This article is written by Sourav Rout
“The Time that reminds us about the real significance of time, has a timely call to our sort of time for which we all have been waiting for.”
– Sourav Rout
Future Impact of Covid-19 in our society
Corona Virus would surely exist for a longer duration of time in our society. This virus can’t be chucked off in just a single stroke, rather it needs to be handled effectively by the people. Along with this, preventive measures such as Sanitization, Social Distancing and Washing Hands in equal duration of time should be taken care of.
Impact of Covid-19 on Business
As far as Business is concerned, all the manufacturing industries, production units, offices and workstations are being shut for about a month, leading to no production and sales. It has further led to heavy loss incurred by the companies as the rate of generating revenue has fallen down drastically. This fall hurts the most, as most of the industries were neither aware of something this bad would happen nor were prepared to face such a situation.
Considering the Indian Market, around 50 per cent of Indian Companies see an impact on their operations and nearly 80 per cent have witnessed a decline in cash flows.
The country is already experiencing a slowdown in growth. In the third quarter of the current fiscal, the economy grew at 4.7 per cent, slowest in six-year. The impact of the Corona Virus on Indian Economy has been so hard that the economy is likely to grow at 2% in FY21 as per Icra.
Currently, this pandemic has caused an impact on the Demand and Supply-side elements which has the potential to detail the growth story, according to a poll conducted by industry body FICCI.
Impact of Covid-19 on Employment in India
Most of the employees will be continuing to work from home. It is observed and can be clearly stated that the teams involved in completing a certain project will certainly keep on getting smaller in due course of time. Most of Business depends on Technology and ERP. Due to this pandemic, around 60 Lacs Jobs have gone in India. Now, around 14 crore jobs are still in danger in terms of getting employed and withstanding employment.
Which Sector of Business has been affected the most due to this Pandemic in India?Sectors that include Banks, Airlines, Real Estate, Entertainment (PVR, Inox etc) and Travel & Tourism have been affected the most due to this pandemic. Indian Travel & Tourism Industry suffers losses as high as Rs.200 crore due to CoronaVirus outbreak.
Similarly, Investment Banking companies have also incurred heavy losses due to the inability of making business and generating revenue during this Pandemic.
Which Sector of Business has made the most during this Pandemic in India?
Non-Cyclical sectors such as FMCG and Pharma have made the most during this Pandemic. As they sell the products which are termed as the necessary commodities, the revenue generation was never affected due to this pandemic.
How to regain pace in your Business, post-Corona?
The business should target on improvising their set of deliverables. The industries which rely on the factor of Profitability have higher chances to gain the pace. Though there are fewer chances of a sharp recovery considering the sharp decline of the economy, this tendency in growth is supposed to follow a longer duration of recession due to a deep decline in the economy and the growth is supposed to be substantial and gradual. This growth can continue for a duration of about 2 years from now until things fall back into the track as far as the revenue vs profit is concerned for the particular company.
The companies who have higher take on controlling Administrative costs have a higher chance to get over this phase and regain pace in their business. In this situation, the Industries should not plan to hold up their inventories rather should come up with proper high-end discount offers and should clear out all their stocks.
Companies should try to avoid CapEx (Capital Expenditure) as much as possible. Though this financial outlay is made by companies to maintain or increase the scope of operations. But before expanding your operational domains, you must target to fix and restore the core stability of your company that has been badly affected by this pandemic.
How to build faith in your employees, post-Corona?
One of the most effective ways to deal with your employees is to have conversations through Video Calls instead of having conversations over a call or via texts. By interaction through Video Calls, we can measure the value of involvement of an employee in the current project or his dedication towards the organization.
The Company must identify the Critical Scenarios that might involve the employees in a state of conflict in terms of their work and contribution. Various Employee Engagement programs should be taken up in order to hold the employees altogether. Their performance should be measured by means of various Dynamics of Employee Engagement.
How to connect to Vendors, post-Corona?
A company must try to locate the Vendors as per their requirement and must list them out in order as per their priority. In a situation where you need to maintain the gradual growth of your company, Vendors play a major role in your business as they are the ground-level workers who determine the scalability of your sales. Hence, in order to have them with you, you must make their payment in time.
Risk Management and keeping the supply-chain under control must be the target of the companies in business making post-Corona. Estimating the overall performance of your company and sticking to all the basic fundamental tactics of growth making will definitely help your business to grow and re-adapt to the market and generate more customers in due course of time.