Crisis Management Strategies for Aldo Company During Covid-19

This report provides an analysis of crisis management strategies, using the Aldo Company as a case study. It begins with an introduction to crisis management, highlighting the importance of leadership skills, communication, and strategic planning during a crisis, especially in the context of the COVID-19 pandemic. The report then provides an overview of the Aldo company, a Canadian brand with a global presence, and its operational challenges. A literature review explores various crisis management models and their stages, including signal detection, preparation, containment, and recovery. The report then examines how Aldo dealt with the crisis, focusing on the UK division's profitability issues and the impact of Brexit and the pandemic. It evaluates the effectiveness of Aldo's crisis management approach, suggesting the use of the Hervevol Pratt model, and reflects on the author's experience working within the company during this period. The report concludes with a reflection on the lessons learned, emphasizing the importance of monitoring crisis indicators, stakeholder interaction, negotiation, and change management skills in overcoming business crises.

Introduction
Crisis can happen in any organization at any time.
It can happen because of internal or external forces.
Covid 19 has created a crisis situation for companies
across the world. Manager requires array of skills to
lead the organization during crisis. Creative strategies
are essential to manage the organization through a
crisis. Range of skills has to be applied to manage the
firm during this period. In a crisis situation role of the
leader is to enhance company’s credibility as well as
trust among key stake holder and important role is to
ensure company gets back to productivity as soon as
possible. It is essential that brand value as well as
reputation of the leader is protected. Strategic focus of
the leader has to be on communication, trust,
empowerment as well as integrity (Gajda, W., 2017).
Organisation;
Aldo is a Canadian Brand founded by Albert Aldo
Bensadoun. The company has almost 3000 sales
channels spread in 102 countries across the world.
Company has 17 stores in United Kingdom including
one at Oxford Street London. Company has also
developed E-Commerce platform from which accounts
for 15 % of the company’s total sale. Company invests
large amount money each year to enhance customer
experience as well as quality of its operation (Strauss,
Marina 2010).
As operation manager I was in charge of
monitoring staff performance especially new ones,
helping in product audit, helping in product movement

and for reducing wastage. Working in a great brand
during crisis has helped me given understanding about
various skills need for a manager.
Literature review
Crisis management is the process of strategic
planning, aim of which is to reduce impact of crisis and
negativity during crisis further to plan and care for
crisis situation. For example many countries announced
lockdowns to delay spread of corona virus. This
allowed them time to plan and develop infrastructure
for dealing with Covid 19. Communication is a care skill
for managing a crisis (Sheth, J., 2020). Crisis
communication is a central aspect in this stake holder
reaction to crisis situation is important. Contingency
plan of a firm needs to incorporate plan to manage
crisis as well (Verma, S. and Gustafsson, A., 2020) .
Crisis can be stated as risk arising to company which
puts, assets, revenue as well operation of firm at a risk.
Timely as well decisive actions are essential is crisis
management. Kim, J., (2020) “notes that effectual
crisis management approaches are beyond daily
management activities. Crisis management is about
preparing for unforeseen events.
The main aspect of crisis management is that crisis is a
negative event. Crisis communication is a core aspect
which keeps it different from calamity. Company’s
long-standing reputation can be derailed by crisis and
can negatively impact stakeholders. Crisis provides
learning opportunity which should not be avoided by
leaders. Barnett & Pratt, (2000, p. 76) states “crisis
result in increased organizational vitality and

longevity”. Mitroff (1988) developed five step models
for crisis management. These five steps are “signal
detection, preparation, prevention, containment,
damage limitation, recovery, and learning”. It is
important that companies detect warning signals
before crisis happens and this is important to prevent
further damage and to develop short- and long-term
recovery strategies.
Herrero & Pratt (1996) proposed Crisis Management
Model which has three different stages of crisis
‘Diagnosis of Crisis, Planning, was adjusting to
Changes”. In this importance is given to understanding
the crisis, planning as well crisis plan. Stafford et al
(2002) propose a four step organizational crisis
management model. Signal related to crisis has to be
detected by organisation at an early stage for this
monitoring of key indicators is essential. Preparing the
firm, developing a change management team, third is
planning as well as resource allocation. Next stage is
developing strategies to curb losses. Mitroff, I. I. (2005)
States that clear communication with key stake holders
is important during a crisis period. In Mitroff, I. I. (2005)
crisis model during Business Recovery firms begins
work to resume operations. Next stage is learning
stage in which organisation learns from the crisis
without blaming others. Redesign stage is linked to
organizational learning, reflection of the experiences
during crisis and influence on the system and
adaptation to new changes.
Crisis management becomes successful when the
operations are resumed. As Covid is spreading

organization across the world are facing crisis
situations understanding about various model of crisis
management this can help managers to deal with crisis
in effectual manner. Complexities developed to this
part of crisis is often hard to deal with it is essential.
How organisation dealt with crisis
Company UK division has facing profitability issues
right from the beginning in 2007. Brexit and Covid 19
pandemic has cut down level of customers spending. As
Corona crisis emerged company had to close down its
operations. This has led to reduction in cash flow and
decrease in sales. Company has already has a
significant presence in online sector. In order to
manage during Covid 19 company had tried to
strengthen its product range. Company also tried to
close down some its operations and maintain the rest.
But as this crisis in UK is impacting companies
operational stability across the world firm has decided
to file for administration. Many of the suppliers have
been adversely impacted by Covid 19 crisis and this
has led to increase in supply chain expenses (Ratten,
V., 2020).
Aldo is a unique brand which emphasize on style and
class of its products but still maintaining many aspects
of family business company. UK wing had profitability
issue due to reduction in retail spending. Company had

started online platform and delivery to home and this
has attracted many customers.
Best crisis management model for Aldo
Hervevol Pratt (1998) model could have been opting for
company like Aldo. First the level of crisis could have
been assessed then planning can be done on how to
maintain operation and sales during the present
situation. As the Covid crisis came all of a sudden Aldo
Company was not much prepared. During the crisis top
level management has expressed support for the staff.
Company has been trying to cut down some of its
stores to ensure that operations can continue (Ratten,
V., 2020). Now Aldo has to assess its current situation
and plan on how like customer could still receive Aldo
products in future as well. In the last stage changes
could be incorporated to ensure in future the crisis is
not repeated.
Reflection
Experience of working in such a reputed brand during
such a crisis period helped me understanding especially
need for managers to constantly monitor various
indicators of crisis situation. I had opportunity to
interact with various stake holders of the organization

to solve various issues. I understood need for skills in
negotiations, change management and also a personal
crisis management plan. I also understood there was
need to listen more and this is way to problem solving.
I understood different crisis management model which
can be applied in complex situations. I understood that
I corporate life crisis can happen building relationship;
being empathetic can generate solution to crises. I
have decided to make effort to enhance my
communication and crisis management skills.
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