7 Recommendation for the Consequences of Corona Outbreak from the Management Consulting Perspective
In this paper, we will investigate the qualitative and quantitative consequences of the coronavirus outbreak in various information technology scenarios and on world economic growth.
According to the baseline scenario, the persistence of coronavirus outbreaks worldwide and the transition to new societies could eventually lead to a 0.5% to 2.5% decline in world GDP in year 2.
But improving demand levels will depend on decelerating rates and as with the flu in New Hampshire, the rate seems to be slowing as the weather gets warmer.
The cynical scenario assumes that the virus is not “seasonally” high and will continue to grow and proliferate throughout the year. In such scenarios, there will be a significant impact on the growth of the global economy, leading to a recession.
In both scenarios, in addition to reducing consumer demand, companies must also consider the challenges that will arise for the supply chain. Most companies that supply their parts and goods from Chinese factories are now well aware of these challenges, and instead of deciding to withdraw their supply chains from China, they have taken stabilization measures until Corona recedes.
1- Employee protection:
The current crisis has been emotionally challenging for some, and has made daily life unprecedented. For companies, perpetual business is no longer an option. These companies can implement a plan and support the collection staff in a way that is in line with prudent guidelines.
2- Forming the Opportunity Team:
Companies must assign people of any expertise necessary to the team. In addition, in many cases, team members have to give up their daily roles and often devote their time to dealing with the Coronavirus. There are common working principles for most companies, such as maintaining staff health and property, financial stress testing and emergency planning, supply chain monitoring and rapid response to the crisis, responding to market shocks and falling demand, and ultimately Coordination and communicating with other executives noted.
3- Keeping Cash Flowing Through the Storm:
Businesses need to anticipate and develop scenarios in line with company policies. For the critical variables that affect income and expenses, they can identify financial accounts such as the cash flow for each scenario and identify and execute the drivers that are largely effective on liquidity, such as cost savings.
4- Supply Chain Consolidation:
Companies should identify the scale and timeframe in which their supply chain may be disrupted. Most companies quickly focus on the immediate consolidation of the product chain. They should also consider booking their freight lines and their readiness as well as preparing their supply chains. In addition, when supply chain disruptions occur, companies must use these resources in line with their more important products.
5- Maintaining Customer Relationships:
Companies that monitor supply better often succeed because they anticipate investing in their core customers and their behavior. In China, for example, consumer demand has not declined, and people are increasingly moving to online shopping to supply all goods and services. This process also includes ensuring the quality of products sold online.
6- Schedule Practice:
Many professional teams do not spend their time properly understanding the needs needed to plan an emergency supply unless they are caught. This is where roundtables and workshops can play a valuable role. Companies can use modeling to illustrate the activation protocol in various emergency response phases. You have to make sure that each team’s role is distinct from the others.
Businesses are as powerful as their communities are. Companies should strive to understand how to support emergency response efforts for example by providing money, equipment or expertise. For example, some companies in China have switched to producing masks and special clothing by changing their business.
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Cyber security awareness
By Alireza Shaban Ghahrod
Cyber Security solutions senior consultant
CISO as a service