REPERCUSSIONS OF COVID-19 WITH SPECIAL REFERENCE TO BUSINESS AND ECONOMY
1Kompelli Swathi, 2K.Shashank
1Student, Master of Business Administration, Kakatiya Institute of Technology and Science
2Assistant Professor, Department of Management, Kakatiya Institute of Technology and Science, Warangal
Abstract- This research article is depicts about the repercussions of COVID-19. The whole world is affected by corona virus in an enormous way. Due to COVID-19 outbreak some sectors are affected while some sectors benefited. The life style of the people totally changed and people started thinking individual and social well being is most important. Every human being faced too many obstacles to survive safely. During pandemic most of the companies are switched to work from home and implementing remote working, safety practices, changing work place, trends automation, digitalization and innovation. All managerial activities done in online mode but there are some difficulties in production, manufacturing and supplying. Risk management is applied. Most of the companies protect their work place by running operational activities and used various technologies to continue their production safely and repurposing method is followed. Some companies changed their products and catch the situation to increase their sells For example: LVMH switching from producing perfumes to making hand sanitizers. Science helped a lot during pandemic. Most of the researchers and scientists greatly fought for found the vaccine to overcome from Covid-19. COVID-19 shows its impact mainly on climate research, observations, and assessments and on greenhouse gas concentrations and emissions. Scheduled Science missions and conferences are cancelled. COVID-19 is significantly impacting business and economy.
All the businesses are temporarily closed and business firms changed their strategies based on the current requirement. Reduce in income of the people and government, Unemployment increased, job loss, restrictions in transportation, GDP decline.
Demand front, financial markets and international trades are highly impacted due to COVID-19 lock down. The economic growth of India has been reduced and rupee value continuously depreciating. The global economy shrunk by 4.4% in 2020 and predicting global growth is 5.2% in 2021 but the major economy growth in 2020 was china with 2.3%
growth registered. Billions of dollars lost in 2020. Digital and internet economy plays a vital role everywhere. Usage of internet increased virtual collaboration process is continued.
Pharmaceutical companies, E-commerce, delivery services, online shopping, Entertainment streaming services are benefited and education, travel, tourism, tech, sports and aviation sectors are highly affected.
Keywords: COVID-19, Repercussions, Production, Impact, Lock down, Management.
1. INTRODUCTION 1.1 What is COVID-19?
COVID-19 is a large group of RNA viruses which leads to cause several diseases in mammals and birds. It is an ongoing global pandemic of corona virus disease started in 2019 caused by severe acute syndrome corona virus 2 (SARS-CoV-2). In COVID-19 CO stands for corona, VI stands for virus and D for Disease. Corona ranges from normal cold to many severe diseases like acute respiratory syndrome and Middle East respiratory syndrome. It is a fast growing virus and it is spread from one person to another person when an infected person coughs or sneezes or through droplets of saliva or discharge from the nose so wearing mask, cleaning hands frequently with alcohol-based hand sanitizers is mandatory.
1.2 First Case of COVID-19
The first case of COVID-19 reported in Wuhan, the capital city of Hubei province of china on 27 December 2019 and published on 31 December 2019 and on 8 January 2020 china scientists identified that it as corona virus so the strictest rules were applied to control the virus spread. A complete lockdown started at 10 a.m. on 23 January 2020. All transports in and out are stopped.
1.3 Spread of Covid-19 from China to Other Countries
The first corona virus case was reported outside china is in Thailand. It is the beginning of corona virus spread worldwide, now it is impacted over 220 countries. In the last days of January 2020 Covid-19 spread to Australia, Iran, South East Asia, US and India. United States impacted highly with a lot positive cases and deaths than all other countries over the world with 10 million cases and 3, 80,000 deaths in January 2021.
On 11 March 2020, World Health Organization (WHO) announced that the novel Corona virus disease is badly spread over one country to another country so the country governments have to take actions, detect and reduce transmissions to save lives of people.
1.4 Symptoms of COVID-19
Aches and pains, sore throat, diarrhoea, conjunctivitis, loss of taste or smell. Serious symptoms are difficulty in breathing, chest pain and loss of speech movement.
1.4.1 Precautions to be follow to protect ourselves from COVID-19
Maintain social distancing.
