Economics Assignment: Impact of COVID-19 on Business& Society

Question

Task: Develop a detailed report on economics assignment examining the impact of COVID-19 on business and contemporary society.

Answer

1. Introduction
The perception of pandemic diseases has been a long tradition. There was no question about when or not if the epidemic will continue nor whether new outbreaks would come. The influenza pandemic events are ongoing biologic processes that cannot be avoided realistically. The creation of new virus subtypes from re-sorting appears to have pandemics over 10–50 years(Oldekop et al., 2020).As the world’s population grows and we have to live closer to wildlife, new diseases would possibly be introduced much more often to the human population(Chakraborty & Maity, 2020). Society as well as the global business come to a risk and economy of the global business seems to be decreasing due to the global issues. Contemporary society should make an attempt to learn about the effects of pandemics to brace our business and economy if anything happens again and more likely.Since we are in the midst of a pandemic outbreak, the long-term consequences are very difficult to predict(Hao, Xiao & Chon, 2020). While society has suffered from many pandemics in the past, the long-term fiscal, behavioural or cultural ramifications remain impossible to predict because these factors have not been explored thoroughly in the past.Restricted analyses suggest that the large historical pandemics of the past decade are typical of correspondingly lower asset returns. Therefore, this report has been made to analyse the various impacts of the noble coronavirus pandemic on business and contemporary society. In this study, various aspects of the problems and challenges caused due to the COVID-19 also been explained in details(Verma & Prakash, 2020). Sequentially, the problems faced by the global business and worldwide society has been elaborated. This study will also help to determine the current situation of the impact of the pandemic on the businesses and society. In the latter part, the report findings will help to determine the recommendations that are necessary for future preparation to fight against such circumstances for society.

2. The Concerned Problems and its impact on the global business and contemporary Society
The Covid-19 epidemic has disrupted the world’s political, societal, technological, religious and financial systems. Top economies like the “United States,Italy, China, Germany, the United Kingdom, France, Japan” and many more are on the brink of failure(Gössling, Scott & Hall, 2020). In comparison, worldwide financial markets have been battered, with oil prices crashing off the cliff(Hao, Xiao & Chon, 2020). A week later 3.3 million Americans applied for unemployment, 6.6 million more people began to look for jobs(Baldwin, & Tomiura, 2020).Many analysts and financial commentators have also cautioned that the global economic and financial system is getting worse. “The recession after the global economic crisis is at least as bad as it was and worse” (Verma&Prakash, 2020). Covid-19 also harms the global economy because, since the world’s economic situation has been the most dynamicand decreased(Oldekopet al., 2020).If it comes to the human expense of the coronavirus pandemic, all nations have to work hard to protect human beings together with cooperation and to minimise risk to the economy. For example, the lockdown has limited many businesses such as travel to suppress the virus so that the business ceases suddenly worldwide.

People are less interested in spending and more interested in saving our money following a pandemic, which results in a decline in economic growth. Given that saving money means negative returns in the present scenario, it is absolutely not clear that we are as conservative as we did in the past. The changes in behaviour associated with pandemic outbreaks tend to be related to personal safety(Chakraborty & Maity, 2020).For example, the use of facial masks rather than improvements in overall behaviour. As people in western society, the lives are more focused on relaxation rather than concern over what might happen in the future. Humans are utterly unprepared for wide-ranging diseases on a systemic basis. Our economies are more accessible than ever. Instead of having them close to where they are required, we rely on importing essential goods like food, electricity and medical equipment. They still have no initiative in preparing for pandemic outbreaks.Performance and economic profit rather than protection appear to be the driving philosophy of our culture. After the latest epidemic, this might change. It is also important to point out that the values on which culture is based (e.g. openness and free trade) have taken a great many countries out of poverty and have created well-developed economies around the world. Our economies are not unlikely to undo any of them, triggering greater worldwide hunger. The pandemic outbreak of COVID-19 led to the closure of several businesses, leading to unprecedented trade instability in most industries(Gössling, Scott & Hall, 2020). Distributors and brands face various short-term problems, including health and safety problems, supply chain challenges, staff, cash flows, customer appetite, revenue and promotions. But it will not ensure a bright future or a future to survive these obstacles effectively(Haleem et al., 2020). This is because after this pandemic comes in, we arise from the pre-existence universe in a completely different world(Donthu, & Gustafsson, 2020). There are no longer many markets, particularly in tourism and hospitality. All corporate functions have to prioritise and optimise expenditure or postpone tasks that are not useful in the current environment. Firms also imposed an indefinite moratorium on recruiting, particularly start-ups(Corbet, Larkin, & Lucey, 2020). In addition, there is exponential growth in online networking, online entertainment and shopping

