MGT400 Individual Assignment 1 Reflective paper PDF

Preview

Summary

FACULTY OF INFORMATION MANAGEMENTUNIVERSITI TEKNOLOGI MARABachelor ofIntroduction to Management(MGT 400)Individual Assignment 1:Reflective Paper - ShopeebyPrepared for:May, 2020INTRODUCTIONBack in December 2019, Chinese health authorities has confirmed a pneumonia outbreak of unknown origin in Wuhan...

Description

FACULTY OF INFORMATION MANAGEMENT UNIVERSITI TEKNOLOGI MARA Bachelor of Introduction to Management (MGT 400)

Individual Assignment 1: Reflective Paper - Shopee

by

Prepared for: May, 2020

INTRODUCTION Back in December 2019, Chinese health authorities has conf irmed a pneumonia outbreak of unknown origin in Wuhan, Hubei Province. The virus has spread worldwide since its discovery, and causing thousands of deaths and significantly affecting our health and global economies. COVID-19 was first declared a global health emergency by the World Health Organization (WHO) in January 2020. Since the virus was f irst diagnosed in Wuhan, China, it was reported that more than 190 countries and all of the state in Malaysia has affected. On 25 January 2020 the new SARS-CoV-2 virus, which causes the COVID-19 disease, first hit on Malaysian shores. During February, a month later, the case numbers inched up to 22 positives. Case numbers had ballooned 20-fold to 428 cases by mid-March. Regarding the number of cases increasing every day, Malaysian authorities released a two-week Movement Control Order (MCO) starting on 18 March 2020. All businesses and f acilities deemed non -essential were discontinued. Travel on the highway to go back hometown or anywhere was curtailed. Any religious events and mass gathering have been cancelled. Thus, this pandemic might have devastating ef fects for both external factors (global supply and demand shocks) and domestic factors (MCO) on the Malaysian economy. Critically, this would have a large impact on smaller businesses and minority groups, such as individuals and employees with lower incomes. Hence, by now it is clearer that this pandemic would have severely damaging effects on both macroeconomy of Malaysia as well as on the physical well-being of the citizens people. The key sources of economic damage in Malaysia are twofold which is the first is the knock -on effect from the coronavirus impact abroad. The second one is caused domestically as a result of the implementation of the new movement control measures.

2

IMPACT OF COVID-19 TO COMPANY The coronavirus that also known as Covid-19 has affects many platforms such as e-commerce, telecommunications, business travel, and the economy widely. it is already has taking so many lives. Furthermore, each country has followed the lockdown procedures as a means to prevent measures and Malaysia itself has also adopted the same method. Because of this virus, both the private and the public sectors tend to be messed up. The fact we need to accept due to this pandemic is that the effect of novel coronavirus will have a major impact on the whole nation, economy sector and society is unavoidable. With the keep on rising threat of this virus, it makes a public health crisis and hampers to the entire macroeconomy. Also, it has cut of f the business’s supply chain. The reason because as well we know, China is the main production hub for many industries globally. If happens any damage to Chinese production would therefore clearly have repercussions. The online business e-commerce finds it hard to sell their products due to this pandemic and also facing major problems when it comes to sourcing their goods from China. China has deals mainly with their machinery, instruments, equipment, and devices that related to communication. If any instability in these industries sector, it will clearly impact with other business in other countries. In my article that I have read, they said that Malaysian market has a similarly which is it dependable on the China product and will have a big impact on Malaysian’s economy. In addition, the MCO has also obstructed the country’s import and export facilities inf rastructure. It will be many online businesses facing with inventory shortage which are unable to satisfy consumer demand over there. Hence, all the products prices may increase in the coming f utures if everything goes well. It is true with that statement, because f rom my perspective view, I can tell that many industries taking advantages when they sell the face masked over the ceiling price. Before this pandemic, the face mask cost only RM15 but then when everyone searching for it, the price goes beyond RM 100. In the article being said that online business will have big impact with the shortage of product from China. Yes, I am agreed with that statement. However, for Shopee it is applicable when early of pandemic, many suppliers have af fected. But they still manage to operate their business with current local product at that time. Moreover, back in January 2020, w ith the ongoing outbreak of the Wuhan virus, Shopee is keen to ensure that all products shipped from China are free and safe for customers. Some customers appear to have raised concerns that the coronavirus can be transmitted through products and parcels shipped from China. According to Shoppe announcement, all packages will be disinfected by the airlines f irst and will be shipped after 3