Carry alcoholic based hand sanitizers wherever you go and clean your hands time to time without fail. Use fabric masks in right manner avoid touching your nose, eyes and mouth. Wash your hands before and after using mask.
Clean every item which you bought from outside and Follow food safety methods.
Avoid meeting people and group discussions.
Set up aarogya setu application in your mobile.
When you get any symptoms of COVID-19 go and concern your doctor immediately and if tested positive be in self isolation.
Always stay informed and updated about COVID-19 information.
Keep your home clean and disinfect.
In this research article, I will explore and provide detailed information about repercussions of COVID-19 in People’s lives and especially on management, science, business and economy.
1.5 Objectives of Research
To focus on the repercussions of COVID-19.
To explore the impact of COVID-19 on people and government.
To describe the changed life style and struggles faced by the people every day.
To asserts about the repercussions of COVID-19 mainly on management, science, business and economy.
To describe the alternatives to follow for protect the people’s life.
2. RESEARCH METHODOLOGY
In this article I provide the information about COVID-19 from December 2019 to March 2021. I used secondary data and data collected though various magazines, newspapers and government websites. This study focuses on descriptive data about repercussions of COVID-19.
3. REPERCUSSIONS OF COVID-19
Corona virus has affected our day to day life, businesses, interrupted the world trade and movements, slowing down global economy. Thousands of people affected. In early stage vaccine is not invented yet.
Difficulties in Health Care: High burden on hospitality management because hospitals filled with new cases every day. In the process of treatment to effected patients doctors also infected by corona so it required high protection. Interruption in medical supply chain and in the process of treating corona patients other disease patients got neglected. Shortage of doctors. High burden on functioning of hospitals and medical shops.
No Money No Food: There are thousands of people struggling for buy food. Poor people, old age, migrant workers, homeless people, small business people are struggling to get food.
Lockdown Effect on Indian Migrant Workers: India declared lockdown on March 25, 2020. During this lockdown period production and supply of goods and services are completely suspended, industries shutting down so all migrant workers lost their works even transportation also stopped. They don’t have money to eat food and no chance to go their native places. Thousands of migrant workers walked hundreds of kilo metres without food and at last Supreme Court of India identified the problem faced by the migrant workers and facilitating travelling arrangements for migrant workers to reach their native places. During lockdown government and many people come forward and arrange food facilities for starved people.
Social Effect: Rules and Guidelines are strictly implemented by every country.
Cancellation of national and international transportation, postponement of tournaments and sports, cancellation on celebrations of religious, cultural, festive and occasional events, social distancing, closure of educational institutions, companies, industries and public places like hotels, theatres, restaurants, parks and many more. Postponement of examinations.
4. REPERCUSSIONS OF COVID-19 ON MANAGEMENT AND BUSSINESS IMPLEMENTING REMOTE WORKING STRATEGY
For following the COVID-19 guidelines and for protection of employees all businesses and companies are temporarily enclosed and shifted towards digital and remote work technology for continuing their operations and production. According to Executive Trend Survey, 73%
executives shift their organizations into totally remote working environments to continue their business operations and 67% executives decided to postpone their organizational activities. Some companies changed their strategies to recover and continue production and train their employees to work from home effectively. Cloud computing technology is used for online communication.
The following are the technologies used for remote employee collaboration and productivity.
Video conferencing and online chat platforms – 86%
Cloud technology- 47%
Cyber security software – 29%
Collaboration tools and Project management- 25%
5. RECOVERY AND GROWTH OF BUSINESS
All the companies re look form modifying the strategies and boosting new plans for recovering and continuing their business and started implementing efficient production methods such as Six Sigma, Lean Management, making international production networks more resilient, tracking expenses against their revenue status, selecting a proper assessment, planning of effective policies for business growth, rectifying the treats, having patience in securing investments, managing healthy relationship with employees, stockholders and contracted parties, keeping employees updated and motivating them towards remote working and pay attention on cyber crimes due to all business activities done through online so secure connections are essential.
“Flexibility has always been a business advantage, but now it will be critical to survival.”
Impact of Covid-19 on International Business: This pandemic situation creates new challenges for international growth. Transportation and storage industries are highly affected both in terms of reduced exporting at 81% and importing at 80%.
