Name : MD Raihan Uddin

ID : 201811149029
Program : BBA
Batch : 49th
Course title : Organisational behaviour
Course code : BUS-3103
Contact no. : 01747948440
Assignment
Tahmina Akter
Email address : rayhan.rs76@gmail.com
Lecturer, Bangladesh university.
Submitted by

Submission date : 15th May, 2020

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The COVID-19 pandemic was confirmed to have spread to Bangladesh on March 2020.
The first three known cases were reported on 7 March 2020 by the country's epidemiology
institute IEDCR. Infections remained low until the end of March but saw a steep rise in
April. In the week ending 11 April, new cases in Bangladesh grew 1,155 percent, the highest
in Asia, ahead of Indonesia with 186 percent. As of 14 May 2020, there are a total
of 18,863 confirmed cases besides 3,361 recovered & 283 deaths in the country. of
which 14 people have died in the last 24 hours.

Global value chain under threat

The Chinese economy is now much more closely interlinked with the rest of the world than it
was 10 to 20 years ago. For many countries, China is now (i) an important export market, (ii) a
source of tourism, and (iii) a supplier of intermediate goods.
Over the years, the value chains of international businesses have become increasingly
fragmented and spread across the world, and China has become the world’s factory. For
example, a major proportion of all consumer electronics(mobile phones and laptops) is now
made in China, as are the batteries for many electric cars and the raw materials for certain
medicine.
Production in China has slumped as a result of the virus outbreak. The national vacation for
the Chinese New Year was extended and large areas were quarantined (especially in the
province of Hubei). Production in a substantial portion of the economy has grinded to a halt.
Because production in China has slowed substantially as a result of the virus outbreak, many
goods are no longer available in other countries and businesses are being forced to rely on
their inventories. The longer the lack of supply of these products lasts, the greater the
likelihood that shelves will be empty or scarcity which will lead to higher prices that
consumers will feel in their wallets. There will also be delays in production at businesses
using intermediate goods made in China. In many cases, it will not be easy to find an
alternative of equivalent quality at very short notice. And if a key component is missing, the
entire value chain could be affected.
The global value chain, in which China plays a crucial role, will be seriously disrupted by
Covid-19 and large adverse economic effects are expected around the globe.

Global trends on consumer behavior

We did a secondary study to understand the global scenario on consumer behavior and we
have tracked seven major trends:

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1. Concern is widespread, but younger consumers are worried most. Coronavirus is on the
minds, screens, and feeds of young consumers -- and for good reason.
2. According to a survey by GlobalWebIndex, 8 in 10 consumers have changed their
behavior’s because of the virus. Understandably, the most popular response is to wash
hands more frequently.
3. Personal financial concerns aren’t at the top of anyone’s mind (yet). Priorities for the
consumers are:
The speed at which the virus is spreading
The lack of a vaccine
The chances of their friends, family, or high-risk groups being infected
All of these rank ahead of the fear of catching the virus themselves
4. Knowledge levels vary -- especially by age.
When we asked consumers to identify fact from fiction when it comes to coronavirus, we
found levels of concern were slightly lower among older age groups.
Baby boomers have been found to be likely to know how to minimize the risks of infection
(eg, by avoiding touching their eyes, noses, or mouths with unwashed hands).
5. Work routines are already changing, especially for millennials. Currently, millennials are
the most likely to report altering the way they commute, as well as increased levels of
remote working.
6. There’s considerable enthusiasm for digital health appointments. Digital/virtual health
appointments have been suggested as one way to deliver health assistance while
minimizing the spread of the virus. And there’s considerable consumer support for this:
Over 6 in 10 believe they’re effective, and would consider using them.
7. Fears of a global recession are pronounced.

Local economy

The coronavirus outbreak is causing fluid and unpredictable changes in day-to-day lives, and
businesses in Bangladesh are understandably worried about the impact it will have on them.

