One Japan’s devastating combination of earthquake and tsunami was a wakeup call reminding companies across the world how much they rely on nature to commerce business. On Friday 11 March 2011, an earthquake measuring 9. 0 on Richter scale struck off Japan’s north-east coast of Tohoku which happened at 2:46pm (Alabaster et al. 2011).
The massive earthquake was caused due to thrust faulting where rocks placed lower in the earth’s crust get pushed over the overlying layers (Alabaster et al. 2011).
After the earthquake, the shadow depth underneath the ocean triggered a major tsunami hazard that reached height of up to 40. meters, which later on experienced rapidly after the quake. The degree and extent of damage caused by earthquake and followed by tsunami were gigantic. On 12 September 2012, Japanese National Police Agency reported 15,883 deaths, 2681 people missing and 6,143 injured as well as 129,225 buildings totally collapsed (Alabaster et al. 2011).
Three hundred hospitals in Tohoku were damaged by the disaster, fifteen ports were briefly closed, Fujinuma damp were ruptured, causing flooding and wash away many houses.
Dermot Vibert, a worker in Rio Tinto Japan was in the office during that time and he stated they will have to face many difficulties while recommencing the business. According to Japanese trade ministry, 4. 4 million of household were left without electricity due to several nuclear conventional power went offline which completely shut down production at Rio Tinto. Many industries are forced to close down due to lack of critical power supplies. Essential infrastructures such as telecommunication network, water supplies, and financial services are not able to access fully after the Tsunami strike (Allianz 2010).
The Essay on Earthquake in Japan
On March 11, 2011, the most powerful earthquake ever recorded hit Japan’s eastern coast. It killed hundreds of people as it made its way through the streets and fields, sweeping away boats, cars and homes. Its magnitude was 8.9, releasing a 23-foot tsunami and then provoking more than 50 aftershocks for hours. This horrific event resulted in the loss of thousands of lives and devastated ...
Besides, the fear of earthquake and worrying for their love ones has tremendously decrease the productivity of the workers. Psychological factor is one of the major issues that stop the company from running. Communication and transportation links has been disrupted after the strike. Therefore, most workers can only stay back in the office as the people in Japan are relying on public transport heavily (BBC 2013).
Furthermore, more people moved away from the area permanently and victims were evacuated to the refugee camp. Companies have to face labour shortage or even worst, manufacture facilities destroyed.
The cost of rebuilding a settlement is high and investment may be focused only on repairing the damage caused by earthquake (BBC 2013).
The country will suffer from economic cost and slow down the growth of companies. It creates an additional $ 111 billion in damage on bridges, railway station and also highway (Armand and Daniell 2012).
Rio Tinto has suffered from big losses in terms of physical assets and also financial area. Lastly, earthquake causes mass unemployment that came with a severe cutback in consumer spending and consequently tax revenues required to assists in welfare.
The international impact was experienced throughout the manufacturing industries such as Rio Tinto as oil prices shoot up due to destroyed refineries and rigs (Investopedia 2011).
Disruptions are one of the biggest threats to the revenue source of all companies. Companies may face disruption that caused by traffic congestion, fire that result in millions of lost dollar or worker strikes (Investopedia 2011).
However, company planning and preparedness sophistication varies significantly. Company have to make early preparation either physically or financially by coming out with other alternatives in order to minimize risk.
References Alabaster, J. , M. Yamaguchi, A. H. Tomoko, and Y. Kageyama. 2011. Japan Earthquake 2011: 8. 9 Magnitude Earthquake Hits, 30-Foot Tsunami Triggered. http://www. huffingtonpost. com/2011/03/11/japan-earthquake-tsunami_n_834380. html (accessed April 25, 2013).
The Essay on Home Page Internet Company Access
How the Internet Originated and What its Basic Construction Is In the 1960's the Department of Defense's Advanced Research Project Agency started a small network to promote the sharing of super-computers amongst researchers in the United States. (PBS Article). In the 1970's, email became popular. This helped people to research projects and discuss topics. The Internet started out with universities ...
Allianz. 2010. Energy Risks – the dangers of power cuts and blackouts. http://www. agcs. allianz. com/insights/expert-risk-articles/energy-risks/ (accessed April 25, 2013).
Armand, V. and J. Daniell. 2012. Japan – 366 days after the Quake 19000 lives lost, 1. million buildings damaged, $574 billion. http://earthquake-report. com/2012/03/10/ japan-366-days-after-the-quake-19000-lives-lost-1-2-million-buildings-damaged-574-billion/ (accessed April 26, 2013).
BBC. 2013. Earthquakes. http://www. bbc. co. uk/schools/gcsebitesize/geography/natural_hazards/earthquakes_rev5. shtml (accessed April 26, 2013).
Investopedia. 2011. The Financial Effects Of A Natural Disaster. http://www. investopedia. com/financial-edge/0311/the-financial-effects-of-a-natural-disaster. aspx (accessed April 27, 2013).
