DLMARM01 Advanced Research Methods
Task 2: Case Study Research
Introduction
This particular case study research is focused on the impact of the COVID-19 pandemic on both humans and economic life. However, it will also focus on highlighting the significance of respective case study research approaches and provide significant details on which of the research approaches can be suitable to investigate the research context. Apart from that, the research will also provide sufficient details regarding the research approaches and design based on the compatibility of the research requirements. The research will eventually reflect all the advantages and disadvantages of the selected research approach. Hence, it will also consider two different renowned profitable organisations Puma and Adidas in order to analyse the data regarding the impact of the pandemic on its employee’s work life. As a result, it will include information regarding the employee’s task, context, mindset, and daily routines by constituting the organisation-level factors based on structure, culture and technology.
1. Critical evaluation of case study research approach suitability
Case study research approach is one of the most influential explorations for the most complex issue that helps in offering multifaceted information along with in-depth and thorough revelation of information (Mohajan, 2018). The value of the case study approach is immense as it helps in understanding the field of business and policies while researching, which helps in gaining a different type of analysis and research approach (Akçayır and Akçayır, 2018). The current research investigation is about constructing the case study research reflecting on the organisation, thus; it is important to have an in-depth understanding of the organisations, which will only be possible through the help of a case study research (Fusch et al. 2018).
Moreover, a case study is found to be an appropriate design, which can gain a contextual research investigation to be supportive of the research purpose. Therefore, in this context, selecting a case on the impact of pandemic on human and economic life offers influential and detailed research information. Thus, case study research investigation is suitable for this investigation because it will provide new and unexpected insights along with helping to finish the study critically with a stronger research interpretation (Peimani and Kamalipour, 2021). Moreover, the case study research approach has a step-by-step plan, which involves the researcher to work effectively in terms of describing, comparing and critically analysing the research problem specifically. Therefore, through a case study research approach, the researcher can focus on building a framework along with collecting the data while lastly describing in analysis the case (Abdel-Basset et al. 2021). Hence, in this research as well, the researcher will pay attention to two different organisations and the impact of SARS-CoV-2 on the economic and human life, which will be compared at last.
Types of case study research approach and its evaluations based on suitability
The principle of a case study is a research strategy that is used to produce a thorough and comprehensive understanding of a difficult subject based on a specific purpose (Atmowardoyo, 2018). There are three important categories of case study research methods: intrinsic, instrumental, and collective. In accordance with the studies of Wibowo et al. (2019), it has been noted that within the case study research approach’s primary strategy is intrinsic. With this specific approach, the goal is often to gain knowledge of uncommon events based on the case study’s intended objective. The second method of the case study research approach focuses on the instrumental method. As a result, it is being used by a researcher to develop a wider understanding of a problem or occurrence (Artavia et al. 2021). On the other hand, it might be said that the collective case study method entails examining a number of cases concurrently or sequentially in an effort to produce a still broader understanding of a certain subject.
The method of the collective research approach may be used to achieve the goals of this particular case study since it will supply enough information on the COVID-19 pandemic’s current global state (Elia et al. 2020). As a result, it will also make it possible for the researcher to get enough information and data about how the virus affects human and economic life. The present collective method technique, which is best for the case study’s primary aims, will also reveal important information on the two organisations that maximise profits and the effects of the pandemic on their employees working lives (Fuentes et al. 2020). According to the aims of this particular case study, it can be concluded that the method of collaborative research approach will be advantageous.
Advantages and disadvantages of possible approach
The concept of the collective research approach has significant advantages and disadvantages. Thus, it can be stated that one of the primary advantages of the collective research approach is its ability to provide clarification on a particular case study objective (Pontikes, 2018). The collective method also provides significant advantages of high response trade and is able to gather in-depth information regarding the selected objectives. It is also considered to be suitable for tabulation and statistical analysis based on the research goals. In accordance with the studies of Holmes et al. (2019), it has also been concluded that the concept of the collective research approach also provides a significant advantage to the researcher together with flexible and unstructured information regarding the particular subject. However, it is also considered to be highly affordable in terms of the financial aspects and provides faster results than personal interviews. Therefore, it is sufficiently advantageous for researchers to get immediate sharing and synthesise data and information regarding a particular subject based on the case study. Based on the studies of Pondel and Korczak (2018), it has been found that the collective method of research approach also results be beneficial while getting personalised approach, allows gathering clarified data and can be combined with a variety of other data collection methods, Therefore, it can be stated that there are major advantages of adopting to the collective method of case study research approach.
