The Impact of Coronavirus Pandemic & How Businesses are Waking Up To This
The outbreak of the new Coronavirus has posed one of the biggest threats to the economy and financial markets worldwide. Declared as a pandemic, coronavirus has infected a large number of people and affected many countries. And to contain the spread of this virus, cities and countries are being locked down while immobilising activities of humans and suspending business operations. Though these containment measures are opted by the Government, it has drastically pulled down the global economy.
Impact on the economy:
The widespread lockdown has restricted many businesses or industries from functioning. And if containment measures are taken disproportionately, it could bring in a panic situation and furthermore weaken the economy and crash global markets.
On service sector:
People are restricted from travelling and are confined within their homes. The demand for services including restaurants, retail stores, household services, aviation, etc. has dropped by a huge margin. And those who earned from these services are left in trouble.
On manufacturing sector
The workforce has been affected by the virus and we are witnessing a slowdown in the manufacturing sector. Although, certain businesses have been asked to resume operations to ensure availability of staple food, groceries, medicines and other necessities.
On stock market:
Coronavirus outbreak has resulted in lower bond yields and crashed stock markets. Its impact is huge and has hurt the sentiments of investors, resulting in plunging stock prices and bond yields.
How are businesses helping to cope with the pandemic?
1. Being flexible in their operations
Companies have gone online! They have identified & planned ways to encourage social distancing by shifting their workstations to home. By this, companies ensure proper flow of business activities with the support of online means of communication. Prior to all these, businesses should assess their key functions and be updated with business continuity plans.
2. Stabilising supply chain
The need of the hour is to ensure that the supply chain is not adversely affected. Businesses must have a clear observation over their supply chain and must put contingency measures for key suppliers whenever required. And the key objective is to prevent scarcity of resources and availability of commodities for all.
3. Playing a prominent role in the broader solution
Plenty of businesses are coming out with valuable contributions and innovations that help tackle the pandemic. Be it the supply of essential commodities or unique products/services, such actions induce a larger impact towards bringing back stability. From Amazon to Alibaba, Microsoft, Tata Trusts and many more, the relentless efforts of businesses definitely acts as a supporting pillar in situations like this.