The outbreak of coronavirus, one of the scariest tragedies the human race has ever faced, is exacting a terrible human toll and menacing the world economy, especially having catastrophic effects in the realm of business.
While the world appears to be consumed by the universal tribulations of the COVID-19 pandemic, the world of commerce and business is entangled in the enigma of resolving tussles between revival and collapse. The world’s topmost economies such as the US, China, Russia, France, Italy, Japan, etc are already on the verge of collapse.
As world capitals have been put under strict lockdown, major industrial chains have been brought to a halt, resulting in many companies generating lower revenue resulting in less cash flow.
As the pandemic disrupts normal economic activity and life around the globe, industrial production, sales, investment resulting in even the world trade, that is expected to be hit by 19 percent.
In the United States, the number of people filing for unemployment hits a record high, indicating an end to a decade of expansion for one of the world’s largest economies.
In fact, one of the biggest cab services provider Uber had to lay off 3500 employees who accounted for 14 percent of its workforce.
As the lockdown has kept almost the whole of the world inside, oil prices have also crashed. With customers canceling their tickets, and airlines cutting flights, the travel industry across the world has been severely damaged. The novel virus has created such ripple effects in the global economy, wherein the total loss from the impact is estimated to be USD 1 trillion.
Although, there are certain companies that have listened to the market and have adapted to the situations well. Working towards reshuffling their production lines, stretching their brands, and catering to new needs in the market. Some are still grappling to establish themselves post-pandemic.
Across industries, now the companies are working on preparing themselves beyond the coronavirus. Business analysts and strategists worldwide are advising the companies to assess the impact on cash position and identify the levers that can help generate monetary benefits.
Companies are also considering accelerating digital transformations as the sudden shift to remote working has revealed a gap in IT infrastructure and digital up-skilling.
They are also advised to protect profitability through actions such as scenario planning, financial exercises to improve resiliency and set into effect models that integrate within its plans the economic effects of past pandemics.
As the report of the World Economic Forum suggests, supporting small and medium enterprises and larger businesses are crucial for maintaining employment and financial stability.
Therefore, along with effective and clear communication, broad monetary and fiscal stimuli will be required to be co-ordinated on the international scale for maximal impact and boost the recovery process.
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