Andersen

2021/01/04

The outbreak of the coronavirus disrupted businesses globally and led to a volatile economy. The information below will help to get the latest perspective on how businesses can outwit the COVID-19 and prepare for the next normal such as assessing the essential functions and the reliance that the consumers have on them.

To better understand the business and economic implications, You can find below five interim guidelines that will assist in business development and to reconfigure the strategies.

Below are the highlights to turn business complexity into meaningful change.

Impact on workforce and outmanoeuvre uncertainty

The outbreak of COVID-19 is a sharp reminder that pandemics, like other rarely occurring catastrophes, have happened in the past and might continue to happen in the future. Even though there will be solutions to prevent such diseases or crises from emerging, but we should prepare to diminish their effects on society. This pandemic affected not only the economy, but also the society leading to dramatic changes in how businesses act and consumers behave.

Companies/businesses all over the world are experiencing unprecedented workforce disruptions. Many of the companies have gone virtual and are still determining how to work in short- and long-term as they try to function and perform while struggling to cope with what is happening in daily lives.

Hence, during such testing times, businesses can adapt to new set of rules and be mindful of the following aspects in which the workforce can grow and refurbish.

1. Organizations or companies need to develop such measures specific to this crisis where they support and provide help to their employees whether physically or emotionally. At the same time, companies need to frame and manage team autonomy be it at work or at home.
2. Since employees are working remotely, employers need to provide resources and support them in order to maintain the continuity of work and to be productive.
3. Communication need to be effective in global uncertainty where employees feel informed and supported.
4. Evaluate the workforce outlays in such a way where the organizations/companies potential costs are not affected and try to maintain the desire to keep people employed without cutting their costs.

Outline strategies to emerge stronger and better in the market

Business these days are facing overwhelming and competing challenges. Therefore, to emerge from the pandemic stronger, companies can outline following strategies-

1. Re-evaluate task/workflow scenarios.
2. Strengthen the ability to sense and respond.
3. Reinvent and accelerate digital transformation since remote working reveals gap in IT infrastructure, workforce planning and digital upskilling.
4. Establish variable cost structures.
5. Implement active operations.
6. Archive models that incorporate economic impacts of past pandemics.
7. Tracking expenses as well as the actual revenues helping company to have a clear picture of where it stands financially.
8. Managing employees and related optimization while keeping engaged with them through effective communication.

These strategies can be implemented even when the pandemic effect settles.

Markets impacted by the digital market during COVID-19

Everyone is aware of the remarkable shift that occurred in consumer behaviour due to COVID-19 as much of the population entered the digital market. They are aware that even before the pandemic many organizations faced considerable IT challenges and now COVID-19 is pushing companies to rapidly work in new ways and IT is being tested as never before.

With businesses adapting to new digital technology, it has become very challenging to keep their financial wheels turning due to less revenue being earned and the general uncertainty in the global financial environment.

However, companies are thinking ahead to articulate clear, meaningful, and authentic purposes. Business continuity risks, real-time decision-making, sudden changes in work volume, workforce productivity and security risks can be the priorities for the employer to address by initiating immediate systems resilience issues and lay a foundation for the future.

Having said that, they can establish long term strategies for greater flexibility and apply lessons learned from such experiences to create a system and talent roadmap that better prepares the company for any future disruptions.

Response to financial circumstances and managing business continuity

During the economic uncertainty, managing cash and liquidity position may be essential for the companies. COVID-19 directly affected the business continuity by reducing the operation, drying up supply chains and plummet in demand. Hence, companies can set some rules to enhance the business activities-

1. Model worst-case scenarios can be created to evaluate the impact on cash position and revise often.
2. Plan and understand the financial reporting considerations that will result from COVID-19.
3. Identify the financial and operational functions to conserve and generate cash.
4. Investments in key technologies, processes and people can be adapted to increase costs, sales and revenue.
5. Immediate action needed to address liquidity challenges by investing in new opportunities that generate costs and profitability.

It’s been noted that business has been proactive in assessing their risk and vulnerability from both financial and operational standpoint. It needs to act positively in such persisting environment by mitigating risks and plan for scenarios consisting of both slow and rapid recovery such as- Develop rapid response addressing current disruptions, repurpose and reshape supply chains, and strengthen responsibility that remains consistent even post COVID-19.

Tax, trade and regulatory (Measures to take as per the local government and tax authority in response to COVID-19)

Many countries around the world are implementing tax measures to support their economies, but to navigate risk in such a crisis takes more than an understanding of tax and regularity systems. Hence, measures can be taken to resolve the tax functions considering the broader economic, political and societal context.

Companies can explore opportunities during such uncertainties on becoming more flexible and look forward to adapting an effective way to manage cash taxes and obtain available refunds that local government and tax authority has set in response to COVID-19.

After reviewing the resources, the company needs to determine and manage the ongoing indirect and direct tax compliance requirements. Basically, they should explore options such as revamping old tools and introducing new ones and bolstering ongoing efforts to address the international tax challenges posed by the digitalisation of the economy.

The local governments have taken decisive action to contain and mitigate the spread of virus while limiting the adverse impacts on the citizens and their economies. As per the local report, the Saudi Government announced a set of support packages targeting the private sector, totalling including exemptions, postponement of some government dues, a wage subsidy of 60% for Saudi employees’ salaries in the private sector, and further more extending deadlines for filing tax returns.

Organizations must become agile and dynamic at transforming how they operate by focusing on vital areas that would provide endurability and sustainability effects. The CEO must create a transformation team to plan the rescue of the organization and achieve the desired results.