Indonesia was facing both a pandemic and an economic crisis. Saving human lives during the coronavirus outbreak was a priority, and the treatment of the nation’s economy — amid spiraling unemployment rates — would have ramifications for the country’s future. In April 2020, the coronavirus epidemic had already spread nationwide and on April 9, 2020, the governor of Jakarta announced that large scale social restrictions (PSBB) were to be held in the capital. These restrictions were later extended until 22 May 2020. These large-scale social restrictions had a massive impact on the F&B industry. No dine-in customers were allowed as citizens were told to stay at home. More than 6800 restaurants were forced to close down and over 200,000 employees in this industry had to be laid off amid the coronavirus.
The Hachi Group, a restaurant chain worried that their restaurants would become a potential source of infection. Closing outlets would mean stopping sales and producing no income without knowing when this pandemic would end, therefore while risking the future of the company. On the other hand, remaining open would produce sales but at the risk of the safety of their workers and their customers. Any decision would greatly affect the company.
The owner of Artotel group comes from the family who own the Marriott Surabaya. Wishing to expand to another market, Artotel was established with the idea of making art available to everyone. The hotel was aimed at marrying the concept of a boutique hotel decorated with art works produced by local artists, resulting in a comfortable and memorable place to stay.
Artotel has undergone several changes in its strategic direction. Being an entrepreneurial company, it sees expansion to other businesses and types of accommodation as a way to survive in the turbulent environment.
Artotel realizes that its main strength is its ability to have a ‘breathing brand DNA’, i. e. a brand that keeps on evolving depending on its market environment. This case will discuss the different methods that Arotel has employed to gain more market share and maintain its brand DNA.
The case study tells the story of Toys ‘R’ Us which used to be the most prominent player in toys business. Founded in 1957 by Lazarus, Toys ‘R’ Us had grown tremendously in the industry. Proclaimed as “one of the outstanding companies in all of retailing” by Goldman Sachs in 1985, Toys ‘R’ Us started to see its downfall after Lazarus had stepped down in 1994. Having led by different CEOs since then, Toys ‘R’ Us saw a hope in John Eyler who led Toys ‘R’ Us in 2000. In his 5 years serving as its CEO, Eyler, described as “an innovative and passionate marketer with entrepreneurial leadership and the energy needed for the toy market”, had tried many strategies. However, did he manage to save Toys ‘R’ Us from falling deeper?