BUSINESS CONTINUITY PLAN IN AN SME CONTEXT DURING COVID-19 (CASE STUDY: LINOLUNA)
For the fashion industry, 2020 was the time in which everything evolved. COVID-19 outbreak has resulted in this sector experienced its worst year, with almost three- quarters of registered companies losing money. Customer behavior shifted, supply chains were disrupted and the year approached its...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/54442 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | For the fashion industry, 2020 was the time in which everything evolved. COVID-19
outbreak has resulted in this sector experienced its worst year, with almost three-
quarters of registered companies losing money. Customer behavior shifted, supply
chains were disrupted and the year approached its end with many regions in the second
wave of infections. Global Fashion Index analysis, fashion organizations will post
around a 90 percent drop in business profit in 2020, after a 4 percent growth in 2019
(McKinsey, 2020). In Indonesia, fashion retail sales growth dropped by 59.7 percent
in September 2020, compared to the same month in 2019. Most brands experienced
massive sales drops, shop closures, and lower stock prices, while many manufacturers
faced order cancellations (Bank Indonesia, 2020).
This study was conducted using Qualitative Analysis by utilizing International Labour
Organization (ILO) designated tools to support Small-Medium Entreprises (SMEs)
assess the level of risk and vulnerability of their business and develop an effective
business continuity plan that focuses on People, Process, Profits, and Partnerships (the
4Ps). This research also involving internal and external analysis by conducting
McKinsey 7s Analysis, PESTEL Analysis, and in-depth interview to provide a
comprehensive examination to create an effective business continuity plan for
Linoluna business operation to survive the COVID-19 pandemic.
Based on the qualitative analysis with the ILO designated tools supported with
Analytical Hierarchy Process, this research resulted that Linoluna should focus its
Business Continuity Plan on Markets (part of profits) that poses severe sustainability
threats that required an immediate solution to restore business capacity and capability
during COVID-19. |
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