THE POST-KATRINA DILEMMA
The last winds of Hurricane Katrina had barely quit blowing in South Mississippi when Home Depot manager Greg Newman arrived to open the Brookhaven, Mississippi store. It was not yet 5:00 a.m. and there were already six customers waiting in the pitch dark, desperately seeking electric generators. By the end of the day, the waiting line grew to 600 customers, all of whom left with a generator. In the next few weeks, the sales revenue at the Brookhaven Home Depot quintupled. Hurricane Katrina was the most costly disaster ever to hit the United States. Casualties numbered in the thousands, and economic losses are estimated to top $300 billion. Areas of southern Mississippi and Louisiana were razed to the ground. The disaster created huge disruptions to the economy, crimping energy supply lines and leaving almost a million people without jobs or homes. But for companies in the right place with the right products and services to offer, a disaster such as the storm can be amazingly good for business.
A business boom was the furthest thing from the minds of many business people in the disaster zone immediately after the storm. Many businesses near the Gulf Coast, including the critically important casinos of southern Mississippi, were wiped off the map. However, on the fringes of the disaster zone, streets were soon cleared, electricity restored, and the business of recovery began. In these communities, businesses began to see a significant up-tick in traffic. Brookhaven, a small city about 100 miles north of the Mississippi Gulf Coast, is located on a major north-south interstate highway. In addition to the increased business at Home Depot, other local businesses began to thrive. Betsy Penn Smith, a local realtor, began working 16-hour days, fielding queries from displaced people needing homes. The Ford dealership, owned by Lavelle Sullivan, also felt the impact of the storm. New car sales initially plummeted, but business at the dealer�s repair shop grew steadily. Sullivan had to add an extra employee to handle the repair work. The Brookhaven Chamber of Commerce soon realized what a local economic boom was being created by Katrina�s fallout. According to Chamber president Cliff Brumfield, the city was being deluged with requests for information about possible relocations. Brumfield felt that traffic on the north-south interstate could increase dramatically over the next three to five years due to rebuilding on the coast. The traffic activity would also increase business in the tourism and hospitality areas. �The sales tax from that could be very strong,� he said. At a special Chamber meeting, community leaders met to discuss how to deal with the unexpected commercial boom. On the Chamber�s agenda was a proposal for a billboard campaign to market the community as a good, safe place to live and raise a family. The billboards, to be placed on major highways, would cost about $1,000 per month for a six-month campaign. �We want good people coming into our community who can help us grow,� Brumfield said. Several people at the meeting expressed reservations about using billboards fearing that this would make the city appear opportunistic.
Primary Response: Type up your responses to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas: 400 to 600 words minimum. Double spaced, 12 pt font.
1. What ethical issues are raised in this case? Should a business accept additional profits from a natural disaster or charge less? What would happen if a business were to charge lowe=r prices for things like flashlights and batteries?
2. Should the town promote the fact that it is growing rapidly, or does that raise some negative issues?
3. What obligations do the state and federal governments have in such situations? Given time, as you can see, businesses revive, and the town sometimes goes through a renewal. But sometimes the situation remains stagnant and people are homeless. How do government agencies know deeply to get involved?
Case Study Requirements:Minimum 400 to 600 words (1 to 2 pages not including Work Cited Page).
Use one reference/source outside of your text to support your opinions. Use proper formatting of your choice (MLA, APA, etc.) https://owl.english.purdue.edu/owl/
Provide a Separate Work Cited List, List of Reference(s), and either in-text citations or footnotes.
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