Effect of Covid-19 on Organizations Essay - Essay Prowess

Effect of Covid-19 on Organizations Essay


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Effect of Covid-19 on Organizations

Question One

The Covid-19 outbreak has negatively affected business organizations. As a retail store manager it could be challenging to engage the sales representatives when the demand for products has gone down. The result of this is the forced leaves, pay cuts, early retirement offers, and mental health challenges experienced by the employees due to the stress and uncertainty about job security. Covid-19 has a long-lasting effect on other aspects of mental health. For instance, the reduction in the economic wellbeing of individuals who are employed in the retail business environment.

In engaging the associates I will communicate about the situation of the organization and the measures we aim to undertake during the epidemic. For example, a decline in revenue translates to less profit and it may end up driving the business to make losses. Communication will help them to understand the decisions that the firm may undertake for example, temporarily laying off some of the employees to reduce the expenses that are incurred in the business (Lesonsky, 2020). If the business is, however, left with some capital, then the employees could be retained with a slightly lower pay cut such that the available funds can be able to sustain the business during the epidemic.

Communication is important because it shows that the business is concerned about the welfare of the employees and will undertake all measures to ensure that they achieve the anticipated goals. It also shows that the organization is committed to teamwork a factor which will help the employees to cope during the crisis (Lesonsky, 2020). All employees can understand that the Covid-19 epidemic has affected all business and some organizations are filing for bankruptcy because they cannot pay the employees.

Teamwork is also important during times of business uncertainty. I will advise all the sales representatives to volunteer to work on and off shifts such that no one is completely affected by the uncertainty. The Center for Disease control (CDC) recommends that firms can develop a comprehensive strategy so that they can reduce the spread of the virus. It also reduces the effect of spreading among the employees. Healthy business operations will reduce the long term implications, but also improve the overall aspect of the business.

Question two

The effects of this on the general well being of the employees and staff of the retail companies  are the losses of jobs not only in the company, but also in other sectors of the employee benefits, leave of absence, and paid time off.

Retail organizations have learned a number of lessons from the Covid -19 epidemic. First, the uncertainty in the market is unpredictable a factor which can affect the growth of a business tremendously. As a result, leaders ought to improvise strategies that will promote the effective growth and performance of a business. Moreover, when the business makes more profits they can retain them in the business to caution them against the risks which emanate from the external environment.  Second, they should train the employees to be adaptable to the conditions of the external environment (Lesonsky, 2020). For example, encouraging them to save can help them to get funds to spend during difficult business times. As a result, they are able to cope rather than depend on the government and the companies.

Retail organizations should consider maximizing on the e-commerce model so that consumers can buy the products from the company website if they are afraid of walking into the retail stores. It will increase the cash flows, but also promote the effective growth of the operations of a business. Moreover, it will keep the sales representatives busy as they can market the products of the company from the online media. Selling the products at discounted prices may also increase the sales and it is one way by which the liquidity position of the company will improve while the world awaits for the Covid-19 vaccine.

The business should focus on third party delivery service to ensure that they get the online orders which will promote the continuity of business transactions. There are a number of third-party providers, for example, Deliv.co and Roadie. The advantage with using this approach is that the business increases performance and hence improve the welfare of the organization. Being in charge of such strategies will help to promote the long term performance of the business. As a result, it will help to improve the welfare of the organization. Moreover, some of the customers are afraid of going to the business because it will promote the growth of the company and also lead to the growth of the entity.

Question three 

Customers are important to the business and to increase their loyalty during the times of epidemics, it is necessary that the business looks for ways by which they could entice them to buy products from the retail outlets. First, they can look into the aspect of rewarding for example, they can double the loyalty points so that the customers can use them when they don’t have the cash to purchase commodities from the retail outlets (Deloitte, 2020). Secondly, they can offer trade discounts on selected products such that they can increase the desire to buy the goods and services in the market. Being aware of the marketing demographics will help leaders to develop approaches that will improve the overall aspect of the business.

Organizations can also consider trade partnerships with other retail outlets so that they can offer products that are in demand at the present. For example, there is a high demand for hygiene products and not all business manufactures or sell them some of the retail outlets can buy them in large quantities and include them as gifts to the consumers when they are buying products from the store it will increase the demand and create an enabling environment that will increase satisfaction of the clients and hence attract new clients. In the long run it will translate to more sales which will aid in the growth of a company (Deloitte, 2020). It is crucial that business people become aware of such strategies and approaches so as to promote continued sales and long term relationships with the existing customers.

Mantaining long term relationships is important because it helps to improve the welfare and performance of the business. It also shows that the organization has a desire to improve the way they relate with the clients in the long run. It is important that the business does the best to take care of the loyal customers. Most of them contribute to the revenues that aid in the growth of the company.

The business can also develop new ways of working with the customers. The most important thing is to travel and in person meetings and service organizations. Educating the employees will also help to mitigate the challenge. People are likely to work from home and accelerate the growth of revenues through impacting and improving communication with all the stakeholders in the industry. Collaboration is important because it enhances the continuity and growth of the enterprise.


Deloitte. (2020). COVID-19 Maintaining customer loyalty and trust during times of uncertainty. Www2.deloitte.com. Retrieved 18 May 2020, from https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/covid19/gx-coronavirus-customer-loyalty.pdf.

Lesonsky, R. (2020). A Retail Business Survival Guide for COVID-19 | Fundbox Blog. Fundbox. Retrieved 18 May 2020, from https://fundbox.com/blog/retail-business-covid-survival/.

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