The SARS-CoV-2 coronavirus pandemic has brought down the familiar lifestyle of millions of people. The daily routine has been disrupted in just a couple of days, and where there was freedom, constraints remain. The current crisis is changing the world, putting health and safety at the forefront.
Governments are restricting travel, isolating citizens, and it seems that “lockdown” will become the word of the year. At that, something completely opposite but not so noticeable is happening right now in the business sphere: companies around the world pledge their support and join forces with associations, health authorities and governments, showing an incredible sense of unanimity. Each of them deserves a compliment, but most of the news headlines are devoted to large companies. Meanwhile, some medium-sized companies joined the fight too, and walk it like they talk it. How? Well, the secret of their agility lies in their specific qualities.
One of their fortes is the ability to quickly switch production, for example to produce vital goods. A medium-sized manufacturer may operate under a future-oriented production program. However, it also has enough room for maneuver thanks to pockets deeper than those of a small company and production structures more versatile than those of a big company: for instance, it can reduce supply of goods with no demand and quickly switch to high-demand goods without risking to lose it all.
Here’s a case with distilleries and breweries in the United Kingdom. Like the rest of the world, the country has almost run out of hand sanitizer. At the same time, local manufacturers of alcoholic beverages realized that their production could be easily repurposed to produce what was really important. “Somebody flagged up to us that there is a recipe on the World Health Organization website that is very clear and straightforward and is fine to work with,” said Andrew Mackenzie (1), owner of Scottish Verdant Spirits distillery. Another brewer, BrewDog from Aberdeenshire, took in similar production, and even found a way to give the sanitizer its own unique image, calling it Punk Sanitiser. However, the main goal of the companies is not just advertising, but helping those in need: “We are determined to do everything we can to try and help as many people as possible stay safe,” notes BrewDog (2), which is now supplying the sanitizer to distributors, and is cooperating with the UK National Health Service and several local charities to deliver the product free of charge.
Another major advantage of mid-cap firm is their capability of nimbler operational solutions and the heightened employees’ engagement (3) compared to large enterprises, which makes it possible to quickly and flexibly respond to changes. These features make it easier to adapt to unexpected circumstances (provided that there are sufficient financial and other abilities), and this becomes of particular importance when every day counts.
So, French Tereos, the world’s third manufacturer of sugars, among the European leaders for alcohols and starch derivatives, reacted to the news about the spread of coronavirus even before the country was locked down. Business Continuity Plans have been set up at the various units and for the main productions, and preventive measures have been taken since the end of February. The halted production would have disastrous consequences for the livelihoods of people as Tereos supplies several essential goods (healthcare and food products and ingredients, including baby foods) to the French and European markets. Thus, the company committed itself to stay afloat and support the fight against the infection outbreak: early in March Tereos unblocked some of its stocks of denatured alcohol and made requests (4) for the product a priority, while maintaining its operation as a producer of essential goods. At that, the company showed a surge of support (5) on all organizational levels: Tereos announced a major solidarity action on Wednesday, March 18 in France, and teams took in solidarity initiatives at local level according to the most critical needs identified. All of the production sites thus got involved in different actions: the production of hand sanitizer (given free of charge to health professionals and authorities), the production of pharmaceutical alcohol (some of which donated to pharmacists), or the donation of protection equipment to hospitals or firefighters in their neighborhood. The swift reaction and strong sense of solidarity turned out to be beneficial for everyone: the company keeps going on to supply vitally important goods, support regional health and critical other organizations (like postal services and the French army) through donations, and employees found an additional sense of purpose in their engagement under the current circumstances.
Essentially, all the examples (stated here or not) can be boiled down to one point – the adaptive approach. Small business is too unstable for sharp turns, and huge market giants are too entrenched into the market to be fast enough. Medium-sized businesses, however, are able to grasp the emerging need. They respond by immediately mobilizing their resources and capabilities, reorienting the strategy and adapting their finances.
For some companies it took just a few days to reorganize their activities in such a way as to become as useful as possible in the new society of restrictions. Several days ago, Europcar Mobility Group, a European car rental company, launched the “Together” program to support mobility of emergency services. Renting a car will cost only £ 5 per day for doctors, police, firefighters, teachers and others. Before the crisis, Europcar received the main income from the tourism industry, which is now impossible for obvious reasons. Nevertheless, the company was able to quickly repurpose itself to preserve the business and become handy: “Many economic players hold part of the solution: we are convinced that it is only by working together that we will be able to provide responses that are adapted to the circumstances and in the general interest”, explained Caroline Parot (6), chair of Europcar.
In general, approaches of the volunteering mid-size companies can be different, but every effort counts in, be it combating medical shortages, looking after employees or supporting vital industries.
Ref.
2: https://www.theguardian.com/business/2020/mar/18/brewdog-begins-making-hand-sanitiser-shortages-uk
3: https://www.quantumworkplace.com/employee-engagement-in-medium-sized-business
5: https://tereos.com/en/news/coronavirus-communique/
