With the number of cases arising in the coronavirus, the impact of the pandemic is quite visible on the economy and society, and it is massive. The stock markets have their worst quarter in 30 years, and the business activities have declined. It is quite devastating to hear that business revenues are going down and have gone below to more than 80% in a single week. This has affected a wide range of sectors. But the best part of the COVID-19 crisis will be that business people are forced to re-evaluate and innovate in every possible way of their operation. For instance, the tech communities are paving the way to overcome challenges being associated with coronavirus pandemic. It is for sure that the world will be different post-virus, and so are the international business models.
The COVID-19 is on its way to creating history and knowing about the country’s global economic crisis. It is another pandemic since 1929, the Great Depression, and is known to have lasted a decade. And most of the states were affected by the pandemic. In the past months, millions of people have applied for the jobless benefits in their country. Talking about Britain, one million citizens have already used welfare payments, which is about ten times the average amount. The record shows about 470,000 German companies are seeking support from the country. About 23 million comprises the third of the population in Thailand. They have registered for the cash handout as it was available on March 28.
COVID and businesses
The pandemic has changed the way the businesses were running and will further improve the management practices from their fundamentals. The Great depression in 1929 just did that, and post-financial crisis many experts give their voice for changing management practices. Many of them are included in various textbooks, while others are still in the queue.
The global financial crisis 2008-2010 has led to the shift of permanent employment to the contractual workers leading to the rise of any gig company. Will the COVID-19 affect the play out in the same way?
Then, the global financial crisis of 2008-10 led companies to shift from permanent employment towards more contractual workers and led to the rise of the gig economy. How will the covid-19 effect play out?
Although these are quite early days to know about the changing winds shaping the course of business, the most obvious thing here is that firms will encourage the staffers to work from home practices. But, do know the WFH will leave a significant impact on leadership style in this anxious era, about the management of supply chains, structuring of companies, and how they will be more fluid, agile, and flexible.
Impact on business owners
The time has come when future speculations are on the go, and people are intended to identify the new characteristics of future business models. Some of the key features being designed to are the business will be mobile, employ a flexible workforce, and will be cloud-enabled. Even the multinational ventures can successfully navigate the pandemic for surviving on a country by country basis. Once the COVID-19, gets over a new norm for the C-suite and business owners will look ahead for operational strategies and international structuring to drive their motivation. It includes:
- IT infrastructure based cloud-enabled technology inclusive of cybersecurity protocols
- Business continuity and crisis response planning and risk containment regulation and policies should be made to avoid panic at the last minute.
- Enough financial reserves to survive unexpected events in the future.
- Redundant essential sourcing, for instance, supplies, people, and inventory.
- Strategic workforce planning inclusive of flexible contracts, HR policies, and remote workforce opportunities.
For our best future, we need to safeguard the above measures to initiate future operations to prepare for the pandemic.
The flexible corporation
COVID-19 will be speeding up the trend of having traditional static structures of the organization and will bring out measures to convert them into dynamic teams. People will work in flexible groups through the course of shifting membership in different locations for addressing challenges.
The current crisis has forced many traditional industries to adopt technology in every possible way, like taking online approvals, conducting meetings through video conferencing, etc. The technology usage will increase as it has created freedom in the organizations in terms of location and selecting various projects. It can lead to more fluidity for team structures in the industry, especially if you are looking ahead for adopting technology in a bigger picture.
The COVID-19, have given sleepless nights to many people, making future assumptions about the businesses based on current situations can be irrelevant. But dealing with the same, it requires the leaders to make decisions while realizing that the facts undertook are not clear, and an unprecedented amount of certainty is mounted behind it.
The coronavirus pandemic started with the revolution for multinational entities approaching their business model, looking forward to as they are dealing with daily operations. The crisis tends to have forced businesses to adopt procedures, managing the workforce, adhering to governmental mandates, and reacting to client requirements. We all expect the world to look very much different after COVID-19. Although the short-term outlook can look gloomy, history tends to show that society and markets did not only recover after the crisis, but it became more robust.