Industries or Sectors Most Affected by Covid-19: Travel and Tourism, Aviation, Education sector, Sports and entertainment, Tech, Retail and Luxury goods.
Sectors benefited by Covid-19: Pharmaceuticals, internet services, mobile purchases, online meeting platforms, Cyber security, E-learning resources, Entertainment streaming services, E-commerce and delivery based services, OTT Platforms, Online gaming and online shopping.
6. REPERCUSSIONS OF COVID-19 ON SCIENCE
The field science helped a lot during COVID-19 pandemic situation. Scientists and healthcare workers play a major role in the war against corona virus but the scientific community also experienced a negative impact due to COVID-19 outbreak. During COVID- 19 lockdown all the universities, research centres and laboratories are forced to be enclosed and all scientific training programs, scientific events, national and international conferences, workshops and symposiums are cancelled and postponed. These events are the best platforms for career opportunities and to learn new skills and explore new ideas and innovations but this corona outbreak spoiled all these opportunities. Most of the scientific events of September 2020 cancelled and some are continued through virtual meetings. Cancellation of annual meetings of scientific societies will cause delay in making policy-making and this pandemic creates economic burden on organisers and sponsors of scientific events.
Closure of scientific workplaces may cause effect on postponing experiments, extending research time, delay in inventions, and economic burden on researches and affecting their career opportunities.
6.1 Science in Innovation of Covid-19 Vaccine
COVID-19 vaccine provides acquired immunity against severe acute respiratory syndrome corona virus 2 (SARS-CoV-2). Vaccine development was implemented by multinational pharmaceutical industry and between governments.
7. PFIZER AND BIONTECH ACHIEVE FIRST AUTHORIZATION IN THE WORLD FOR A VACCINE TO COMBAT COVID-19
Pfizer-BioNTech Covid-19 Vaccine: It is an mRNA based COVID-19 vaccine. The German company BioNTech is the developer of this vaccine.
Developers: Pfizer and BioNTech-described it as a “great day for science and humanity”.
Dr Albert Bourla, the chairman of Pfizer said “we are a significant step closer to providing people around the world with a much-needed breakthrough to help bring an end to this global health crisis. Prof Ugur Sahin, one of the founders of BioNTech, described the results as a “Milestone”
This vaccine tested on 43,500 people in six countries. It is consumed by two doses, three weeks apart, are needed. The trails show 90% protection after the second dose.
Health organizations and scientists worked very hard for innovating corona vaccine. In every country various scientists put their all efforts and make different types of vaccines.
The following are the three vaccines approved for the use that are Astra Zeneca, Moderna, and Pfizer/BioNTech. More than 108 million vaccines doses are administrated in 67 countries.
Below figure shows the global vaccination race in various countries against COVID-19.
Figure 1
We can’t survive without science innovations. The efforts of doctors and scientists succeed in inventing vaccine but these vaccines do not cure the disease completely but give relief.
8. REPERCUSSIONS OF COVID-19 ON ECONOMY
COVID-19 lockdown affects the global and local economy. Due to lockdown financial efficiency of people and various businesses gradually decreased. This pandemic shows its impact on demand and supply side.
8.1 Impact on Demand Front
Protecting people from corona virus every country government implemented complete lockdown. During lockdown all shopping malls, theatres, parks, businesses, IT companies, all government and private offices, educational institutions, retail shops, religion places, transport services, entertainment services, hotels, restaurants, business trips, conferences, workshops, internships and so on are enclosed. So that revenue decreased. No chances to earn money. Level of income reduced nationally and globally.
8.2 Impact on Financial Market
The novel corona virus outbreak has severely impacted financial markets including stock, bond, and commodity markets with a massive change in asset prices and a drastic increase in volatility across the globe. This outbreak affected china’s real economy. Industrial production declined by 13.5% and retail sales decreased by 20.5%. Sudden stop in economic activity shows a downward impact in commodity prices. Stock markets declined over 30%. The wreak of financial stock market responsible for declining consumption levels.
March 2012, was the black day as there were significant slides in domestic equity markets.
