What happens to a company when the unimaginable occurs? As the Corona Virus continues to spread and the number of infections surpasses 100,000 worldwide, let’s take a closer look at how companies are responding and how they should be responding. Impacts of Covid-19 on business imprints a huge dark spot on worldwide business that would be last for some more time and will continue to affect business all over the glove.
Planning is Indispensable
COVID-19 pandemic has upended employment in two major aspects: it has caused a global shift towards telecommuting and mass unemployment as well. How will these trends rule out as the crisis evolves and, ultimately, the corona virus is defeated?
Answers to this question will have a profound effect on where people physically work in the near future and their job prospects. In both cases, the short- and long-term outcomes are different in many prospectives, and the outlook for global work patterns is decidedly mixed. To stand out from the major impacts of Covid-19 on business, one have to play safe and think innovatively to stable the business.
Suggestive Steps to Check-Mate Global Pandemic
Businesses face a game of global whack-a-mole, as the Covid-19 virus rears its head or subsides in the cities, states, and countries that host the far-flung supply chains on which companies rely.”
Companies should adopt several sensible just-in-case steps to face the major impacts of Covid-19 on business that includes:
- Set up a central emergency management centre with clear decision-making rules to face the impacts of Covid-19 on businesses;
- Establish key priorities for which products should be built and which customers should be supplied first if capacity is significantly reduced;
- Determine which of the company’s suppliers make critical parts, track their inventories, and establish potential alternate sources;
- In the near term, plan operations that will maximize cash flow rather than profits;
- Maintain close communications with national and local authorities as well as with colleagues and partners on the ground
Impacts of Covid-19 Pandemic over Small Business.
A simple look at the stock market will tell you that corona virus has led to a volatile economy, but there are numerous other factors at play. The wrenching impacts of Covid-19 on business can be uprooted with smart and active decision making.
The initial outbreak of the corona virus in China disrupted global supply chains. A record of near about 4 million Americans filed for unemployment benefits in the week ending March 21 as Corona virus-induced layoffs surge around the United States. Even when the short-term effects end, the long-term economic impact will stab for many more years. It would be hard to bear the harmful impacts of Covid-19 in terms
of business.
More than 99% of all businesses are small businesses and they employ about half the US workforce. Most small businesses fall short for the the cash reserves to weather a month-long interruption and inconveniences, and forecasts hinting towards more than 2 million workers could lose their jobs in just one week as an impact of Covid-19 on business and economy. There is also the possibility of a “start-up depression,” wherein new companies won’t be able enter the job market because of the pandemic.
Consumer’s Response to Covid -19 Business Crisis.
As the Covid-19 pandemic leaves many fearing for their health and jobs, consumers are shifting their time and money toward things with immediate utility in daily life. But they’re not fully closed off to companies or entrepreneurs with products that don’t fall under that category — brands can still prove their value during the crisis by providing help to other.
Here’s how consumers’ spending habits, media consumption, and brand perceptions have shifted because of the unbearable impacts of Covid-19 on businesses and world.
People are moving towards a higher share of their spending to ecommerce. Forty-one percent of respondents to an April study by Ipsos and USA Today said they had shifted more of their shopping from physical stores to online, compared with 13% who said the same in March. And people are focusing more heavily on necessities — apparel and appliance purchases are down, while food and household supplies are way up.
Media consumption is up, and video is seeing the highest increase in use. TV is one of the bigger beneficiaries, as families gather around the largest screen in the house: In a March survey from Global WebIndex, respondents reported watching more broadcast TV, streaming services and news coverage, at around 40% each. This study clearly showcase a high up gradation in media and mass communication
Consumers are generally open to hearing from brands during the crisis. That said, they expect them to alter their messaging in line with the current situation. People especially like to see brands taking action to help the community during this worsening situation of Covid-19 — in a March survey by the 4A’s, 56% of respondents said they were pleased to hear about brands making donations of goods and services, the top answer among all responses.
