The effect of COVID-19 on businesses at the national and international levels
In this report, the effect of COVID-19 on businesses at the national as well as international levels is defined. The random and unpredictable events that gave a widespread impact on the economy and are caused by certain things outside the economics models score the economic shocks.
It can be classified into the economic sector that originates with the influence of the supply and demands factors. The following essay aims to analyze the impact of COVID-19 on business activities in the national and international markets.
There is low profitability is generated in the market she to the lesser amount of productivity by the company. Due to the decline in the economy of the global market, there is a higher decline in profitability can be seen at the national as well as international levels.
The policies of the lockdown develop by the government of the country have a significant impact on businesses. Various factors of the business are affected by COVID-19 and political, social, economic, technological, environmental, and legal forces exist.
COVID-19 impact at the national level:
Due to the isolation and lockdown, the business organizations of the United Kingdom needed to run the operations and generate higher profitability. The pandemic of COVID-19 affects business firms massively in terms to decrease the rate of success as well as their production capacity.
The lockdown and isolation policies made by the government of the UK directly affect the performance of the business and decrease its level of productivity as it relates to the business values. There are a lot of industries that were affected by COVID-19 but the industry of tourism and food in the UK is greatly affected by the pandemic of COVID-19.
The recreational and accommodation or food industries are greatly affected in the UK by the Pandemic of COVID-19. There are approximately 50% of recreational services that affected by the pandemic. And there is almost 30% accommodation and food industry affect the performance of the business in the clear aspects. The government of the United Kingdom puts restrictions on the industry to shut down their operations due to the threat of spreading the virus.
The industry of tourism can’t change its medium for selling entire products and updating its operations in the mind of the customers. So, this industry greatly faced loss and affect the economy of the UK. COVID-19 affects the productivity of businesses which impacts the overall performance and the economy of the country. The industry of tourism and food is the main economical contributor to the profitability of the UK but due to the pandemic, the operations of these industries are declining analysis.
PESTEL analysis:
According to the PESTEL analysis, different factors affect the performance of business performance of the companies in the UK.
Political:
The government of the UK puts various restrictions and policies to close the operations of the business during the pandemic of COVID-19. The government of the UK invests £4.5 to manage the operations of business organizations in this threatening situation.
Economic factors:
Different economic forces affect the business performance of the UK. The gross domestic product of the UK declined in the year 2020 by 9% and rise to 6% in the year 2021. So, COVID-19 affects the performance of the business and determines reliable techniques very well.
In the United Kingdom, there is -10% economy is affected by the pandemic of COVID-19 as compared to the economy of Italy, France, Euro Are, and other key countries. It declines the gross domestic product of the UK and affects the economy of the country.
Social factors:
Various social factors affect the performance of the businesses of the UK in the threatening situation of COVID-19. The rate of unemployment in the UK becomes increased because most companies lose their operations and fire employees due to the lack of resources. The current population of the UK is over 68.7 million.
Technological factors:
The use of advanced technology on the industrial level becomes increased during the pandemic of COVID-19 which change the mode of working from offline to online mediums. Manufacturing 4.0 and social media platforms are instantly used in the entire boundary of the company.
Environmental factors:
The issue of climate change, air, and the lack of environmental policies are the key forces that affect the business organizations in the UK. Due to the higher level or capacity of production, there is a decline that can be seen in the carbon dioxide in the UK.
Legal factors:
The business organizations of the UK must follow the acts of employment, consumer behavior, and the code of ethics of the business for managing the entire operations.
COVID-19 impact on the international level:
At the national level, the pandemic of COVID-19 also affects the business performance of companies in the International market. The SWOT analysis is representing that defines the key values of the firm towards the clear challenges related to better decisions.
COVID-19 hits the economy of the global world and transforms business processes from offline to online mediums. There 23.2% of enterprises plan to make remote working permanent in some capacity. There 29.4% of enterprises listed staff wellbeing as one of their top concerns. There 56.4% of enterprises have a turnover exceeding operational costs.
SWOT analysis:
It is a model that use to find the strengths, weaknesses, opportunities, and threats of the business through the proper plans and strategies.
Strengths:
COVID-19 digitally transforms businesses at the international level by using different social sites. Businesses reach customers through the use of social media platforms and sites during the pandemic of COVID-19 and raise their profits.
In the year 2020, the number of E-commerce businesses in the global market becomes increased as compared to 2019. The responses of retailers reach 21.96 from 13.87 as per the economic plans and reliable techniques.
Weaknesses:
Face-to-face interaction with humans is missing because human labor reduces by the digital transformation in the pandemic of COVID-19.
Threat:
Due to the increasing dependency on technology, the role of human labor becomes finished which is not good for business performance in the international market because the chances of rising the number of errors become increase continuously.
Opportunity:
The awareness of the companies in the minds of customers in the international market becomes increased due to the pandemic of COVID-19. So, digital transformation helps companies to expand their operations and generate a higher level of success in the given time.
Conclusion: The effect of COVID-19 on the performance of businesses
In this essay, the effect of COVID-19 on the performance of businesses and companies at a national and international level is defined. The PESTEL model defines the COVID-19 effect in the boundary of the UK on the other hand, the SWOT analysis defines this effect in the international market. The human labor decrease raises threats for some business organizations in the international market.
But the key strength and opportunity of the business are to reach certain points that can be varied by examining the best values and updating the digital transformation. The use of advanced and digital technology becomes common in the pandemic of COVID-19 on business performance.
