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Corona Pandemic and its

impact on the corporate world


By Sandhiya Suresh
Corona - introduction
 Corona pandemic
 Outbreak identified in Wuhan, China
 Public health emergency of international concern declared in Jan 30,
2020
 As of today, 1.85million cases of COVID-19 in 210 countries

 Led to severe global social economic disruption


 Various international responses:

 Travel restriction
 Evacuation of foreign citizens
LOSSES DUE TO CORONA PANDEMIC
Producers:
 Uncertainty created for companies
 Increase in the price volatility
 Disruption in manufacturing, imports, exports and capital markets
 Impact on the logistics – lead to break down of supply chains of the companies

 Financial point of view:


 Shrinkage of cash flow
 Tightening of credit
 Bankruptcy issues
VIX volatility index
An index used to measure the price volatility in the market.
Supply chain disruption

 Wuhan – a major transportation hub which is currently under lockdown


 Its lockdown has greatly impacted the global supply chains from China
 Many medicines and medical devices are being manufactured around this
area.
 So even though we have pharmaceutical companies profiting from the
pandemic, there are supply chains disruptions that has taken a toll on their
activity.
Consumers:

 Current consumer behaviour:


 Cutting their expenses
 Remaining indoors
 Stocking up of groceries

 As the pandemic had affected the production of goods and services, there is a
supply side shock.
 Delays and non-delivery of goods
 Chances of exploiting the consumer rights
 Lack of access - people below poverty
Possible measures:
government provision of loans
paid holidays
tax deductions
usage of contingency funds by
businesses

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