Table of Contents

1. Introduction.......................................................................................................................2
2. Literature Review.............................................................................................................3
3. Discussion..........................................................................................................................4
3.1. Risk Management Issues...........................................................................................4
3.2. Feasible Solutions in Covid-19.................................................................................5
4. Conclusion.........................................................................................................................6
5. References..........................................................................................................................7
6. Appendix............................................................................................................................9

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 1. Introduction

Operational risk is a term that describes the risks and uncertainty that a firm faces when

conducting daily operations or business activities within a given sector. It is a form of

business risk that occurs when internal processes, individuals, and structures fail, as opposed

to problems caused by external factors such as political or economic disasters, or problems

that are intrinsic to the whole industry or market segment. This risk is often associated with

behavioral choices about how the business works and what it emphasizes. Since delays, lower

results, or significantly higher costs are not expected, the risks are placed higher or less

depending on inner management practices.

The COVID-19 was discovered in Wuhan, China, in December 2019. The COVID-19 virus

quickly captured the world, becoming a global pandemic that has seriously impacted every

region thorough out the world (Paul & Chowdhury, 2020a). The pandemic has also had an

effect on business operations, long-term economic development, and supply chain

environmental performance (Khan et al., 2019). People have been urged to retain "social

distance" as a result of COVID-19, which has hurt the tourism and travel-related industries

(Segal & Gerstel, 2020).  Many other industries, such as tourism and hospitality, food

processing, literacy, clothes and accessories, lifestyle, and other retail sectors, have been

severely impacted by the COVID-19 epidemic.

Of the numerous industries impacted by the pandemic, the food and beverage industry stands

out because it meets some of humanity's most basic needs. It is one of the fastest-growing

economies in the world. The COVID-19 pandemic has wreaked havoc on the food and

beverage industry, as well as other markets (Deaton, 2020), causing significant casualties in a

wide range of industries around the world.

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Following this study, a summary of studies on organizational challenges and risk, especially

during pandemics, is presented. The key findings of the study are then discussed. Finally,

describes the study's shortcomings and potential analysis directions to bring the study to a

close.

2. Literature Review

In market and organizational analysis, risk is typically described as negative deviations from

expected outcomes (Chen, Sohal & Prajogo, 2013). This ensures that only events with

detrimental consequences for the organization's operations have been deemed a possibility

(Guertler & Spinler, 2015). External environmental crises including earthquakes, floods,

epidemic disorders, and other problems hurt company operations and sustainability (Asgary

et al., 2020). Furthermore, financially weak companies are more vulnerable to the

environmental crisis than their larger rivals because they have a smaller footprint and

resource base (Bartik et al., 2020).

Like other industries, the food and beverage industry faces a number of problems. Customers,

different layers of vendors, internal production processes, logistics, and external causes such

as political developments and disputes, all have the potential to disrupt sector operations

(Bruzzone et al., 2013). Furthermore, the food and beverage industry's supply chain is

concerned with uncertainties and delays due to the industry's competitive structure and

danger tendency (Sharma & Singhal, 2018). Coca-Cola's demand has been destroyed by the

coronavirus pandemic. According to a case study, lockdowns reduced revenue at venues such

as arenas and movie theaters. When the food and beverage industry suffers from such

uncertainties, it lacks productivity (Valta et al. 2015). When the food and beverage industry is

plagued with such uncertainty, it suffers from a loss of competitiveness (Valta et al. 2015).

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These disruptions are severe because they have long-term effects and can impact operations

at many levels at once, such as procurement, sourcing, and distribution (Ivanov, 2020a). As a

result, pragmatic approaches to addressing these issues and flaws are needed to ensure

sensitive and efficient business structures and supply chains (Nyang'au, 2016).

3. Discussion

3.1. Risk Management Issues

Here's a look at the short- and long-term impact of the COVID-19 pandemic on the Coca-

Cola Company in this section. Covid-19 has resulted in a lockout in most of the countries

where Coca-Cola operates. The lockdown's most significant and immediate effect is a pause

in company activities. At the end of March, lockdown had been declared in over 100

countries. According to Fig. 1 in Appendix, Its worldwide revenue fell 4 percent to USD

33.01 billion in the July-September period 2020. Coke is halving its brand count to 200. Tab,

Zico coconut water, Diet Coke Fiesty Cherry, and Odwalla juices were among the delayed

brands it dropped this year. Additionally, the company is considering investing in traditional

experimental such as Minute Maid and Simply juices, as well as funding the launch of new

products such as Topo Chico Hard Seltzer, Coca-Cola Energy, and Aha sparkling water

(Coca-Cola, 2020). In short term, Unscheduled downtime due to increased safety conditions

imposed by port officials, port restrictions or delays, and capacity limitations faced by

shipping companies are also affecting, and will continue to cause, delays in the supply of

blends to bottling partners.

Coca-Cola has taken precautions to safeguard its employees and facilities around the world.

Workers' temperatures must be checked before they reach the facility, and employees must be

required to wear masks and other protective equipment if needed. Additional sanitation and

disinfection routines have also been implemented. But these measures are not sufficient to

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protect the human resources, so Coca-Cola laid off 2,200 employees, or 17% of its worldwide

staff, as part of a broader turnaround aimed at streamlining the company's corporate divisions

and brands.

3.2. Feasible Solutions in Covid-19

Coca-Cola, as a multinational organization with 500 brands and much more than 70,000

employees, must discuss all areas of operations and distribution in Covid-19. To ensure the

continued supply of beverages, their production and storage plants have changed their

operating practices to ensure everyone else's health and well-being.

