The Impact of COVID-19 on Small and Medium sized Enterprises (SMEs) - A Case Study of Rowlinson Knitwear
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This dissertation examines the consequences of COVID-19 on the effectiveness, efficiency, and productivity of small and medium-sized enterprises (SMEs) through a case study of Rowlinson Knitwear. It analyzes the challenges faced by the company due to the pandemic and the strategies adopted to tackle them.
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Contents TOPIC: COVID 1Pandemic’s impacts on SMEs (Small and Medium sized enterprises)..............3 Chapter 1- INTRODUCTION.........................................................................................................3 Research aim:...............................................................................................................................3 Research Objectives.....................................................................................................................3 Research Questions:.....................................................................................................................3 Rationale for the research............................................................................................................4 Problem definition.......................................................................................................................4 Project outline..............................................................................................................................4 Chapter 2- Literature review............................................................................................................5 Consequences of COVID Crisis on the performance and productivity on Rowlinson Knitwear6 Challenges and problems faced by Rowlinson Knitwear due to COVID-19..............................8 Strategies that Rowlinson Knitwear adopted to tackle with the challenges of COVID crisis.....9 Chapter 3- Research Methods........................................................................................................12 Chapter 4- Research findings and discussion................................................................................14 Chapter 5- Conclusion and Recommendations..............................................................................21 Conclusion.....................................................................................................................................21 Recommendations......................................................................................................................21 REFERENCES..............................................................................................................................23
TOPIC: COVID 1Pandemic’s impacts on SMEs (Small and Medium sized enterprises) Chapter 1- INTRODUCTION COVID-19 pandemic has affected and still affecting world’s economy and brings a major distraction in the economic as well as social systems globally. In addition to this, it has highly impact on the small and medium enterprise as they are not able to function properly and maintain its performance level. There are various issues faced by SMEs due to global pandemic that further leads in declining of performance level and shut down of businesses also. (Kang, Diao and Zanini, 2020) For the present report, Rowlinson knitwear is taken into consideration. It is a SMEsthatproducesschoolwearandknitwearforschoolstudents.Thecompanywas incorporated in year 1972 and is headquartered in UK. The main objective of the report is to examine the consequences of the impact of COVID pandemic on the effectiveness and efficiency of small and medium size enterprises. Research aim: “To examine the consequences of COVID pandemic on the effectiveness, efficiency and productivity of Medium and small size entities. A study on Rowlinson Knitwear Research Objectives ToexaminetheconsequencesofCOVID-19ontheeffectiveness,efficiencyand productivity on Rowlinson Knitwear. To analyse the challenges faced by Rowlinson Knitwear due to COVID pandemic. To understand the approaches opted by Rowlinson Knitwear to handle the situation of COVID pandemic. Research Questions: What consequences do COVID pandemic has on the effectiveness, efficiency and productivity on Rowlinson Knitwear? What challenges were faced by Rowlinson Knitwear due to COVID pandemic? What strategies do Rowlinson Knitwear opted to handle the challenges of COVID pandemic?
Rationale for the research The main reason for conducting the given research is to examine the impacts of COVID-19 global pandemic on the efficiency, effectiveness and productivity of SMEs. In addition to this, the present study will help researcher to analyse the issues faced by SMEs and the strategies adopted by them in order to deal with situation of COVID-19. This research will help various stakeholders that are organisation, researcher and students as well. In the context of the organization, it helps to determine the impacts of the global epidemic on its performance and productivity because they are able to develop effective strategies and maintain their efficiency. For the researcher, it is helpful to learn and improve skills such as communication, time management, data collection, data analysis and much more. In addition, it will also help the researcher to conduct future studies in a systematic and timely manner. In previous studies, there are discussions about the issues faced by company due to COVID-19. Along with this, it also include data regarding how SMEs focus on maintaining its performance and productivity but it lacks data regarding the consequences of COVID global pandemic on capability and performance of an organisation. In order to fulfil this gap, some research questions were developed which is discussed in the form of literature review. Problem definition COVID-19 has brought a drastic change in the livelihood and on the economy as well. Along with this, it has highly impacted the functioning of SMEs as they face various issues decline in performance, lack of technology, less labour, disruption in supply chain and many more. Along with this, many of the SMEs have shut down its functioning as they are disabled to function adequately and are unable to bear the expenses as well. For this issue, the respective study is conducted that aids to identify impact of COVID crisis on the productivity of respective organisation which further help to develop strategies and ensure growth as well. Project outline Chapter 1- Introduction:It is the first and important chapter of a study as it includes the research aim, objectives and questions. In addition to this, it also includes information about reason to conduct study along with the significance to conduct the study. Moreover, this section also includes the problem statement associated to the present study and the reason to conduct the study properly.
