Exit strategy from crisis
The COVID 19 outbreak that first appeared in China in December 2019 has both psychological, vital and negative economic effects on human health worldwide. Of course, we can say that we have seen the peak of the first effects of the epidemic without ignoring the possibilities of the second and third wave.
When we take a look at the world economy, starting from the Far East, where the effects of the epidemic decreased, both the health threat tends to decrease and the signs of economic recovery began to emerge.
The Supply Chain problems, which are considered as the most important economic problem at the beginning, disappear, the oil prices are coming to a balance even if it is slow, the commodity market is positive, and the financial markets have started to compensate for losses (for example, the NASDAQ index). Developed economies are likely to recover faster than developing countries – because the financial opportunities they put into operation are wider … Of course, China and India differ as advantageous countries in the category of developing countries.
Inflation is also open to surprise results on a country basis, and we will be able to see the situation more clearly in 2021. Nevertheless, the biggest problem will be at the employment level, which seems to trigger further pre-epidemic blood pressure and migration worldwide. The fact that unemployment has reached record levels in the USA, and is still on the rise, is due not only to financial problems but also to the country’s labor legislation and the habit of firing employees first in financial problems. The websites of the companies have a splendid vision, mission and, more importantly, a series of values, but the smallest problem is ’employees out’ … I invite you to think only a little humanly. In the meantime, I do not encourage layoffs by evaluating technological investment opportunities, which are among my exit strategy proposals, which I will present a little later; on the contrary, I am talking about practices that increase people’s productivity.
As for companies, even if the problems occurring in the supply chains are balanced, the problems in the demand leg will continue since people are under social isolation and this situation will not come close to at least until the end of 2020. This situation puts great pressure on cash flow and budget in companies. In an environment where both growth, profitability and cash flow are under pressure and in the surveys conducted worldwide, only companies that are in the range of 2 to 5% of the epidemic, the adaptation strategy for the new norm – on a company basis – needs to be carefully planned and implemented and perforated.
As for my suggestions;
• The Company’s Top Management Calls Again Against ‘What’ and ‘How’ Questions by Focusing on What Happened
• Demonstrating the Sincere Approaches to the Employees, Creating a Developmental and Transformational Structure in the Corporate Culture
• Realization of the Current Due Diligence in a Realistic and Accurate Way (Including Analysis of Protective Trends in Sector, Country, World Economies and Foreign Trade)
• A New Normal Vision Should Be Revealed For The Company After Damage And Resource Analysis
• Working on the Necessity of New Business Model (Products, primarily Consumer-Buyer Analyzes, R&D, Exiting Some Business Lines – Entering, Evaluating Company Purchase and Merger Opportunities, Also, Doing Basic Analysis of Trends and Failing the Company to Adventures, On Its Competitive Advantage the focus)
• Preparing the Financial Framework of the New Business Model with Different Scenarios and Starting Implementation
• Planning and Implementing an Organizational Structure in line with the New Business Model (The most urgent issue here seems to be business processes).
• Making the Strategic Decision and Planning for Remote Work
• Producing Employee Friendly Technological Solutions to Make the Operational System More Economic and Efficient (Strategy can be followed according to financial structure and new business model. Step by step or some radical changes).
• Establishing a Fast and Flexible Decision Making Mechanism by Transitioning to a Structure That Simplifies Hierarchy Stages
• Strengthening the Security and Control Mechanisms (Especially Considering that Remote Work Will Enter an Increasing Trend)
I would like to remind you that my suggestions are taken into consideration on the basis of the company’s unique conditions. Even when we look at the past century, what crises have we seen? The fact that leaders create unique and transformative solutions in their companies with the ‘this passes through’ mentality is of great importance on the economic ground, which has become even more slippery.