Figure: Impact on business due to the global issue in different countries
(Source: Haleem et al., 2020)

Taking into account the stormy situation of G-20 nations, an emergency conference was convened to discuss deteriorating circumstances and to formulate a plan to tackle Covid-19 as casualties could be minimised. The spread of the disease is accelerating and causes more financial harm(Jiang, & Wen, 2020). The US official in federal reserves reported that US unemployment would decline by 30% and its economy would decline by half(Oldekop et al., 2020). As regards the employment of average citizens, the real challenge is also the lack of work since the recession shows that businesses may not be able to compensate staff, so they have to abandon them(Brammer, Branicki, & Linnenluecke, 2020). Although Covid-19 badly damages the stock market, like the US stock market is around thirty per cent smaller.In looking at the present state of several industries, several investors have already withdrawn $83 billion from emerging markets from several firms since the Covid-19 outbreak(Baldwin, & Tomiura, 2020). Thus, when people do not buy money, corporations don’t have sales so much of the firms shut down stores, the effect of Covid-19 is serious on the economic system of the country(Donthu, & Gustafsson, 2020).

The Commission also discovered that only by 2021 would the economic recovery from the deadly outbreak have a major economic impact, and several hurdles for the countries to return to a stable state. In most countries, almost 80 countries have already called on the IMF to provide financial help, which in recession and the disintegration of their economic structure, suggests the awe-inspiring circumstances(Corbet, Larkin, & Lucey, 2020). In addition, the distribution of coronavirus is unknown and unpredictable.So the OECD says that by 2020 world growth will be halved to 1.5% if the virus persists in the spread. If the virus continues to spread, global growth will be decreased by half to 1.5%(Verma & Prakash, 2020). Many analysts have already forecast the contraction but there’s a little guarantee, and still, nobody knows how hard to forecast the effects of this pandemic and how long it will be. In addition, a large part of the economy and lockdowns will have an enormous effect on what will and cannot be generated”(Brammer, Branicki, &Linnenluecke, 2020).

As Covid-19 has now been a catalyst for the closing of several firms and the closing of stores that today look vacant. Therefore, many economists are afraid and have forecast that inflation will result from the pandemic(Gössling, Scott & Hall, 2020). For example, in a worst-case pandemic scenario, Bloomberg Economics cautions that “full-year GDP growth might collapse to zero, “Different markets and economies appear to be more vulnerable due to this pandemic, such as the outbreak affected both demand and supply, as a result of sluggish activity, Foreign Direct Investment flows may decline by 5 to 15 per cent’(Corbet, Larkin, &Lucey, 2020). The most affected businesses, for example “the leisure and travel sectors”, “hotels”,“restaurants”, “entertainment”, “consumer goods”, “financial markets,”“transport” and “health systems,” have also been vulnerable.It is also likely that we will see another epidemic in our lifetime, as evidence suggests that pandemics are recurring occurrences. It is clear to all that the latest pandemic has had enormous, but probably short-term, consequences on all our lives. For weeks, countries have locked their doors, prohibited the travel of their people, and even limited people to their homes under quarantine. As we are accustomed to freedom of movement, this is a very unique phenomenon, but in the aftermath of the pandemic crisis, persons have been fined only for being outdoors(Oldekop et al., 2020). While our cultures appear to be very mindful of these restrictions and criticise persons who do not obey the laws, we ought to question ourselves how this can impact our society’s beliefs (e.g. beliefs on freedom, health care, political intervention).It should all be mindful that infrastructure and routines for tracking residents have been carried out in order to restrict the dissemination of the epidemic, and so we should ask ourselves if we can accept tracking in the future(Jiang, & Wen, 2020). It must understand that it is extremely unlikely that they can be phased back after these programmes are in operation(Chakraborty & Maity, 2020). In addition, the governing politicians have taken advantage of this situation in certain countries and expanded their influence over the state, undermining dissenting viewpoints and thus endangering democratic processes.

