Impact of Covid-19 on Organizations' Strategy and Operations

This article discusses the impact of Covid-19 on the strategy and operations of two different organizations, H&M and Primark. It also explores the drivers of change and the types of change these drivers have affected.

Understanding and
Leading Change

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Compare the impact of Covid-19 on two different organizations’ strategy and operations.....................3
Assess other drivers of change in one of the organisation and the types of change these drivers have
affected. For example, structural, strategic, people and processes...........................................................4
CONCLUSION...........................................................................................................................................5
RECOMMENDATIONS.............................................................................................................................5
REFERENCES............................................................................................................................................6

INTRODUCTION
Change is considered as process by which something become different according to the
requirement. Currently whole world need to change in every industry due to COVID 19 which
impact business negatively (Amis and Janz, 2020). The main aim of developing this project is to
determine serious impact of COVID 19 lockdown on the organization within the United
Kingdom. The topics explained in respective report are comparing impact of COVID 19 on
Primark and H & M as well as it also include drivers of change and types of change driver which
get affected, at last it include recommendation related to similar situation.
MAIN BODY
Compare the impact of Covid-19 on two different organizations’ strategy and operations.
Impact of COVID 19 on H & M
As per the perspective of Anna Ringstrom, 2020, H&M march sales get decreased by 49 % due
to the breakdown of COVID 19 as due to this pandemic situation respective firm need to
temporarily shut down its most of the store. H&M is known as the world’s second largest
clothing retailer who faced huge loss in their fiscal second quarter as well as they determined that
they are experiencing such big loss for the first time since 1947 when they get introduced.
According to the respective company they cut down their operating expenses apart from the
depreciation as well as amortization, it is determined that 20 to 25 percent in second quarter
whereas it impacted its planned fund spending for the 2020 to the 5 billion crowns from the 8.5
billion (H&M’s March Sales Fall 49% Amid Covid-19 Outbreak, 2020). Along with this,
through analysis from March it is determined that respective company increased by 17 percent
through online sales.
Impact of COVID 19 on Primark
According to the view point of James Coker, 2020, Primark has determined that the shocking
impact of COVID 19 lockdown on its business operation and functions as their sale and profit
get decreased. According to the respective company they have gone their sales of around £650
million per months to the zero due to closure of their stores from the 22nd March due to COVID

19 (Covid-19: Primark lays bare the costs of coronavirus, 2020). The respective firm has no
business through online in order to fall back at the time of COVID 19. In addition to this, pre tax
profile also gets damaged because of the having paid of the delivery of huge complete stocks that
cannot be sold now and that is of £248 million. Respective company has approx 370 stores
around the 12 countries and due to lockdown sales get affected and decreased badly.
Assess other drivers of change in one of the organisation and the types of change these drivers
have affected. For example, structural, strategic, people and processes.
There are different drivers of change which impact on the company operations and
functions negatively as well as it is essential for a company to develop strategies and plan
accordingly in order to sustain in market. Below some of the main drivers of change are
mentioned in respect of H&M:-
 Technological change – According to this driver management of H&M need to change
their strategies and plans according to the new technology as that will help in developing
more attractive products (Cegolon and et.al., 2020). Moreover, if they not co pup with
new technology they not able to sustain in market for long time.
 Customer’s preference – It is main driver which change on the regular basis, according to
this it is essential for H&M to design and develop their products according to the
customer’s preference, need and requirement. As that will also help in attract and retain
customers.
 Pandemic situation – Currently whole world is experiencing pandemic situation of
COVID 19 due to which lockdown is conducted which directly impact on the H&M sales
as well as profitability ratio negatively.
These change driver’s impact on the different aspects of a company according to which
management need to develop strategies and plans. Explanations of these factors are given in
respect of H&M:-
 Structural – This represent the H&M structure which need to get change according to the
driver of change such as in case of pandemic situation like COVID 19 H&M need to
conduct their work online and for that they need to change their structure (Chng and
Mårtensson, 2020).

 Strategic – It is considered as aspect which get impacted by driver of change like
technology such as when respective company adopt new technology for their operations
they need to develop strategies accordingly.
 People – According to this aspect management of respective company need to develop
strategies according to driver of change such as change driver like pandemic situation
respective company switch their working process into online which so that their
employees will safe (Shanafelt, Ripp and Trockel, 2020).
 Processes – It is also essential for H&M to develop process according to the customer’s
need and demand so that they can fulfill the demand at the market in successful manner.
CONCLUSION
From above mentioned points it can be conclude that COVID 19 impact on every
industry in negative manner due to which every industry sales as well as profit get decreased.
The COVID 19 situation also affected fashion industry as due to the lockdown no audiences
visited to the store as well as due to lockdown companies also not able to accept online order.
This will directly impact on their sales as well as profit around the local, national and
international level.
RECOMMENDATIONS
By conducting analysis of the above mentioned topics it can be determined that in order
to adopt drivers of change in effective manner an organization need to adopt some strategies.
Some of the main recommendations in respect of H&M are mentioned below:-
 Respective company need to motivate their employees so that they adopt change properly
as well as they also need to encourage staff to conduct online work properly.
 Respective firm management also needs to provide training so that employees enhance
their skills and abilities to adopt changes in effective manner. Moreover in respect of
COVID 19 company must conduct employee’s engagement activities for encouraging
employees.

REFERENCES
Books and Journals
Amis, J.M. and Janz, B.D., 2020. Leading Change in Response to COVID-19. The Journal of
Applied Behavioral Science, p.0021886320936703.
Cegolon, L. and et.al., 2020. Understanding Factors Leading to Primary Cesarean Section and
Vaginal Birth After Cesarean Delivery in the Friuli-Venezia Giulia Region (North-
Eastern Italy), 2005–2015. Scientific Reports. 10(1). pp.1-18.
Chng, H.H. and Mårtensson, K., 2020. Leading change from different shores: The challenges of
contextualizing the Scholarship of Teaching and Learning. Teaching & Learning
Inquiry. 8(1). pp.24-41.
Shanafelt, T., Ripp, J. and Trockel, M., 2020. Understanding and addressing sources of anxiety
among health care professionals during the COVID-19 pandemic. Jama. 323(21).
pp.2133-2134.
Online
H&M’s March Sales Fall 49% Amid Covid-19 Outbreak. 2020. [Online]. Available through:<
https://www.businessoffashion.com/articles/news-analysis/hms-march-sales-fall-49-
amid-covid-19-outbreak>.
Covid-19: Primark lays bare the costs of coronavirus. 2020. [Online]. Available through:<
https://www.essentialretail.com/news/covid19-primark-lbusiness-costs/>.