Free Essay Example: Impact of the Pandemic on the Economy

The COVID-19 pandemic has led to economic risks, resulting in economic disruptions in many countries. The spread of the pandemic has left world organizations going through a lot of loss and wondering how to recover. The pandemic has led to a massive disruption in the economies, which has left policymakers looking for ways to recover. There has been a decline in the supply of manufactured goods due to protocols put down by different governments to curb the spread of the pandemic. Shortages in supply have also been noted due to the disruption of leading factories like China and consumers' panic buying. The world stock markets have also crashed (Ivanov, 2020).

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An example is China, where there have been many COVID-19 cases resulting in a lockdown, thus challenging to carry out business usually (Hedwall, 2020). However, the pandemic has not just come with disadvantages. There has been an urgency to leverage digitalization, which most companies have responded to. Most organizations have adopted innovative technology ideas that help them carry out business with ease despite the pandemic.

Walmart Company in America is a global retail firm that operates markets, groceries, and department stores. It is an American multinational enterprise that focuses on the retail and wholesale business industry. The company offers its products and services at low prices. Its low product prices have grown to be successful and created a strong and loyal customer base. Walmart is the largest in sales in America (Bonanno &Goetz, 2012). It offers general consumer services compared to other retailers. The company has also continued to shine due to its high sales volume, bargaining power with the suppliers, and its management of overhead costs. The above factors have made Walmart lead and gain a competitive advantage.

Covid 19 pandemic has affected many businesses, not leaving Walmart behind. It has become difficult for the company to manage its workers' and customers' health. When most customers go shopping regularly, it is not easy to coordinate people and ensure all health guidelines. Also, transport restrictions and protocols ordered by many countries due to the lockdown have become a challenge for Walmart to get goods from some of its suppliers. This is a period when most customers purchase vast amounts of goods due to panic. Therefore lack of stock in the stores has become a significant problem for them (Souza, 2020). In addition, it has also become challenging for customers to visit shops when there is a total lockdown. Transporting the essential services to the majority becomes a challenge, and other customers will even prefer to shift to other nearby stores.

However, despite the challenges, Walmart has remained more productive than other companies. It has adopted strategies that will make its services still recognizable and preferable. The leading organization has formed a staff team that has helped recruit many workers to carry out additional activities. When other employees are out on leave, the others will assist. Other employees will also assist in maintaining distance and ensuring health guidelines are followed when customers are shopping. Employees will be given bonuses and increased payment due to much work they have to do during the pandemic period. Walmart has been making changes meant to support its workers and customers during the pandemic (Carson 2020).

Moreover, the company has put more reliance on digitalization in how goods from suppliers will reach them. They have decided to use drones, which will help them receive goods with fewer struggles. Online purchase of goods has also been developed to make it easier for customers to order goods. In line with that, Walmart has created a new express delivery service, which will make it easier for customers to receive their goods (Souza, 2020). The strategies made have favored both the workers and consumers, bringing an advantage to the company since it has still maintained the top priority for many.

Conclusion

In conclusion, the pandemic has significantly hit organizations bringing losses to them. However, the pandemic should act as a wake-up call for most companies. Organizations should also try to invest in technology and look for strategies to help them maneuver in future crises. When developing strategies to work comfortably during the pandemic, the managing team should consider the employees and the customers. This action will help a company maintain its competitive advantage over the others.

References

Bonanno, A., & Goetz, S. J. (2012). WalMart and local economic development: A survey. Economic Development Quarterly, 26(4), 285-297.

Carson, B. (2020). Automatons or Individuals? Voluntary Responses to COVID-19 Related Epidemic Externalities. Voluntary Responses to COVID-19 Related Epidemic Externalities (November 21, 2020). The Independent Review.

Ivanov, D. (2020). Predicting the impacts of epidemic outbreaks on global supply chains: A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2) case. Transportation Research Part E: Logistics and Transportation Review, 136, 101922.

Kim Souza. "Several Top Leadership Changes Made at Walmart U.S., Sam’s Club." Talk Business & Politics, 26 Feb. 2020, talkbusiness.net/2020/01/several-top-leadership-changes-made-at-walmart-u-s-sams-club/.

Mattias Hedwall. (n.d.). The ongoing impact of COVID-19 on global supply chains. World Economic Forum. https://www.weforum.org/agenda/2020/06/ongoing-impact-covid-19-global-supply-chains/