THE AMERICAN RED CROSS

I. EXECUTIVE SUMMARY

The American Red Cross is an organization whose main objective is to offer relief to
victims of man-made or natural calamities. In addition to the staff, there are also volunteers who
assist in the prevention and immediate response of people if in case disasters strike. To
financially aid such noble cause, American Red Cross is accepting monetary or non-monetary
donations. They are also selling donated products such as blood, red blood cells, and white
blood cells in cheaper prices. The American Red Cross also have different investments that are
helping them aid their goals and objectives.

Since the American Red Cross is a humanitarian and a non-profit organization, people
across the nation were shaken when different anomalies about the organization rose in 2002.
Some of these anomalies were: poor human resource management which led to worker strikes,
inability of the organization to submit updated reports of their spending that led to
disagreements between companies, and lawsuits from other companies suggesting that the
American Red Cross was monopolizing the market by selling products in a much cheaper price
than the market. Due to such anomalies, people’s trust decreased tremendously. With the
appointment of Marsha Johnson Evans as the new CEO and President of the American Red
Cross, these issues must be addressed to regain the trust of all of its stakeholders.

II. PROBLEM ANALYSIS AND EVALUATION

CATEGORY CAUSE EFFECT

Interna External Details

l

Human ✅ Long working hours, frequent Worker Strike

Resource schedule changes and
increasing health benefit
costs

Marketing ✅ Public service announcement The announcement

(promotion) of “Together We Can Save a panicked the public which
Life” which aimed towards led to a surplus of donations
helping the 9-11 victims and subsequently, 10% of
boosted blood donations for the red blood cells collected
very few recipients on September 11 expired
the next day.
Marketing ✅ American Red Cross priced Violation of Section 2 of the
(pricing) some blood products below Sherman Act, which
production costs to drive out prohibits monopolization
competitors while it charged Unfair Trade Lawsuit
higher prices for the same
products where there was no
competition

Finance ✅ 50% of money raised for the Huge public uproar

(allocation of victims of the 9-11 attack was happened as donors
funds) used as intended while the demanded that their help be
rest was allotted for Red used at the immediate
Cross to improve itself that crisis.
might be of use for terrorist
attacks in the future

Management ✅ American Red Cross did not BBB Wise Giving Alliance
provide timely reports to BBB removed American Red
Wise Giving Alliance Cross from their website,
“give.org”
The former made some
unsupported statements
regarding the latter and was
reported in the Philadelphia
Inquirer.
 

External ✅ 60 Minutes Program released Bad Publicity towards the

Factor an inaccurate report organization
regarding floods, fires and
financial accountability of
Red Cross Chapters all
across America

From the table above, we categorized the areas with particular issues found in the case
as causes for poor execution of plans and responsibilities within Red Cross and we can see that
the end results are leading to one and the same general problem; negative public image.
 
There are also underlying reasons for each particular category that we have determined.
First, in the Human Resource, Red Cross workers went on strike after rejecting a contract offer
by the American Red Cross because they felt stressed out about the long hours, frequent
changes in their schedule, and increasing health benefit costs of their jobs. The strike was the
end result of disregarding the physiological needs of the staff. Based on Maslow’s Hierarchy of
Needs, it is the most basic need of an individual that needed to be considered by American Red
Cross especially that it offers services to other people who also need assistance and support.
 In the category of Marketing, 10% of the red blood cells collected on September 11
expired due to the public announcement made by American Red Cross aiming to help the 9-11
victims, causing a surplus of blood donations for very few recipients. Another issue on
Marketing (pricing) is about the pricing of some blood products below production costs to drive
out competitors while it charged higher prices for the same products where there was no
completion. This led to the violation of Section 2 of the Sherman Act, which prohibits
monopolization.  The Sherman Act is a US federal legislation of 1890 that prohibited the
creation of monopolies by outlawing direct or indirect attempts to interfere with the free and
competitive nature of the production and distribution of goods. In addition, this issue on pricing
also led to the lawsuit filed by HemaCare Corp. and Coral Blood Services.

In the area of Finance, the American Red Cross released a spending plan of the Liberty
Fund. It was stated that 50% of the money was used as intended. However, the remainder was
allotted for Red Cross’ improvements and expansion. This resulted to a huge public uproar
because the Liberty Fund was supposed to be used solely to aid at the immediate 9-11 crisis.

