Doing Business by the Good Book Ch 36

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Questions and Answers

What was God's initial consequence for Adam eating from the Tree of the Knowledge of Good and Evil?

Adam would die that day (correct)

Adam would be banished from Eden

Adam would gain eternal life

Adam would become wise

How did God respond to Adam and Eve's disobedience?

He smote them instantly

He completely erased their existence

He allowed them to live but imposed a heavy penalty (correct)

He provided them with unlimited knowledge

What was the original business focus mentioned in the content?

Auditing overcharges for railroad companies (correct)

Providing information technology solutions

Auditing for various types of businesses

Offering accounting software to enterprises

What significant change did the company make to adapt its business model?

From standard accounting software to enterprise planning systems Signup and view all the answers

What was a key factor that allowed the company to benefit from its contingency plan?

Anticipating customers' future needs Signup and view all the answers

What is the primary reason for the company to have a contingency plan?

To prepare for potential system failures Signup and view all the answers

How does the company differentiate itself from competitors in terms of client base?

By having a diversified client base across various industries Signup and view all the answers

What historical example is referenced to illustrate the importance of contingency planning?

The story of Joseph and Pharaoh in Egypt Signup and view all the answers

What is a common consequence for companies lacking a contingency plan during downturns?

Drastic cost-cutting measures Signup and view all the answers

What is one of the key benefits of upgrading systems during prosperous periods?

Maintaining a competitive edge Signup and view all the answers

What challenge do government contractors face regarding changes in regulations?

They must adapt their operations to comply with changing rules Signup and view all the answers

What internal factor may trigger a company's contingency plan?

Turnover of personnel Signup and view all the answers

What could be a potential external cause for a company to implement a contingency plan?

Acts of war or terrorism Signup and view all the answers

How often does the company back up its data as part of its contingency planning?

Every night Signup and view all the answers

What financial strategy did the company adopt during prosperous times?

Invested earnings into upgrading systems Signup and view all the answers

Study Notes

Contingency Planning in Business and Life

God's contingency plan for Adam & Eve's "original sin" involved work and eventual return to dust
A business contingency plan can alter a company's trajectory significantly
The author's company initially audited railroad companies, later expanded to undercharges, then diversified into a broader IT services for various businesses.
The company adapted its technology, transitioning from standard accounting software to enterprise resource planning (ERP) systems
This adaptation allowed the company to anticipate customer needs better than competitors
A diversified customer base is essential. This avoids over-reliance on any one sector or industry
Diversifying clients includes Fortune 500 companies and the federal government (e.g., DoD).

Contingency Planning in Government Contracts

Companies must adjust to government procedures for contracts
Government contracting involves continual adaptation to changes in procedures and regulations
The author's company, with its systems capable of handling government data, serves several government agencies like the CIA and DOD
This is a worthwhile market segment in terms of volume, yet demands flexibility with the always changing government rules and regulations

Contingency Planning for Data Security and Business Continuity

Routine data backups are part of a contingency plan. Every night, their data is backed up—an offsite backup is also part of their plan.
Internal and external factors can trigger contingency plans.
Internal factors include staff turnover, accounting restatements, etc.
External factors include acts of war, terrorism, policy changes, major customer loss, economic changes, and competition.

Contingency Planning in Biblical Examples

Joseph's interpretation of Pharaoh's dreams provided a contingency plan for Egypt during future famine.
This involved storing grain during plentiful years for lean years
Joseph's wisdom and foresight saved Egypt from famine
Throughout the Bible, contingency plans are depicted.
The "old covenant" (with rigid laws) contrasts with the flexible "new covenant" (faith-based)

Contingency Planning for Long-Term Success

Companies that don't prepare for changes often react with drastic cost-cutting measures—a counterproductive strategy.
Such reactive measures often stunt future growth and can cause the company's slow demise.
Avoiding over-reliance on one industry is key; the author's company has diversified its clientele to avoid that trap
Companies should invest in growth and anticipate changes during good times, instead of cutting costs when things are difficult.

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Description

Explore the essential principles of contingency planning in both business and personal contexts. Learn how businesses can adapt their strategies to manage risks effectively, including diversifying their customer base and transitioning technology. This quiz also covers insights into government contracting and the importance of flexibility in procedures.