
demand
for
transportation
of
recovery
services
and
goods,
transportation
priority
will
be
given
to
emergency
supplies.
This
prioritization
of
transporting
the
emergency
and
recovery
supplies
over
transportation
of
business
goods
will
further
deteriorate
the
delays
on
corporate
supply
chains.
The
last
significant
aspect
of
damage
to
the
supply
chain
damage
is
inventory
loss.
Unpredictable
natural
disasters
have
the
capability
of
completely
wiping
out
warehouses.
Since
inventories
are
often
paid
products,
corporations
will
have
the
bear
these
losses
themselves.
In
the
example
of
the
2011
Thailand
Flood,
one
of
Hondas
major
auto
factories
had
thousands
of
brand-new
cars
floating
in
the
15-feet
water,
thus
incurring
enormous
inventory
losses.
Sales
Natural
disasters
can
negatively
and
positively
impact
and
affect
the
sales
of
global
businesses.
After
the
news
of
an
occurrence
of
a
natural
disaster
spreads,
global
businesses
will
immediately
need
to
prepare,
modify
and
adapt
their
selling
strategies
accordingly.
Natural
disasters
can
increase
the
sales
and
profits
of
global
business
companies.
Natural
disasters
can
increase
their
sales
of
items
and
products
because
they
can
create
a
demand
for
certain
goods.
They
create
a
demand
for
the
essential
products
and
services
needed
in
the
aftermath
of
a
natural
disaster.
These
products
are
mostly
centered
on
survival
and
medical
needs
of
the
victims.
Natural
disasters
also
increase
the
scarcity
of
an
item
because
they
affect
the
manufacturing
process
and
supply
chain
of
corporations
thus
reduce
the
amount
of
products
available
to
be
sold.
This
increase
of
scarcity
of
an
item
can
psychologically
increase
the
demand,
the
sales
and
the
price
of
a
product.
Natural
disasters
cause
many
injuries
and
fatalities,
thus
increase
the
sales
and
need
for
medical
services
and
goods.
If
the
injured
victims
require
medical
attention,
then
they
must
also
require
medical
products.
There
will
be
an
increase
in
the
demand
of
medical
products.
For
example,
global
medical
businesses,
such
as
GlobalHealthCareGroup,
specializing
in
emergency
staffing
solutions,
thrive
and
increase
in
profits
during
cases
of
natural
disasters.
Their
business
profits
greatly
when
natural
disasters
strike
because
their
services
are
needed
and
demanded
during
these
hard
times.
Another
way
in
which
natural
disasters
create
a
demand
for
products
is
that
natural
disasters
can
increase
scarcity
of
a
product.
If
a
product
becomes
scarce,
than
that
scarcity
will
create
an
increase
in
psychological
desire
for
the
product.
For
example,
when
Hostess
announced
that
they
would
shut
down
their
production
of
Twinkies,
consumers
flocked
to
the
supermarket
aisles
in
search
of
securing
these
soon-to-be-extinct
cream
cakes.
Natural
disasters
can
hurt
the
supply
of
global
business
products
and
reduce
its
production
availability
thus
increase
the
peoples
demand
and
desire
for
the
product.
As
shown
in
the
chart
above,
when
the
demand
of
a
product
is
greater
than
the
supply,
then
the
price
of
that
product
can
be
increased.
Global
business
companies
can
increase
their
profits
through
the
raising
of
the
prices
of
their
high
in
demand
products.
Not
only
do
natural
disasters
increase
the
profit
of
some
companies,
they
can
also
decrease
the
profit
and
business
of
specialized
product
sellers.
Natural
disasters
can
also
be
problematic
for
global
businesses
because
they
can
also
decrease
the
demand
for
certain
products.
For
example,
if
there
is
a
drought,
then
people
will
not
want
to
buy
umbrellas
or
rain
boots.
The
umbrella
and
rain
boot
makers
will
not
profit
as
much
in
dry
drought
areas.
These
businesses
may
have
to
decrease
their
prices
in
order
to
increase
their
product
sales.
They
will
not
receive
extra
revenue
or
profit
because
they
are
lowering
their
product
prices
in
order
to
have
a
demand
for
their
products.
Natural
disasters
can
also
injure
the
product
consumers.
Victims
of
natural
disasters
may
change
the
way
they
prioritizing
in
buying
certain
items.
They
may
cut
out
purchasing
extraneous
and
unessential
products,
such
as
luxury
bags,
in
the
times
of
financial
and
psychological
hardships
brought
on
by
the
natural
disasters.