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Chapter 2- Literature review:Another chapter is literature that includes secondary information collected by researcher on the specific topic. This chapter help to identify the research gap and fulfil it by developing research questions. Chapter 3- Research Methods:It is among the crucial aspects of investigative research as it helps to identify the tools and techniques applied to gather information about the present study. Moreover, it is important to researcher for making use of appropriate research methodologies for drawing effective, concrete and valid conclusions. The present study is based on secondary research method and exploratory research method along with positivist research philosophy will be chosen by researcher. In addition to this, secondary quantitative as a research choice method and case study as a research strategy will be used by investigator as it helps to gain higher insight about aspects, topics & also help to represent the findings with charts and graphs. Moreover, thematic analysis as a data analysis method will be applied as it help to develop themes on the basis of research questions and ensure high validity of data. All this methods assist researcher to conduct future studies in more effective and systematic manner so that objectives are attained on time period. Chapter 4- Results/ Findings:This chapter consist of the overall findings and results analysed while collecting the information and conducting the study. In addition to this, it includes findings in the form of charts, graphs which is easy to interpret and to develop positive outcome. Chapter 5- Discussion and Conclusion:It is the last chapter that includes the main information that is the overall understanding of the topic in the form of conclusion. In addition to this, it consists of the overall evaluation of gathered information in a precise manner. Moreover, this chapter includes the results in a concise way which shows whether the objectives are attained or not. Furthermore, it includes some suggestions to the chosen organisation for dealing with the situation of COVID-19 which impact on its performance and productivity. Chapter 2- Literature review Literary reviews are defined as academic texts that reflect the understanding and knowledge of academic texts on a particular topic. Also, it is basically the critical evaluation of materials on the particular topic with the objective to gain in-depth understanding about topic. Literature review is secondary information which is gathered by different sources which includes books, Journals, published materials, online ratings and many more. One of the main objectives of literature review is to analyse research gaps from the previous conducted studies. In the previous
studies, there is a discussion about howglobal pandemicimpacton small and medium enterprises. In addition to this, it also include data including the problems tackled by SMEs because of COVID crisis but it lacks information about influence of COVID crisis on the performance and productivity of SMEs and the strategies they adopt to deal with these issues. In order to fulfil this research gap, some of the research questions were developed which are as follows: Consequences of COVID Crisis on the performance and productivity on Rowlinson Knitwear As per the view point of Janathan and et. al., (2021) the outbreak of global pandemic has highly affected the small and medium enterprises and the wholesome business productivity in various locations. COVID-19 has a huge influence on the consistent operations of SMEs which are fragmented at maximum levels. It is analysed that instead of making regulations and policies for the growth of economy, there is complex issue which is raised because of pandemic situation. It is determined that small entities and medium size entities are among the most significant aspect which contribute towards economic growth and also supports in improving GDP of many countries. It helps to create employment and increases trade opportunities with the help of offerings, innovation and aiding business actions. This, many of the countries are always conscious about the productivity and performance of SMEs as it support and facilitate them to increase business performance with the objective to maintain positive results. It is argued that the presentperformanceof SMEshasbeenadverselyimpactedbecauseofglobalpandemic situation. It is determined that it has developed global recession risk which has resulted in reducing growth of international monetary fund. In addition to this, it is analysed that global pandemic has also impact on each sector and has developed a declined rate of return as undertake the performance of small entities (Small and Medium Enterprises in the Pandemic, 2020). It is analysed that there is adverse impact of COVID pandemic on the small organisation as they are not able to function out their activities properly and not even able to bear the expenses which results into shut down of many small and medium businesses. Due to Lockdown, SMEs are not able to function properly as they did not get any proper resources to function out and they did not have enough funds to function out their work digitally which help many companies to deal with situation of global crisis and maintain its performance level. According to Dirga and et. al., (2021) it is analysed that small and medium businesses has been hit adversely and hardest because of COVID pandemic. One of the impact is on business
