Investigating The Effects of Covid-19 Corona Virus In Botswana: A Case of Kgalagadi Breweries Limited

Abstract

This study focuses on investigating the effects of Covid-19 on the alcohol industry in Botswana. The research was carried out in Broadhurst Industrial, Gaborone (Botswana) where Kgalagadi Breweries Limited is located. The main aim of the research was to establish the perceptions of lower, middle and top managers regarding the effects of Covid-19 on KBL in Gaborone, Botswana. The researcher used positivism research philosophy because of its nature to accommodate large sample sizes. The researcher utilized a census strategy where all the elements of the population were taken in the study since the small population size did not warrant sampling. The researcher targeted a total population of 60 respondents. The researcher used a case study as a research design. The researcher selected a case study because of its nature of allowing the exploration and understanding of complex issues, thus expanding the reader’s experiences. The outcome of the study revealed that the managers (lower, middle and top), were of the perspective that Covid-19 has resulted in stock expiry, loss of sales and profits. The findings of the study indicated that KBL had lost profits since the restrictions of alcohol sales were introduced to curb the spread of Covid-19. The study recommended that KBL could use online selling to increase sales and also reduce working hours hence reducing their wage bill while at the same time adhering to Covid-19 regulations of decongesting the offices. The researcher only had access to the financial reports published by KBL on their website hence the information was limited. The researcher could not access the current financial reports of KBL since they were not published hence the researcher had to source the current financial records from the newspapers. Due many regulations that were imposed by the government such as social distancing the researcher had to distribute questionnaires to the respondents in batches. At times the researcher had to go back and forth to collect the information since some respondents were not present in the office as they had tested positive for Covid-19 or on isolation. Future research could consider effects of Covid-19 on the alcohol industry since there are limited studies on this topic. The managerial implications on KBL include that there were changes in production process and methods, and standard operating procedures to maintain social distancing at the workplace. This led to a strain on the achievement of productivity target of employees as extra time was needed to follow the new regulations. This implied that a new optional and real inventory and work allocation was needed for various phases of the pandemic. The researcher recommends that KBL could refocus their product campaign strategies to attract and retain customers during the pandemic hence making more profits. Based on the findings of the study, alcohol restrictions that were imposed by the government had by far affected the country’s sole alcohol manufacturer. Therefore, the researcher recommended that the Government of Botswana can facilitate the recovery of KBL during times when alcohol restriction is lifted by offering loan and also reducing the alcohol levy.