The novel coronavirus is one of the most gruesome tragedies that mankind has faced in recent times. The invisible enemy has waged war on humanity, killing thousands of people around the world and bringing the global economy to a halt. The impact of COVID-19 on lives and livelihood is unimaginable. It has especially dealt a heavy blow to businesses, causing them to reimagine the way they do business under social distancing norms and employee safety. The coronavirus impact on industries like travel, media, entertainment, retail, logistics, etc. is unprecedented and might hurt them for several months.
The economic impact of COVID-19 on businesses and business continuity is tremendous and nobody has the answer to when would things normalize. It might take months for businesses to overcome the impact of COVID-19 and employ their workforce at full capacities. What most businesses can now do is focus on certain areas towards business resilience for the future.
Organizations that never had crisis management and response plans must take the example of the impact of COVID-19 to future-proof their businesses from any disruptions of such magnitude. Keeping in mind the priorities of local governments and following their guidelines, organizations must chalk out a strategy to ensure business continuity.
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The next step would be to go for remote working solutions to reduce the implications on business in the future. Most of the businesses around the world never really had a remote working strategy and have been especially hit hard due to the impact of COVID-19. The current period of remote working will give organizations enough data to check how their crucial assets, their people, coped up with remote working. The learning from this pandemic should be used to prepare a full-fledged remote working strategy that can be implemented at any time when the need arises.
The operations and supply have been one of the hardest-hit business functions due to coronavirus lockdown measures. China, today, is one of the major players in the world economy, and many countries rely on its production capabilities. World leaders need to promote local production and make their supply chains region-specific if there are any nationwide lockdown measures enforced in the future.
Finances and liquidity are other critical areas where businesses must consider disclosures linked to effects on operations, risks, and uncertainties. When it comes to tax and regulations, businesses must apply for available refunds, manage their cash taxes, and consider the tax-related measures adopted by the government to overcome the impact of COVID-19.
Last but not least is the considerations towards branding and strategies. Businesses must embrace remote working now more than ever by understanding the impact of COVID-19. When businesses restructure and revamp their business models and operations post-pandemic, the interests of their customers must be at the center of their decision-making process.
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As the world continues their fight against COVID-19, businesses, at the same time, must think that it has given them the chance to rethink and restructure their strategies for better. Remember, most companies never promoted remote working, but the COVID-19 pandemic has done it now. Similarly, innovations and new infrastructural habits will have to be adopted to adapt to any unforeseen calamities let alone the coronavirus pandemic.
- Responding to the business impacts of coronavirus (COVID-19), pwc.com
- COVID-19: Implications for business, mckinsey.com, Apr 2020