continuity as it is analysed that 50% of small companies has shut down its operations and is closed down its business activities whereas the 30% has remain closed temporarily because of high number of cases of employee COVID-19 infection, reduction in orders, disruption in supply chain and many more. All these has directly impact on the performance and lower down the revenue level which is still not cover up by small companies. In order to deal with this, many of the small companies adopt new technologies and bring innovation and many of them shift their functions and offerings digitally so that they can manage their expenses an maintain their performance even in the situation of COVID-19 (The impact of COVID-19 pandemic on performance of small enterprises, 2021). It is determined that many of small businesses are not able to fulfil the demand of customers because of disruption in supply chain. This decline the overall customer base level and sales of company that has negative affect on performances of small and medium enterprises. Furthermore, it is analysed that around 75% of small businesses has experiencing decline in the revenue level and some gas faced reduction in revenue very high. It is stated that one-third of SMEs losing approx half of their revenue which is not expected to improve in the coming time period. There is also decline in demand for orders as companies is facing 50% decline in customer orders. It is analysed that companies were not able to shift towards digitally due to which their number of orders expected is decline and affect negatively on its performance level. SMEs plays a very significant role in this world of business and the impact of COVID-19 has changed the scenario of small medium enterprises. The pandemic situation has almost shut down every kind of businesses due to which they can't earn revenue on large scale. There are number of people who lost their jobs due to this critical situation and also there were some families who don't have money to run their daily life who are working in these enterprises. Due to this pandemic situation, the contribution of small medium enterprises within the country's GDP has reduced up to a very large extent. Due to this difficult situation, small medium enterprises have lost their main contacts through which they get maximum orders on large scale. It has been observed that SMEs has to bear the cost of operational level and there are some businesses who have to pay the rent for office establishment. The most challenging thing is that due to sudden shut down of businesses they have to bear cost of that parameter as well which were almost in the form of finished product and they can't sell them on the immediate basis as well. So these are the impact of COVID-19 on small medium enterprises.
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Challenges and problems faced by Rowlinson Knitwear due to COVID-19 As per the viewpoint of William, (2020), there are various problems and challenges that small organisations like Rowlinson Knitwear faced at the time of COVID-19. Since the month of march, the organisation had to face various issues due to pandemic and every organisation was struggling in order to survive in the market. Many local businesses had to shut their doors and had to implement new COVID-19 protocols and social distancing methods and had to adapt work from home. There were various challenges which the organisation had to face which involved money management which is considered to be the biggest and most common problem for any small business organisation. In context to organisation, it is very important to have enough cash flows for the objective to pay the bills. It had become a reason to worry for the managers and owners of the organisation to determine the future and present needs of the organisation. Due to pandemic situation, various organisations had to reduce the employee number with changing working hours of the company, furloughs and lay-offs. These changes in the organisation had a immediate influence on the operations of the organisation (The Top Five Challenges small Businesses face during the COVID-19 Period, 2020). Another major challenge for the organisation was to establish a work from home policy. US and various other countries had implemented the work from home strategy. In context to organisations, it was difficult for the managers and leaders to establish a balance among the work priorities as few employees were in the office and few were working from their homes and also hadtodealwithvariouspersonalobligationsthatinvolveselderly,childrenetc.For organisations it become difficult to establish priorities and boundaries among the personal and business obligations. Government regulation and assistance remains as a large challenge for the organisations. Another challenge involved going digital. Going digital is considered to be the new trend for various organisations and the best and the effective way to attract largernumber of audience. For an organisation, it requires funds and time for the purpose to build up a wider audience. In context to organisation, shifting to a online store or e-commerce is considered to be another important aspect for the purpose to promote and advertise their products and using social media for the purpose to extend and develop a new customer base. For a small organisation, it is very important to have a social medi a presence which requires a lot of planning and knowledge. For a small business organisation it is very important to address the issues and challenge in order to perform its business operations. An organisation had to carry out various measures forthe