In the category of Management, the American Red Cross was removed from the Better
Business Bureau Wise-Giving Alliance’s website, give.org, for the reason that American Red
Cross was not able to provide a timely report to the Alliance. This led to the unsupported public
statements made by the president of the BBB Wise Giving in an article in The Philadelphia
Inquirer. This was however retracted after a conversation and agreement between American
Red Cross and BBB Wise Giving Alliance.

We could see that most problems are organic from the organization and are controllable
under management. The problems can be further dissected and can be concluded that major
functional areas are accountable for these problems and overall management has not been
responsive enough to fix these conditions.

1.       Low Employee Satisfaction Maintenance. Management missed on creating clear and

workable work schedules. Given the hazards of the job, ARC must compensate its employees
accordingly.

2.       Ineffective communication style. We believe that ARC was weak in sending its
messages across its stakeholders as we can see from the case that there were
misunderstandings from various groups that led to their bad public image.  Firstly, ARC seemed
to have poorly communicated to its employees what the Red Cross is ultimately about and that
the nature of their job is dynamic and complex. Workers must understand the core essence of
ARC’s existence; to provide relief to victims of disasters and help prevent, prepare for and
respond to emergencies. The Principles and Values of Red Cross must be understood and
carried out by employees at all times and must act accordingly to these principles and values.
Employees must understand what they have signed up for.

Secondly, despite its effort to become transparent regarding the allocation of funds in the
Liberty Disaster Relief Fund, donors were disgruntled once they knew where their donations
went. 50% of the donations were allocated to Red Cross to improve itself for long term
sustenance of support to be given eventually to the victims of 9-11.  This is where ARC has
been, once again, weak in communicating their intentions to help their recipients. There must be
a disclaimer from the organization that before donors donate, there are partly investment plans
that the organization will venture in in order to sustain and support itself and its recipients.  
 Finally, ARC overlooked the deadline of submitting the report to BBB Wise Giving
Alliance causing the latter to remove the former from the website. If the organization is too
caught up with it activities, then it should have notified BBB Wise Giving Alliance that it cannot
comply with their due date.

Further Analysis showed the following relationship

INSERT DIAGRAM NA NADELETE

We could see that from all the responses of various stakeholders towards the actions of
ARC has one and general aftermath; Bad Public Image. The shortcomings of management
cannot be undone as it is water under the bridge. What concerns Marsha in the present is to
remedy the negative image that public depicts of the organization.

Marsha Johnson Evans has a central role in the conflict at hand because whatever
decision she makes to resolve public distrust, she must know for certain that all the negative
impressions of the firm must go away.  Thus, any decision Marsha will make will have an
implication not only to its external stakeholders, but also internal ones as well. Faced with
conflicting views and conflicting interests, Marsha’s problem is not only about the redemption of
public trust but also improving on communication methods that can make all stakeholders
understand what the American Red Cross is and what it will always be. This in turn, will revert
their brand into a trustworthy one; one which all stakeholders believe can thrive in its niche, one
which is transparent and fulfils its mission.

STAKEHOLDER ANALYSIS

        The cause and effect analysis presented above indicated the importance of the different
stakeholders in the American Red Cross. To further identify the key stakeholders that are likely
to affect or to be affected by the current issues of American Red Cross, the Stakeholder
Analysis Technique will be used.

RANK STAKEHOLDER INVOLVEMENT INTEREST INFLUENCE/POWER IMPACT OF THE

IN THE ISSUE IN THE ISSUE ON THE
ISSUE STAKEHOLDER
1 Recipients Primary direct High. High. High.
- They are the Recipients Recipients have the Recipients of
ones who stand are the power to demand donations may
to gain the ultimate prompt and not fully benefit
services of consumers satisfactory services from ARC’s
ARC. They of the from ARC activities if there
benefit from the products is public distrust
efforts of ARC. and against ARC as
services of there might not
ARC be enough
. support to
leverage the
organization’s
operations

