IMPACT OF CORONAVIRUS ON BUSINESSES

ABSTRACT

Within this provided research paper, we are going to address the impacts of coronavirus
on various businesses. Here we are looking at the economic consequences of the corona
virus crisis. We're going to take a look at some examples of the ways in which some
industries have benefited from the crisis, others have lost out and crucially, how
companies are beginning to react to the challenges of survival in many cases as the
economic recession worsens. The virus spread has fostered social tensions that have
caused financial markets, corporate offices, businesses and events to shut down. A
migration towards consumer protection and investment security among customers,
investors and foreign trading partners led to an accelerated spread of the virus and
increased confusion about the way things could go wrong. The coronavirus began to
spread to other countries and markets, with our attention on the timeframe from the start
of 2020 through to March. In evaluating regulatory actions, monetary policy initiatives,
fiscal policies and public health behavior, we use real-world observations.

INTRODUCTION

Coronavirus disease (COVID-19) is an infectious coronavirus disease.

Most COVID-19 infected individuals are affected by mild to medium respiratory diseases
and are recovered without special care. The elderly are more likely to experience serious
illness and those with basic health problems such as cardiovascular disorders, diabetes,
chronic respiratory diseases and cancer. A good information on the virus of COVID-19,
the disease it cause, and how it is propagated is the best way to prevent and stop
transmission. Protect yourself and others from infection with a wash of your hands or a
rub dependent on alcohol sometimes do not touch your nose.

The 2019 outbreak of Coronavirus (COVID-19) has had devastating effects on people
and on the economies of the countries affected. The economic impact transcends
territorial frontiers through global supply chains, as manufacturing hubs worldwide
undergo an extensive factory closures era. This paper provides a guide for how the risk of
a disease outbreak at business, regional and world level cascades across the supply chain
can be assessed. The final degree of loss is still uncertain, but economic models
combined with epidemiological models and network analysis techniques may provide
more accurate estimates of the availability of suitable approaches.

The outbreak of COVID-19 has proven that human resources are essential to economic
operations. It is important for us to establish assessment structures that take into account
interactions between States, nations, and regions, which provide timely solutions to
urgent decisions, with sufficient detailed disclaimers. To order to determine the possible
risks posed by the spread of disease outbreaks and to develop risk reduction strategies to
mitigate the effects of pandemics, we need to consider alternative approaches.

LITERATURE REVIEW

The globalization of COVID-19 pandemic and its economic effects is likely to run havoc
through all economies in the world, throwing many into recession and probably economic
depression. As the number of infection and death cases is increasing sharply and even in
developed countries recovery from the pandemic is uncertain, indications of disturbances
are increasing across economies, including China, Europe and the USA. (Barua, Suborna,
Understanding Coronanomics: The Economic Implications of the Coronavirus (COVID-
19) Pandemic (April 1, 2020). Available at SSRN: https://ssrn.com/abstract=3566477 or
http://dx.doi.org/10.2139/ssrn.3566477)

The rising number of lockdown days, monetary policy decisions and foreign travel
restrictions seriously affected the level of economic activities and the closing, opening,
lowest and highest stock price of major stock market indices. In comparison, the enforced
restriction on internal movement and higher fiscal policy spending had a positive impact
on the level of economic activities, although the growing number of reported coronavirus
cases did not have a major effect on the level of economic activities. (Ozili, Peterson K
and Arun, Thankom, Spillover of COVID-19: Impact on the Global Economy (March 27,
2020). Available at SSRN: https://ssrn.com/abstract=3562570 or
http://dx.doi.org/10.2139/ssrn.3562570)

The pandemic is also causing a contraction of income and demand, the effect of which
can spread through supply chains to upstream industries across the world, again including
to countries not yet experiencing any major virus outbreak. In this time, wages, costs,
bank loans, and other expenses need to be paid. Most companies have minimal cash
accounts, maybe not enough to meet expenditures for more than three or six months. This
is particularly true for micro, nano, and medium-sized enterprises. Moreover, the fallin
business operation and the increase in uncertainty will cause households and companies
to cut expenses, except in the absence of store openings and quarantine conditions. This
means that there may be a downward trend (or self-fulfilling expectation) in demand for
each other's goods and services. This logic means that governments have to role of an
emergency economic aid plan, including temporary suspension of tax and interest
payments, financial aid and assured health benefits to staff who have to sit at home due to
the virus, financial support to banks to forestall large-scale financial sector collapse, and
the reduction or removal of import duties for medical supplies and protective garments.
(Shang-Jin Wei 2020)

METHODOLOGY

• Studying various Reports given online related to corona virus.

• Power point presentations, Excel sheets and Organizational Charts have been utilized.

• Searching the internet for various concepts related to the sufferings of business because
of corona virus. Internet is always an option to understand the details of the concepts,
terminologies and various authentic and authorized websites and blog posts that can give
us insights on the same.