3. Current situation of the global issue
People have been limited to their houses, as previously described. There has also been a relentless stream of reports about an unknown external danger that we cannot defend ourselves from. Individuals were busy trying to figure out how best to defend our dear ones and ourselves. In addition, many feel fear when they lose their jobs or live in close proximity to potentially dangerous individuals while society relies on them doing their work.(Verma & Gustafsson, 2020). In various ways, the effects of the pandemic epidemic have impacted diverse segments of society. People who work in healthcare-related fields have to experience countless jobs and very long working days(Alonso et al., 2020).The sector that has seen the highest fall in unemployment is materialistic in nature and includes the physical component of the consumer (e.g. restaurants, leisure and entertainment). Since demand for this activities ended. The workers tend to be more liberal and younger in these sectors(Tison et al., 2020). Past experience also shows that it is very difficult to get back in if someone is outside the work market, since they may face additional competition that might be more qualified.

All countries that will try to boost their business to maintain their required infrastructure alive to the full degree possible and to keep people productive or prepared to become productive after the pandemic is overcome. Not only do people need work or a means to support themselves in order to prevent society from collapsing, but they still need access to what they consider as necessary goods and services(Verma & Gustafsson, 2020). If there is no such infrastructure, Society tends to engage in what is called uncivil behaviour (e.g. hoarding or looting).Countries across the world have implemented very different approaches in order to deal with the current stress on multinational industry and infrastructure. To help them stable their workforce, some nations have preferred to support businesses, while others with fewer funding will not do the same. Countries have also been directly supporting their population in numerous ways. Therefore, experts have a vast amount of rich experience to determine the best solutions for when and if a global tragedy happens in the future.

Societies in lockdown across the world, and people are asked to respect social space and sit at home. Feelings of isolation were related to lower cognitive efficiency, negativity, depression, and vulnerability to social challenges, among other factors(Jiang, & Wen, 2020). There are evidence of this in the new pandemic with increased domestic crime, quarterly fights and gun purchases.However, we have also observed a rise in other, more constructive modes of action that have not been studied, triggered by social distancing. Individuals have been nesting, discovering new talents, and taking more care of where they live. Purchases of cleaning items have also risen, and more garbage is being recycled. People eat more junk food at the same time and clean ourselves less. People are still collecting supplies, shopping, and moving to remote areas. This is an indicator that is happening to the society and the attitudes is complicated, and further researching this phenomenon will be important. The extreme growth in the use of the Internet and social media is another result of the lockdowns. The previous study has found that people who feel alone tend to use social media more and also choose social media over physical contact in certain instances. By trolling or posting fake news, social media could even bring out the worst of us. This is, to a degree, not as harmful as the “true life” in the physical world is lived and the Internet is a “build on” with little effect on the physical world in most situations.Through this, it will compartmentalise and discern between what matters and what does not matter. The current scenario, though, has made social media the predominant method of messaging people or socialising with them. The Internet is still now, in many ways, the preferred means to access vital supplies and to access essential care, such as visiting a doctor (Guan, Deng & Zhou, 2020).

Society depends on the senses to a great extent in all circumstances of life, people are created to use the circumstances. Thus, when making decisions, we depend on them heavily. The present loneliness, though, deprives us of our senses, since we are not used to as many sensations as normal. So culture is stolen from stimulus both people and are advised not to over pass the authorities’ senses andpeople can’t touch anything, wear a mask, or approach other people. And what happens as we loosen up our cultures? When we are deprived of using them to some degree, how long will this fear of using our senses persist and will we be over vigilant for a time, or can we try to cope?There are also some facets of society and this particular issue addresses several others(Guan, Deng & Zhou, 2020).

A business outbreak due to the global issue
The COVID-19 epidemic is predicted to lead to bankruptcy for many famous brands in many markets as clients stay at home and economies close. Tourism is greatly affected; 80% of hotel rooms are vacation destinations. Airlines slash 90% of their workforce and in 2020 it is unlikely that they will benefit from travel destinations. Furthermore, shows, conferences, sports, and other major crowds were abruptly withdrawn, as were artistic organisations, such as galleries and museums.Consulting and personal services, such as hairdressers, gyms and taxis, have also ceased because of lockdowns. In the end, major corporations like the car, bus and communication industry closed abruptly, even though they started to open two months after the closing. There are an endless number of questions we might ask ourselves in connexion with this very abrupt close-down.

Examples to support the impact of the global issue on various business and society
How do we take care of employees in those cases, for example? Why businesses are not well-positioned to cope with certain scenarios (e.g., setting away profits or dreaming about potential revenue sources)? What do corporations and even nations leverage the present situation to boost their competitive situation? China, which is purchasing European-based infrastructure and technologies, is one of the nations that appear to be exploiting the condition(Tison et al., 2020).

