SWOT analysis of business

ANALYZE COVID-19 SITUATION FROM BUSINESS POINT OF VIEW THROUGH SWOT ANALYSIS

Submitted by: Sofia Sharaf Din, BC19-025 (A)

Course title: Introduction to Sociology

Course code: BC-116

Instructor: Prof. Sadia Nauman

Hailey college of commerce, Punjab university Lahore.

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 Table of contents

1. Introduction ……………………………………………………………………………………3

2. SWOT analysis ………………………………………………………………………………...4

3. SWOT analysis of COVID-19 condition from business point of view ………………………..4

3.1. Strengths and weaknesses of businesses ……………………………………………………..4

3.2. Opportunities for business …………………………………………………………………...6

3.3. Threats to business …………………………………………………………………………..7

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SWOT analysis of business

1. Introduction

Image 1; Corona Virus

COVID-19 is an illness caused by a novel corona virus. This virus is now called as severe acute
respiratory syndrome corona virus 2 (SARS-CoV-2). This was first identified amid an outbreak
of respiratory illness cases in Wuhan City, Huber Province, China.It was initially reported to the
WHO on December 31, 2019. World health organization (WHO) declared the COVID-19
outbreak a global health emergency on January 30, 2020. WHO declared COVID-19 a global
pandemic on March 11, 2020. WHO recently termed illness caused by SARS-CoV-2 as COVID-
19 (Corona virus disease 2019). Corona viruses belong to a large family of viruses. They are
common in people and many different species of animals e.g. cats, bats, camels and cattle.
Animal corona viruses rarely can infect people and then spread between people, such as with
MERS-CoV, SARS-CoV, and now with this new virus, SARS-CoV-2. Just like SARS-CoV and
MERS-CoV, SARS-CoV-2 is also a betacoronavirus. All three of these viruses have common
origins in bats. MERS-CoV and SARS-CoV have been known for causing severe illness in
people. Reported illnesses due to COVID-19 have ranged from mild to severe, including illness
resulting in death.

Risk Assessment: The potential public health threat posed corona virus disease 2019 (COVID-
19) is very high, to the United States and globally.

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Initial risk assessment: Doctors, nurses, and health professionals caring for patients with
COVID-19 are at elevated risk of exposure. Close contacts of persons with COVID-19 also are at
elevated risk of exposure. Center for disease control (CDC) has developed guidance to help in
the risk assessment and management of people with potential exposures to this pandemic.

People who are sick: People at greater risk include older people and people with compromised
immune systems and certain underlying health conditions - such as heart disease, lung disease
and diabetes. Disease symptoms range from mild to severe depending on personal susceptibility.

2. SWOT analysis: SWOT is an efficient tool to determine the strengths, weaknesses,

opportunities, and threats that are facing your business. In this analysis, internal factors are
referred by the strengths and weaknesses which represent characteristics that are within your
control. While external factors are opportunities and threats that could have an impact on your
business, project, or product. External factors are out of your control. SWOT analysis is a
practical method to help you analyze the current situation and help you in planning for the future.
This analysis process can be used by anyone in the personal or professional context. SWOT
analysis is very useful as a brainstorming tool for teams to come together to discuss different
perspectives on a situation at hand.

3. SWOT analysis of business:-

This analysis focus on strengths and weaknesses of businesses as well as opportunities and
threats posed to business due to COVID-19.

3.1. Strengths and weaknesses of Business:-

Due to this pandemic businesses all over the world are suffering. Business can be off different
type. In this situation many people have lost their livelihoods. Transport, tourism, hotels,
restaurants, shopping malls, markets, daily workers, education systems all are at worst edge.
Global economy has been badly affected. Strengths and weaknesses of a business like its
resources (financial, intellectual, locational), customer services, efficiency product price,
revenues, infrastructure, staff, management, cost, and capacity all have been affected seriously
because of this pandemic. Revenues has been decreased. Customer services have been limited in
this pandemic situation.

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Image 2 COVID-19 and Impact on business

All over the world due to COVID-19 many markets, systems have closed or are still closed to
stop the spread of COVID-19. Due to low input, output has also been reduced. Economy has
been turned upside down by COVID-19. Companies in entertainment and travel sector (Booking,
airlines, entertainment and live events, cruises & casinos, hotels and resorts) were some of
the worst hit. Other weak points include, lack of personal protection equipment for the health
care professionals in medical sector. Due to lack of test kits and ventilators they are facing worst
situation in Pakistan especially. Fee for corona test is very high. As far as trade business is
concerned, imports and exports both are facing limitations. Import-export business is almost at
higher risk. Due to pandemic resources are limited. As far as agricultural business is concerned
its exports have also been affected since the start of this pandemic. There are several companies
who are not silently watching – they have adapted like chameleons to the situation and stretched
their brand. These companies have reshuffled their production lines, and catered to new needs.
Basically they have listened to the market and taken a risk or two, making COVID-19 the main
propeller for new growth in some sectors and reviving dormant potential in others. In China

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even judiciary system is going online, wherein filings and hearings are increasingly digitized.
This could enhance the speed of executing work and get rid of some of the backlog. In the realm
of productivity, we have seen a strong rise in cloud services for collaboration, solutions to
minimize paperwork and physical contact, reimbursement apps and digital solutions for
accounting, and the growth of contact-less devices for an infinite number of
environments.likewise if go sector wise there have been developed opportunities as a result of
this pandemic.

