Over 392,331 people have been infected by the covid-19 virus causing 335 deaths in the UK alone according to John Hopkins university. On the 31st of December the WHO heard its first case of covid-19, which occurred in a city in Eastern China called Wuhan. Over 196 countries have since been affected by this virus showing how rapidly it spreads, causing borders to be shut and lockdowns to occur preventing people from leaving their houses except for essentials such as food and medicine in an attempt to slow the spread of the virus. As a result of the lockdown, the Uk economy has been significantly impacted with stock markets being at their lowest since 2008’s global financial crisis.
An example of one industry particularly affected by the governments response to this virus is the airline industry, as British airways and Ryanair have experienced a decrease in bookings with EasyJet going as far to impose a pay freeze for employees due to consumer demand being so low. A recent report from tourism economics who are a consulting firm have estimated that tourism from China in America is down 28% in 2020 due to concerns regarding the virus. In turn, the calculated expected loss from the Chinese spending is $10.3 billion. In response to may businesses facing monetary issues in the near future, many governments are now implementing tax breaks in an attempt to keep the more vulnerable business such as small independent organisations afloat.
A $2 trillion relief package has been assembled in America, which includes many loans which will be given to both small and large companies. This package aims to help encourage these businesses to keep more staff on their payroll now they have access to extra finances, even if some of the organisations must shut temporarily. Many businesses are now requiring employees to work from home, which may reduce the employees productivity so an alternative measure an organisation could do to make up for the shortage of workers is to outsource some of their projects. An advantage of outsourcing includes access to lower unit cost, specialised suppliers and economies of scale. Also allowing the business to focus on its own core areas and priorities.
References: https://www.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6
https://www.wired.co.uk/article/china-coronavirus
https://www.weforum.org/agenda/2020/03/coronavirus-china-opportunities-change/
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