2 Public Primary High. High. High.

indirect The public The public sets much The public may
- They are part is the ethical pressure to the or may not
of the source of organization to decide whether
community who potential perform and they are to support ARC
give widespread donors of the ones who can or not
support to ARC. ARC. The influence what
bad direction the
publicity organization will go
may affect regarding the matter
how they
see ARC
and may let
them
decide
whether or
not to
support
them.
3 Donors Primary direct High. High. High.
- They provide Financial Donors have Donors feel
the resources and other entrusted ARC to disappointed that
(blood) and resources allocate the resources their hard earned
finances to fund (blood) has that they have given money and
ARC. been properly and into resources were
pooled out good use put to waste
from them because not all
so they these donations
would want went to the
to make victims of 9-11
sure that
there
resources
are utilized
as intended

4 Employees Primary direct High. High. High.

- They provide Without Employees have the Demotivated to
services to ARC support power to demand work for a
in exchange for from the from management company that is
compensation; public and better working seen negatively
However, donors, conditions. If ARC is to the public eye
volunteers are there won’t going downhill, Management
not paid for the be employees may opt to might pressure
work they resources find jobs elsewhere employees to
provide. to fuel the Employees may work harder to
operations speak up to further prove the
of justify that ARC isn’t a allegations wrong
employees satisfactory employer
in and may worsen
rendering public uproar
their
services.
5 Media Secondary High. High. Medium.
indirect The media The media has the Whether or not
- They attract or has high power to influence its the ARC makes
put off potential interest in viewers and has the right or wrong
new donors, the issue discretion to filter decisions
volunteers, and as they are information to the regarding their
other supporters waiting for public. PR crisis it will
of ARC. ARC to only affect the
make media in the
decisions short run as
and would news die down
like to be and they will
the first to move on to the
report next hot story
about it. To
them, ARC
may just be
a headline
that is of
huge public
interest
that will
gain them
viewers,
readers
and
listeners as
the public
is at the
head of
their seats
waiting for
ARC to
make their
next move.
 6 Alliances Secondary High. High
indirect Partners may pull out Partners
- They share from the partnership leverage the
resources with once they ARC is company to pool
ARC to associated with funds and raise
undertake a controversy. They awareness. If
specific, might do business investors pull out,
mutually with other non-profit there shall be
beneficial organizations that less donations
project. have the same cause and beneficiaries
but with “cleaner” that can enjoy
records the products and
services of the
organization

According to the Diagnostic Typology of Organizational Stakeholders, we can further categorize

each into 4 distinct categories based on their potential threat to and potential cooperation with
the American Red Cross regarding this issue.

Stakeholder’s Potential Threat to the Organization

High Low

Stakeholder’s High Type 4: Type 1:

Potential Mixed Blessing Supportive
Cooperation Media Recipients
with the Public Alliance
Organization Donors
Employees

Low Type 3: Type 2:

Non Supportive Marginal

The figure above reflects that most stakeholders in the case (Media, Public, Donors and
Employees) are mixed blessings for the firm. These stakeholders have the potential to make or
break ARC for they have the capacity to threaten the organization but at the same time, if ARC
plays their cards right, have great potential to cooperate with the organization. This means that
collaborative measures are greatly suggested so that the capacity of these stakeholders to stain
the reputation of the firm further will be minimized. It is best for the firm to work with them rather
than to get in these stakeholders’ bad side. For example, the donors implicitly express their
cooperation with the organization as they are the individuals and groups who willingly and
voluntarily support the firm in sustaining victims of calamities and disasters. But if ARC does not
satisfy and protect their interest (by using the donations as expected by donors), then will these
stakeholders get negative feedback and resistance to these managerial decisions.

Likewise, there are supportive stakeholders found in the case, namely the recipients and their
alliances. These organizations and individuals have direct interest in the firm as they enjoy the
benefits from the activities of ARC. For instance, recipients would want the public to leverage
ARC as they know that ARC will be the source of support and sustenance to them. This implies
that the interests and concerns of mixed blessing stakeholders must be gratified first so the
interests and concerns of supportive stakeholders are protected.

III. IDENTIFICATION OF MAIN PROBLEM/ISSUE

With the Cause and Effect Analysis and Stakeholder Analysis presented above, we
came up to the main problem of the American Red Cross which is about its negative public
image.

To address these concerns, it is important to note how Marsha Johnson Evans shall
approach the issues being faced by the American Red Cross at present. Furthermore, the
question of “What strategic activities or programs could the American Red Cross offer for
them to regain the trust of all of its stakeholders?” will be answered.  

