Maya Lim Case Study Essay
Explain the nature of the crisis that faced Maya Lim from the perspective of finance, marketing, production and human resources. (20 marks)
In terms of Finance Maya Lim faces considerably amount of debt, on the day of the explosion Maya had overdrawn £7854 as well as £10450 of outstanding trade credit. Therefore, she needs to pay out 18,304 whilst she only has her net profit from the previous year at £4672. The effect of the explosion has left her with no stock and no store, currently she has no way of generating money in order to pay off her debt. As she had an agreed overdraft of £8000 and she has limited finance left as she had already overdrawn £7854 therefore she cannot use that in order to invest into reopening and …show more content…
With the sudden disaster destroying all aspects of Maya Lim’s business, human resources department would have to deal with the loss of job and income whilst the premises recovered. Dependent on the time taken, the employees may have taken up another job opportunity as Maya Lim did not have insurance on the loss of earning during the time she couldn’t trade therefore employees would receive nothing. This would impact Maya Lim if she was to reopen the business as she would have to carry out recruitment and new training programmes, effectively being time consuming and financially demanding.
Discuss whether any amount of contingency planning would have saved Maya’s business in the aftermath of the crisis (20 marks)
A contingency plan is a plan designed to take account of a possible future event or circumstance. If Maya Lim created a contingency plan for this explosion destroying her business it may have improved the aftermath of the disaster. By creating a contingency plan she would be able to consider all possible events that would affect her business and plan how to overcome those or react to them in order to return to operating and trading normally. It would assess all aspects and functional areas of her business, as