CJ 7B: Navigate Crisis with Failure

Mission Dossier – Amazonia

Mission Dossier

Time Remaining: 15:00

Risk Criteria	Option 1 Asset Liquidation	Option 2 Employee Transition	Option 3 Ethical Closure	Option 4 Contractual Commitment	Option 5 Asset Donation
Financial Impact	High (Costs)	Moderate (Costs)	High (Costs)	Moderate (Costs)	Moderate (Costs/Benefits)
Execution Risk	Moderate	High	Moderate	Moderate	Moderate
Legal Risk	Moderate	Moderate	High	Moderate to High	Moderate to High
Employee Costs	Low (Costs)	High (Costs)	Low (Costs)	Low (Costs)	Low (Costs)
Stakeholder Relations	Moderate	High	High	High	High
Public Perception	Slightly Negative	Moderately Positive	Highly Positive	Highly Positive	Highly Positive
Environmental Responsibility	Low	Low	High	Low	Low

Context

Following the tragic loss of life during the failed hostage rescue mission, the situation has deteriorated rapidly. The Brazilian Government has taken action by withdrawing Amazonia’s operating license in response to the escalating tensions and concerns about the company’s role in the crisis. This has left the parent company with no choice but to initiate the process of winding down operations in the Amazon Basin.

With the Brazilian Government’s decision effectively forcing Amazonia to exit the region, the company now faces a myriad of complex challenges. It must navigate the legal repercussions of the hostage situation, manage financial burdens stemming from the loss of its operating license, address environmental and stakeholder relations issues, and ensure that shareholders’ interests are protected in the midst of this crisis.

Task

Choose the best strategy to wind down operations, considering the impact on finances, shareholders, stakeholders, employees, environment, and legal considerations.

Options

Explore the strategies available to your team. Select a tab to read each option’s approach, advantages, and disadvantages.

Option 1
Option 2
Option 3
Option 4
Option 5

Option 1: Orderly Asset Liquidation and Debt Settlement

Carefully liquidate Amazonia’s assets and use the proceeds to settle outstanding debts and financial obligations.

Advantages: Maximize creditor satisfaction; minimize financial liabilities.
Disadvantages: Loss of business assets; possible legal complexities.

Option 2: Employee Transition and Severance

Focus on a seamless transition for employees, providing support and severance packages.

Advantages: Protect employee rights; minimize reputational damage.
Disadvantages: High severance costs; potential legal disputes.

Option 3: Ethical Closure and Environmental Restoration

Prioritize ethical closure by ensuring environmental remediation and mitigating harm to the local ecosystem.

Advantages: Fulfill environmental responsibilities; gain community goodwill.
Disadvantages: High environmental remediation costs; resource-intensive.

Option 4: Contractual Commitment Fulfillment

Honor contractual commitments with suppliers, partners, and other stakeholders.

Advantages: Maintain ethical business practices; uphold corporate reputation.
Disadvantages: Financial commitments; potential legal disputes.

Option 5: Asset Donation and Community Initiatives

Donate assets and resources to local communities to support social and economic development.

Advantages: Positive community relations; long-term goodwill.
Disadvantages: Loss of assets; potential misuse of resources.

Decision

After carefully reviewing the options above, your team must now choose the best option to resolve the crisis. Select one option below to record your team’s decision with 2 mins (or less) remaining.

Option 1: Orderly Asset Liquidation and Debt Settlement

Click to Select Option 1

Option 2: Employee Transition and Severance

Click to Select Option 2

Option 3: Ethical Closure and Environmental Restoration

Click to Select Option 3

Option 4: Contractual Commitment Fulfillment

Click to Select Option 4

Option 5: Asset Donation and Community Initiatives

Click to Select Option 5