Febriani Anggraini - 120510180042

How Dynamic Organizations Overcame The Impact of COVID-19

on Industry in Indonesia

Nowadays the world is in a global pandemic, caused by the spread of the coronavirus in

almost every corner of the world. So, What is coronavirus? A coronavirus is a group of viruses

that can cause disease in animals or humans. Several types of coronaviruses are known to cause

infections in the human respiratory tract starting from coughing colds and even more serious ones

such as MERS and SARS. A new type of Coronavirus has been found known as COVID-19.

Anyone can be infected with COVID-19. COVID-19 can spread from person to person

through sprarks of saliva that comes out of someone infected with COVID-19. Sparks that come

out of coughing, sneezing, or exhale then fall on objects and nearby surfaces. People who touch

objects or surfaces and then touch their faces, can be infected with COVID-19. Transmission of

COVID-19 can also occur if people inhale a spark that comes out of cough or breath of someone

infected with COVID-19. Therefore, we are required to keep a distance of more than 1 meter from

people who suffer from cough and colds.

The spread of the Coronavirus itself has had an impact on The World Economy, both in

Terms of Trade, Investment, Tourism, Transportation, and Manufacturing sectors. In addition, the

spread of the coronavirus has an impact on the industrial sector, such as the food and beverage,

service and also retail industries.

As part of the prevention of the spread of the Coronavirus, several government agencies

and offices in Indonesia have issued Work From Home (WFH) policies for their employees. For

Electronic copy available at: https://ssrn.com/abstract=3590861

workers who are carrying out the WFH must be in their respective places of residence, except in

an agreed situation. For example, for food needs, health, safety, and must be reported to the direct

supervisor. If there is an important meeting that must be attended, workers who are carrying out

tasks in their place of residence (WFH) can attend the meeting via teleconference or video

conferencing using information and communication systems by electronic media.

One of the impacts of this WFH policy is the sector who have business interests with the

crowd. WFH itself there is something that can be done, something that cannot be done. That can

be done maybe like an administration. But if it's the production part, it’s impossible for the tools

to be brought home. Another example is the job of maintaining a shop, which certainly cannot be

done from home. Things that currently need to be done to reduce the spread of COVID-19 are

maintaining physical contact when outdoors activities, maintaining social products, and limiting

meetings with people.

Nowadays, the industry is undergoing significant changes. This caused by the suggestions

from the government not to leave the house to slow down the spread of COVID-19, making people

stay more at home. And also restrictions on operating hours to the closure of several shopping

centers in several regions, made the retail industry battered. Because the decision to open or not

the business depends on the shopping center policy. This has a significant impact such as

decreasing daily income, in the food & beverage industries such as restaurants, cafes, etc. And

retail industries such as factory outlets, department stores, etc.

Electronic copy available at: https://ssrn.com/abstract=3590861

 From the data above, it can be concluded that the food & baverage industry is the most

affected industries by the spread of COVID-19. However, in terms of the percentage decrease in

daily income, the retail industry is the largest with a decrease of up to 32 percent. The important

thing for the business owners in this time is to prioritize the running of business cash flow well,

compared to thinking about profit. Business owners need to make temporary business process

changes, so that keep business cash flow remains positive.

From dynamic organizations that we learned. With this Corona pandemic, we can still run

this food & beverage and fashion retail industries, by working from home. To avoid meeting face

to face, the owners of this industry can use the virtual team, By holding meetings with the

employee via online video calls like zoom, skype, etc. To monitor the performance of their

employees, industry owners can also use e-mail or online chat like WhatsApp to receive work

Electronic copy available at: https://ssrn.com/abstract=3590861

reports that they have done. If there is a physical visit with customer, make a non-cash transaction

using a debit or digital payment.

There are practical steps to keep business cash flow positive, the first thing to do is create

a team to review existing businesses, then recognize the customer base and its needs, and keep in

contact with loyal customers in the industry by using a customer database to always communicate

existing promotions via E-mail, or WhatsApp. Then, focusing on promotion for takeaway delivery

because the demand is increasing. For the food & beverage and retail industries, which were

originally offline stores, can start innovating with the online store, so they can still get buyers from

home. They can use couriers from online motorcycle taxis to deliver the food and drinks they sell

online. This also applies to retail industry owners, they can use the couriers from the goods delivery

service, to send the products they sell.

To introduce the products they sell, food & beverage, and the retail industry can utilize

social media like Instagram, Twitter, Facebook, YouTube, and Tiktok. It can be also a place to

promote their products. In addition to optimizing their work, these industries can also create

Applications and Websites to become a platform for the products they sell on the internet. To

increase their income, these business people can make a variety of attractive online shopping

promos such as discounts promos, buy 2 get 1 free, promo family packages, etc.

In a situation of epidemic COVID-19 like this, it is important to increase consumer

confidence by positioning itself as a business that pays attention to consumers and all business

stakeholders related to hygiene. Protect employees and consumers with the use of masks, hand

sanitizers, and the importance of continuing to communicate cleanliness in the surrounding

environment.

Electronic copy available at: https://ssrn.com/abstract=3590861

 Based on the previous explanation, strategies that can be applied by the owners of the F&B

and retail industries are by reviewing the business, getting to know the customer base and its needs,

simplifying business processes, classifying products that are easy to sell. And then digitizing

business products into catalogs that are easily shared, and providing incentives to employees who

are able to give good performance in difficult circumstances like now. Compared to closing their

businesses, if the things mentioned earlier are done and running as they should, the existing food

& beverage and retail industries can continue to run in the midst of the corona pandemic, and they

will get their daily income.

Electronic copy available at: https://ssrn.com/abstract=3590861

 References

Andriani, D. (2020, March 30). Dampak Virus Corona, Pendapatan Peritel Melemah. Retrieved April 8,
2020, from Trade: https://ekonomi.bisnis.com/read/20200330/12/1219926/dampak-virus-corona-
pendapatan-peritel-melemah
Oktavira, B. A. (2020, April 3). Ketentuan Pelaksanaan Work From Home di Tengah Wabah Corona.
Retrieved April 8, 2020, from Klinik:
https://www.hukumonline.com/klinik/detail/ulasan/lt5e7326fd25227/ketentuan-pelaksanaan-i-
work-from-home-i-di-tengah-wabah-corona
WHO. (2020, April 9). Pertanyaan dan jawaban terkait Coronavirus. Retrieved from QA for Public:
https://www.who.int/indonesia/news/novel-coronavirus/qa-for-public

Electronic copy available at: https://ssrn.com/abstract=3590861