While certain businesses fail, some firms prosper. This refers to many industries across the Internet, such as video entertainment, grocery delivery, shopping video, online education and solutions for remote jobs(Hall et al., 2020). With more time spent in our households, people have shifted their dining behaviour, more the take-out, sweets and alcohol stores, and also cleaning supplies.

Many businesses that do well are those linked to herbs and supplements, as well as nutrition and medicine. Usually, it is believed that they are stagnant when analysing economies, a logical inference because they appear to shift slowly. If there is one thing the epidemic of COVID-19 has taught us, though, it is that economies are competitive and can change quickly. In addition, a business is not just a company; it is a network of actors operating in compliance with a set of principles (i.e., businesses, clients, public organisations).

The complex environments that exist to produce value are often referred to as these structures. A rare chance to research how economies are formed and how they vanish over a relatively short amount of time is the COVID-19 epidemic. It will also be important to investigate why one option for the business may be replaced by another (e.g. electric combustion engines or physical teaching engines for online teaching) if it disappears.

The Culture has been more cautious and protective since the pandemic epidemic, relying on historical events. When the unthinkable happens again, we save cash and brace ourselves. Countries start to store or prepare locally to produce goods such as food, equipment or medicine. It is also essential to provide reliable, non-cracking supply chains for larger multinational firms. As a result, it is possible that this pandemic will help industries to rethink their supply chains and possibly to bring supply chains closer to where they are needed in order to deter stop production in the future. Officials have suggested that other citizens from other countries became vulnerable because they can carry the virus. A closed border guarantees that the danger is external. Moreover, international flights will definitely not be an option for anyone in the coming years. Combined with these dynamics, the country would be more imperialistic and less globalised. This can be dangerous as long-term protection against the impact of a pandemic outbreak could result in multinational effort and distribution of capital. Such collaboration is also important in order to address other future global issues.Customers learn to adapt easily and adopted an improvised strategy to tackle government-imposed restrictions. Constrained demand will lead to a big turnaround in sales of durable goods, such as vehicles, apartments, and large appliances, and some of COVID-19’s realities will soon place customers in a purchasing mood.

Using emerging technology has kept people connected around the world, either through downloading resources or exchanging information sites like Zoom. Digital science is a must instead of a choice for universities, companies and healthcare providers. Internet shopping is more common in many countries, including shopping for foodstuffs.The ability to do something at home has changed the spontaneous buying patterns of customers. Slowly but gradually, as all activities are carried out from home, work-life lines can be blurred. In order to make this a more productive mode of living, there should be attempts to compartmentalise the two activities(Poudel & Subedi, 2020).

Meetings with friends and relatives, particularly for individuals who work and live away from their homes, are now limited to digital experiences. Because of advanced technologies, it should foresee a drastic shift in the actions of customers. Furthermore, buyers will explore new skills if they spend less time on the streets much more at home. (He, Hongwei, and Lloyd, 2020). People will experiment with cooking, learn new techniques and rapidly grow into business manufacturers. Lastly, the behaviour, while such conducts may die as the result of adaptation to the new standard, will return to normal for most customers.

Linking the problems of prediction and overcoming pandemics, warming up climate change, bribery, human rights violations, misogyny, wealth gaps and arms examines the link between the national and state / provincial public health programmes and enhanced control of COVID-19 outbreaks in some countries.Although COVID-19 destruction intervention tests for vaccinations are done, true research of require effectiveness tests with each vaccine in randomised clinical trials with separate population subgroups in vaccination and placebo groups. Comparison of designs and results of new COVID-19 mitigation steps to the United Kingdom. Nations and States. Nations and States. Though not ‘true tests,’ they have useful know-how to improve these therapies. (Ozili, &Arun, 2020).

COVID-19 has been an accelerator for one of the most radical changes in the business in recent years. It will forever change how we work, socialise, shop, read, connect, and, of course, where we work. Person-environment (P-E) match theories emphasise that congruence of employee-environment meaning is necessary because values impact performance through inspiration(Poudel & Subedi, 2020). However, there is an elevated risk of misfits employed in organisations, considering the present climate in which the fulfilling of wants and expectations such as greater happiness, higher participation, and general well-being is dramatically altered.