The BSC and NSC are the leading stock exchanges of the Indian market. BSE stands for Bombay Stock Exchange, NSC stands for National stock exchange. These both BSE and NSC slipped more than 8% in a single day. 2919 points drop in BSE Sensex and 868 points decline in NSE Nifty. All financial markets across world falling down for example S&P 500, it reached its highest point (3386.15) on 19 February, 2020 but falls down to 2237.40 on 23 March 2020 30% fall in just one month.
8.3 Impact on International Trade
The COVID-19 pandemic results a major disruption in the world trade. Major production activities also interrupted first in Asia, then in Europe, North America and then rest of world and these results in decrease in income, unemployment increased in this bad situation the volume of global trade in goods decline by 17.7% in 2020. The economic contraction in china is less than the global average. In the march 2020 OECD Interim Economic Outlook, the downside scenario saw global growth halved to 1.5% and it suggest an unprecedented collapse in the first half of 2020 there is a 20% decline in global GDP it is showed in below figure.
Projected change in GDP at constant prices between 2019Q4 and 2020Q2 (percent)
Figure 2
Note: Data for china refer to the change in output between 2019Q4 and 2020Q1.
Source: OECD Economic Outlook 107 database.
Covid-19 makes negative impact on the exports of china because of exports restrictions for china. Exports from India increased. Due to covid-19, the impact on India’s trade is about US dollar 348 million as per the report of UNCTAD.
8.4 Covid-19 and Global Growth
The global economy was increased up to 3% in the year 2020, which depicts worse situations when compared to the global financial crisis of 2008 as per IMF Report. Many first countries are expected to shrink by the following percent in this year 2020.
UK US FRANCE JAPAN GERMANY SPAIN ITALY
6.5% 5.9% 7.2% 5.2% 7% 8% 9.1%
Source: IMF Report
Developed countries less affected, and they grown up to -6% in 2020 and shrink by - 1%. China’s GDP dropped by 36.6% in the first quarter of 2020 at the same time South Korea’s output fall by 5.5% but that country didn’t implement lockdown but followed some strategies such as aggressive testing, contact tracing and quarantining. In Europe the GDP’s of France, Spain and Italy fell by 21.3, 19.2 and 17.5 percent respectively.
9. CONCLUSION
It is clear from the above descriptive data there are so many worst kind of repercussions faced due to covid-19 pandemic. The field of Science help us more to recover from COVID- 19 and provide vaccine to overcome from COVID-19. Many people faced worst kind of struggles to protect themselves from pandemic. Economic growth decreased and it may
recover further. Slowly COVID-19lockdown rules deducted based on the range of COVID-19 spread and slowly businesses, shopping malls and offices are opened and at last educational institutions also reopened but after reopening of schools and colleges the spread of corona increased then again government decided to enclose educational institutions. So based on current situation and requirements we have to follow the precautions to avoid the spread of coronavirus.
REFERENCE
1. Shubhi Agarwal, Archana Singh (2020), “Covid-19 and its impact on Indian economy”, Int. J. of Trade and Commerce-IIARTC, Vol.9, No.1, pp.72-79.
2. https://indianexpress.com/article/india/the-long-walk-of-indias-migrant-workers-in-covid-hit-2020- 7118809/
3. https://timesofindia.onelink.me/efRt/ASmwebshare
4. https://www.who.int/india/emergencies/coronavirus-disease-(covid-19)
5. https://www.pfizer.com/news/press-release/press-release-detail/pfizer-and-biontech-achieve-first- authorization-world
6. http://www.oecd.org/coronavirus/policy-responses/covid-19-and-international-trade-issues-and- actions-494da2fa/
7. Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., ... & Agha, R. (2020). The socio- economic implications of the coronavirus and COVID-19 pandemic: a review. International journal of surgery.
8. Megahed, N. A., & Ghoneim, E. M. (2020). Antivirus-built environment: Lessons learned from Covid-19 pandemic. Sustainable Cities and Society, 61, 102350.
9. Topcu, M., & Gulal, O. S. (2020). The impact of COVID-19 on emerging stock markets. Finance Research Letters, 36, 101691.
10. Atalan, A. (2020). Is the lockdown important to prevent the COVID-19 pandemic? Effects on psychology, environment and economy-perspective. Annals of medicine and surgery, 56, 38-42.
