Impact of COVID-19 on Business
Introduction: The coronavirus outbreak is first and foremost a human tragedy, affecting
hundreds of thousands of people. It is also having a growing impact on the global economy.
In the light of the current coronavirus crisis, business-to-business firms face a variety of challenges in
a complex and fast-changing environment. Due to the COVID pandemic, businesses are grappling
with a high degree of uncertainty and fear about their revenue, profit, and cash flow for the next
several months or longer. Most businesses face a decline in sales. Cash flow can be driven by diligent
collections of accounts receivable, extending vendor payment terms, and accessing available
borrowing options. However, in order to maintain or return to profitability, underlying cost structure
must be addressed in addition to short term cash flow. Here we lay out an approach to modeling and
managing through potentially large sales declines until economic activity recovers to a normal level.
Objective:
Impact of COVID-19 overall business.
Impact of COVID-19 long term application.
Impact of COVID-19 Stakeholders
Post COVID-19 Possible Initiatives for 2020 & Beyond.
Description:
With the rapid increase in the number of cases, COVID-19 invites pandemic all over the world. It is
considered to be the most threatening viruses of all time. Apart from that, it has an adverse effect on
the global economy, which is leading us to a global recession. Lock-down across country hampers all
types of businesses at large scale. Offline businesses are facing serious difficult conditions. People
who used to earn on a daily basis like street food owners and auto drivers are facing harsh challenges.
Social distancing leads to shutting down restaurants and café. Entertainment is facing its worst time
with no cinema and theatres being opened. Moreover, movies are putting their releasing dates on hold
to avoid mass gathering. This results in a huge loss for entertainment businesses. The travel and
aviation industry has seen its worst time since no one wants to travel to get infected from the virus.
Apart from such businesses, one can’t ignore the sports industry. There are many big sports events
which got postponed due to a harsh scenario of COVID-19. For instance, Olympics 2020 which was
going to held in Japan is postponed until June 2021. IPL which has a huge fan following in India is
most likely to postpone in such conditions. Just think about the jobs and people associated with these
events. Not just event organizers and players, but daily wage workers for a stadium and other
activities lost their jobs without any guarantee of their salaries. During this pandemic, we can notice
various changes such as corporate sector employees started working from home, schools and colleges
are closed and organizing online classes for students, factories and production are adversely affected,
malls and grocery stores have only limited stock of essential items. Travel and tourism hit its lowest
bottom since people can’t move out of their places. Flights, trains, and bus services are closed to
avoid crowds and epidemic to spread.
Impact of COVID-19 overall business:
Supply Chain is the backbone of a business. Due to pandemic situation. No industry, geography, or
channel has been spared from supply chain. For this reasons all kind of business are fall down. That’s
Demand drop-off (food service, fashion apparel)
Demand spike (health/hygiene/personal care goods)
New/shifted demand across channels (on- premise vs. grocery retail)
Lower operational productivity (health and hygiene requirements, government-mandated
shutdowns)
Stranded inventory, drastic over/under stocks
Raw material/input stoppages or shortages
Impact of COVID-19 long term application:
The COVID-19 pandemic has resulted in over 4.3 million confirmed cases and over 290,000 deaths
globally. It has also sparked fears of an impending economic crisis and recession. Social distancing,
self-isolation and travel restrictions have lead to a reduced workforce across all economic sectors
and caused many jobs to be lost. Schools have closed down, and the need for commodities and
manufactured products has decreased. In contrast, the need for medical supplies has significantly
increased. The food sector is also facing increased demand due to panic-buying and stockpiling of
food products. In response to this global outbreak, the socio-economic effects of COVID-19 on
individual aspects of the world economy can go long run.
Impact of COVID-19 Stakeholders:
Due to bad situation all business are fall down so stakeholder lose their business. The value of
investments and any income derived from them can go down as well as up and investors may not get
back the original amount invested. A research house that saw March's coronavirus-driven market
correction coming as early as February is recommending investors "buy the dip" if stocks fall 5-10%
from current levels.
Post COVID-19 Possible Initiatives for 2020 & Beyond:
When the situation is normal, we should follow some model to build our business:
Setup online marketing effort.
Broaden distribution channels.
Create online innovation Solution.
Expand product portfolio.
Conclusion:
COVID-19 will lead to a significant change not only in the immediate term but also in strategies,
ways of working and mind-sets of decisions makers and customers. The Government should
immediately focus on three areas: (1) job maintenance and creation, (2) provision of a safety net for
all Bangladesh and (3) resource mobilisation to support these goals. In sum, the three major
contributors to GDP – private consumption, investment and external trade – will get affected.
Reference:
https://www.sciencedirect.com/science/article/pii/S0019850120303084
https://www.dhakatribune.com/opinion/op-ed/2020/04/02/covid-19-how-will-all-of-this-affect-
business
https://www.quora.com/
https://www.accenture.com/fi-en/about/strategy-index
Name: Hasan Rabbi
Id:191-080-101
Batch:191-AMT-2
e-mail:hasanrabbi684@gmail.com
Subject: Principles of Marketing
