ISTANBUL AYDIN UNIVERSITY

INSTITUTE OF SOCIAL SCIENCES

CONTEMPORARY MANAGEMENT AND PLANNING

NAME: IGBAGBOLERE REUBEN OJO

STUDENT NUMBER: Y1912.130003

DEPARTMENT OF BUSINESS ADMINISTRATION

MID – TERM HOMEWORK

JANUARY 2021

HOMEWORK QUESTION: You are the owner of a textile company that exports
underwear for 10M euros annually to the Netherlands.  After the COVID-19 outbreak
begins, which variables do you think will be affected in the societal environmental
dimensions and what changes will you make in your strategies in order not to be affected
by these variables or to turn these variables into opportunities in your company?  Do not
let your essay exceeds more than two pages.

My Asian clothing textile company is one of the world’s top

exporting countries alongside China, Vietnam, and Turkey. A pandemic referred to as COVID-
19 sets in on the rising and with more countries enforcing lockdown in different ways to control
the spread. While it is difficult to lay claims to business as usual in the year 2021, a sharp decline
is expected in the calendar year because of a change to some variables in the societal
environmental dimension. To foresee a total or zero return on investment is totally wrong, it is
also important to identify the variables that will be affected in my clothing production and
factory as a whole.
A SWING ON PRODUCTION SYSTEM AND PRACTICES
Pre-Covid-19 era, my textile company enjoyed a strategic production location due
to easy access t Europe for raw materials, developed infrastructure and basic amenities,
supply chain linkages, all these variables summed up to give an export value of 10M
euros. These are all variables that will be deeply affected, because the skill set of
workers obviously becomes inaccessible if they are infected, production line becomes
deficient, and thus production shift occurs in the business pool for owners or rivals who
probably took precautions. All of the above is difficult to change within the time frame
but then a few strategic changes can be made to prepare for the foreseeable deficiency
in business. The following strategic changes will be made to keep alive the annual input
and output revenue of the company
 I will most probably consider digitalization and its adoption in my company.
When COVID-19, started a parallel sector like the education learnt to adapt
within months. The use of analytical and digitalized algorithms will enable the
same if not more effective and efficient production rates. Attention to data to
generate and monitor new fashion lines will increase as there will be a
requirement for more precise data about the overall production process.

AN IMPACT ON WORKERS
To every company, there are four major factors of production: Land, labour, capital and
entrepreneur. Labour here represents the workers, manual workers, the textile still relies
largely on the human hands. The Labour force will be placed in a rather difficult
situation because COVID-19 itself will reduce job opportunities and not create more. A
textile company with sch large export will definitely suffer from a reduced labour force
if the workers cannot abide by precautionary COVID working conditions both within
the company and in their social and daily lives. For instance, I have 70% of my workers
to be female, obviously in this generation, women kind of lack behind in technology
which means there will be an overhauling of staffs who cannot adapt. So, the labour
variable stands at the greatest risk but then measures such as the following can also be
put in place:
 My company will invest in social protection measures with the government
even as the government is doing everything to cut down unemployment rather
than adding to that figure. This will increase economic resilience both for the
textile company and of course the larger community. There is a proper cash
flow and reduced inflation when there is a constant flow of money which this
boost will provide and cater for.
 Once again., technological upgrading will be considered, it might be scary for
the 70% women in the workforce but also upskilling and trainings can and will
be organized under the proper conditions.
 A renewed commitment on the part of my company by paying half of the
salaries for the first two months if eventually we are hit will be in place while
trainings for upgrading skills are in place.

ADJUSTING DEMANDS

One of the core foundations of economics is striking a balance between demand

and supply. Pre COVID era, witnessed a certain type of demand based on work
place description. Active social lives etc. Production paradigm will definitely be
experienced because customers and consumers have been derailed to working
from home for over 8 months, clothing tastes has changed, no more formal
lives. One of the key reasons for a revenue export value of 10M euros is the
consumers demand, now that has fallen, definitely not because of quality but the
world health and adjustments. People wear less of new clothes. Sticks with the
old, and probably buy less. What does a company or how does a company
export that figure annually does?
 I will run a free ad bringing to the consumers consciousness once again what is
in vogue and obtainable
 Surveys will be important to know consumers taste and in demand products
even if it is going to reduce production, better to run a low export than to not
have none at all
 POST COVID era will probably increase production and in demand, it will be
important to get ahead of time.

IMPACT ON FACTORY
The overall assessment of my textile company is to ensure that I am not run out
of business either by having or coming out with less financial capacity,
liquidity, to be bought out or otherwise, for this to be achieved, the three
aforementioned variables must be in play because they are what will guarantee
more professionalism ,technologically improved output, and a few competitors
might b pushed to incentive above to below race to attract new buyers, and look
 out to reduced cost to offload the backlog of reduced ROI that might have been
incurred by COVID hit. There is an expectation that Consumer-Seller
relationship will go shallow because of blacked out communication, but it will
be necessary to consider a few strategic measures:
 Consider Buyer or retailer’s reputation
 Lure potential shift of power dynamics within the business pool
 Most importantly look for more and more partnerships