How Companies Should Respond to the Coronavirus
The coronavirus outbreak is definitely a human tragedy story. But the economy is going to struggle tremendously, and the true magnitude of these costs has just been confirmed. The spread of the virus affects the nation to different degrees, each following a common trend. Governments across the world must take urgent and drastic action to protect vulnerable people and minimize harm to their economies.
And what do companies of all sizes and types do to protect themselves from long-term financial losses? Here are some steps businesses and companies can take in response.
Build a cross-functional response team
Organizations need to set up a dedicated team to ensure effective yet organized control of processes that improve the health and safety of workers and customers. The team should be headed by a CEO or someone with a similar rank. The emphasis of the team can be divided into five separate tasks:
- Management and well-being of workers
- Financial burden assessment and contingency planning
- Monitoring of supply chain
- Marketing & Distribution
- Any other business
Specific targets should be set for each of them, according to the standard weekly schedule. Items should be listed with minimal functionality, with a milestone calendar to be periodically established in the coming weeks.
Negotiation with existing stakeholders
Depending on how badly your company or industry is affected, you might need to make some difficult decisions. If your business has a contingency fund, it will only last for a certain amount of time, when your income and earnings are diminishing or wiped out. It is important to be cautious in taking steps to reduce this slowdown.
Any company will choose to reduce or reduce wages or benefits for workers for some time or delay compensation before recovery takes place. Others may, unfortunately, have to ask people to take unpaid leave or leave. Whatever decisions you make, put the employees first and the shareholders last in a crisis.
Take time to negotiate with the landlords permanently for rental vacations or reduced rent for the year. This situation is likely to last at least 3 to 6 months until any sign of recovery is seen. It could make a difference between staying in business and closing down fully.
Innovate in survival and recovery
This can seem like a good time to sharpen skills, take time to reflect, find different ways to work, and find new ways to add value, particularly in times of crisis. Time is of the heart of it. Helps to deal with it. Today, churches offer online services, and merchants who are hesitant to sell at home set up e-commerce stores and retailers. There are always ways to keep on working, even on a small scale. Team members and try out these options.
Stabilization of supply chain
Geographic areas with a high level of community transition, supplier factoring, and inventory levels should be identified. To immediately stabilize the supply chain, companies should turn their attention to pre-booking rail and air freight capacity and use the after-sales stock as a bridge.
To achieve long-term sustainability, companies need to better plan consumer demand and make their logistics network more flexible.
Stay close to your clients
Businesses would need to make a concerted effort to keep consumers interested and optimistic in the near term. Stock preparation, discounts, and promotional deals can all help to attract new customers. For longer-term stability, companies should begin evaluating and targeting other business segments and recognize growth opportunities.
Donations are a major response to natural disasters such as COVID 19. In addition to good moral practices, there is a practical link between community service activities and future financial performance, better relations with government officials, and the justification for dignity. Businesses that understand the stresses on the health care system in a medical emergency are more likely to do better than other businesses. Charities funded by local businesses are especially strong and supportive.
Demonstrate the goal
Businesses of all shapes and sizes should endeavor to support efforts to contain the spread of the virus wherever possible. Demonstrating this sense of purpose will have a positive knock-on effect on colleagues, clients, and the wider business community. Businesses of all shapes and sizes should strive to promote attempts to prevent the spread of the virus whenever possible. Demonstrating this sense of mission would have a positive influence on employees, customers, and the broader business community.
Stakeholders must be prepared to recognize that what we see today is a new reality: disease and other forms of environmental hazards pose a significant global challenge to business continuity. The ideas outlined in this article will go a long way to ensuring that your company can remain in the company during the CoVID-19 crisis
© 2020 Meshack Muia