ChAudhry FAIzAN AhmEd - Needless to say, COVID impacted many busi nesses, small and largealike. Some suffered adversely, while some benefitted. However, there are certain salient lessons that were learnt and employed by business managers during this testing time. I shall shed light on them and conclude how they led to successful business navigation during a time of utmost uncertainty. The ability to rapidly adapt to change and improvise (in other words, innovate) proved instrumental during this time. Take Dominoes, for example. As their takeaway customers were skeptical and eager to avoid contact with other human beings, the pizza chain decided to start an interaction free model where orders are made online on their app which is so user friendly that the average time taken to make an order is 10 seconds (Ip, Loten, September 4th, 2020), and an employee deposits your order in the trunk of your car. Moreover, Dominoes also experimented with a conveyor belt type machine from which people could pick up their orders from, hence avoiding contact with any employee. Six drown as boat capsizes near Umerkot
The WSJ noted that, “Its sales and stock price surged while other restaurants struggled,” and that its “sales in the same period leapt 16%”. (Ip, Loten, September 4th, 2020) Self-reliance proved decisive in Tesla’s historic stock rise during the past few years. Supply chain shortages caused by COVID meant that many car makers couldn’t keep up with demand, especially as most of them outsource for parts like infotainment systems, electronic suites etc. Take Japanese carmaker Toyota, for example, whose flagship SUV, the Land Cruiser currently has a 4-year waiting period. (Bruce, Jan 20th, 2022) This is due to the fact that they “outsource in the neighborhood of 70% of vehicle production.” (Levick, Jan 30th, 2013) Tesla, on the other hand “racked up record sales quarter after quarter,” (Ewing, Jan 8th, 2022) as they produced most of their components themselves. By never outsourcing their software, they were able to control their own destiny, as per Prof. Morris Cohen of Wharton Business School. Pakistan reports 17 coronavirus cases in 24 hours
The NYT also describes their tale of success,” When Tesla couldn’t get the chips it had counted on, it took the ones that were available and rewrote the software that operated themto suit its needs.” (Ewing, Jan 8th, 2022). Moving on, another strategy that proved useful was to expand secondary sectors, more specifically investing in alternatives. One would assume that retail stores would be the hardest hit, with all the COVID sanctions and regulations put into place. However, that is partially true. Small retailers were hit hard and lost millions in revenue, but the giants of this industry like Walmart and Target, actually grew. This was in part due to the fact that they had invested heavily into their online platforms and moreover with their huge inventory had a plethora of offerings to keep in stores and offer online. “Sales at smaller retailers fell 7% between March and midAugust,” and “Target posted an 80% jump in earnings from a year ago.” (Nassauer, Maloney, Aug 24th, 2020). Even for apparel brands, where the fit is everything, online retail helped them survive, with 55% of Nordstrom’s sales in 2020 being online purchases. (Sabanoglu, Nov 1st, 2021) Spontaneity was adopted by many major corporations. The Sloan Review from MIT (Wade, Bjerkan, Apr 17th, 2020) elaborated on this and provided a viewpoint to many companies who embraced such policies. Wide-ranging dialogue with India beyond military relations required for Pakistan, says former DG ISPR
Take Nike, for example. As it had to shut down nearly 5000 of its 7000 stores across China, it moved to utilize its staff to provide at-home online workout training. Being a reputable athleisure brand, it was able to garner a huge market. Devices like the Peloton also use virtual coaching modules to increase the marketability of their products, especially during a time when no one wanted to leave their home unnecessarily. When Chinese makeup giant Lin Qingxuan was forced to close its stores, its sales plummeted 90% during the initial stages of the pandemic, but by redeploying its beauty advisors as online influencers, it was able to regain 120% of its sales last February. There are numerous other companies who followed such models lucratively. Perhaps, the most critical tool was improvisation. While self-reliance has helped Tesla continuously reach new heights, it is a niche company that minimally outsources. For other companies to follow suit, they will have to redo their whole assembly lines. The best tool was making the most of what you already had in hand, albeit by innovating new products to make life easier or by utilizing your staff to explore another business opportunity, for example LVMH utilizing idle assembly lines to package hand sanitizer and Dyson building ventilators (Wade, Bjerkan, Apr 17th, 2020); companies that successfully did so emerged triumphant during COVID. The growth of already massive chains like Walmart, Nordstrom and companies like Zoom and EPAM Systems is testament to this fact. — Chaudhry Faizan Ahmed is a freelance writer. Sui Northern officers association welcomes appointment of acting SNGPL MD
The Nation, 21 Feb, 2023