IV. ALTERNATIVE COURSES OF ACTION

In order for Red Cross to survive the PR mess created by various events and entities
around them, we have come up with three alternative courses of action that they may
undertake. The three alternatives are hinged under the framework for “Environmental Analysis
of Social Issues and Evaluation of Business Patterns” by S. Prakash Sethi which reveal the
distinct differences that exist in the way corporations respond to social issues (Kuratko, 2015).

ACA 1: Comply with Legal Requirements as needed (Socially Obliged)

With the uproar of the public due to various controversies faced by the American Red
Cross, it is possible that they be mum about their activities to keep a low public profile. If
attacked, the American Red Cross may use PR activities to upgrade its public image and only
disclose information when required by law.

ADVANTAGES DISADVANTAGES
-  Requires less effort and resources from - Public dissatisfaction may happen as the
management as it waits for interested organization is social in nature; it reflects that the
parties to correct them in their deficiencies organization is apathetic and isn’t too concerned in
as an organization the public’s opinions about it

- Defensive in nature - Management only moves when it is legally

required

- It will not satisfy involved stakeholders, as the

strategy only serves the organization.

ACA 2: Immediately respond to bad publicity by setting-up a press release to clear the
issues related to ARC (Socially Responsible)

Marsha Johnson Evans can make a public statement admitting its shortcomings in their
former practices but must persuade the public that it has always been compliant to the sector’s
norms and practices.  It primarily concerns the organization clearing out its name and solving
the issues at hand by accepting responsibilities for such.

ADVANTAGES DISADVANTAGES

-  Regains public trust - Admitting that there were inefficiencies may lead
to further criticisms towards the firm
- It is an attempt to clear out its name from
any issues thrown at them - May require special resources such as an
excellent PR team to handle the situation
- Quick to execute professionally

- May serve as a band aid solution that - Clearing out its name would only fulfil the the
can minimize the adverse effects of bad issues at hand. It does not guarantee that similar
publicity towards the company future problems will not happen again

ACA 3: Reinvent itself by being socially responsive

Marsha Johnson Evans should create a public statement acknowledging their

deficiencies but reminding the public that the American Red Cross, per se, is never bad. This
hits right at the gut for the public as the mere essence of the Red Cross is to provide
nonpartisan care and relief to victims of disasters and war, which is pro-life, pro-dignity and pro-
human kind. Beyond that, the organization must openly discuss their activities with outside
groups and be willing to be transparent in all their endeavors.

ADVANTAGES DISADVANTAGES
·         Regains public trust ·         Admitting that there were inefficiencies
·         It is an attempt to clear out its name may lead to further criticisms towards the firm
from any issues thrown at them ·         May require special resources such as an
·         The organization is seen to be more excellent PR team to handle the situation
transparent professionally
·        Gives more exposure to the  Changing the structure, policies and
organization as media shall be tapped methods of the organization to be
         ARC would have the opportunity to proactive in responding to social issues
review and revise their existing policies to might take time and extra planning
improve their services and operations.
 Encourages organization, specifically
the trimedia to give back and support
activities which could benefit the
community
        

Evaluation of Alternative Courses of Action

An assessment of the available courses of action is provided to help Marsha Johnson Evans to
weigh out the best approach in the PR issue of the American Red Cross. Below are the criteria
that should be met by each alternative course of action for her to resolve the PR issue and
regain the trust of all of its stakeholders.

CRITERIA ACA 1: Be ACA 2: Be Socially ACA 3: To reinvent

Socially Responsible itself by being
Obliged socially responsive

Must resolve the PR issue at ✔ ✔ ✔

hand

Must not create future ✘ ✘ ✔

problems/complaints

Would improve existing ✘ ✘ ✔

processes

Cost-efficient ✔ ✔ ✘

Can be executed within 3 ✔ ✔ ✘

months

Gives immediate ✔ ✔ ✔
results/feedback ** **

Satisfy all of ARC’s ✘ ✘ ✔

stakeholders

Meets the vision, mission, ✘ ✘ ✔

 and goals of ARC
** Results may either be positive or negative.

Choosing ACA 1 would entail low effort and cost for ACR because they would only act
on something if they are required to do so. In addition, this option could give immediate results,
however, the results would not be certain since only a few information will be disclosed, leaving
areas of the issue unresolved. Also, it is not guaranteed that the results will be positive or
negative, which will be highly dependent on the disclosed information. This option does not
improve the existing processes, does not satisfy ARC’s stakeholders, and does not meet the
Vision, Mission, and Goals of ARC. Thus, choosing this option would contribute in creating
future problems for ARC.

