Continuity of Operations Plan (COOP)

The decline in consumer spending remains the greatest scope of the disaster that might occur since it has a material effect on cash flows hence affecting the daily operations. Such case flows are related to purchases and suppliers that affect the day to day obligations of the firm. Consumer spending is mainly influenced by a host of factors that the firm cannot control including economic factors as well as oil prices. Moreover, Fantastic Four is likely to be affected by reputation risks. As a discounted retailer, Fantastic Four is characterized by direct contact with clients and worse disasters for retail stores if when clients stop purchasing from Fantastic Four or view them negatively. Moreover, reputation risks have increased due to the internet as well as social media. In addition, intense competition can also be seen as a scope disaster for the Fantastic Four discount retailer. An increase in competition is likely to hinder revenue growth of Fantastic Four company. According to Kim (2017), competition trough product price discount is a major factor in decisions concerning consumer purchasing power.

Further, the supply chain failure can be described as a scope disaster for Fantastic Four as a discount retailer company. In this case, the lack of goods to show is a sensitive disaster for daily operations, which can be caused by a failure in the supply chain. Also, online shopping is an emerging risk that may affect Fantastic Four due to technological developments. Other risks associated with discount retailers such as Fantastic Four include fraud and theft as well as failure to comply with rules and laws.

References

Kim, T. (2017). Smart and resilient urban disaster debris cleanup using network analysis. Spatial Information Research, 25(2), 239-248.