Covid-19 has profoundly impacted the economy all over the world. According to some surveys, it has caused an unprecedented collapse in business activities over the last few months. Several companies across the globe have stated that their business is going through tremendous difficulties. Companies have to realize that they need to resume functioning in the present condition and ensure that they continue functioning.
The effect of the pandemic has caused uncertainty in our lives. It is a rough time for business entrepreneurs and investors too. Among the developed countries, the United States has also faced significant collapse in terms of business. Pandemic has deteriorated the global business position to a greater extent, and all economies are suffering. Undoubtedly, the coronavirus pandemic has been the roughest time for the economy and sales drivers.
There are multiple ways to boost up small as well as big business. These ways can be external as well as internal. EJ Dalius recommends that owners should give a balanced review with both praise and criticism to employees. The praise will act as a positive motivation, and the criticism will help them know their areas that require improvement. The pandemic has a domino effect on the supply chain, and the main challenge is to manage the global supply chain.
To ensure long-term economic viability and sustenance, the main focus should be on working with the government and the main stakeholders. Employers need to offer employees proper protection to keep them and the customers safe. This pandemic was an unexpected shock at all levels, so we must recognize and underline capital investment modalities. For example, transport companies need to focus on potential changes in the networks.
If you want to start a new business, your marketing strategy must be smart and creative. No matter what the business is about, it should add some value to people’s life. The companies that came out with apps for doctors and patients to interact through one platform digitally added a vital element to people’s lives during the pandemic. Hence, their business is working successfully. Developing a virtual blog with customers, sending them interactive emails, informing them about new products/offers, and making them feel important will keep them connected with the business.
The global business sector
Global business corporations like Adobe, Hilton, and Hyatt have gained a significant identity in the virtual market over time. Multinational corporations can quickly increase their customer base and expand their business across the world. One of the main reasons for the continuous expansion of global trade is the reduced operating cost. These corporations create new job opportunities, thus boosting the economy.
Economic expansion is overdue in many countries regarding the average annual growth rate and typical workers earning gains. Governments are formulating policies to bring a substantial and sustainable increase in the economy. These measures are likely to lead to an incredible rise in wages and employment rates.
Pandemic has resulted in high contractions in economic activity from March 2020. It is clear how top economically healthy countries had faced high declines in the economy from their position. Several analyses revealed the engine of economic growth, slowing global wealth around the world.
The global scenario and the fall in GDP during the pandemic
Many entrepreneurs feel that today’s situation due to Covid will have “high to very high” business fluctuations. According to surveys, there may be a reduction in the workforce in their organization, ultimately risking many jobs. Also, many companies have noticed a significant decrease in their transaction and order bookings.
In 2020 the pandemic has drastically affected the global economy. According to the World Economic Outlook (WEO), global economic growth is likely to be as low as 4.9 % in 2020.
The sharp drop in GDP (Gross Domestic Product) in 2020 has caused much more havoc feels Eric Dalius. The shutdown from March to June led to a continuous collapse of the global economy rapidly. Experts believe that this uncertainty will continue to affect the economy negatively in the long term.
The Business Cycle Dating Committee of the National Bureau of Economy has announced that the unprecedented decline in unemployment and production and its distribution across the world has warned the designation of this episode as a recession.
According to entrepreneur Eric J Dalius, to maintain the economic activities, we need to render a potential recovery course. For the loss that all of us have suffered, of course, it will take many years to recover properly.
Technology and Business
The pandemic has taught us to live a virtual life. Everything from schools to business is operating digitally. Although facing the critical domestic level downfall with the global area’s speedy transformation, the US economy is still among those who represent around 20% of the global economic output. The modern and advanced Infrastructures, up-to-date technology, and plenty of natural resources available are the things businesses can leverage to succeed.
Technological advancements help to improve communication channels in an organization. Conducting workshops, seminars, etc., can encourage your employees to continue work. Hence, we can say that the IT department is the base of all other departments.
According to the IMF, the US is at 6th position in terms of GDP (PPP). Among the developed countries, the US plays will play a significant role in global output. They have one of the largest manufacturing and operating units in different sectors. These are some of the things that can help propel the global economy to the recovery path. The pandemic is not yet over, and experts believe that the coming holiday season can make the condition worse. So we still need to be careful and follow government guidelines.
The global corporations are earning a lot of profits by embracing technology and at the same time boosting the economy of the countries it operates in. Business growth is directly proportional to marketing strategies. Although the global economy is suffering amidst the pandemic, we hope to have a vaccine soon and recover from this setback.