Choosing ACA 2 would give an immediate solution and results to the PR issue at hand
through a public statement. It could be executed within three months and it is cost-efficient.
However, this option does not improve the existing processes and policies of ARC, which is
opposite to ARC’s Vision, Mission, and Goals. Choosing this option would not satisfy the
stakeholders of ARC.

Choosing ACA 3 would also give an immediate solution and results to the PR issue at
hand through a public statement. Although it would require time, effort, and strategic
management, ACA 3 opens new opportunities for ARC to improve its policies and services that
are hinged to the organization’s Vision, Mission, and Goals. This would then result to the
satisfaction of all of its stakeholders.

Considering the advantages and disadvantages of each alternative, and the evaluation
above, the most favorable course of action that Marsha, and the American Red Cross, can
utilize is to reinvent itself by being socially responsive. Compared to the other alternatives, it
gives immediate and long-term results. This alternative course of action is proactive in nature
since it would prevent ARC from experiencing similar problems as that of what they have now.
Most importantly, this course of action is recommended because it leads to the creation of
opportunities to regain the trust of all of its stakeholders.

V. RECOMMENDED COURSE OF ACTION

As presented in the analysis above, we recommend that Marsha reinvent the

American Red Cross. Reinventing the American Red Cross would definitely address the
negative public image of the organization.

In implementing this decision, the first stakeholder, the recipients, will be able to
appreciate ARC’s assistance even more once ARC re-aligns their goals and objectives with
them. The second stakeholder, the public, will be able to trust and support ARC again when
they will be re-oriented with the vision, mission, and goals of ARC. When their trust will be
regained, potential donors, alliances and supporters of ARC will then continue to promote
ARC’s programs and activities. The third stakeholder, the donors, will be able to provide the
resources that ARC needs if they will be able to see the direction of ARC. The fourth
stakeholder, the employees, will be more motivated to offer their services to keep ARC
operational if ARC will be able to set the organization’s career path for them. The fourth
stakeholder, the media, will be able to broadcast actual and positive updates about ARC if ARC
will be able to carry out their strategic plans and programs. If the media is able to gain the
attention of the people through ARC’s positive image, potential new donors, volunteers, and
other supporters of ARC will be motivated to give assistance to the organization. Lastly, the
sixth stakeholder, alliances, will be encouraged to undertake more mutual projects with ARC.

Although choosing this option may take some time, if ARC will be successful in carrying
out its well-reviewed strategies, both the American Red Cross and all of its stakeholders will
benefit in its long-term effects.

VI. PLAN OF ACTION

In regaining the stakeholders’ trust which is very essential to organizations that are
humanitarian and non-profit, is a difficult task to do for anyone. This requires reinventing parts of
the organization that are affected by certain matters at hand.
In order for American Red Cross to fully reinvent itself, the first thing that they must do is
to assist Marsha Johnson Evans in a public statement acknowledging ARC’s insufficiencies but
reminding the public that the American Red Cross, per se, has always had good intentions.
Then, re-visiting or even amending the mission, vision, objectives/goals and policies that
were created before, is needed to bridge the changing times and changing needs of the main
recipients of the organizations’ services. Revisions in the organizations polices will also be of
great help in trying to coincide the mission-vision with polices of the organization. This will also
lead to a unified and clear direction for the people involved in reaching and achieving the main
goal of ARC.
It is also important that the organization’s top management and its employees display
harmonious and democratic relationship with each other. Having a unified and motivated
employees will most likely lead to a more productive work place and may also lead to an
efficient and effective response to the needs of others who are in need of the services rendered
by the American Red Cross.
Furthermore, ARC can step it up a notch by using their strengths in getting solid
alliances in order to re-establish good working relationships with the trimedia and all social
media platforms for them to announce all what the Red Cross is and what it will always be. They
can convince these media entities that getting a partnership with them can be part of the latter’s
corporate social responsibility.    
Finally, in order to regain the trust of the public the American Red Cross should by all
means create a way of showing to the public through technology and media all of the donations
both monetary and non-monetary, the donors, the recipients of the donations, and all financial
background of the organization. Having an open financial records and files will be of a great
help in diminishing thoughts of anomalies and corruption within the organization and will lead to
the regained and increased public trust to the American Red Cross.

