The Effects of Corona Virus on Business Life
All of us have already memorized that corona virus firstly appeared in China and then month by month affecting the global economy. Really it is disrupting every major business areas from food industry to tourism, transportation to automotive, electronics to technology industries.
It will have much more impact on global business environment than Ebola and SARS Corona-viruses.
OECD has just decreased the global growth estimated figures to 2.4 % from 2.9 % for 2020 because of corona virus. The analysts estimating only China’s GDP growth would be less than predictions by 0.5 % this year. This figure will affect at least 0.1 % of global GDP growth. I hope that these figures will not be seen too optimistic when we look back in next year.
Let’s make a surf on some highlights of Corona (COVID-19) virus outbreak effects:
- The entities are remaining without some key personnel sources.
- Operational business processes affected much.
- Commodity prices are declining mainly because of China’s economy low demand level.
- High negative impact on supply chain processes.
- Tragic decreases at some other consuming items of China such as luxury goods, travelling etc.
- An inability situation to deliver products or services to customers.
- Low and slow coordination level at global governance activities.
- Some of the factories have been shutting down because of either being located in the middle of the corona virus outbreak areas or low products demand or lack of supplying necessary materials for producing goods.
The current situation of global economy becomes more and more complicated and also some of the problems are deepening. Until now there is no credible sign that the impacts on the business life about to ease up. For this reason, companies should follow the outbreak process very carefully.
Before writing this article , I have searched the meaning of ‘corona’ and found out it at Cambridge Dictionary. It is defined as ‘a circle of light that can sometimes be seen around the moon at night, or around the sun during an eclipse’.
So, this period is a typical opportunity and risk management period for almost all companies. Building an efficient organizational & financial structures and agile administration concept will create for some companies ‘corona’ type opportunities; and vice versa will create for the others ‘corona virus’ type risks.
Head of Consultancy at TDG