Answer to Question #316668 in Management for Ander

Question

Explain how businesses (SMMEs) can manage the damage caused by the Covid-19 pandemic

– what strategies can they implement? What programmes and policies can you recommend as

a business management expert?

Answer 1

The coronavirus pandemic is causing large-scale loss of life and severe human suffering globally. It is the largest public health crisis in living memory, which has also generated a major economic crisis, with a halt in production in affected countries, a collapse in consumption and confidence, and stock exchanges responding negatively to heightened uncertainties. While world-wide, the number of COVID-19 continues to increase at the time of writing of this report, in a number of OECD countries cases are diminishing, and lockdown and containment measures are gradually being lifted. Businesses can manage the damage caused by covid-19 through;

1. Staying “close” to customers. Businesses will need to make a concerted effort to keep customers engaged and reassured in the short term. Inventory planning, discounts and special offers will all help to incentivize current customers. For longer-term stability, firms should start assessing and targeting other market segments and identify opportunities for growth.
2. Stabilize the supply chain. Geographic areas experiencing high levels of community transition should be established, factoring in suppliers and inventory levels. In order to immediately stabilize the supply chain, businesses should then turn their attention to pre-booking rail and air freight capacity and using after-sales stock as a bridge.
3. Engage in table-top “practice planning”. The research also advises that the response team get together for regular “table-top meetings” to play out various scenarios. Define activation protocols for different phases of the response. Key decision makers and workstream owners should also be identified.
4. Demonstrate purpose. 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 to colleagues, clients and the wider business community.