Dalian Xinhe

Leather Clothing:
Strategic
Transformation in
Response to
COVID-19
Group Case Study
Group 2
Muhammad Danial
Mahathir Firman
Pavidra Roganathan
4. Which choice would you make for the future development of Dalian
Xinhe? Please provide explanations to support your selection.
The Burke- Litwin model is founded on a functional cause-and-effect framework that has
relationships between the organization’s internal and external environments. It’s a means to
diagnose, plan and manage change. Has two distinct sets of dynamics, both Transactional
and Transformational levels.

Internal Environments
01
❑ Lack of Supply
- interrupted raw material supply
- shortage of supply for polypropylene spunbonded fabric and polyethylene breathable
membrane
❑ Lack of Demand
- reduction in demand for ordinary clothing
❑ Labor Shortage
- shortage of workers during pandemic situation

02 External Environments
❑ Due to the spread of COVID 19
- export business becomes increasingly difficult
- foreign trade orders decline due to countries controlling their import/ export
4. Which choice would you make for the future development of Dalian
Xinhe? Please provide explanations to support your selection.

Transactional Level
03 ❑ Organizational Structure & Systems
- initially was the largest leather clothing manufacturer prior to the start of C19 and
switched to producing medical protective gear.
❑ Management Practices
❑ Climate

Transformational Level
04 ❑ Organizational Mission & Strategy
❑ Leadership
❑ Culture
❑ Equipment
- changes from sewing machine to glue pressing equipment
❑ Working environment
- going online for the first time, combining online and offline activities
4. Which choice would you make for the future development of Dalian
Xinhe? Please provide explanations to support your selection.

Based on the changes made, we believe that its best for Dalian Xinhe to revert back to their
05 original business continuing their leather manufacturing business.

At present almost every country and even China had moved from pandemic to an endemic
situation. The demand of protective clothing in time, may decrease.

Dalian Xinhe have adapted to the new technology breaking away from the conventional brick
and mortar store and venturing into online platforms. Their primary market is still within China
but have the possibility to expand outside of China.
THANK
YOU!