Question

from the perspective of a buisness, what actions do they need to embrace to ensure their viability in the future economy and avoics failure? we have seen buisnesses being upended by covid 19. Provide an example of how a company has adapted or evolved (or should adapt and evolve) to survive such external shocks.

Answer 1

There is a need to take different action to be taken up, from the perspective of a business to ensure the viability of the business in economy in future. The first action is the regular assessment of demand and situational analysis in the market, changing trends and consumer preferences in the market and refocusing of the organizational strategy in the market with the changing business environment. This action, will help the business to produce the serve the products and services what is being in demand among the consumers and prevent the scope of marketing myopia. In this way, the business will be able to maintain the relevancy and viability of the products and services on offer as well as the whole business. It can be done, by analysis of inputs from CRM data and or conducting its own research to make a know and feel of consumers and the market. For example, Amazon does it on a regular basis and they first identify the consumers expectation and make backward movement to produce a product or services that best caters the needs and wants of consumers. The second action is to build a supply chain that is efficient, or responsive to reach out to the customers in expected time and will least cost. It increases the reach, accessibility and service to the consumers. As a result, market share is consolidated and business remains viable in the future. The third action is make high accuracy in forecasting of demand. It helps prevent excessive storage or shortage in inventory, prevent bullwhip effect in supply chain as well as help business cater the rise in demand of the consumers. The fourth action is to keep slowly and gradual change in organizational structure with the changing government policy, increased level of volatility in business environment and changing dynamics of market. It will help business to be lean, more agile and in urgent mode to quickly respond to market changes. It increases viability of the business. Further, the next action is to gradually move towards sustainability with implementation of corporate governance, ethical standards of high level and other similar measures. It builds a strong and reputed brand with big respect. It also contributes to the increased viability in the future.

To survive such as shock like COVID-19 pandemic, the company has adapted to open  a segment of necessary and essential goods item and collaborated with local suppliers to provide health care related stuff like mask and sanitizers to help people get it with ease using the company's own supply chain. It has helped company maintain its operations, continue to be in touch with the customers and build a positive reputation. It pays back, when normalcy is maintained and the company has started its regular operations to produce goods and services to the consumers. With increased level of local acceptability, the company has now gained more customers.