North South University

SBE, Department of Marketing and International Business

International Business
Course Code: INB372
Semester: Spring 2020

FINAL
Name: jarin tasnim neha
ID:1811836630 Serial:23 Sec:8

Faculty:_MHz_____________________________________ Date: _4-6-

2020_____________

TOTAL MARKS - 30
Marks obtained:

(This space is for faculty’s usage. Do not write here.)

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Question: Using the gathered information, explain how your selected company is affected by
Covid-19. Explain the changes in their distribution, sales profit and growth and expansion/
retraction strategy.

Answer- Coronavirus disease (COVID 19) is an infectious diseases caused by a newly

discovered corona virus. Coronavirus was first identified in Wuhan City, Hubei Province, China.
It was initially reported to the WHO on December 31, 2019. On January 30, 2020, the Who
declared the COVID-19 outbreak a global health emergency. Its a human tragedy. It affects
hundreds of thousands of people. The head of the International Monetary Fund (IMF) declared
that the global economy has now entered a recession that could be as bad or worse than the 2009
downturn. During this period, people needs to maintain social distancing. This outbreak
shattered global supply chain. During this pandemic, LG shut down factories when they know
some of their workers affected by Coronavirus. The sales profit becomes slightly down in this
pandemic. The earnings of LG largely unaffected by the Covid-19 pandemic.[ CITATION
Cha20 \l 1033 ]The net profit of LG rose 88 percent compared to the same quarter last year. The
first quarter for first three months period ends in March. Sales being down 1.3 percent. LG sales
many types of products like cell phones, tablets, mobile accessories, Televisions, home audio,
home video, cooking appliances, kitchen accessories, dishwashers, refrigerators, washers, washer
dryer combos, laundry accessories, air conditioners, vacuum cleaners, other appliances
accessories. In this pandemic, the home appliance section compensates a lot where television and
smartphone's performance are lower.[ CITATION Cha20 \l 1033 ] The demand of some items
like television, smartphone decline. The earning level of television gets down a lot. The demand
of mobile phones declines day by day because people are staying at home. LG expects a
declining situation in both sales and profits. LG maintain health and hygiene standards for its
Brand shops for the current pandemic.[ CITATION Cat20 \l 1033 ] They maintain some
guidelines like mandatory use of masks and hand sanitizer for staffs as well as product and store
cleaning every hour. They provide hand sanitizer to every customer for ensuring the safety of
customers as well as staffs. They trained their staffs to maintain social distancing and avoiding
handshakes. When they received their products from store they received all products maintaining
safety and security. It also launched some various innovative technologies which ensures health
and hygiene factors like True Steam technology in washing machines which provides 99.99%
Germ free and allergen free environment.[ CITATION Cat20 \l 1033 ]. Many of their press
conference stopped for this pandemic. They have taken many precautionary steps to enable all
staffs to work away from office. They try to provide great services in this pandemic. They try to
ensure the safety and security of all the staffs and also the customers. They also donate masks,
sanitizer and necessary staffs to the clinics and hospitals. They ensure safety and security which
is needed during this pandemic.

References

Bibliography
Choon, C. M. (2020, may 9). the straight time. Retrieved from traitstimes.com/asia/east-asia/coping-
with-covid-19-south-koreas-samsung-lg-fare-well-in-first-quarter-but-future

Erin Duffin. (2020, april 28). Impact of the coronavirus pandemic on the global economy . Retrieved from
Statista: https://www.statista.com/topics/6139/covid-19-impact-on-the-global-economy/

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Klift, C. (2020, MARCH 23). How are companies responding to the coronavirus crisis? Retrieved from
WORLD ECONOMIC FORUM: https://www.weforum.org/agenda/2020/03/how-are-companies-
responding-to-the-coronavirus-crisis-d15bed6137/