purpose to implement the rules and regulation implemented by the government and also working on business operations in order to successfully run the business. For organisations, it is very important to address a lot of firm's goals and having a deep understanding about the client dependence and expanding towards other areas and also remaining loyal to the customers. As per the view point of (2021) COVID-19 pandemic disturbs both large organisations and SMEs at global level due to partial or complete lockdown which is necessary to reduce the impact of virus. There are various challenges which are faced by SMEs are discussed below in detail: - Cash Flow:-This subject is faced by large SMEs in all over the world as they are highly dependent on regular cash flow and stable funding chain. Due to lockdown and insufficient cash flow SMEs unable to survive in the market so they shut down their business activities. The company is unable to pay salaries to its workers. Guidelines given by WHO it required adaptation to the office such as introducing sanitisers stations, customers facing points etc. in which small organisations fails to do so. Technology:-It is difficult for SMEs to do investment in new technology and uphold work from home to its employees. It need continuous training and development programme which is a costly method and difficult to adopt in pandemic. In developing countries it is quite difficult to follow latest technology and provide work from home to employees with proper training. Many people are working from remote areas and it is challenging to provide connections and technology in developing countries. People:Small organisation faces various challenges in respect of people working within an organisation. Due to insufficient cash flow in small company it reduces its employees and it has its impact on customers also. In complete and partial lockdown customers afraid to get out of the house and prefer to shop online which is an expensive method for small organisation. This impacts various SMEs to shut down or reduces it profitability. Strategies that Rowlinson Knitwear adopted to tackle with the challenges of COVID crisis As per the view of Dimson and Sharma(2021), covid-19 has caused serious implications on many small-scale enterprises and resulted in their permanent shutdown. It affected many small- scale entrepreneurs which made them question their existence and has instigated them to come up with effective strategies if they wish to survive in market. The critical trading restrictions impacted operations of small-scale and medium-sized enterprises which forced many businesses
to wind up their entities. Moreover, those companies who have managed to survive are obliged to come up with constructive strategies and tactics in order to imply further growth and development (Dimson and Sharma,2021). The small-scale organisation and medium-sized enterprises adopted digital technologies andmodernmanagementinordertoreassuretheirsustenance.Thesesmall-scale entrepreneurs developed new and emerging innovative practices in their operations such asinnovationinproductorservicesaswellasadoptingnewmarketingmixor administrative approaches. The small-scale and medium-sized enterprises were expecting external support from government and other institutions to help them recover from financial crisis imposed by the impending pandemic. These enterprises seeks support and help from governments, lawyers and various agencies in order to build their capacities to provide consumers with relevant products and services. The small-scale enterprises expected government to help themindurationofcrisisastheymajorlycontributesingeneratingemployment opportunities and thus generating and enhancing potential worldwide. The small-scale enterprises and medium-sized firms have started cutting costs as to assure their survival in market amid tough situations of the pandemic. They paid attention on discovering ways in which other than obvious or unnecessary costs could be reduced like office space or business travel. Developing online market place is one of the major and effective strategy which is adopted by many small-scale and medium-sized enterprises that helped them to maintain their existence post covid period. Online shopping is considered as a convenient and preferred method of availing goods and services through many individuals. Operating functions online were seemed like only option amidst critical consequences of corona virus in order to save firms from discontinuation of operations. Another effective strategy adopted by SMEs includes responding and aligning with demands in logistics. The worldwide emergenceof innovationsand growth of e- commerce has made it pretty easier to develop online marketplace but for distribution purpose products are to be shipped and delivered using various modes of transportation. The growing significance of e-commerce has creating demands and high expectations of constructive development of logistics department. Small-scale enterprises and medium-
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sized firms are emphasising more upon proper functioning of logistics department so that they can manage their sustenance through online platforms.SMEs have suffered more than large ones due to limited availability of resources due to which they are rethinking the establishment of their brand image. The firms are relying on making changes in their business models or change in range or products or expansion in current dealings. Rebranding is emerging as a significant and effective strategy among SMEs to grow their businesses and ensure their survival post covid period. As per the view point of Hyen (2021), there are various strategies used by SMEs to deal with COVID-19 situations which are discussed in detail as given below: Online Sell of Products – During COVID-19 many small organisation uses online websites to sell its products and services to survive and earn profit in the market. It make it easier for customer to shop online through mobile, laptops etc. so that they can fulfil needs and wants. The increase in e-commerce websites results in huge need for quick and trusted logistics hence small companies felt pressure to quickly adjust to demand to ensure their survival in pandemic. Many few people leave their homes to buy goods and services as people habits are now changed. Work From Home – In order to decrease the spread of COVID-19 many companies give their employees work from home facilities. It has modifies the way it work, which result in greater dependency on technology. It made in development and innovation in various sectors