John Giorgi explains the ongoing pandemic has changed the current scenario of business operatives. However, administrators must see beyond the global pandemic.And consider other international issues to reshape how businesses operate in the 2020s.
The pandemic has been making headlines for the past year now, but it is just one of the factors that are constructing businesses’ functioning in this decade. COVID-19 is likely to have a lasting effect and an impact far beyond your imagination on the business world. But along with it, factors like systematic mistrust, climate crisis, and damage international relations seem to be an ongoing issue and will impact businesses.
Business owners will have to grapple with several challenges during the 2020 era, but the struggle may even give rise to better opportunities for business people.
Effects of COVID-19 on the world economy by John Giorgi
The influence of the pandemic mostly depends on how long the pandemic lasts. A shorter time will result in people reverting quickly to the pre-pandemic way of functioning. The longer the virus persists; there is the probability that the pandemic will have a lasting impact on society.
- It would help if you considere how societal behavior is being affecting due to the pandemic. Including hygiene and personal space regulations, family gatherings, and social interactions. Further, it is also affecting the ratio of savings and buying habits of customers.
- Credit crunch and stagnation is another major issue, says John Giorgi
- Although the pandemic presented a clear view and was a catalyst for the credit crunch, market crunch, and subsequent stagnation.The absolute truth is that businesses are already taking precautions and are very fragile. But business owners did not expect the heavy damage that was caused by the pandemic.
- You can look forward to utilizing remote work and electronic commerce for improved infrastructure and targeted purchases. It will help in accelerating the online business journey.
Trust among consumers
Even before the pandemic hit us, consumer trust was at an all-time low. As the borders are being closed. Conflict for vaccines and fights over masks, sanitizers has presented mistrust among consumers and global citizens. Even close trading allies have been a target of suspicion. It has led to a widening of the gap. But, it is a possibility, if seen futuristically, a common enemy as the virus may help in initiating empathy among people. It can also further develop cooperation and a common goal.
According to John Giorgi business owners should focus on customers who will be loyal to long-term brands or change to those that offer supply of limited goods in times of need. Assess if the shift in consumer behavior is due to actions taken. Connecting with consumers on a personal basis may help overcome feelings of mistrust.
Productivity growth is slow, along with an inadequate focus on its regulation, has provided slow economic growth in the past few years. The onset of the pandemic has further lessened productivity and has brought complications in the functioning of businesses. The expenses of functioning in a world that gets socially distanced have increased by a significant amount. Moreover, it requires reconstruction at a hefty rate to return to pre-COVID growth.
With the onset of issues like credit crunch, recession, climate change.And an add-on issue, COVID-19, businesses need to reconstruct their operations. As it is likely that the 2020s will cause severe damage.