The
consumers
and
victims
hit
by
natural
disasters
will
decrease
the
amount
of
sales
a
global
business
makes.
The
purchase
of
goods
are
highly
dependent
on
the
availability
of
the
funds
to
do
so
and
are
also
highly
dependent
on
the
personal
enhancements
the
products
provide.
Not
only
to
natural
disasters
affect
a
consumers
intention
of
buying
and
purchasing
products,
but
also
natural
disasters
may
also
directly
impact
the
consumers
themselves.
If
a
consumer
is
injured
by
a
natural
disaster,
then
the
global
company
who
specializes
in
selling
to
certain
consumers
will
also
be
negatively
affected.
For
example,
global
companies
with
the
lower-middle-income
population
as
their
main
customers
will
suffer
in
product
sales
and
business.
As
seen
from
the
chart
to
the
left,
over
a
20-
year
span,
there
has
been
an
increase
natural
disasters
affecting
the
lower-middle-income
countries.
If
the
consumers
are
suffering,
then
businesses
will
suffer
as
a
result
as
well.
If
certain
natural
disaster
victims
are
the
main
customers
for
certain
global
businesses,
then
those
businesses
will
decrease
in
sales
and
profits
because
they
will
have
lost
their
customers.
Supply
Chain
Planning
for
disaster
is
the
first
step
of
supply
chain
risk
management.
Prevention
is
always
better
than
cure
in
this
case.
One
of
the
most
obvious
and
simple
procedures
is
to
build
a
better
communication
with
disaster
forecasting
system.
For
instance,
a
multinational
company
should
cooperate
with
local
disaster
research
institution
in
order
to
get
first
hand
forecast
reports.
Furthermore,
companies
should
know
all
critical
facilities
within
the
supply
chain
that
would
be
likely
to
get
into
emergency
situation
and
need
resources
as
well
as
the
ones
most
vulnerable
to
disasters.
A
step
further
would
be
building
a
network
that
contains
minimum
distance
secure
sites.
This
would
be
extremely
important
creating
a
functional
emergency
framework
that
requires
minimum
time
to
react.
It
would
also
be
helpful
with
recovery
process
because
managers
would
have
quick
access
to
critical
materials
and
be
able
to
construct
a
temporary
supply
chain.
In
addition,
having
a
diversity
of
supplier
and
markets
rather
than
overspecialization
would
prevent
chain
reaction
due
to
disruption
in
one
part
of
the
supply
chain.
Strong
supply
chain
partnerships
will
help
a
company
to
get
through
difficult
times.
In
addition,
supply
chain
structure
should
be
adaptable
and
active
so
that
it
can
quickly
adjust
and
respond
to
market,
economic
and
social
demand.
For
example,
a
clearly
defined
company
structure
and
department
responsibility
can
help
reduce
confusion
and
increase
the
efficiency
when
dealing
with
disruption
of
supply
chain,
especially
when
it
happens
on
the
other
side
of
the
world.
Furthermore,
there
should
be
emergency
management
workshops
in
different
regions
globally
so
that
supply
chain
manager
should
be
able
to
learn
the
latest
emergency
preparation
techniques
and
share
their
experience.
During
Disaster
and
Post-Disaster
Manufacturing
Also,
when
employees
lives
are
impacted
by
natural
disasters,
firms
should
help
their
employee
recovering
damages
such
as
through
aiding
or
temporally
providing
homes.
Profits
loss
due
to
not
operating
factories
would
outweigh
the
aids
provided
to
their
employees.
Finally,
firms
should
select
several
raw
material
suppliers
from
different
parts
of
regions
to
avoid
dependence
on
only
one
raw
material
supplier.
If
firms
have
several
sites
where
they
collect
raw
materials;
firms
can
import
more
materials
from
other
dealing
suppliers
when
one
place
is
damaged.
Supply
Chain
During
Disaster:
Firstly,
nothing
is
more
important
than
lives.
Therefore,
quick
evaluation
of
life
safety
is
the
first
thing
that
needs
to
be
done
when
disasters
strike.
The
company
should
make
an
executive
decision
of
not
having
employees
to
work
once
they
get
the
information
of
even
a
potential
disaster.
Secondly,
in
order
to
minimize
loss
of
raw
material,
components
and
finished
goods,
transportation
in
certain
area
should
be
reduced.
For
instance,
it
would
be
better
if
ships
going
to
Japan
were
able
to
stop
at
safer
ports
until
there
were
new
orders
to
move
to
the
next
location.
