Companies and Businesses: How to Deal with the Pandemic?
Analyzing the economic and financial situation of the company, implementing a resistance plan, identifying what products customers need and what opportunities can be exploited in this context, are some of the tips for businesses in the new and complex reality.
Wednesday, April 1, 2020
In response to the arrival of the covid-19 virus in the region, Central American economies have taken different measures, in scenarios ranging from severe mobility restrictions, as in Guatemala or Honduras, to others that are less strict but equally negative for economic activity, as in Costa Rica.
In these scenarios, in which there is still no certainty about how many more months they will be able to extend, companies must apply resistance plans to survive the crisis that is no longer only sanitary, but also economic.
Martesfinanciero reports that companies "... must analyze their economic and financial situation and the sustainability of their employees. Measure how far they are socially sustainable and at the same time enter into a concept called a resistance plan or resilience plan, which is having enough muscle to sustain themselves over time and keep workers, customers, suppliers and operations going and thus survive in this crisis."
The article adds that "... Companies must know that the speed of growth of the economy will no longer be the same: it will be less or zero. The country must focus on producing and supplying basic goods and providing the system with medical equipment. That is the priority."
In order to get out of the crisis, business leaders are advised to ask themselves the following questions:
"-How can I take advantage of this?
-What new products/services do our customers need?
-Will the strategies and tactics used in the past work in the new environment to come?
-How can we use the time given by this reality to redesign our processes and optimize our operations and improve our profitability when we come out of this situation?"
It is expected that when Central American economies begin to recover, as the restriction and quarantine measures that have been taken to prevent the spread of covid-19 are eased, household consumption patterns will have changed significantly, and in some cases those changes will be sustained over the long term.
CentralAmericaData has developed a demand-income sensitivity model that can be used to project the variations in household demand for different goods and services as the most critical phases of the spread of covid-19 are overcome and the measures restricting mobility in the countries of the region are lifted.
As a result of the economic crisis generated by the pandemic, it is estimated that four out of every five Central American companies were forced to increase their debts in order to sustain their operations.
According to the 2021 Regional Survey on economic reactivation prepared by the Federation of Chambers of Commerce of the Central American Isthmus (Fecamco), the resources obtained through indebtedness, served the companies to pay payroll, face rents and support operations.
Speeding up the repayment of the tax credit, repealing the Solidarity Tax, approving the Leasing Law, reforming the Banking Law and the Free Zone Law, is part of what Guatemalan businessmen are proposing to reactivate the economy in this context of crisis.
At present, Guatemala is immersed in a severe economic crisis, which was generated by the restrictions to productive activities that were decreed due to the outbreak of covid-19.
Measuring sales performance, observing trends and anticipating the impact that the crisis will have on the market in which each company operates has never been more important, and in this context, accurate data management and analysis becomes essential.
"... Twelve years ago, in the midst of the economic downturn in 2008, British Airways (BA) was cutting costs across the organization.
Within this context of health emergency, the mobility restriction measures decreed by the governments have forced people to change their consumption habits, a situation that forces companies to look for ways to deliver the products to their customers.
In order to adapt to this new economic reality and derived from the outbreak of covid-19 in Central American countries, companies have been forced to rely on marketing channels that until a few weeks ago were not among the most important in their commercial strategy.
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