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.

See "Post-Quarantine Consumption Patterns"

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.

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