as introduction of new technology which help both the companies and its employees towards work. Its saves the time to travel from home to office as it can start work from home which is cost effective method. Changing the business model: To cope up with unexpected crises many organisations adapt to be creative, respond quickly, adopt new technology to maintain competitive advantages when it faced uncertainty and difficult problems. Summary of literature review From the above literature review, it has been concluded that COVID-19 has affected adversely on the overall performance and productivity of small and medium enterprises. In addition to this, it is analysed that there are many issues faced by SMEs because of COVID-19 as many of the small business has shut down as they are not able to bear the expenses. Moreover, the issues faced are decline in performance level, low sales, disruption in supply chain and so on. It is determined that many of the small companies has shift their business digitally which is one
of the effective strategy to maintain customer base level and performance also. Furthermore, they are more focused towards fulfilling customer requirements so that they can retain customers in an effective manner. Chapter 3- Research Methods The research methodology is one of the most important and fundamental part of research as it helps to collect and analyze data using appropriate and accurate methods as well as techniques. In addition, it presents as a systematic study that describes the research problem, develops a research question, collects and analyzes information and much more. For this current study, a second study was conducted as it would assist in collecting detailed and in-depth data on the impact of COVID-19 on small and medium enterprises. In addition, the research approach incorporates all the tools and techniques used by the researcher to conduct current research and develop effective results. The methods used in the current study are provided below: Researchphilosophy:Itiselaboratedasthecompositionofbeliefswhichassist investigator to gather, use and interpret data in a proper systematic way. In addition to this, it is basically studied in the form of ontology and epistemology. Epistemology is a type of research study which utilises to the correct data needed to conduct the study along with how an individual can obtain it. On the other side, ontology is a form of philosophy which introduces to the collecting valid and authentic data. The research philosophy is further divided into two types that is interpretivism and positivism. Interpretivism philosophy states that a person observes their ownperceptionandunderstandingof actualitywhereaspositivismphilosophystatesthat informationisindependentoftheparticularstudybeingstudied.Forthepresentstudy, positivism as a research philosophy is applied as it primarily focus on collecting and using secondary information to help researcher in attaining valid outcomes of study efficiently as well as effectively. Research design:It is important and is an integral part of the process which is highly divided into three descriptive, evaluative and experimental types as well. It is analysed that all of these are effective research design methods that assist the researcher in identifying research problems. In the current report, the design of the experimental study was used as it helps to gain insight into the general aspects of the research problem. In addition to this, it also assists the researcher in analysing secondary literature review data in an efficient and systematic way.
Research choice:It is defined as the methods and techniques used by the researcher to collect information. In addition, it is divided into two types of quality and quantity. In context to quality, it includes observational-based and non-numerical data. On the other side, quantitative research method is defined as information which is numerical in nature and based on facts and figures. For the present study, secondary quantitative method has been applied as it helps in gathering and presenting information associated to facts and figures. Moreover, it also help researcher to make data more valid and authentic that further leads towards development of valid conclusion. Research strategy: It is a process of gathering information from relevant research strategies. It is analysed that there are many research techniques such as interviews, case studies, case studies, systematic review and much more. All of these are the main methods of research strategy but to make the current research, systematic review of texts used as it helps to collect and analyse data on the topic. Moreover, it will also help to know the viewpoint of various authors on the specific topic because of which valid and reliable conclusion in a timely and effective manner. Research approach: This part of the research method refers to the main part of data analysis which is divided into two types of deductive and inductive. Both types of research methods are effective but conducting current research on the impact of COVID-19 on the performance and production of SMEs, inductive research approach will be more appropriate and useful as it assist to follow research questions with the objective to increase the scope of investigation. One of the main reasons to select inductive approach for secondary study is it facilitates investigator to analyse secondary information which was collected for literature review in limited time period. Moreover, deductive approach is not used as it requires primary data which is not possible within research. Data collection method: It is actually a process of collecting and using data from different sources on a particular topic. In addition to this, it is being analysed that this part of the research approach is widely followed to develop an understanding of the current research environment that serves as the basis for future research. There are primary and secondary forms of data collection systems. In context to this investigation, it is fully supported by secondary research and to collect it, there is various numbers of sources available such as journals, books, publications, articles, magazines and so on. It is analysed that all these are effective and useful