Although the collaborative research approach has many benefits, it can also be said that this strategy has several drawbacks, some of which may be obstacles to a specific research project or case study (Kamaci, 2020). One of the main drawbacks of the collective research technique is that it necessitates the use of expert observers to obtain precise data that is pertinent to the case study’s stated purpose. Therefore, using the collective research technique without the necessary knowledge and training might be damaging and lead to the researcher collecting information that is unrelated to the study purpose (Carrera et al. 2021). The second drawback of the collaborative research technique, however, is that it usually takes some time to obtain correct information on a particular topic of a research or case study. Because of this, it also results in a loss of confidentiality, and without a strategy for representativeness, it is impossible to generalise the observations based on the findings to the entire population (Haque et al. 2022). A propensity for the breadth of data to be limited, the removal of underlying behavioural patterns as necessary for the study objectives occurs because the specific collective research strategy tends to take much longer than less formal approaches.
2. Impact of the pandemic on employees work life reflecting on two considered organisations
From the understanding of the case study analysis approach, the following segment will be analysed based on the approach while reflecting on the consideration of different organisations Puma and Adidas respectively. COVID-19 has undoubtedly been one of the most detrimental aspects, which has taken a back in reflecting negative consequences on employee work life. In the early 2020, maximum of the Puma employees across the world are allowed to work from home to minimise the spread of the COVID-19 pandemic (Top employers, 2022). Therefore, in this term, Puma has focused on people and organisational teams to improve the safety and maintenance of employee engagement along with offering them support with a “Puma Home Academy Platform” (Top employers, 2022). Daily routines of employees have completely been disrupted due to their mental instability, which has doubled 6.8% to 14.4% due to the coronavirus SARS-CoV-2 outbreak (Elflein, 2020). Most of the employees were not perfectly healthy while they are having extreme challenges due to instability in their work life, which has led to their work life to be a disaster.
Figure 1: Mental health instability among workers
(Source: Elflein, 2020)
Due to the inability of employees to perform effectively Puma has faced several negative impacts in their sales, which has been the main reason behind the decline in their profitability. It has been apprehended that the growth of the profit margin of Puma has failed by 180 basis points, which accumulated to 48.8% and has declined to 47.0% in the year 2020 (Puma, 2020).
On the other hand, the same situation has been investigated concerning Adidas as COVID-19 has hit the sports brand with losses of billions in Euros in the third quarter of 2020. Adidas is one of the largest sports manufacturers and it has been analysed that they have lost €3.5 billion due to COVID-19 crisis (Engage employee, 2020). Due to this reason, Adidas has improved their employee engagement on a monthly as well as weekly basis. Moreover, the company values transparency and integrity with 14%, teamwork and winning with 57% along with speed and innovation with 29% (Comparably, 2022). From this aspect, it can be understood that Adidas has focused on their employee engagement during the period of COVID-19, which might improve their business profitability.
Figure 2: Brand value of Adidas
(Source: Tighe, 2022)
From the investigation, it has been acknowledged that most of the employees were in need of building trust, transparent communication, safety and security, social cohesion while getting supported by leaders as well (Chen and Sriphon, 2021). From the responses of employees, it has been comprehended that 78% indicate that the organisation responds to the crisis appropriately; however, 80% indicate that leadership has one of the most important roles of protecting the employees along with maintaining health and safety (Emmett et al. 2020). Moreover, 77% indicate that there is a requirement of adjusting the organisational plan according to the crisis (Emmett et al. 2020).
Thus, Adidas has taken all of the necessary aspects to make employee work life to be efficient while making it credible, feasible, sustainable as well as personal. COVID-19 has improved the sense of sustainability along with a collaborative community in the population; thus, reflected that Adidas has also improved its racism and community support while investing $120 million (Adidas, 2022). In terms of improving the Coronavirus pandemic situation, the company also offered a crisis management team, HR training and alignment along with more hygiene occupations in retail areas while aiming to reduce and record zero fatal accidents by 2025 respectively (Adidas, 2022).