custom inspection and quarantine. They also pointed out that there is no possible danger as the packages that take at least 24 hours to reach Malaysia have a low chance of virus transmission. Shoppe is an e-commerce business that f alls under the retail category and been also one of the essential services which can remain open to business throughout the MCO period. Meaning that, Shopee will continue to serve Malaysian consumers in this time of need. I think Shopee been an essential because it offering around 10,000 types of products for daily necessities to purchase by Malaysian consumers due to this MCO. During MCO, people are tending to avoid going out to supermarket because it takes a long of time by queuing and there’s a lot of possibility to be infected by others. So that, they are working closely with their business partner, retailer, suppliers from big supermarket such as Mydin, Tesco, Nestle, Aeon Big, and many more just to ensure that there is suff icient supply to cater to Malaysian’s needs. Items that available for purchase on the site include the household products such as toilet paper, wet wipes, face masks, hand sanitizer, dry food and beverages items such as cooking oil, frozen food, coffee and rise. Also, fresh produce like fish, chicken, beef, vegetables, onion also available to purchase. It makes things easier when comes to MCO. With many available household products, the impact f or Shopee is unbelievable because there are so many people that used the online platf orm to go grocery shopping rather than being queuing up at the supermarket. The numbers of visitor at their site also increasingly every single day. In terms of last-mile fulfillment, Shopee will continue to provide delivery to residential addresses next day in the Klang Valley and Southern Malaysia-for orders made by 10 am daily, except for Sundays and public holidays-as well as free shipping nationwide. In addition, Shopee also implementing an additional Shopee Mart measure to restrict the amount of key items that can be purchased by each customer to ensure that all Malaysians – regardless of their economic status – have equal access to their daily needs. Moreover, Shopee team will work closely with their sellers and logistic partners to take more precautionary steps including disinfection of warehouse and equipment, sanitization of the parcel deliveries and temperature tests for the staff, drivers and riders. It is to ensure all the employee and parcel are safe when handover to the customers. This because Shopee play a big role in reducing the spread of Covid-19 as not many people are going out. My other opinions when it comes to MCO, people are most likely having much free time and being bored. It will make them stocking up on f ood and essential items more than before because they stay at home 24 hours and it is a common response to this crisis. Most of the are stocking up for

4

two weeks and more. Other than do online grocery shopping, consumers also taking matters into their own hands like buying bread making machines at Shopee Mart . To summarize my opinion from this impact of Covid-19 to Shopee company are they received a lot of visitors at their sites during MCO period and their retails sales estimated to reach multiple times than bef ore. The e-commerce site sector was already booming. But online shopping has been brought into full complete overdrive ever since the outbreak comes. Even the world’s biggest retailers fail to keep up with the overwhelming demand of consumers. In addition, they also give opportunities to people who want to sell their products by offering to be a seller just a single click. During the overwhelming of face mask requests, there’s a lot face mask with different price. To view from positives sides, besides shopping, people also can make some money too. Here is some example I found at Twitter how people do some online shopp ing at Shopee and some grocery products.

5

SUGGESTIONS AFTER THE PANDEMIC COVID-19 IS OVER As I have stated earlier, during early pandemic, people are aggressively searching for a face mask and hand sanitizer everywhere and every store that have in stock. But from what I have seen that there are too many online sellers that registered with Shopee but we are unsure that their identity has been verified by Shopee itself. There are possibilities that some of them are scammer by uploading their products but it actually does not have it in their hand. Hence, my suggestions for Shopee to make seller identity verified just how Grab does. They need to take a selfie with their identity card to ensure that there is no scammer being a seller. Other than that, Shopee management would need to improve their online presence af ter this pandemic is over to ensure they keep on survive. Also, need to taking care of their staff and customers as now they have been working so hard with many orders and to manage the customers satisfied. Shopee Malaysia also need to provide Shopee Seller Support Package that would empower local business seller and SMEs to develop and grow their e -commerce presence in the current economic climate.

6

CONCLUSION After all, the current COVID-19 epidemic will soon be overcome by robust public health ef forts, but the economic wounds it leaves behind will be viciously long-lasting without a sufficiently broad and decisive fiscal response. Shopee has give their support to government through playing a big role in reducing the spread of Covid-19 besides keep up the economic cycle growth. In this time of need they will pledge to provide their best of services to consumers. Subsequently, after the pandemic has passed its peak and MCO restriction have been lift, supercharging economic activity need to kick in immediately. This stage will complement one stage by adding an expansionary component to help business and individuals recover quickly. Last but not least, f rom what I have read in some article, our most supply are not demanding from China industries but there also many product supplies from our local sellers. Next, it is also clear that consumers are making significant changes in their lif estyle as they are increasing in isolation, as exercise, smoking cessation and respiratory categories all experience growth.

7

REFERENCES Business as usual for Shopee. (2020, March 19). Business as Usual for Shopee. Retrieved from https://www.thestar.com.my/metro/metro-news/2020/03/19/business-as-usual-forshopee Cheng, C. (2020, April 10). COVID-19 in Malaysia: Economic Impacts & Fiscal Responses. Retrieved April 30, 2020, from https://www.isis.org.my/2020/03/26/covid-19-in-malaysiaeconomic-impacts-fiscal-responses/ Hasanat, M. W., Shikha, F. A., Hoque, A., Anwar, M., Abu Bakar , A. B., & Tat, H. H. (2020). The Impact of Coronavirus (COVID-19) on E-Business in Malaysia. Asian Journal of Multidisciplinary Studies, 3(1). Jones, K. (2020, April 8). The Pandemic Economy: What are Shoppers Buying Online During COVID-19? Retrieved April 29, 2020, from https://www.visualcapitalist.com/shoppersbuying-online-ecommerce-covid-19/...