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source of secondary data collection which will be useful for present research. It also help researcher to gather the viewpoint of different authors on specific topic because of which actual information about impact of COVID-19 on SMEs has been properly presented and the objectives of research can be achieved timely. Data analysis: It is defined as the process used by a researcher to analyse the data collected in a logical manner. In particular there are two types of data analysis namely thematic analysis and frequency distribution analysis. In the present study, subject analysis is considered. One of the main reasons for choosing this is to help analyse secondary information in an efficient and effective manner. Along with this, it will also help to develop themes accordingly due to which collected data can be presented in a proper manner. Research Ethics: It is important for the researcher to follow all the ethical principles while conducting research as it helps to carry out research activities without problems and delays. The different research ethics are informed consent, anonymity, confidentiality and many more. Moreover, it is vital for researcher to give knowledge to respondents about the objective of researchsothattheycangiveappropriateandeffectiveinformationthatleadstowards development of valid conclusion. Furthermore, it is determined that following of ethics will help in conducting activity in an ethical manner. Research limitations: It is analysed that all researches are connected with some form of limitations and to tackle this it is necessary for a researcher to have a backup plan so that it can be dealt in an appropriate way. The various research limitations are lack of time, lack of resources, less validity of information, not access to data and so on. Chapter 4- Research findings and discussion Theme 1: Influences of COVID-Pandemic on the productivity and performance of Rowlinson Knitwear TheCOVID-19putamajorimpactontheperformanceandproductivityofthe organization. Due to the pandemic, the company found it difficult to get necessary raw material and equipments to produce the necessary product & service. It is analyzed that the COVID-19 put a tremendous impact on daily operations of the SMEs(Syriopoulos, 2020). SMEs are likely to contribute significantly in the growth & enlargement of the economy. However, the pandemic has been put major impact on the performance and productivity of the business organizations. It is found that global recession has minimized the growth of international monetary funds.The
pandemic has affected the growth of each & every sector. During the pandemic, lockdown has been imposed in several countries. There was halt on national and international transportation facilities. People were not able to move from one place to the other which put a direct impact on the sales & revenue of the companies. The COVID-19 negatively affected the productivity and performance of the small organizations as they were not able to execute the activities in a proper way. They were facing the issue related to lack of resources, funds and equipments to perform daily functions in an appropriate way. It is monitored that SMEs have been faced tremendous adverse impact of the pandemic. These entities are known as the hardest hit sector during the pandemic. Ample of business units prevent their operations due to the impact of pandemic and certain have been closed temporarily to prevent the transmission of the deadly virus from one person to other. All these has directly impact on the performance and lower down the revenue level which is still not cover up by small companies(Wang, Chen and Chang, 2021). In order to deal with this, many of the small companies adopt new technologies and bring innovation and many of them shift their functions and offerings digitally so that they can manage their expenses an maintain their performance even in the situation of COVID-19 In context of Rowlinson knightwear, they are highly affected by the COVID-19.They faced decline in the sales which further affected the revenue & profit margin of the organization profoundly(Rowlinson Knitwear: Navigating the coronavirus crisis, 2020). In addition to this, they lay off several employees on temporarily and permanent basis as they were not able to pay the salary to staff members.
Figure 1:Performance management in the time of coronavirusSource:hrexecutive.com, 2020 From the above-chart, it is analyzed that virus is highly affecting to the employees which also put a major impact on their future performance as well. It is analyzed that 53% of employees afraid of the spread of COVID-19. They are in panic due to the spread of the deadly virus as it will put a major impact on their health conditions. Further, 29% people afraid to go on work for the risks of exposure. They are in fear that they might get expose to the deadly virus while moving out from their place. It affects the daily operations of the organization in a profound manner. Here, employees are not able to take part in daily activities of the business entity. The above graph shows that according to 45 % employees corona virus might create disbalance in personal and professional life. Additionally, it is monitored that as per 67% employees stay informed to the situation is highly important in order to deal with situation in an efficient manner (Performance management in the time of coronavirus, 2020).Therefore, it is found that the COVID-19 pandemic put a major and tremendous impact on the performance and productivity of the organization.
