OB - submission 29th Nov 2020

Group 1

Ajlal Haider, Omer Rasheed, Usman Zafar, Zunaira Shahid

Q. Evaluate the impact of covid-19 on economies, financial system and business strategies
and practices of different type of organizations.

Answer:

The impact of covid-19 has not only disturbed individuals but the economy as a whole. The
effects of this pandemic have ruined the financial system; business strategies of the world and
the practices by some organizations have changed and others have not changed. The common
practice followed by almost all organizations was cost-cutting that included getting rid of
employees with high salaries first. Things had become controlled in the first wave when people
were scared and would take precautions and follow SOPs to avoid the spread of disease, but the
second wave has proven to be more destructive, and there is an acceptance of the pandemic that
has made the shift in the mindset of people for not taking precautions. Working from home has
become the new normal, and wearing a mask in public or seeing humans with designer wear
mask has become a trend. Design houses took full advantage of such a situation and started
becoming creative with their mask and PP suits inventions.

The second wave seems more dangerous and has increased the death toll by 7662. The
government has again announced preventive measures and has imposed lockdown in some areas.
Some measures include the ban on social, religious gatherings, shutting down of malls and stores
by 6:00 pm, closure of educational institutes. The national electronic system of Pakistan has
invented software that can detect the virus through scanning lungs, and they are testing people
accordingly.

These measures include 50% of work from home rule to workers and employees. Organizations
have been massively hit by this situation in the businesses and this has to lead them to cost
control. Many had to let go of some employees to save their businesses; from losses.

The government has been trying its best to support the citizens by implementing policies that
support different industries and sectors to control unemployment. For example, the government
recently approved US$150 million for the procurement of virus vaccine for 5% of the country’s
population.

The state bank of Pakistan has announced incentives to let banks allow low finance costs and
affordable housing. The monetary policy of Pakistan is also expected to keep the rate unchanged
at 7% to ensure that economic conditions pick up despite the high inflation rate and the spike in
COVID 19.

According to the report by the PBS-Pakistan bureau of statistics in October 2020, export
increased by 10-16% over September 2020, and imports were 11.59% lower than imports in
September. Trade deficit declined by 28.5% in October 2020 over the month of September.
Country’s knitwear and hosiery exports increased by 12% in the first quarter. These exports were
25% more than exports of Ready to wear garments or woven garments and 32% more than
exports of bed wear and 318% more than exports of towels.

The consumer price index (CPI) for inflation, which was at 6.8% in 2018-19, has increased by
over 50% to reach 10.7% in 2019-20.

All these financial and economic changes in the country due to the pandemic has lead
organizations to think of new strategies and models to keep their employees motivated and give
their 100%. Working from home being the new normal has made it difficult for employees. It is
not easy for men or women with small houses to ensure a 100% internet connection. It is not
easy for female workers to look after their kids while also appear for online meetings. Daycare
centers have been shut down so new working women have nowhere to leave their kids and focus
on the work. Men have been exasperated with the noise they hear when they work from an
apartment with only two rooms. It has been easy for some, but it has been extremely difficult for
the rest. Some organizations have given flexible working hours to the employee to get maximum
productivity, but some have made the lives of the employees miserable. Despite the government
helping industries and sectors, some organizations have not even paid their employees and have
forced them to go on leaves without salaries. It is difficult for the organizations also to pay their
salaries with production plants being shut down.

It seems that COVID-19 is not going away for at least another year; and organizations have to
come up with a solution of accepting working like this and have to find ways to motivate
employees. They must invent strategic and organizational processes like product re-
development; identifying and working with new partners in an ecosystem, and strategic decision
making that creates value within such dynamic environments by manipulating available
resources into new value-creating strategies.

For example, educational institutes have adopted online platforms to hold virtual classes, and
they are constantly trying different methods to make the quality of education more effective.
Organizations have to understand the dilemma and have to adjust their policies to achieve
equilibrium. Organizations have to align their strategies and organizational processes like
product development identifying and working with new partners, and smart decision-making that
creates value within such environments by making the most of the available resources into
innovative value-generating tactics.

ICI Pakistan limited has also taken steps to cope with the current situation

OMER Rasheed

ICI Pakistan must get the work place ready for life during Covid. It should adopt measures that
prevent the spread of virus as follows:

Surfaces (e.g. desks and tables) and objects (e.g. telephones, keyboards) need to be wiped with
disinfectant regularly. Why? Because according to WHO contamination on surfaces touched by
employees and customers is one of the main ways that Covid spreads. (www.who.int/teams/risk-
communication/employers-and-workers)

Promote regular and thorough hand-washing by employees, contractors and customers. This
would be made easier by putting sanitizing hand rub dispensers in prominent places around the
workplace and making sure these dispensers are regularly refilled. Other major prevention
control is the use of face masks and observing social distancing. Company must ensure that face
masks and / or paper tissues are available at your workplaces, for those who develop a runny
nose or cough at work, along with closed bins for hygienically disposing of them. The distance
between the employees who are sharing office space must be increased as per the WHO’s
guidelines.
Conduct regular training and awareness sessions for the employees educating them about the
virus, pandemic and prevention methods. Allow and facilitate work from home for those
employees who can and especially those who are at high risk due to their age and previous
illness track record. There is a risk that people attending the meeting or event might be
unwittingly bringing the Covid virus to the meeting. Others might be unknowingly exposed to
Covid.

In case an in-person meeting is absolutely necessary make sure all organizers, participants,
caterers and visitors at the event provide their contact details; mobile / telephone number, email
and address where they are staying. Employees must be intimated clearly that their details will be
shared with local public health authorities if any participant becomes ill with a suspected
infectious disease. If they will not agree to this they cannot attend the event or meeting. During
the meeting the organizers must provide information or a briefing, preferably both orally, on
Covid and the measures that they are taking to make this event safe for participants. The
participants must be persuaded to practice ways to say hello and good bye without touching.

Develop and agree a response plan in case someone at the meeting becomes ill with symptoms of
Covid (dry cough, fever, malaise). This plan should be approved by the government or the
authorized Health body and should include the following; identify a room or area where someone
who is feeling unwell or has symptoms can be safely isolated, know what to do if a meeting
participant, staff member or service provider tests positive for Covid during or just after the
meeting.

It is undeniable that hard choices lie ahead. The main theory of business for many remains the
primacy of shareholder value, and currently due to the pandemic and the resultant slash in the
product demand organizations have fewer resources to fall back on. Transferring the costs of the
crisis to labor rather than capital will seem an entirely rational response under the above
mentioned principle. But ICI Pakistan must be mindful of the fact that it is very important that
work force and general public do not panic during these uncertain times due to this
unprecedented event. One of the biggest concerns in the public is growing cases of depression.
ICI Pakistan must look at the bigger picture and play its role in alleviating this monster that can
wreak more havoc than the Covid itself. Organization must tread very carefully while taking care
of its employees, trying to get the best out of them and also ensure its own survival and
progression. The whole idea of capitalistic economy that has given us the endless working hours,
unpaid and exploited workers, growing disparity between the social classes due to uneven
distribution of wealth and a system that arguably serves the corporations at best must be debated
on a large scale. ICI Pakistan must invite and partner with other corporations and debate on the
way forward in this era of doubt and ambiguity. New ways and strategy in how to do business
have to be devised. This is easier said than done. ICI Pakistan must take the lead in this matter
and emerge as the torch bearer of change for the corporations and the masses today.