They've imposed new sanitation and disinfection routines focused on increased areas and

taken measures to limit visits to facilities since the covid-19 epidemic began. Delivery drivers

in some areas do not leave their cars, eliminating face-to-face encounters. To stop shift-to-

shift interaction, some manufacturing plants have adopted shift work.

The Coca-Cola Company has required the majority of workplace workers to operate

remotely, by guidelines to limit big crowds and improve social distance. Employees at the

company's corporate offices in Atlanta, as well as those in other places around the world, are

included.

Coca-Cola products' sustainability and consistency are top concerns. The coronavirus is not

believed to be transmitted from food or food containers, according to the US Food and Drug

Administration. Nonetheless, they are taking special care to ensure that goods are treated in a

sanitary manner at all levels, from production to consumer channels. Smaller stores

throughout Latin America were able to service consumers safely without trying to access

their doors due to an online network built at Coca-Cola Argentina's campaign. When a

customer uses the free Wabi app to make a purchase, the device alerts local stores. The items

are sent to the customer's doorstep in 30 minutes or less from the first store to approve.

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They're inspired by concerns over contactless technology's protection and safety, such as the

United States' national introduction of touch-free technologies for Coca-Cola Freestyle

fountain vending machines. Coke ON smartphone consumers in Japan can enable touch-free

transactions at 30,000 vending machines in railway stations, hospitals, and other public

places. The antiviral coating was used to mask the buttons and dispensing slots on the units.

They maintain risk management strategies to resolve any supply chain issues that could occur

in terms of the availability of their products.

4. Conclusion

According to the study, the COVID-19 outbreak and lockdowns have had a significant effect

on many businesses. As a result, these businesses are struggling with a variety of issues,

including financial, supply chain, and sales, profit, and income decreases. Aside from its

social and economic implications, the epidemic of COVID-19 has presented new problems in

terms of employee and consumer health and safety, as well as a new workplace operating

culture. As a result, the study aims to look at these topics to get a better understanding of the

effects of the current pandemic on companies.

This study looked at the COVID-19's effects in the food and beverage industry, as well as

methods for coping with them. According to the findings, the consequences of the COVID-19

pandemic in the short term entail a loss of cash flow, which makes production and activities

difficult. The study further identifies several techniques that can be used to mitigate the

effects. In the COVID-19, these tactics involve maintaining health and safety concerns across

the facilities, lay off employees, cutting office hours, and conducting operations remotely, as

well as improving infrastructure to increase online purchases.

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 5. References

A. Asgary, A.I. Ozdemir, H. Özyürek (2020) Small and medium enterprises and global risks:

Evidence from manufacturing SMEs in Turkey. International Journal of Disaster Risk

Science, 11 (1), pp. 59-73

A. Bartik, M. Bertrand, Z.B. Cullen, E.L. Glaeser, M. Luca, C. Stanton (2020) How are small

businesses adjusting to COVID-19? Early evidence from a survey. Harvard Business School

Working Paper, 20 (102), pp. 1-37

Bruzzone AG, Massei M, Agresta M, Ferrando A (2013) Modelling fresh goods supply chain

contamination. In: 12th International Conference on Modeling and Applied Simulation, MAS

2013, Held at the International Multidisciplinary Modeling and Simulation Multiconference,

I3M 2013, pp 204–211

Chen J, Sohal AS, Prajogo DI (2013) Supply chain operational risk mitigation: a

collaborative approach. Int J Prod Res 51(7):2186–2199.

Coca-Cola. (2020) Annual Report. Available at:

https://d1io3yog0oux5.cloudfront.net/_1e0e0b6fda65b81c703d0bd963036fb8/cocacolacompa

ny/db/734/7647/annual_report/coca-cola-business-environmental-social-governance-report-

2020.pdf

Deaton BJ, Deaton BJ (2020) Food security and Canada’s agricultural system challenged by

COVID-19. Can. J. Agric. Econ. Can. d’agroeconomie 68:143–149.

Guertler B, Spinler S (2015) Supply risk interrelationships and the derivation of key supply

risk indicators. Technol Forecast Soc Change 92:224–236.

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Ivanov D, Dolgui A (2020) Viability of intertwined supply networks: extending the supply

chain resilience angles towards survivability. A position paper motivated by the COVID-19

outbreak. Int J Prod Res 58:2904–2915.

Khan SAR, Zhang Y, Kumar A, Zavadskas E, Streimikiene D (2020) Measuring the impact

of renewable energy, public health expenditure, logistics, and environmental performance on

sustainable economic growth. Sustain Dev in press 28:833–843.

Nyang’au FO (2016) Influence of supply chain risk control strategies on performance of food

and beverage manufacturing firms in Kenya. Quest J Res Bus Manag:1–9

Paul SK, Chowdhury P (2020a) A production recovery plan in manufacturing supply chains

for a high-demand item during COVID-19. Int J Phys Distrib Logist Manag 1-22.

Segal S, Gerstel D (2020) The Global Economic Impacts of COVID-19. Available at:

https://www.csis.org/analysis/global-economic-impacts-covid-19.

Sharma R, Singhal P (2018) Modeling of industrial supply networks to make them more

effective by handling disruptions and uncertainties using MATLAB. Int J Eng Adv

Technol:80–86

Valta KV, Kosanovic T, Malamis D, Moustakas K, Loizidou M (2015) Overview of water

usage and wastewater management in the food and beverage industry. Desalin Water Treat

53(12):3335–3347

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6. Appendix