The sudden outbreak of coronavirus disease 2019 (COVID-19) throughout the world has created a global crisis that has changed the course of our lives – personally, professionally, and economically. This highly infectious pandemic with a high rate of transmission has led to the beginning of the new concept of Social Distancing as a safety measure to control the spread of the virus. This has impacted us greatly physically, socially, mentally, culturally, and geographically.
One of the top sectors that has been forced to face the consequences of the COVID-19 pandemic are Businesses and Companies. This type of situation is new and unfamiliar and businesses will have to gradually adapt to the ‘new normal’ so that they can recover everything that has been affected by the pandemic.
There are three main phases of adapting and getting through a conflict:
Crisis – the novel coronavirus COVID-19 has taken the ENTIRE world by surprise. It has affected nearly every aspect of daily life – personally, professionally, and economically
Stabilisation – companies and business organizations have initiated multiple strategies to cope with COVID-19 to maintain business continuity and recover economic losses
Realisation – companies and business organizations must understand that change is inevitable and it will take time, months or maybe years, for the situation to normalize
Transformation – advanced strategies should be implemented on a permanent scale because the post-COVID-19 world will be nothing like it was before
THE GLOBAL IMPACT
The COVID-19 pandemic has irreversibly affected our routine and normal life and has drastically affected the economy. It has had an impact on millions of peoples, who are either traumatized, unwell, or are being killed due to the rapid spread of the virus. Since vaccines are not yet available, the virus has affected many people and has spreading exponentially to different regions around the world. Practices like Social Distancing, Lockdowns, Quarantine, and Self Isolation have been implemented to curb this contagious virus BUT has also exponentially and rapidly affected our daily life as well as that of the global economy.
This can be seen in various sections:
Health
o The pandemic has overburdened the healthcare system with the number of cases outnumbering limited hospital resources
o Patients with other diseases and health problems are neglected
o Hospital facilities in financial distress
o Without a vaccine, EVERYBODY is at risk of contracting an infection
o There is an overload on doctors and healthcare professionals who are at a very high risk
o Decreased diagnostic testing and elective surgery
o There is overloading of medical shops and a decrease in the number of medical protection equipment
Economy
o There has been a decrease in manufacturing of essential goods
o There is limited cash flow in the market
o The slowdown in GDP and revenue growth
o Reduction in gross GDP
Education
o Important Board, end semester, and professional qualifying examinations have been postponed or cancelled
o Education institutions have been shut down
o Schools are shifting to the online mode of teaching and remote learning
o Examinations are being replaced by holistic assignments and practices
o The use of apps like Zoom, Skype, etc. for a visual demonstration
Employment
o The COVID-19 pandemic has caused 52% unemployment on a global scale
o With decreased economic revenue it has become difficult to pay employees their salary
o Companies have laid off employees because of the financial burden
o Employees are made to forgo salary or receive a 50% cut in salary
Micro, Small and Medium Enterprises (MSME)
o These businesses suffer the MOST because of less investment, capital, and financial input
o They are comparatively new and have no public outreach and popularity
o With less income, it is difficult to pay employees a regular salary
Food
o The pandemic has caused an unequal supply and demand in food resources and products
o The poor are dying from starvation because of decreased resources
o Food is unequally distributed among migrant workers and slum areas
Agriculture
o The COVID-19 pandemic has created a big problem for farmers because of excess production but limited supply chain and purchases
o With restricted transportation, movement of food resources is limited
o Produce gets spoiled because they are not shipped immediately
Mass Media
o The role of Media through radio, movies, television, the internet, and mobiles has increased during the Lockdown with the implementation of Social Distancing
o With concepts like contact-less communication, there has been decreased reliance on print media and increased reliance on digital media
Aviation
o It is worst hit because of the fear of the spread of the infectious COVID-19 disease
o Domestic and international flights are cancelled to ensure Social Distancing and restrict movement
o Tickets are being refunded for the full fare so aviation companies are running at a loss
o They may become bankrupt if flights don’t resume soon