3.2. Opportunities for business:-

Sectors Opportunities

Food Fresh groceries and meat, cooking appliances, high quality foreign beverage and food.

Entertainment Gaming industry, online cooking classes, remote banking services, virtual visits to land
marks, new ways of disseminating content, promoting small businesses

Education, Virtual classrooms,

sports, and well
being Online fitness classes

Services Enhanced delivery services, remote banking services, contact, less systems
industry

Health and Pharmaceuticals, digital medical assistance, apps and mini apps, telemedicine, smart
health hospitals, PPE (personal protective equipment), self diagnosing medical devices.
technology

Electrical Sweeping robots, sterilization machines, dishwashers

appliances

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Office cost As office rent is expensive and flexible work arrangements are yet to be explored in
reduction their full functional scope so this will open up opportunities across multiple and linked
opportunities sectors, e.g.,

 office space redesign, building remote work systems, software platforms, and
cloud-based services – all of which will likely see significant gains once the world
economy goes into post-COVID-19 recovery mode and employers keep their
office space costs in check in case their staff will need to work from other
locations.

Due this pandemic, office and educational work has been confined to homes. Where online
meetings cope this problem via zoom app. Through zoom video call we can settle our works by
sitting at our places. It has result in positive change in share price of popular technology companies.
So we can say that in this situation where we are facing many threats to our business, some have
found new opportunities for innovation in their business.

As far as air quality is concerned, it has been noticed that nature is going under recovery. Due to less
traffic on roads and less emissions, load of pollutants in air has been decreased. As a result air quality
is now much better. This pandemic also seems as recovery time for planet. Due to better air quality,
their are less respiratory cases due to air pollution reported now. Waste production has also decreased
thereby lightening the bad burden on planet. We can listen singing birds in morning and evenings
now. Our air is much fresh now.

3.3. Business threats: COVID-19 has badly disturbed social, political, financial, economic and
religious structures all over the world. Economies of US, UK, China, France, Italy and Germany (which

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are considered as the topmost economies are at the verge of collapse. COVID-19 is threatening global
economy, because the world has been facing worst economic situation since WW-2. When this pandemic
comes to any business, it’s devastating effects. There is need of global corporation to fight against this
pandemic and rise again with much strength. Limited resources, no import-export situation, social
distancing, lack of man force in field area, high health budget all are threats to economy. People are dying
due to this pandemic on large scale, even we haven’t come up with a vaccine to treat this disease. And as
a result this life and business threatening pandemic is getting momentum with time, leaving horrible scars
in almost all types of businesses. Daily wagers are at pathetic and horrible stage, where they don’t have
any earning mean and no savings. Thereby their life has become very critical. Stock markets have been
pounded around the world. Following graph depicts the impact of COVID-19 on stock market;.

Oil prices have fallen off a cliff. Oil have never been so cheep since the last two decades. COVID-19
has badly affected the oil value. Following graph show a clear fall in price curve of oil.

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Airline companies have also faced decline in total number of daily flights. To stop the spread of
COVID-2019, tourism has stopped. Following graph clearly demonstrate decline in daily flights. Hajj
and Umrah services have been closed, Makkah and Madina have been closed for couple of months.
Moreover people in abroad countries have been sent back to their countries, thereby affecting their
livelihood.

In only one week 3.3 million American people applied for unemployment. A week later nearly 6.6
million people started looking for jobs. In Pakistan and in most of the affected countries, people
have been fired from their jobs, unemployment ration has been increased.

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Marriage halls, hotels, malls, cinemas, cafes, universities, colleges, schools, academies, other
private institutions,and factories have been closed. Many people’s livelihood is joined to these
places. So they have lost their jobs.As a result of this massive unemployment, economy has
devastated,

Conclusion:-

The outbreak of COVID-19 shows cracks in global trust, the pitfalls of global interdependency
and the challenge for global governance. Pandemics are risk for business. They are amplifier of
existing trends and vulnerabilities. Businesses having investments in strategic, operational and
financial resilience to emerging global risks, will be better positioned to respond and recover.
These businesses will be less affected. Medical, import-export, industrial, private as well as
government businesses all are suffering. There is need of much support for medical professionals
who are fighting at front lines for us. They should be provided with personal protection
equipment and all need stuff. SOPs should be designed for local and professional people to cope
with this pandemic. There is need of cooperation, obedience, loyality and personal dedication to
cope with this situation. Many businesses should start working with strict SOPs, as we can;t
grow and fight in this pandemic with our closed business.

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