In this article, We write the effects of this COVID-19 pandemic on your business and how you can save and increase the value of your business. As you know this is a tough situation for all of us but we have to make right decision in this situation.
With over 3 million infections and over 200,000 deaths worldwide, not a single soul can claim to be infected with CoVID-19. In an effort to save lives, governments resorted to lockdowns, which have had a significant impact on small and large businesses alike. This is because lockdown controls movement and communication with the goal of reducing disease and spread. The lockdown has had a clear effect on unemployment, and businesses have left workers to protect themselves against a dangerous wave of bankruptcy. Casual workers also fall into this category of unemployment, as businesses close, and daily hardships disappear. Despite promises of financial support from governments that are doing business related to losses, but in general, the lockdown and the disease will have a huge impact on businesses and industries.
To begin with, lockdown has disrupted business operations. For international businesses that rely on global operations, most of their key business services have stopped. Imports and exports have been severely affected, with daily business. On local businesses that rely on local labor, the business framework has now evolved into remote working and essential employees. Therefore, lockdowns can affect businesses altogether by stopping them or paralyzing certain tasks for multinational and local businesses. It has also reduced the general scale of the operation to reduce the risk. Business leadership is also evolving due to the need for close supervision without the physical presence of employees. In such a turbulent time, leadership needs to change in order to be more sympathetic to the need for closer ties.
Lockdown has also had an undeniable effect on trade. Most consumers are forced to stay at home, if not completely shut down for most businesses, then direct retailing to consumers is reduced. Limited mobility keeps people confined to their homes, which means fewer sales in businesses that rely directly on retail. This could mean turning the commerce model into digital commerce. This is a new wave, probably one that will continue after COVID-19 disease is over. Previously, digital commerce or online sales was used as a secondary channel, but to survive, businesses have to make it their primary channel. As for businesses that have not yet embraced technology, they now have no choice but to join the line.
Lockdown can also change the supply chain model. Previously, the manufacture, processing and distribution of goods and services was based on the global market, without hindrance. For now, businesses have to rely on their country’s resources as the main source of supply chain throughout the country. From raw materials, labor, processing, and even consumers. Due to the limited nature of air cargo and port cargo services, international resources will have to be a secondary option. In addition, the lockdown aims to provide the services and goods quickly, safely and securely to ensure the safety of all customers as well as their own supply chain workers. Businesses now have to renew their entire supply chain to maintain a steady flow of products and materials.
The spread of COVID-19 disease can change many things. It is therefore imperative for all businesses to rapidly develop a strategic response to counter the effects of current barriers and strengthen themselves for future changes in the value chain. One obvious way is to take advantage of the digital platform to manage the new complex supply chain and pursue strategic plans to create value in their goods and services as they hope for a better tomorrow.