Impact of the pandemic on organisational level factors and employee level factors
From the overall understanding of employee work life, it has been identified that COVID-19 has been reflecting a negative impact over the employees of both the organisation Puma and Adidas. Thus, considering that, organisational level factors as well as employee level factors will be discussed in this respect.
It has been identified that Puma has a “dual management and supervisor structure”, which helps in the appointment and supervising, close collaboration, and reports approval of actions along with managing the company effectively (Puma, 2022). However, in terms of organisational culture Puma’s company culture is unique because the people living with the brand have outstanding potential while offering the best working possibilities. Apart from this, the culture of the company is also encouraging colleagues with the aim to grow. Furthermore, Puma is also more inclined toward finding the right people with digital people management while offering diversity and inclusion with 43% of female leaders (Puma, 2022).
Figure 3: Research and Development (R&D) spending of Puma
(Source: Tighe, 2022)
In terms of innovation, Puma has an adaptive dynamic approach with high innovation, which can be reflected with the product of self-lacing fit intelligent training shoes for athletics (Puma, 2022). Along with this, the brand has increased spending on R&D, which has reached €56.6 million during 2020, as reflected above (Tighe, 2022).
On the other hand, it has been defined that the organisational structure of Adidas is an Executive Board with a supervisory board along with Annual General Meetings that reflect the central corporate bodies of Adidas AG. Apart from this, the responsibilities of the corporate bodies are strictly separated in terms of abiding by the German Stock Corporation Act (Adidas, 2022).
Figure 4: Organisational structure of Adidas
(Source: Adidas, 2022)
In terms of organisation culture in Adidas, they found to be following collaborative aspects while being fair, authentic and building trust. Apart from this, there is a high level of inclusivity in the organisation, which helps the brand to become one of the best sport brands all together (Adidas, 2022). Adidas has focused on the innovative landscape to meet the need and expectation of their prospective consumer while aligning border sourcing, creative strategic function, effective marketing along with ensuring robust and successful innovative pipeline. In this connection, they have focused on athletic innovation, manufacturing innovation, digital and experience innovation, sustainability innovation, female athlete innovation respectively (Adidas, 2022).
Figure 5: R&D spending of Adidas
(Source: Tighe, 2022)
Moreover, the expenses of Adidas on R&D will increase after 2020 from €155 billion to €130 billion positively as shown in the above-mentioned figure (Tighe, 2022).
Concerning employee level factors, it can be stated that the number of employees at Puma is increasing due to the high level of facilities, which are being provided by the organisation along with an effective talent recruitment and development process. Moreover, there has been a fixed base salary with the “Puma bonus system” along with social benefits, which are sustaining employees even during the pandemic year as reflected below (Puma, 2020).
Figure 6: Growth of employees at Puma
(Source: Puma, 2020)
Moreover, concerning the employee factors at Adidas, the salary and benefits with skill development, company culture, work life balance has gained above 4 stars, which reflect the employees are being managed effectively in the company (Ambition box, 2022). Moreover, the workplace has proper code of conduct while ensuring data protection along with a complaint hotline termed “Fair Play Hotline” (Adidas, 2022). Apart from this, with the help of #MYBEST performance development approach, the employees are being surveyed that is directly helping the brand to improve their customer satisfaction score with 79 points leaving behind competitors like Nike (Tighe, 2022).
Compare and contrast between Puma and Adidas
Comparative analysis
The organisation structure of Puma and Adidas are comparatively the same considering the fact that both these organisations have a root in the same company. However, considering the overall market value of these organisations, Adidas currently has a market capitalisation of $32.31 billion (Companies market cap, 2022). However, the market capitalisation value of Puma is significantly lower currently at $10.51 billion (Companies market cap, 2022). This difference between the organisational market value indicates the overall dominance and presence in the sports fitness goods industry.
Adidas has been working closely with various athletes and entities involved in various sports and events, which has significantly boosted the company’s visibility, brand image and overall brand equity. However, the most distinguishable factor that has helped Adidas to achieve its current popularity and brand value is its association with FIFA, UEFA and various other football events where the organisation is the official sponsor and supplier of the football kits (Fifa, 2022). Not only that but the company also sponsors various football players and teams individually. Moreover, Adidas is also the sponsor of the upcoming FIFA world cup to be held in Qatar (Fifa, 2022).