Below is a table summarizing the course of action that ARC should execute:

AREA OF ACTIONS TO BE TAKEN REASON FOR KEY TIME

CONCERN ACTION PERSONNEL FRAME
PUBLIC - Acknowledge ARC’s - To clear out issues Marsha 1 Week
STATEMENT deficiencies but reminding and accusations Johnson
the public that the against ARC. Evans
 American Red Cross, per
se, has always had good - To lessen the PR Manager
intentions. tension amongst
- hire a PR specialist ARC’s stakeholders.

- Re-visit the Vision,  - To serve as a guide  Top One to

Mission, and Goals of the for all of the ARC’s Management two
American Red Cross decision-making. weeks

- To aid in identifying
the ARC’s direction as
VISION,
a non-profit
MISSION,
organization.
AND GOALS
- To point out the
altruistic and
humanitarian
intentions of ARC.
- Review and re-align  - Improving the  Top  One to
existing policies with that organization’s policies Management two
of the Vision, Mission, and so as to work hand in months
Goals of ARC. hand with the
organization’s
- Policies regarding mission, visions , and
selection and hiring of goals will be of great
employees, receiving help to everyone
monetary and non- involved in the
monetary donations, organization mainly
funding of projects, because the people
COMPANY
allocation of donations, involved with the
POLICIES
etc. must be properly organization will have
scrutinized. a single direction to
follow in reaching the
organizations main
purpose and goal.

- Updating the policies

based on the present
issues and concerns
will keep ARC in the
right direction.
EMPLOYEES - Re-orient employees “Satisfied employees  HRD  Two
with the VMG, and are productive Department weeks
policies of ARC. employees”

- Re-orient employees - Witnessing

with their job duties and employees and
responsibilities administration working
hand in hand to reach
- Motivate employees to a common goal is the
 work hand-in-hand with most effective way of
the organization through a showing the public
1 day seminar to make that the ARC is united
them realize that their role in fulfilling their
in ARC is vital objectives of helping
victims of disasters
- Discuss the career plan and calamities.
for the employees.

- Hire people aligned with

the principles and
values of the
organization
- Invite the Media and  Media and ARC’s  Public  Three
alliances in projects, alliances have huge Relations and weeks
activities, and programs impact on the public Marketing
undertaken by the ARC perception of ARC. Department
for public awareness
They can highly
MEDIA AND - Create buy-in for media influence the increase
ALLIANCES that they include helping or decrease of trust
ARC as part of their CSR ratings of the
Activities organization.

Can cover potential

donors to support the
organization
DONORS  - Assure donors that their  - Assuring donors  Staff and  3 months
contribution used properly that their hard earned volunteers
and not squandered by donations may it be receiving the
creating a form disclosing monetary or non donations
all information where monetary are used
donations may go and by properly and making Finance
creating cards (signed by sure that their Division
recipients) back to donors donations goes
that their help has been straight to the
received. intended recipient
may help in regaining
- Make sure that all people’s trust and
donations: monetary and confidence to the
non-monetary will be organization.
accounted and allocated
fairly. - In addition being
able to show the
- Allow external auditors public records and
to assess ARC’s services files containing
properly accounted
and allocated
donations will also
help in regaining the
 public’s trust to the
ARC.

- Allowing an external
audit to assess an
organizations services
will aid in identifying
the processes that
need to be reviewed.

 - Review the policies on  - Reviewing and  Staff and  One to

allocating the donations amending policies volunteers two
(conditions of recipient, when it comes to the involved in months
type of aid to be given, allocation of the hands-on
extent of aid to be given) donation will help ARC activities and
in prioritizing the programs
people who are most
in need and to what
extent will the ARC be
of help. This will help
ARC become more
efficient and effective
in helping the people
RECIPIENTS
in need.

- Having information
on who to help what
help is needed and
how much help is
needed will help the
ARC in effectively
using the resources
they have thus, no
donations will be
wasted.

- Be alert on the situations - The public are All staff, From the
and possible needs of the potential donors or volunteers of last
public. possible recipients of ARC process
the services of ARC. forward
PUBLIC ARC must be attentive
to their needs and
demands so that ARC
could prepare for
such.