Effect of COVID-19 Pandemic on Manufacturing and Service Organizations
The major areas of operation that the covid-19 has impacted is supply chain.
In the first quarter ended June 30, 2020 Tata Motors reported a drop in sales of 82 percent. The company only sold 25,047 units whereas in the previous year 2019-20 sales was 137,545. This was followed by chip shortage. The company had to shut down all its plants to save costs and to converse cash.
Radisson Hotel, hotel chain with presence in Nepal posted a net loss of Rs.260.47million. Net Profit had plunged by 489 percent. The No of tourist fell which impacted its overall operations. The hotel overall activity came to a standstill. Due to lockdowns, the supply chain was impacted, the company had to procure covid safety equipment and place them accordingly, these activities were previously unnecessary.
How have organizations coped with those disruptions?
Tata Motors China sales is 6828, down only 3.1% Y-o-Y and 8068 in May, 4.2% Y-o-Y. The company is resuming production at Solihull and Halewood vehicle manufacturing. The company’s priority to stop all plants, avoid non-critical investment and other cost savings program has significantly increased its cash reserve.
After the lockdowns, the company started operating by following health safety protocols, allowed vacant rooms for people who need to be quarantined. Earlier the company pricing strategy was to target wealthy international tourist but now the company reduced its prices to target local tourists/visitors.