Comparative Analysis: COVID-19 Impact on Primark and H&M Strategies

This report presents a comparative analysis of the impact of the COVID-19 pandemic on two fashion retail giants, Primark and H&M. The introduction highlights the constant nature of change in business, setting the stage for an examination of how these organizations adapted to the unprecedented challenges posed by the pandemic. The main body of the report focuses on comparing the strategic and operational responses of Primark and H&M. It assesses the various drivers of change, including human resources and technological advancements, and their respective influences on business performance. Recommendations are provided to help Primark effectively plan for change, such as developing strategies to adapt to the changing environment and capitalize on new market opportunities. The report concludes by emphasizing the negative impacts of COVID-19 on the fashion industry, while also highlighting the importance of adapting to change and leveraging key drivers to produce positive outcomes.

Understanding and
leading change

Contents
Introduction...............................................................................................................................................3
Main Body..................................................................................................................................................3
1 (a) Comparison about the impact of COVID19 between two different organizationsstrategy and
operations................................................................................................................................................3
1 (b) Assess different drivers of change faced by the business entity......................................................4
1 (c)Recommendation and conclusion in order to plan effectively for change........................................5
Reference....................................................................................................................................................6

Introduction
Change is one of the constant element which stays on a permanent basis. Each and every
business entity face changes on a regular basis which have their direct impact on the
performance and profitability of the business entity. Needs and requirements of individuals are
not permanent which kept on changing on a daily basis. Therefore, it is said that change is
permanent. In the present report, Primark is chosen as the base organization which belongs to a
fashion retail industry. The company was founded in the year 1969 and its headquarter is located
in Dublin, Ireland. Primark deals in clothing , housewares and cosmetic products. The present
report includes a comparison between two organizations where the impact of COVID19 is the
base. Along with this, different change drivers are also going to be analyzed and at the end valid
recommendations and conclusion are going to be given.
Main Body
1 (a) Comparison about the impact of COVID19 between two different organizationsstrategy and
operations.
In the present situation of COVID 19 pandemic, each and every sector, country or industry face
huge negative impact which affect the overall economic system. In this report, two Business
organization which deals in similar sector are chosen where a comparison is going to be
discussed on the impact of COVID19. Primark and H&M are the two organization chosen as the
base company in order to do a comparison.
Basis Primark H&M
Organizational strategy COVID 19 have their huge
impact on the overall
business operations and
strategy of the company. In
reference to Primark, it is said
that the strategy formulated
by the management team in
order to gain more
profitability after the
On the other hand if we talk
about H&M, it is necessary
for the management team to
develop an organizational
strategy so they can reduce
the negative impact of
COVID 19. Higher authority
of the company develops a
strategy where they decide to

pandemic is that they
emphasizes on shifting their
focus towards opening new
sites in order to make further
improvements in their UK
stores.
fire bulk of people from the
organization so they can cut
their cost and focus on
increasing sales.
Operations Due to the attack of COVID
19, overall business operation
of the company get affected
in a negative manner.
Countries face lockdown for
months due to which the
whole operation and
manufacturing process get
stopped which directly impact
the performance and
profitability of the business
organization in a negative
manner.
It has been analyzed that due
to COVID 19, the overall
impact which is faced by
H&M is quite negative.
Company faces around 50%
decline in their sales all over
the world which affect their
operations. This as a result,
leads towards the reduction of
overall profitability. Along
with this, due to shut down of
production and
manufacturing as well as
decline of sales, company
decides to cut thousand of
jobs.
1 (b) Assess different drivers of change faced by the business entity.
In the present situation where each and every country face economic crisis due to COVID 19, it
has been identified that there are some key drivers which have their own impact on the
performance of business organization. These key drivers leads towards change and have their
own influence which can be both positive and negative. Some of these drivers are as follows:
Human resource:Human resource are one of the key asset for each and every
businessorganization. Changes in demand of customers define as a continuous process which

kept on changing on a regular basis. Modifications in needs of customers are required to be
examined by the team so that they can produce positive results by adopting changing
environment. It is essential for the management team of Primark that they must provide training
to their human resource on a continuous basis so that it becomes easy for them to adopt changes
in an effective and positive manner.
Technological advancements:Another key driver which leads towards change is technological
advancements. It is said that because of continuouschangein customers demands requires
development in technology so they can fulfil their requirements and demands in an effective
manner. Apart from this, it has also been said that if an organization is unable to adopt highly
advanced technology it becomes difficult for them to maintain competition and adopt change in a
positive manner. Incontext of Primark, managers need to modify their technologies so they can
enhance their production process in an effective manner. Therefore, this is the factor which have
their own impact on the performance of business organization.
1 (c)Recommendation and conclusion in order to plan effectively for change.
Recommendations: It has been recommended to the higher authorities of Primark that they must
develop effective strategies in order to adapt the changing environment and gain profitability out
of it. For example, mask is one if the most essential thing in the current COVID era where it
helps in not getting infected from this virus. Therefore, it is suggested to the fashion industry to
produce customized mask so that people will be attracted towards them. In addition to this, in
India weeding season will be starting from October so it is recommended to the management
team that they must develop unique face mask so they can increase their sales by adopting the
changing environment. As a result, by adopting the suggestions in an effective manner company
will be able to adopt changing environment in an effective manner and produce positive
outcomes with this.
Conclusion: With the help of an analysis it has been concluded the COVID 19 have their
negative impact on fashion industry which faces huge loss due to lockdown. Operations, I
manufacturing, production, selling each and every factor face huge negative influence which
leads towards decline in the net sales and profitability of the company. It has also been said that
there are some key drivers which leads towards change and have their own influence on the
overall business functioning.

Reference
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.
Umeh, F., and et. Al., 2020. Developing the digital business readiness assessment framework (DBRAF)
for fashion retail SMEs in Lagos, Nigeria.
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.
Parsons, D., 2020. Leading Change and Making Positive Decisions. Interface, (98), pp.16-17.
Sandler, K.M. and Galvin, T.P., 2020. Leading Change in Military Organizations: Primer for Senior
Leaders. Naval War College Review, 73(3), p.13.