In
addition,
communication
should
be
kept
intact.
Open
communication
would
not
only
acknowledge
warnings
to
other
suppliers
and
logistics
workers
but
also
exchange
information
between
distribution
centers
and
headquarters
and
can
be
the
key
to
mitigate
losses.
It
is
also
helpful
to
reach
out
to
the
community.
Getting
help
from
local
community
and
providing
help
to
those
in
need
is
equally
important.
Help
from
local
and
regional
community
would
be
helpful
to
reduce
losses.
Furthermore,
most
of
the
time,
helping
the
community
during
the
disaster,
such
as
providing
transportation,
would
improve
the
cooperations
reputation.
Post-Disaster:
As
traffic
is
usually
intensified
after
the
disaster
due
to
disaster
relief
and
humanitarian
support,
business
recovery
is
sometimes
put
to
the
second.
However,
even
with
limited
resources
for
transportation
and
reconstruction,
it
is
not
impossible
to
recover
from
the
catastrophes
faster.
First
of
all,
a
recovery
framework,
although
should
be
planned
ahead
as
mentioned
before,
should
remain
flexible
and
adaptable.
Multinational
corporations
need
to
utilize
all
their
resources
in
order
to
reconstruct
the
supply
chain,
while
building
a
temporary
one.
One
way
of
accomplishing
such
goal
is
that
companies
would
need
to
send
extra
labor
to
affected
region
and
they
will
be
needed
upon
a
moments
notice.
Another
post-disaster
procedure
is
to
learn
from
the
losses
and
minimize
future
risks.
For
example,
if
an
earthquake
that
destroyed
regional
highway
transportations
caused
critical
damage
to
a
corporation,
the
corporation
should
closely
analyze
their
own
loss
and
construct
better
emergency
plans
in
case
of
future
disasters,
utilizing
multiple
means
of
transportation
on
a
regular
basis
for
example.
Simply
put,
the
company
should
upgrade
its
own
supply
chain
if
it
appears
susceptible
to
natural
disasters.
Since
such
supply
chain
upgrades
often
involve
considerable
investments,
it
might
be
more
beneficial
to
build
an
integrated
supply
chain
through
close
collaboration
with
partners
wishing
to
share
the
route.
In
this
case,
more
significant
amount
of
funding
would
be
available,
more
efficient
upgrading
construction
would
be
feasible
and
much
cheaper
transportation
costs
are
achievable
because
more
goods
could
be
shipped
at
the
same
time.
Sales
Global
businesses
may
also
use
the
way
in
how
they
react
towards
a
natural
disaster
to
boost
not
only
their
sales
and
product
prices,
but
also
their
company
image.
Companies
that
are
able
to
quickly
adapt
and
modify
their
business
strategies
in
the
onset
of
natural
disasters
are
viewed
as
more
successful
and
capable.
This
consumer
view
towards
a
company
can
lead
to
an
increase
in
a
companys
market
share.
A
companys
stock
price
may
increase
due
to
the
stockholders
belief
that
this
company
is
a
great
company
to
invest
in.
Companies
will
have
built
and
increased
their
brand
name
and
consumer
loyalty
depending
on
their
responses
towards
the
natural
disaster
aftermaths
and
the
natural
disaster
victims.
Consumers
are
more
likely
to
buy
products
of
a
brand
if
they
like
and
favor
that
brand.
For
example,
Panasonic
lists
its
help
in
disaster
relief
for
the
consumers
to
see.
They
will
thus
increases
in
their
likeability
and
brand
image.
The
amount
of
Panasonic
sales
will
then
increase.
For
example,
if
I
was
a
consumer
who
cared
about
natural
disaster
relief,
then
seeing
that
Panasonic
provides
disaster
relief
may
spurt
and
increase
my
preference
for
purchasing
and
using
Panasonic
products.
Global
businesses
may
also
take
advantage
of
natural
disasters
in
looking
for
opportunities
to
increase
their
sales
and
profits.
The
use
of
public
relations
may
convince
and
persuade
customers
to
buy
and
prefer
their
products.
Global
businesses
may
advertise
that
they
will
have
all
their
proceeds
go
toward
natural
disaster
relief
and
this
will
not
only
cause
an
increase
in
the
likelihood
of
selling
their
products,
but
also
increase
the
companys
image.
One
example
of
a
business
brilliant
use
of
finding
opportunity
in
global
businesses
is
Tide.
As
seen
on
their
website
and
in
the
picture
below,
Tide
took
advantage
of
a
natural
disaster
to
raise
their
company
brand
image.
