Volcanic Hazards of the Seattle Region: Implications for Strategic Business (Essay Sample)

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Volcanic Hazard of the Seattle Region: Implications for Strategic Business
Introduction
In a business environment, a risk is a probability that a business entity will experience reduced profits or loss due to external or internal factors such as prices, competition, government policies or environmental conditions (Investopedia par.1). Among the environmental factors, a volcanic eruption can adversely affect the normal operations of a business through the destructive effects of the ash, lahars, and lava from the eruption which can persist for a long time, leading to massive losses and possible bankruptcy.
Seattle is the home to one of the most dangerous active volcanic mountains in the world: Mt Rainier. Although currently dormant, the eruption of Mt. Rainier can be devastating due to the release of massive amounts of volcanic ash, lava, and avalanches consisting of melted rocks and volcanic gases. However, the greatest risk from the eruption will be the lahars of melted glacial and rock particles which can bury and destroy settlements, properties, and infrastructure (Driedger & Scott pars.1-4).
Several industries, many of which play a strategic role in the U.S economy such as Weyerhaeuser have significant operations in the Seattle region and can be adversely affected by an eruption of Mt. Rainier. The objective of this paper is to investigate the effects a volcanic eruption and its related hazards on Weyerhaeuser operations in the Seattle region.
Weyerhaeuser
Weyerhaeuser is a private real estate investment trust that deals in forest products and operates one of the biggest private softwood timberlands in the world. The company manages forests by planting, harvesting and processing trees for wood-based products. It produces a variety of products including paper pulp, trees, engineered timber, and packaging materials, with other operations in the construction of residential houses (Gale par.1).
With headquarters in Seattle, Weyerhaeuser Corporation operates several manufacturing plants and manages over million acres of timberlands in the area. Production of wood is the cornerstone of the company and accounts for the largest source of revenue.
Effects of Volcanic Hazards on Weyerhaeuser Corporation in Seattle
The volcanic hazards from Mt. Rainier can be due to lahars, ash, and lava flow produced during the eruption.
Volcanic Hazards- (USGS n.p)
Lahars hazard
Mt. Rainier is surrounded by massive volumes of glacial ice that can produce a huge amount of lahars. The melting ice from the eruption can produce a cement-like mudflow made up of a mixture of flood waters and rock debris. This mudflow is denser than the river and travels at a faster velocity down the volcano, making it more energetic and destructive (Ball pars.13-14).
Lahars can bury and destroy trees, sawmills, logging camps, trucks and other equipment owned by Weyerhaeuser in areas closer to the volcano. The flooding lahars can also destroy transport and communication channels making it difficult for Weyerhaeuser to communicate to their clients and distribute their products to the market.
Destruction of trees and infrastructure by lahars (Jeff np)
Ash falls Hazard
Due to its enormous size, the eruption of Mt. Rainer can produce a heavy cloud of ash consisting of abrasive volcanic particles which can be scattered by prevailing winds to distant places in Seattle. Heavy ash fall can break and destroys trees managed by Weyerhaeuser in the region. The ash can also clog and destroy machinery, pollute water resources as well as induce electrical circuits in the electricity transmission lines, resulting in power loss that will affect the manufacturing operations at Weyerhaeuser (Wilson et al. np).
Transportation routes can be covered and visibility reduced by heavy ash fall, thereby interfering with the movements of trees and wood products from the logging camps to the mills and movement of people to and from work. This can result in reduced sales and absenteeism that can translate to reduced revenues to Weyerhaeuser. The company can also incur huge expenses to clean up the volcanic ash from its properties and facilities (Wilson et al. np)
Lava Flow
Lava consists of molten rocks which travel downstream. The massive size of Mt. Rainer can result in an expulsion of large volumes of lava. The lava flow can induce forest fire which can destroy timberlands and logging stations near the volcano that are managed by Weyerhaeuser. With the company depending on the trees as the main source of raw material for wood production, the destruction of the forest can impair the manufacturing of wood products leading to reduced revenues and potential loss (Ball pars.3-4).
Destruction of forest and Properties by lava flow (The Telegraph np)
Business Risks Faced by Weyerhaeuser in Seattle
Several factors can affect the economic activities. Location can impact the operations of business with areas experiencing natural disasters posing a greater threat to the business operations (Davis par.6). In Seattle, the biggest and most unpredictable threat to Weyerhaeuser Corporation is the eruption of Mt. Rainier. The company can suffer from various volcanic hazards which can potentially destroy acres of timberlands, equipment, logging stations and processing plants thus crippling its operations in the region. Relocating to a new location which is free from natural disasters such as volcanic eruptions can help protect the business from such unwanted losses.
Another source of business risk Weyerhaeuser Corporation in Seattle is the nature of the business. With forests being the main source of raw material for the company, the business can be at risk if their source of raw material is destroyed by the eruption of Mt. Rainier. The company should relocate their timberlands to other areas that cannot be impacted by the volcano hazards thus en...