You make business contingency plans to be prepared for times when things go bad. You don't want your business to fail because there is a temporary problem.
An example for the food processing industry might be as follows:
Your company makes meat pies. You get flour and beef from Kansas and Nebraska. There is a mad cow disease scare that takes all beef from the US off the market. Luckily you have a contingency plan. You have been buying small amounts of beef from a supplier in Argentina. Although the costs are higher, you can increase your beef imports to keep your factories open.
your might consider contingency plans for a number of possibilities:
Destruction of production facilities Drop in demand Worker strike Raise in interest rates New government regulations Etc.
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