HOW SMEs CAN OVERCOME
THE CORONA CRISIS
8 STRATEGIES FOR DEALING WITH AN EMERGENCY
8 STRATEGIES FOR DEALING WITH AN EMERGENCY
With the onset of the Corona crisis, which began to resonate GCC at the end of February 2020, some small and medium-sized entrepreneurs realized the magnitude of the problem and the risks ahead, as a result of the closure of markets - as a quarantine to preserve the lives of individuals - in addition to the continuity of spending on rents, salaries, and bank premiums. Some of those companies have taken corrective action and changed their business strategy to maintain their institutional entity. In this regard, EXCPR Consulting and Business Management company launched this article, at the request of some small and medium-sized entrepreneurs, as a kind of national contribution to address this crisis. The company has been briefed on the best ideas and strategies that international companies have undertaken to deal with the corona virus crisis, and this is what any employer should do and take during the recession in the markets, in return for the continued waste of the budget. The most prominent of these guidelines are:
REDISTRIBUTING WORKERS
Some companies have taken the policy of
redistributing employees either for activities or for other roles and tasks
that the company may need, or even to lend some employees to other businesses
that need additional human resources to cope with the crisis. By tracking the
most demanding business activities during the Corona crisis, all these human
resources can be distributed towards the new vital sector, such as the delivery
of materials and consumer products to home customers, the medical and health
sector, cleaning materials, information systems, etc. The plant and animal
wealth sector is also a vital sector of sustainability and food security,
especially during the period of border closure between countries. The high
demand for national products thanks to the closure of the border has also
affected the additional need for more employment, which can be relied upon in
other labor sectors to achieve this.
CHANGING ACTIVITY
The severity of the Corona crisis can
also be reduced by changing the company's previous activity to a new activity
needed by the market during an emergency and the outbreak of the Corona virus.
This strategy depends on the type of activity and service provided, and its
ability to transform into a new activity that may be completely different and
does not require further skills. The rapid changes in existing information and
data may also have an impact on the response to the variables, as reports
indicate that the operational capacity of the Factories of the People's
Republic of China has reached 95%, which makes this a proactive opportunity to
prepare for the supply of the required products to the domestic and even global
markets, as it is expected that the rest of the world factories will continue
to stop for about 3-4 additional months, which means that Chinese products
dominate the world markets, thus increasing their market share. Especially at
that time. We also expect significant activity in the logistics and storage
sector, which requires directing some production sources towards establishing
companies that meet the requirements of the future.
WORK ONLINE
Some other companies have relied on the
transformation of business from retail and direct selling to e-commerce
application. This move is based on the philosophy of reducing or freezing
expenses, while increasing the revenue side. With an electronic application or
remote communication, customers can be reached and product images displayed
very quickly, with electronic payment to deliver the order directly.
Specialized advisory offices are also able to provide their consulting services
by video link in exchange for remuneration. The business or online philosophy
is to close stores and sell products through verbal or written communication,
which requires that the image of the product be able to convince the customer
to buy and take the role of the marketer.
CONNECT WITH CUSTOMER
The Corona crisis may be a good
opportunity to arrange the list of customers and communicate with them
constantly, which will leave in these customers a state of sympathy and
responsiveness to the company's products in the future, which will be crowned
either by ordering some products in the current crisis period, or it will
strengthen the bonds of communication and loyalty with customers, thus gaining
their loyalty in the post-Corona phase. Mobile phone numbers can be relied upon
for the customer segment, or email communication to the customer's customers'
minds on an ongoing basis, thereby selling products and reducing losses.
FARE FOR SALE
Some companies also rely on a strategy
for mutual benefit between the two parties - the owner and the employees. The
business owner is looking for an end to the Corona crisis with minimal losses
and the maintenance of human resources for post-crisis re-employment. Staff are
also looking for job security and access to the livelihood needed to live
through this difficult period. This method depends on the employee receiving a
fee from the weekly sales he earns from selling the product. This method is therefore
based on the benefit of all parties.
SELLING AT COST
The local market is expected to continue
to fall for an additional 2-3 months before it begins to gradually recover and
all risks are eliminated. Small and medium-sized companies fortified with a
good financial position can overcome the corona situation. As for other
companies, they can collect some liquidity by persuading customers to buy their
products, by offering very large discounts, based on the strategy of selling at
the cost price and liquidating the value of the goods financially. This
approach is perhaps suitable for companies and institutions that rely on having
a good stock of goods.
SALARY LINE
The payroll and personnel clause is one
of the largest items draining the sources of funds stored in the company's
accounts. Some companies have relied on neutralizing this item by giving
employees less pay leave, reducing the monthly salary budget, and laying off
some employees, in order to maintain the company's financial source. This strategy
may help manage the company's financial crisis, but management must maintain
the company's name and brand during the pre-crisis period.
INTEGRATION
Perhaps the strategy of merging
companies with each other is a good opportunity during the outbreak of the
Coronavirus, and achieving its strategic goal by transforming it from small or
medium-sized companies, to large competitors in the public market. By combining
the assets of the two companies with each other and redistributing its
management structure, the new company has a significant role to play in
reducing the size of the shock and its ability to cope with the emergency.
Finally, the Corona crisis is expected to disappear at least in May 2020, and some of its repercussions may last longer - August 2020 - as precautionary measures. Therefore, we are now living in a critical period that needs to be handled well. Small and medium-sized companies are also required to show the interest in preventive health against the Corona virus epidemic in a pictorial manner, so that they can gain the confidence of consumers, who in return have to contribute support by launching campaigns to purchase national products to save them from losses, all under effective government management.
Business
sustainability
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Tel:
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Fax:
+965 224-78734
Email:
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Website:
www.excpr.com
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