EXCPR™: HOW SMEs CAN OVERCOME THE CORONA CRISIS

HOW SMEs CAN OVERCOME THE CORONA CRISIS
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.