4. Recommendation
Some of the recommendations that can be helpful to cope up with the cutrrent scenario due to the global issue are as follows. There are several aspects that needs to be changed or managed properly, in adequate top control the business risk and economic stability.(Haoet al.,2020). China, for example, has touchpoints in every other market in the world, being part of the global supply chain. So by shutting down production in China, one can shut down production in the U.S.’In addition, it was suggested in a press release that four measures must be done to defeat Covid-19 and eliminate or reduce casualties(Seetharaman, 2020).

First, proceed with the necessary containment mechanisms and the health system’s assistance. Second, protecting impacted individuals and companies with broad, tailored fiscal and financial sector interventions in a timely manner. Fourth, reduce the financial system’s burden and stop con tangents. Fourthly, the future frightening recession implications must be minimised by regulatory intervention and stabilisation must be planned. With regard to the serious and worsening circumstances around the world, countries need cooperation and cooperation within themselves, including the assistance, mature and responsible steps of individuals in the successful battle against coronavirus (Poudel&Subedi, 2020).Otherwise, incorrect behaviour and policies taken by every state would also have a serious effect on other countries because of the globalised and linked environment. This is not the moment of strategic concentration and sacrifice, but it is about moment that states unite, co-ordinate and support each other to break down this deadly pandemic in order to preserve the world’s economic and financial system.

In order to plan and enforce interventions in public laws and legislation, national and local rules, and the daily lives of people, the ultimate broadening of the idea of marketing. By analysing prototypes, applications, and effects of COVID-19 approaches by analysing deaths as a natural experiment, it also lays out productive mitigation techniques.The COVID-19 pandemic, on the positive side, gives businesses tremendous chances to positively engage in their policies and agenda for corporate social responsibility (CSR). The business post-COVID-19 is going to be irrecoverably different. To prepare for changes to their clients and rivals, among other changes, companies may need to re-evaluate their visions, missions, and targets(Seetharaman, 2020). The rapid growth in digital communications and transition is a crucial facet of this.

By resolving four big crises, businesses can mitigate existing and potential market impacts.First, organisations should define controllable operations and implement them. They must define current technology and market models, refine and re-access them. Specifically, to decrease response time and maximise contact networks, they must consider how their customers work and communicate(Hao et al.,2020). Second, all retailers, but especially grocery stores, are revisiting their strategies for market sustainability to convince consumers that their demands will be fulfilled and navigate the expected supply chain pressures and unpredictable demand-induced peaks and lows(Baldwin, & Tomiura, 2020).These businesses prioritise vital strategic operations and build disruptive contingency strategies. Fourth, society needs to consider both its financial needs and the important role it plays in its societies. An open and well-stocked store would convince certain loyal customers that they are being cared for(Hall et al., 2020). Fourth, information about the supply of goods on the shelf and at digital sources must be included in communications that retailers spread online during emergencies; monitor panic shopping by restricting the amount that consumers may buy; create and enforce consumer and employee protection plans; contribute to better public health and use security mechanisms to restrict the spread of consumer and employee protection(Guan, Deng & Zhou, 2020). For these reasons, to provide real-time customer assistance, organisations need to strengthen their customer experience management processes and facilitate stable customer experiences. Following these recommended steps, global businesses, as well as the contemporary society, can diminish the economic barrier causing due to the pandemic.

5. Conclusion
From the research project, it can be identified that the global issue related to the COVID-19, has provided diversified impact over the businesses and contemporary society. To classify the terminology used in conversations about COVID-19, a topic analysis was conducted. The observations gathered suggest that access to practical consumer expectations was the main obstacle for organisations. A pandemic could increase or decrease demand for particular goods, making it more difficult and more urgent to fix forecasts of reasonable final consumer demand.In terms of technology preparation, businesses are also struggling and companies are trying to achieve exposure through value chains. Discussions on building the durability of the supply chain by recognising threats are increasing.It is possible that this pandemic will help industries to rethink their supply chains and possibly to bring supply chains closer to where they are needed in order to deter stop production in the future. Officials have suggested that other citizens from other countries became vulnerable because they can carry the virus.People are still collecting supplies, shopping, and moving to remote areas. This is an indicator that is happening to the society and the attitudes is complicated, and further researching this phenomenon will be important.A closed border guarantees that the danger is external. Most organisations not only work on social sustainability, they also focus on environmental sustainability.Business can executives need to recast and redesign the supply chain to deal with emerging obstacles, concentrate on innovative technology such as ‘artificial intelligence’, ‘the Internet of Things’, and ‘block chain in their supply chain plans’, and focus on a ‘sustainable supply chain’. There are various measures identifies and explained in the researchstudy, through which the future business risk can be resolved.

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