The pandemic significantly negatively influenced society and the global economy. The pandemic had a massive influence on economics, enterprises, labor supply, and global supply networks, leading to considerable business disruptions. The constriction of the international supply chain brought on by the COVID-19 epidemic had a substantial impact on businesses (Donthu & Gustafsson, 2020). Businesses are globalized, and disruptions of international connectivity affect the local availability of supplies. The discussion focuses on business shutdowns and scaling back operations as the significant impact of the pandemic on businesses.
The tightening of the supply chain led to widespread shortages of goods and materials and disruptions in transportation and logistics. Because of a shortage of supplies, several firms were forced to shut down or scale back production, while others battled to cope with the rising demand for goods and services. (Donthu & Gustafsson, 2020). The pandemic also resulted in a significant decrease in consumer spending, which had a ripple effect on businesses across the globe. This has had a devastating impact on many companies, with many companies forced to lay off staff or even close down completely.
Businesses had to reengineer their operations process; for instance, those operated on-site had to change to e-commerce or shut down as consumers shifted to shopping online. Small and micro–enterprises were significantly hit by the pandemic as they lacked the financial muscles to reengineer their operation process. The e-commerce businesses felt the benefits of the pandemic cost as more customers shifted their buying behavior from in-person to online buying.
In conclusion, the tightening of the global supply chain impacted businesses and forced some to shut down due to a lack of supplies; e-commerce stores were positively affected to a smaller extent as they widened their customer base. The pandemic paralyzed our economy, affecting every industry and health sector. Businesses have taken note of the pandemic’s consequences, and I have no doubt that they currently have a backup plan in place for dealing with pandemics should they ever occur.
Reference
Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business and research. Journal of business research, 117, 284-289.