However, compared to Adidas, Puma only has a few sponsorships that are comparable to the ones that Adidas currently holds. Among which the most prestigious sponsorships are the English Football League and La Liga. Puma is the official ball supplier in these two football leagues as well as a host of other tournaments like the first professional football league Israel football association and a few more. Both Adidas and Puma are much more focused on events linked with football however Adidas has diversified its brand into various other sports categories, which have again helped the company to expand its brand visibility in different segments.
International collaboration
Collaboration is another aspect that determines the competitive advantage of both these organisations and in this regard, both these organisations have collaborated with several multinational entities in different areas. For instance, Puma has collaborated with the Mercedes AMG Petronas Motorsport collection (Puma, 2022). The Sports collection mostly represents Formula 1 street-ready fanwear. This collaboration between Puma and Mercedes has been successfully operating since 2012 and has helped both these companies to expand their brand value several fold (Puma, 2022). The collaboration with Mercedes has helped Puma to enter the formula 1 sports category whereas it has also helped Mercedes to offer specific seasonal as well as non-seasonal AMG Petronas merchandise to the rivers of the events as well as to the extensive and ever-growing if and base of Mercedes AMG Petronas F1 Team (Puma, 2022).
Similarly, Adidas has also collaborated with major fashion retail brands like Gucci and Balenciaga (Elle, 2022). Both these collaborations of Adidas focus on different aspects, especially in terms of target customers. The collaboration of Gucci and Adidas is much more focused on trending fashion and streetwear (Gucci, 2022). While on the other hand, the collaboration between Balenciaga and Adidas is much more focused on sportswear that has been creatively designed and developed and sold by Balenciaga (Balenciaga, 2022). Comparing these two collaborations of Adidas it can be stated that the company has effectively reached out to a much more diverse range of target customers which has further increased Adidas and its popularity among the vast majority of customers in the sports fashion retailer. Thus considering these points of parity and differences it can be stated that Puma faces significantly tough competition against Adidas on multiple fronts.
Puma needs a strategic uplift that can help the organisation to enhance its performance and potion in the market. One such strategy adopted by the company has been the diversification of its products by range and category while another has been the focus on sustainability. Sustainability and green procurement are believed to be the key drivers of the company’s positive brand image and reputation in the market. Moreover, it can also be stated that the approach taken by the company to become sustainable in the market would help in minimising their carbon footprint and help to reduce the global impact of their operations which significantly threatens the environment. In this context, the following section would reflect the interview of two managers from both these companies helping to understand their competitive stance.
How do you maintain competitiveness in the market?
Adidas employee
“The industry in which they are currently operating is highly competitive and the brand image of the company mostly determines the sales and competitiveness in the market. We mostly focus on enhancing our overall brand image by collaborating with various international celebrities and brands as we have recently collaborated with Gucci. Apart from that, product development and diversification have been one of the core strategies that drive our competitive advantage”
Puma employee
“We mostly focus on enhancing product quality and meeting consumer satisfaction by continuously developing our products. We have also focused on collaboration with Mercedes which has helped us to reach out to a significantly large population of customers who are fans of F1 Racing. Nevertheless, we are much more focused on football as a sport and are continuously engaging the different stakeholders to achieve better results and response from the market
We are also expanding our operations in different markets which have helped us to significantly increase our brand visibility compared to Adidas and Nike. However, from my perspective Adidas is a much larger threat than that of Nike or any other brand operating in the market”.
Conclusion
Based on the above statement, the researcher has significantly focused on Puma and Adidas and the impact of coronavirus SARS-CoV-2 on economic and human life. Apparently, the method of the collective research approach has been concluded as the most suitable research approach based on the objective of the research. The study has also provided potential advantages and disadvantages that are linked to the collective method of the research approach. Based on the above findings, Puma is suggested to conceptualise a strategic uplift as an integral part of enhancing its performance effectiveness in the market. Moreover, the maintenance of sustainability through carbon footprint reduction and others can also provide lucrative outcomes on behalf of their business with the establishment of a more developed brand reputation in the market.
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