Recession3

=Business Responses to Global Recessions =

//How do decision-makers overcome the effects of the recession to create an economically sustainable business?// Let's continue with the scenario of the New Zealand Rugby Union and it's $15.9 million dollar loss during 2009 and 2010. We've already discussed the causes and effects of a global recession so first, let's summarise these.

**The Issue:** The NZRU made financial losses of $15.9 million dollars in 2010.

**The Causes** of this issue that relate to the global recession are:
 * 1) The consumers in the market place have less disposable income so they aren't patronising rugby matches.
 * 2) $NZ is strengthening and so their international reserves are worth less in $NZ.
 * 3) Businesses are facing tough times, so they have less money available to spend on sponsorship of the rugby events.

**The Impacts** on the NZRU are:
 * 1) Their revenues are significantly down on previous years.
 * 2) The All-Blacks brand is now less valuable as their games aren't drawing the same amount of crowds or sponsorship dollars as they used to.
 * 3) They will struggle to meet their obligations to debtors or to fund large events in the future (such as the Rugby World Cup).

** Task One **
//**Group Brainstorm**// As a group, brainstorm some ideas for NZRU that will enable them to solve the causes of the issue, and overcome the impacts of the global recession. //Refer to the Problem solving section to review how to effectively brainstorm.//

**//Comment//** When you have completed your brainstorm, identify your //**three best ideas**// and add them to the wallwisher below. //Refer to the ToolTest page to review the Wallwisher tool.// <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">media type="custom" key="10586288"

<span style="font-family: Verdana,Geneva,sans-serif;">** Task Two﻿ **
<span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">Analyse the ideas that you identified in task two using a PMI chart (plus - minus - interesting), and a Decision Matrix.

<span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;"> **//Group PMI Analysis//** <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">As a group, complete a PMI chart for each of your three ideas.

<span style="color: #000000; font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">The PMI chart below gives you an idea of how to start your analysis. <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**﻿** || <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">//This might lead to...// <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">//More research required on...// <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">//The important stakeholders would feel... // ||
 * <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**Description of Idea:** || <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">//NZRU could....// ||
 * <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**Plus** || <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**Minus** ||
 * <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">//The good points about this idea are:// || <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">//The bad points about this idea are:// ||
 * <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**Interesting:**

<span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">// ** Group Decision Matrix Analysis **// <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;"> //As a// group, draw up a Decision Matrix for the three options you are analysing. // Refer to the Problem solving section to review how to complete a Decision Matrix Analysis. // <span style="color: #000000; font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">The Decision Matrix below, is a starting point for your group. Usually your group would need to decide on the factors important to the decision. You may decide to change the factors and weightings given in the starter below. <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**﻿** || <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**Positive Brand Image** || <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**Provides Financial Returns** || <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**Increases Customer Loyalty** || <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**Protects views of all stakeholders** || //﻿// <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">//﻿// <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**//Add a discussion of the analyis to your portfolio//** <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;"> Identify the best option based on your analysis. //**Fully explain why**// your group decided on this option, and //**how**// this option will overcome the impacts of the global recession. You should write approximately 200-300 words and add this to your portfolio. //﻿//
 * <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**Factors:** || <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**Low Cost**
 * = <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**Weightings**: ||= <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**2** ||= <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**5** ||= <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**2** ||= <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**4** ||= <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**3** ||
 * <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">//Option 1// ||  ||   ||   ||   ||   ||
 * <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">//Option 2// ||  ||   ||   ||   ||   ||
 * <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">//Option 3// ||  ||   ||   ||   ||   ||

**Checkpoint!**

<span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**// Before you move on to the next page, you should have added the following things to your portfolio: //**
 * <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**// A 200-300 word discussion on the option your group has chosen. //**