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Theme 2: Issues faced by Rowlinson Knitwear due to COVID-19 There are several issues have been faced by the company during the pandemic. Due to the pandemic, people were unable to move from one place to the other. It disrupted the supply chain and logistics management of the companies. During the pandemic time, there was halt on national and international transportation which created issues in terms of supply of necessary raw material(Gu and et. al., 2020). In reference of Rownlinson, they were facing issues in terms of survival in market place. The organizations had to prevent their operations temporarily as they were not getting enough amounts of resources for the continuation of business. In addition to this, the company also faced challenges of lack of workers as people were afraid of moving out from home in uncertain time. In reference of Rownlinson, they faced issue in terms of addressing the needs & requirements of the customers in timely manner due to the lack of resources. To control the situation, the respective company laid off several employees. This put an immediate impact on the daily operations of the entity. Additionally, the organizationhas to take care of hygiene and cleanliness requirements. For this purpose, they need to appoint additional staff and use ample of equipments & tools that will enhance the overall cost of operations in significant manner. In reference to the selected company, it was quite difficult to create a proper balance in office and remote working. Here, few employees were working from home whereas some were working from office. In this situation, the respective organization found it difficult to maintain a properbalance among workers. For organisations it has become difficult to establish priorities and boundaries among the personal and business obligations(Durst, Acuache and Bruns, 2021). Government regulation and assistance remains as a large challenge for the organisations. Another challenge involved going digital. Going digital is considered to be the new trend for various organisations and the best and the effective way to attract larger number of audience. Apart from this, they have to shift towards online mediums(Gourinchas and et. al., 2021). However, it is quite difficult to address the needs & requirements of potential audiences in timely manner due to insufficient supply & logistic management. To operate the business organization successfully, the respective entity needs to follow ample of measures in significant manner.
Figure:Risk for companies due to the COVID-19Source:Weforum.org, 2020 From above-the graph, it is analyzed that companies have to face several risks due to the impact of pandemic. It is monitored that 66.3% risk is related to prolonged recession of the global economy. Additionally, 52.7% respondents have been identified surge in bankruptcies as the major risk. It is monitored that 50.1%respondents have been identified cyberattacks and data fraud as the most significant issue due to shift in working patterns. Further, it is analyzed that 50 % respondents consider that failure of industries or sectors in certain countries is the most significantrisk thatisbeingfacedby theorganizationsincurrenttime.Asper48.4% respondents disruption of global supply chainis the significant issue that is faced by the majority of the organizations during COVID-19. Out of the above-graph, it is found that 42.9% respondents consider that the pandemic has been tighten the restrictions on the cross-border movements of good & people whereas 34.6% respondents are likely to have opinion of economic collopase of developing economy or emerging markets whereas 33.4% respondents consider that weakening the fiscal position of major economies is the most significant risk that is being faced
by the most of the companies in current time. It is analyzed that 32.6% respondents consider that increase in global inflation is one of the significant risks that is being faced by the several companies during pandemic time. Theme 3: Strategies adopted by Rowlinson Knitwear to deal with the issues of COVID-19 It is analyzed that the companies have to face several risks due to the impact of global pandemic.Thepandemichasadirectimpactontheproductivityandefficiencyofthe organization. It creates issues in terms of effective operations management and more. To deal with the serious impact of the pandemic, there is requirement to prepare ample of significant strategies(Bouey, 2020). By implementing these strategies, it is possible to mitigate the risk and uncertainties caused by the COVID-19. It is found that the pandemic has been disrupted the global supply chain of the companies. To deal with the adverse impact of the pandemic, Rowlinson Knitwear is adopting several strategies in terms of using digital methods, tools & techniques. For this purpose, they are adopting digital technologies with an aim to promote the products in an efficient manner. Further, the company is also looking forward for the support of government authorities. Here, the government authorities are helpful in contributing the success of the company. In context of the respective organization, they prepare efficient strategies with an aim to deal with the serious impact of the pandemic(Mustapa and Mohamad, 2021).Developing online market place is one of the major and effective strategy which is adopted by many small-scale and medium-sized enterprises that helped them to maintain their existence post covid period. Another effective strategy adopted by SMEs includes responding and aligning with demands in logistics. The worldwide emergence of innovations and growth of e-commerce has made it pretty easier to develop online marketplace but for distribution purpose products are to be shipped and delivered using various modes of transportation.By developing the online marketplace, the organization can easily survive in uncertain environment(Liu and et. al., 2020). Apart from this, the company is required to arrange suitable training program so that the efficiency & productivity of workforce get improved. Effective implementation of training & development programs is crucial to ensure the success and growth of the company in the future period of time. Also, they
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areswitchingtowardsthetechnologicaldevelopmentandenhancement.Toincreasethe efficiency of workforce, it is important to enhance their knowledge regarding technological development & enhancement. With effective implementation of these strategies, it will be possible for the organization to cope up with serious impact of the pandemic. (Source:Mckinsey & company, 2020) The above –graph is about the ways companies are responding towards the changes caused by the COVID-19. It includes various changes which are organization and industry-based both. In context of organizational changes, 43 respondents consider that increase in remote working and collaboration is the most significant change that is being introduced by the companies in current environment. Further, the 27 respondents agree that the demand of online products and services are increasing in order to deal with the impact of COVID-19. As per 25% of respondents increasing use of advance technologies in operations is the most significant strategy which will allow the organization to ensure long-term survival in the uncertain time (How COVID-19 has pushed companies over the technology tripping point-and transformed business forever, 2020).
