Reference no: EM133055126

Shaky Grounds in Indonesia

You have just returned from the latest module of your company's leadership development programme, during which you worked on refining your critical thinking and problem-solving skills. Since joining the Indonesia-based geothermal energy company some years ago, you have been impressed by its dedication to developing its people.

 As you step off the plane at Jakarta's Soekarno-Hatta International Airport and switch on your phone, you receive a text message from the CEO, asking you to come to the company's main geothermal power generation plant where he is assembling all senior managers to discuss an important topic. Concerned about recent reports from various think-tanks and government agencies that geothermal power plants contribute to increased seismic activity, he wants to discuss with senior leaders how to address this concern and how to manage key stakeholders.

A bus is waiting for you and your colleagues in front of the new airport terminal to take you to the geothermal power plant. As the bus departs, you reflect on the great learning experience you have had in the past week. Heavy traffic in the city means that the journey, which is supposed to take 1.5 hours, takes 8 hours, leaving you exhausted. 

You are almost at the power plant; you can already see the buildings of the plant in the distance. Then suddenly... the ground begins to shake. The driver stops the bus. The shaking stops after 90 seconds. You have just witnessed a major earthquake with a magnitude of 7.3 on the Richter scale. 

The group decides to walk the rest of the way to the power plant. Along the way, every house has been reduced to rubble. The road is broken up. Power lines are down. Every man-made structure has been destroyed. Given the magnitude of the destruction, you worry about the potential casualties, and about what has happened to the power plant. What will happen to your company? What will happen to your job and your career? What will happen to you and your family? Are you or your company responsible for all this destruction? 

As you finally reach the geothermal power plant, you are relieved to see that the power plant is only minimally damaged from the outside. The safety features have ensured that the plant and its machinery shut down, but what is the damage within? 

A group of senior managers are assembling at the main entrance, waiting for the CEO. Suddenly, everybody gets a text message from the CEO. He is safe. He was staying at a nearby hotel and is stuck in the lift, but help is on the way. A specialist lift engineer has to come from Jakarta but could take The tasks shown below constitute 85% of the overall mark. 15% has been allotted to the Activities. Final Exam - Individual Assignment 85% 6 hours to reach him given the road damage. While the CEO will be safe, he is reliant on you and is leaving you in charge of managing the situation.

It is unclear what has caused the earthquake. Given the recent reports from various think-tanks and government agencies, there is a growing suspicion among company stakeholders that the earthquake may have been caused by the operations of the company's geothermal power plant. Reports of the earthquake spread quickly. Indonesia's public news broadcaster announces that over 100 people are confirmed dead as a consequence of the earthquake, and that the government is considering shutting down all geothermal energy plants in the area. Apparently, the government is also considering cancelling all contracts that the state electricity company currently has with all geothermal energy producers in the area (the state electricity company is the main customer of your company). 

Reports are also emerging that employees working at the power plant, including some of your colleagues, plan to quit their jobs because of the scale of the disaster, the impact on their careers, and for ethical reasons. 

A phone rings inside the office of the power plant. Corporate headquarters in Jakarta is on the line. Apparently, the banks are threatening to close off credit facilities, call in loans, and close the company's bank accounts. Next, most of your suppliers of equipment and service providers call to say that they no longer want to supply their services and equipment to you, as they do not want to be associated with your company. To make matters worse, apparently your major shareholders are unhappy and are considering action.

In his last text message (before his phone battery runs out), the CEO asks you prepare a strategic action plan to manage the current situation. He is depending on you to draw on the learning from your leadership development programme to prepare a report that identify the current problems, sketch out potential solutions, and recommend a plan to the CEO to address each problem, explaining how and why you arrive at your recommendations. 

You are asked to address the following problem areas (for each area there may be multiple problems):

• The risk that the company's main geothermal power plant could be irreparably destroyed and that operations will be severely disrupted
• The threat from the government
• The potential CSR fallout from the local community
• The financial threat from the banks The potential threat of losing your suppliers and service providers
• The potential threat of losing key employees
• Potential repercussions from shareholders

ANS FOR THE BELOW:

• Executive Summary
• Table of Contents
• Introduction
• Body 
• Conclusion
• References (as per Harvard style)
• Appendix (if any)