Trade
o There have been excessive losses in national and international business because of trade restrictions
o International Business is facing many losses
o There is unequal supply and chain so the movement of resources is restricted
Supply Chain
o The continuity of the supply chain has been affected
o There is inconsistent production because industries are closed
o Produced goods cannot be transported because of travel restrictions in national and international borders
Events
o Sports tournaments have been cancelled
o University fellowships and graduation ceremonies have been cancelled
o Cultural and religious festivals have been postponed
o Malls, gyms, and swimming pools have been closed
Travel and Tourism
o Many travel restrictions have been imposed
o There has been an extensive loss of jobs
o National and International borders are sealed so people cannot travel to other cities
Environment
o The environment has experienced POSITIVE effects due to the pandemic
o The air pollution and smog of Delhi has cleared
o There is no traffic, so noise pollution has also decreased
o The messy water of rivers and lakes has cleared and improved
HOW SMALL BUSINESSES ARE COPING WITH COVID-19 PANDEMIC
Small Businesses have been impacted to a great extent by the CIVID-19 pandemic. They face multiple problems like:
Financial Losses
Unemployment
Slow business
Decreased capital and investments
Sudden loss of customers
Reduced revenue generation
High economic losses
For some companies, the chances of recovery are very less. In order to recover from these losses various measures are being implemented:
WFH (Work from Home) – to ensure Social Distancing and to ensure business continuity
Government-supported business Insurance
A limited number of working hours – to reduce the pay/hour
Home delivery services – especially in restaurants
The shift from cash purchases to digital payments
Retention of core specialized employees and staff
Low-interest loans help to sustain small businesses until the pandemic reduces
Tax deadlines have been pushed to later dates to support businesses
Conversion of the business to goals that fit the current situation – protective equipment manufacturers, ventilator manufacture, diagnostic test kit manufacture
Shift to digital businesses – online sale and purchase
Shift from non-essential products to essential products – they are more in demand during the pandemic
HOW LARGE BUSINESSES ARE COPING WITH COVID-19 PANDEMIC
Large and established Businesses have also been impacted by the CIVID-19 pandemic BUT the recovery rate for such businesses is comparatively higher. These businesses face multiple problems like:
Layoffs and Unemployment
Reduced foreign backing and investments
Decreased capital
Reduced revenue generation
In order to recover from economic losses various measures and strategies are being implemented:
WFH (Work from Home) – to ensure Social Distancing and to ensure business continuity
No Travel Policy for employees who have to travel for business
International Business Insurance
Retention of core specialized employees and staff
Tax deadlines have been pushed to later dates to support businesses
Shift to digital businesses – online sale and purchase
Increased international trade of essential health resources like PCR machines, protective equipment, diagnostic test kits, etc.
Shifting to E-commerce and online marketing
Remote education and learning to ensure continuity in education
Transfer of resources across distances at increased speed and scale – to ensure business continuity
Shift to regionalization – to enhance the production of resources in an area without relying on trade and international supply
Increased digital communication and networking ensures global engagement and interaction
Amended and restructured sick-leave policies to ensure health and wellbeing of employees
Adoption of Enterprise Infrastructures like cloud and hyper-converged systems to ensure smooth conditions while doing business remotely
CONCLUSION
It has been observed throughout centuries that pandemics have had a significant social and economic impact on human life. The sudden outbreak of COVID-19 throughout the world has created a global crisis that has changed the course of our lives and has impacted us physically, socially, mentally, culturally, and geographically.
This new global situation is very novel and unfamiliar and businesses will have to gradually adapt to the ‘new normal’ so that they can recover from the drastic effects of the pandemic. With a significant impact on human life and livelihood, it is important to take future steps to cope and recover from the impact of the pandemic.
RECOVERY IS POSSIBLE.
Decisions and precautionary steps taken now will determine the future shape of growth. We need to gradually aim for strong, consistent, and sustained recovery. Business continuity is critical to attract and grow renewed investment to rebuild the economy. If all countries co-operate and work together in harmony, the global economy can bounce back!
Comments