Chapter 5- Conclusion and Recommendations Conclusion From the above-mentioned information, it is analyzed that COVID-19 is affecting the small and medium size organization profoundly. It is determined that small and medium size enterprises are one of the most significant aspect which contribute towards economic growth and also supports in improving GDP of many countries. It helps to create employment and increases trade opportunities with the help of offerings, innovation and aiding business actions. This, many of the countries are always conscious about the productivity and performance of SMEs as it support and facilitate them to increase business performance with the objective to maintain positive results. From the above-discussion, it is found that the COVID-19 put a tremendous impact on the productivity and performance of the organization. The pandemic has been disrupted the global supply chain & logistics management. It imposed halt on national & international transportation due to which the companies were not able to exchange the good and services. Additionally, the pandemic has been disrupted daily operations of the business entity. The company has been laid off several employees who could have been contributes in the organizational success. It is evident that the pandemic has been put a tremendous impact on small and medium sized organization. However, the organization has to face ample of challenge due to adverse impact of the pandemic. Here, the negative impacts have been identified in terms of impact on operations, productivity and more. The above-report included several strategies that have been prepared by the organization with an aim to deal with the challenges caused by the pandemic. It is identified the implementation of effective strategies will help the company in addressing the challenges caused by the COVID-19 efficiently. Recommendations Afteranalyzingtheabove-mentionedinformation,itisanalyzedthatthebusiness organization is facing various issues due to the COVID-19. These issues will restrict the growth and enhancement of the company. In this situation, it is imperative to implement certain recommendations to make further improvements. In this context, the necessary recommendations are mentioned below:
It is suggested that the respective company needs to use efficient technology with an aim to make the employees capable enough to deal with the advancements appropriately. In this context, there is requirement to utilize advance & updated tools so that the business entity can easily deal with the potential impact of the COVID-19. Here, the organization can utilize social media and other digital tools to gain the attention of buyers. These tools will make the company enable to attract more and more buyers in an efficient manner. The company is facing issue related to lack of efficiency of human resources. To increase the potential of the employees, there is requirement to arrange suitable training programs. Through these training sessions, it is possible to increase the efficiency of human resources so that they can perform the assigned work in the best possible way. Further, trainingsessionsareusefulinmakingtheworkforceenabletocontributeinthe organizational growth and success. Through this, the company can easily make the workforce capable enough to cope up with the technological development in an efficient manner. It is suggested that the business managers of the respective company needs to facilitate proper communication to attain the pre-defined goals. Through communication, it is possible to maintain proper flow of information within the organization. In this regard, the organization is required to arrangevarious formal and in-formal meetings wherein theindividualscaneasilyinteractwitheachother.Bymaintainingproper communication, it is possible to minimize the ambiguity and confusion that will lead the business organization towards future growth & development. Planning is also significant in terms of facing the future uncertainties effectively. By making appropriate plans, the company can easily face the future uncertainties in better and effective way. In this regard, the respective business entity needs to make forecast about the future so that they can make significant strategies accordingly. Through planning, the respective company can easily minimize the ambiguity significantly. It is analyzed that by implementing the above-mentioned recommendations, the respective businessorganizationcaneasilydealwiththecomplexities.Implementingthese recommendations will help in making improvements in an efficient manner.
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