What’s Causing Business Failure During the Pandemic?
The rapidly evolving threat posed by the COVID-19 virus has affected businesses and investor communities around the world. Covid-19 has led to business failure for many. The highly convoluted nature of today’s business environment poses a serious risk of disrupting the global supply chain, which can lead to significant revenue losses and adversely affect the global economy.
During the pandemic, we saw that companies are adopting targeted methods to protect employees and reduce financial and operational risks. Due to travel restrictions, mandatory social distancing, and domestic work, many multinational companies have reduced production facilities or ceased operations in affected areas.
Governments and businesses around the world are still continuing. In addition, due to the low probability of a pandemic happening (the last pandemic influenza H1N1 or swine flu occurred in 2009), companies tend to be less willing to invest in different pandemic management options.
However, many businesses – big or small have suffered huge losses and ultimately, shutting down completely. Many reasons include permanent lockdowns and the failing economy of the country.
Health Still Comes First
Small scale businesses or companies should make use of existing flexible management activities to provide comprehensive answers and continuity for important products and services. In addition, they should consider developing policies and procedures for the pandemic to minimize disruption.
During a pandemic, the utmost priority of an organization should be the well-being and safety of the employees. The pandemic is related to the safety of employees and their willingness to perform important duties. For a company, it is essential to monitor the situation around the workplace, provide a safe environment (although in an online mode) and the support the employees need.
Divide Your Work According to the Best Suited Geographical Locations
From a planning perspective, organizations need to pay more attention to the geographic concentration and subdivision of the key activities and functions in order to transfer work to other locations and regions. Whenever possible, the company should strive to diversify the base of suppliers, customers, and third-party suppliers in the region to avoid single points of failure and increased vulnerabilities.
Organizations should invest in tools that enable employees to work from home, conduct virtual interactions, take routine network stress tests, assess current bandwidth to support remote work, and identify solutions for critical tasks that cannot be completed at home.
Diversify Your Business Through Third, Fourth and Fifth Parties
There can be contracts between branches to outsource work to alternative suppliers in the supply chain to overcome these obstacles, especially planning areas with high manual intervention and concentration risks. However, third parties, including data processors, aggregators, payment processors, external providers, cloud service providers, and providers of products and services are also vulnerable to pandemic situations.
If the company is to continue to communicate the capabilities of key third parties, the company should deepen its understanding of key third, fourth, and fifth items and flexibility plans, and develop alternative plans, such as internal recruitment strategies.
Prioritize Interests with Customers Through Channels and Provide Information to Resolve their Concerns
Customers may have specific questions about the company’s supply chain, especially when there are resources in the affected area, and they may also have questions about how their resources may bring them potential risks when they use the company’s products and services in the future. In addition, due to the spread of fake news and stories on social media, events such as pandemics may add another layer of complexity.
In order to deliver consistent and timely business information, organizations must develop a strong communication strategy that clearly defines processes and agreements for cooperation with many stakeholders. Companies need to increase the complexity of existing testing and simulation programs in order to be able to assess pandemic preparedness. Companies should study crisis and response management to avoid business failure.
A lot of assets pass into proudly owning and running a company, whether or not it’s a food truck stand or a consultancy firm. Not all people will understand what to do on day one, from cash flow control to virtual marketing; it’ll take lots of trials and mistakes in your enterprise to excel.
In the end, do you have the persistence and resilience to live on the tough global stage of enterprise?
Better yet, what have you ever found out during all this suffering and anguish?
These are the questions to ask yourself to ensure that you’re equipped to run either a small-scale business or a large company in unprecedented times like these.