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One key uncertainty faced by all the businesses is the time it will take for businesses to get
back to normal. Under these circumstances, we asked a number of organizations two
questions:
What is the impact of the coronavirus outbreak in their company?
How are they planning to combat the situation?
The answers we received from the organizations are as follow:

The cofounder and CEO of an e-commerce platform said: The company is the country’s largest
B2B and wholesale e-commerce. The company -- one of top 5 in terms of raising foreign
investment -- caters to enterprises and SME retailers.
Being an e-commerce, the business is running almost as usual. Online retailer and customer
orders for essentials like cooking oil and hygiene items like antiseptics and sanitizers have
grown multiple times. We are trying to cater to as many customers as possible at below-MRP
prices in wholesale quantities, but also keeping a cap so that maximum clientele can be
reached.
While head office teams are working from home, warehouses and delivery are on but
maintaining strict health guidelines. Our core revenue has shrunk from factories and
enterprises -- down by as high as 80%. But the B2B2C model is working well for essential
items of grocery, etc.
The managing director of a marketing communications agency said: We are a full service
advertising agency that has been in the communications industry of the country for over a
decade now. With the onset of corona globally, we foresee a dramatic cut in business in the
foreseeable future.
Our business depends on our clients’ business and the state of the country’s economy. With
unfavorable impact on business and the economy, our business too, will surely bear the
brunt. In such a context, we shall try to sustain our HR and continue to make the boat stable,
but we may not have any option other than downsizing or bringing in efficiencies of work by
utilizing available resources in the maximum possible way.
The director of a restaurant chain said: The restaurant is a burger joint with five outlets in
Dhaka and Chittagong, employing more than 130 people. The popular burger brand tops the
ranking in most food delivery apps in terms of order numbers and sales volume with a high
footfall in their outlets as well.
Due to the novel coronavirus outbreak, both its delivery and dine-in sales have gone down
significantly. The outlets are now closed according to the directions of the government. The

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entity was undergoing an expansion phase with three more outlets planned to be opening in
early April.
In this scenario, the business faces difficult times to pay off its monthly fixed costs and the
instalments of loans. It has already requested landlords to adjust the rent with the advance
security deposits for three months, offered the employees one week of voluntary non-paid
leave, and extended its credit limits with the suppliers.
But even after that, if business goes back to its previous condition in a month’s time, the
company will have to bear the losses for the next couple of months to get back to business as
usual.
The founder and CEO of a health care system said: Our health care system provides same-day
specialist consultations. Being a physician entrepreneur provides the domain expertise in the
health sector to leverage the value of healthcare optimization in the private sector.
Covid-19 decimated every global health system. People are more in need of digital health
solutions than ever before. Although several patients are active users, the overburdened
specialists are not able to be exposed to our digital marketing strategy.
This has forced us to collaborate with a surgical mask supplier to promote discounted masks
to doctors in the attempt to incentivize the on-boarding process, as cost effectively as
possible given the lockdown circumstances.
The business and market development coordinator at an independent foundation for
international development cooperation said: I am a project manager at a skills development
project of Bangladesh. As a project, we work closely with RMG factories, construction
contractors, and training center’s in order to facilitate the training and employment of poor
men and women in the RMG and construction sectors.
Due to the ongoing crisis, both RMG factories and construction companies have stopped
hiring new workers. A good number of young men and women who left their villages to find
work are currently sitting idle after completing their training. As a project, we are monitoring
the situation on a continuous basis. Our aim is to facilitate job opportunities for these trained
resources as soon as the situation improves.

Conclusion
The outbreak is moving quickly, and the business environment is shifting quickly. Therefore,
the first priority for any business should be to quickly stabilize cash and liquidity and take a
realistic view of current options.

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This means identifying and acting on opportunities for strategic, operational, organizational,
and financial change. Establish solid ground for a turnaround by assessing liquidity position
and creating a stakeholder management plan.
Covid-19 is likely to produce distressed situations for senior management of any organization,
and under such circumstances, stakeholders (primarily investors) often seek additional
information or resources to help rebuild their confidence.
By understanding the needs of borrowers, lenders, and share-holders, and managing
stakeholder communications, a business can stay on top of issues and make informed
decisions. For now, businesses should assess short-term liquidity requirements and find ways
to quickly preserve value and address potential risks to stability.
Kaizen CRS is a Bangladesh-based consultancy firm specializing in management consulting,
business advisory services, capacity development workshops, and technical assistance to
facilitate business and development agencies. The global insights were a part of Kaizen CRS’s
desk research.