They
created
Tide
Loads
of
Hope
and
sold
branded
merchandise
while
stating
that
the
profits
would
go
towards
helping
families
affected
by
disaster.
This
branded
merchandise
is
also
a
brilliant
tactic
in
turning
their
consumers
into
walking
advertisements!
The
consumers
walking
around
with
these
Tide
Shirts
will
be
advertising
and
priming
their
audience
to
purchase
Tide
products.
Conclusions
While
prediction
and
prevention
of
natural
disasters
are
well
beyond
human
capability
currently,
the
losses
that
natural
disasters
incur
on
business
corporations
could
be
alleviated
through
proper
pre-
disaster,
during-disaster,
and
post-disaster
procedures.
Through
close
investigation
of
the
causes
of
manufacture,
transportation
and
sales
losses
of
the
three
disaster
periods
listed
above,
we
have
proposed
feasible
suggestions
to
maximally
reduce
natural
disasters
damage
on
business
corporations.
They
are
summarized
in
Table
1.
Suggestions
Manufacture losses
Sales losses
Pre-disaster
During-disaster
Post-disaster
Table
1.
Summary
of
suggestions
on
corporate
strategy
during
different
disaster
periods
with
different
types
of
losses.
Suggestions
are
based
on
analysis
of
causes
of
loss
detailed
in
this
paper.
Future
directions
Based
on
the
scenarios
we
considered
and
the
examples
we
reviewed,
there
are
several
interesting
topics
that
would
be
good
starting
points
for
some
effective
procedures
against
damage
of
natural
disasters.
Firstly,
as
many
different
factors
collectively
determine
the
damage
of
natural
disasters
and
thus
our
business
strategy
in
response,
it
might
be
useful
to
construct
a
strategic
framework
against
natural
disaster
damage
with
all
factors
quantified.
Simply
put,
just
as
the
number
of
employees
absent
from
work
is
quantifiable,
so
are
the
production
delays
and
inventory
losses
in
terms
of
number
of
units,
supplier
delays
in
terms
of
number
of
products
affected,
sales
delays
in
terms
of
amount
of
money
lost,
etc.
These
data
could
easily
be
obtained
if
a
complete
network
of
data-response
system
is
already
present
throughout
the
corporation.
The
data
could
then
be
processed
using
business
models
and
computer
programs
to
assess
actual
damage,
prioritize
recovery
efforts
and
thus
minimize
corporation
loss.
An
effective
quantified
system
of
assessment
would
be
feasible
because
quantification
of
loss
is
fairly
objective
while
considerate
time
and
money
could
be
saved
once
a
natural
disaster
strikes.
Therefore
a
quantified
damage
assessment
and
recovery
plan
program
would
be
an
interesting
topic
to
research
on.
Secondly,
it
was
observed
that
many
corporations
have
their
manufacturing
facilities
in
developing
countries
in
Latin
America
or
Southeast
Asia
to
take
advantage
of
cheap
labor
costs.
However,
it
must
be
noted
that
poverty
in
those
regions
are
partially
associated
with
high
frequency
of
natural
disasters.
For
example,
Latin
America
suffers
from
frequent
cyclones,
earthquakes
and
floods
while
Southeast
Asia
undergoes
super
typhoons
and
tsunamis.
Therefore
considerable
risks
are
involved
with
the
cheap
labor
costs.
To
minimize
the
loss,
different
corporations,
which
have
their
manufacturing
facilities
in
the
same
region
could
construct,
integrated
manufacturing
bases
instead
of
individual
factories.
In
that
case,
corporations
could
collaboratively
invest
some
funds
to
build
a
better-tailored
and
more
durable
base
that
could
withstand
stronger
natural
disasters
commonly
seen
in
that
region.
The
employees
could
enjoy
better
accommodation
or
shelter
and
more
interactive
social
lives
because
their
working
place
turns
into
a
bigger
community.
More
people
would
like
to
work
for
the
corporations,
which
would
boost
production
rates.
Also,
a
well-constructed
plant
could
greatly
alleviate
the
risk
of
natural
disasters
with
limited
expenditures.
Therefore
this
integrated
manufacturing
base
could
be
investigated
by
business
organizations
in
the
future.
There
are
many
other
ideas
to
use
more
advanced
strategies
to
edge
our
fight
with
natural
disasters.
Business
corporations
must
consistently
seek
for
better
solutions
to
better
prevent
their
losses
in
the
unpredictable
and
unpreventable
natural
disasters.
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