• Access to various secondary data online.

• Taking part in a few meetings where various topics that are of importance to the project
are discussed: There are various meetings, teleconferences, access to attend conferences
with the Learning and Development Department of the company that gave insights on the
topics that are being learnt as a part of the project.

• Floating Google forms to get useful information about the psychology of people.

FINDINGS
Many sectors have benefitted from the conflict, others have lost their hands and, in most
cases, how companies in worsening economic recession are beginning to respond to
difficulties of survival. The effects of coronavirus on various types of companies were
positive and negative. In this pandemic not all companies suffered. Several examples of
industries that incurred loss during this pandemic are discussed below:

1) Impact on cruise industry-

The cruise industry is facing growing criticism for the way it has treated the coronavirus
pandemic, with stories of passengers stranded on quarantined ships already making
headlines. For countries with ports of arrival and departure, COVID-19 infection rates are
higher than those in those with ports of call alone. However, in countries that continue to
welcome cruise ships until March, infection rates COVID-19 are above those of other
countries. In the light of economic, social, and other crises, the cruise industry has shown
remarkable resilience. During the 2008-2009 global financial crises, the shipping industry
was severely affected. COVID-19 would have a much greater impact than any previous
concerns on the cruise industry.

2) Impact of coronavirus on hotels-

Governments worldwide have sealed international borders; all foreign and regional
flights are suspended; combined with regional lockouts, they have taken on an
unprecedented stage in the history of the hospitality industry. Therefore, the fear of
journey on business or leisure will be applied to these woes in the coming months as the
COVID-19 pandemic rages the world over. Tourism and the entertainment industry are
bound to feel the rain.

3) Impact on airlines industry-

The COVID-19 pandemic has further impacted airports, the broader aviation ecosystem
and the global economy and poses an existential risk for the industry if governments are
unable to provide adequate aid and assistance. With traffic and revenue collapsing, the
airport industry has taken all steps to preserve stability, but the problem still remains that
a large portion of airport costs must be fixed, with airports a key driver for local, regional
and national economies and societies, and the global economic multiplier effect must be
achieved. Airports are crucial in the aviation ecosystem.
4) Impact on Restaurants-

Coronavirus is beginning to change the direction of modern retail business in India-the

big shift started in early 2000 has been from streets to malls. Now at least some brands
are trying to switch from malls to streets. The reverse is led by some of McDonald's,
deGustibus and Lite Bite Foods, which are among the most popular restaurants and QSR
chains. Firstly , high street restaurants may be open before malls that find themselves to
be most at risk of infection. Secondly, market timing and customer interest can be
limited, even when malls are open, and thirdly, road shops usually cost less.

Besides above examples, there are some industry which have gained during this
pandemic. Following are the examples of such industry:-

1) Video streaming industry-

During the COVID 19 pandemic, more viewers watch live television than ever. It has
been more than doubled since one year ago to broadcast content of providers like Netflix,
YouTube Hulu, and Amazon Prime Video. The global content distribution market is
projected to rise from $24.8 billion in 2019 to $50.3 billion in 2020 as people are staying
home for self-quarantine or due to lockdown. Video conferencing applications like
Zoom, cloud networking networks , social media, educational portals, VPN specialists,
and gaming and distribution media have earned an increase in use. At the end of
December, the maximum number of daily meeting participants using Zoom was 10
million.

2) Hygiene industries-

The global hygiene product industry is linked to the manufacturing of goods that are used
to preserve personal cleanliness and to safeguard one from the infectious diseases. The
factors that were driving the growth of the industry before pandemic of COVID-19
include the recent increase in living standards coupled with the rise in public interest
towards overall health globally. Consequently, considerations such as recent platforms
for social media influence and advertisement also made a significant contribution
significantly to the global hygiene product industry growth.
3) Impact of gaming industry-

The COVID-19 lockdowns have improved user interaction with video games and e-
sports. Revenues for many gaming companies and sites have risen during the pandemic.
The pandemic is driving emerging developments within the gaming industry. The global
video game industry is thriving, despite the widespread financial instability caused by the
coronavirus. With the trend of social distancing reducing customer and business activity
to a minimum, gaming provides an entertaining diversion for people at home looking for
social contact, and initial data shows huge growth in playing time and sales since the
lockdowns started.
REFERENCES-

• https://scholar.google.com/
 https://www.who.int/health-topics/coronavirus#tab=tab_1
 https://www.weforum.org/agenda/2020/05/covid-19-taking-gaming-and-esports-
next-level/
 http://documents1.worldbank.org/curated/en/295991586526445673/pdf/The-
Potential-Impact-of-COVID-19-on-GDP-and-Trade-A-Preliminary-
Assessment.pdf
 https://store.globaldata.com/report/gdtt-cv-cru--hot-topic-brief-impact-of-covid-
19-on-the-global-cruise-industry/