Impact of the Coronavirus on Businesses Worldwide

15.04.2020, 20:20

Asia is going to extreme lengths to fight the coronavirus and prevent it from spreading. Not only are people implementing social distancing as much as possible, but also businesses are playing their own roles. 

Contributing to the resolution of this global issue, Apple is checking the temperature of clients at its stores in China. 

Samsung applied thermal imaging technologies in Seoul, South Korea, to monitor the state of its shareholders as they enter the annual meeting. All the potential attendees, however, were advised to participate in the meeting electronically. People who showed respiratory symptoms were forbidden to enter for safety reasons. 

Other companies that have annual meetings this month are also reacting to the situation with all seriousness. Compatriot SK Hynix, for example, is planning the shareholders’ seating and allowing approximately two meters between attendees. 

Social distancing is also going strong in the Philippines. Mass quarantine started in many areas of the country on Sunday, causing a lot of bans. Nowadays, drinking in public is forbidden, while schools suspend students from classes. ICT Davao, a parent organization of 56 call center companies, announced a «minimum physical contact» policy to their agents.

Global Restrictions

The pandemic, however, did not affect Asia alone. Overall, it has already contaminated over 17,000 people around the world, of which 6,500 are lethal cases.

Australia has over 250 official cases of patients contaminated with the coronavirus. The Australian government issued a guideline to advise citizens not to gather in groups larger than 500 people.

Gambling companies in Australia, for instance, have decided to introduce temporary limitations. Star Entertainment and Crown Resorts shut down every second offline machine they have in order to provide space for the users. 

Besides this, table games will not host more than five players at a time. These crucial measures are an excellent way to prevent the spread of the coronavirus. However, they  undoubtedly have a negative impact on the company’s revenue: the shares of Star and Crown have dropped significantly.

In the meantime, Woolworths, one of the biggest Australian supermarket chains, selected special hours for senior citizens to shop. Elderly clients are especially vulnerable during pandemic times and need additional support. Woolworths decided to let older adults and people with disabilities shop at their stores before the official opening hours, avoiding large crowds.

Improvements in China

While the outbreak of the coronavirus is still rising to a climax in many countries, the situation in China is finally getting better. According to the World Health Organization and the Chinese government statistical data, the infection rates in China are decreasing. 

The quarantine has been lasting for exhausting weeks, starting from January 2020 in Wuhan. In total, isolation measures and travel restrictions affected approximately 60 million people in China. Due to the long-awaited improvements, China has started loosening the limitations on restaurants, shops, offices, and other businesses. 

While temporarily shutting down stores globally, Apple managed to reopen 42 shops in China. They, however, check their customer’s temperature at the entrance and require visitors to wear masks. Apparently, these minor restrictions were not enough to keep the clients of Apple Inc. away, as the Shanghai Apple Store was full of people on Saturday.

Apple, however, had to transfer the annual developers’ conference held in California in June to an online platform.

Most workplaces in China are also staying cautious after the quarantine. It is common these days to have a restricted number of people in elevators at the same time, as well as shorter lunchtime breaks.

Food Safety Measures

Big food and beverage chains in China, such as Starbucks and McDonalds, keep up the safety measures and enhance delivery services that do not require physical contact. Such contactless approach is a great solution not only in terms of public health but also economically. 

It is an excellent way to support local businesses that make their revenue in the customer service industry. Due to the lack of customers, such companies feel the significant impact of the coronavirus situation. 

A modern solution that appeared due to the coronavirus quarantine are apps that allow zero-contact delivery. It is exceptionally efficient for those people who happen to be in the high-risk group. 

Contactless delivery means that the food courier leaves the order at your doorstep, and you get a notification that the delivery was successful. You can then pick up your food safely. As social interaction is inadvisable nowadays, such a feature is a great option. Besides, it works either way: deliverers have the right to choose a zero-contact method similar to the clients.

Outside Asia, food delivery is also developing at a fast pace. Domino’s Pizza is hoping to provide safe service to people staying inside for quarantine. Don Meij, the CEO of Domino’s, believes that there is still a way to see the positive side of the current situation. He states it is possible for Domino’s as a company to keep more than 50,000 people employed.

Economic Recovery

The coronavirus situation is still ongoing, and it will take a sufficient amount of time for the global economy to recover from its impact. For China, the expected process of restoration of economic stability will launch in May. This estimate, however, may be too optimistic for the service industry since many locals are still in the state of quarantine.

The coronavirus crisis forced a shutdown for many businesses in China. Kenneth Rapoza from Forbes speculates that it may be the end of the 30-year era of China being the major international manufacturer. The reason for such a downfall could be the critical disruption of supply chains since logistics and shipping companies report mass closures. The influence of these unfortunate events will be resonating in business operations all around the globe. 

It is nearly impossible to set a timeline for the COVID-19 situation development. While China is starting to gradually come back to normal, coronavirus cases are still increasing in Europe and the USA. However, no matter the timing, these days, it is crucial to offer support on all possible levels: from personal and organizational to international.