Impact of Coronavirus on Businesses

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Impact of Coronavirus on Businesses
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Savanta recently conducted some research with 500 business decision makers across the US in regards to working in a pandemic environment and the impact of coronavirus.

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Impact of Coronavirus on Businesses

  • 69% of business decision-makers say that their company is operating with less capacity than usual.
  • 31% of business decision-makers say that their company is working as usual.
  • Business decision-makers estimated the impact of coronavirus to last a little over 11 months. (Up from previously reported 7 months)

Approach to work from home

  • 93% of business decision-makers reported that their company has a remote working policy in place.
  • 59% of business decision-makers report that majority of employees are working remotely.
  • 33% of business decision-makers report that few employees are working remotely.
  • Only 7% business decision markets report that none of the employees are working remotely.
  • On average business decision maker are expecting the remote working to continue for another 4.5 months. (Up from previously reported 3 months)

Company approach to remote working

 45% of business decision-makers say that their company allows flexible working hours.

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  • 38% of business decision-makers say that their company offers online exercise and yoga.
  • 36% of business decision-makers say that their company is creating learning/training opportunities.
  • 31% of business decision-makers say that their company used virtual happy hour with team.
  • 67% of business decision-makers say that their company will allow some/occasional remote working. (Down from 74% reported previously)
  • 23% of business decision-makers say that their company will continue as it was before the Covid-19 crisis with no remote work.

Impact of Covid-19 on business

Increase / Positive impact

  • 54% of business decision-makers say that their company has increased virtual hangouts.
  • 39% of business decision-makers say that their company has increased internal communication.

Decrease / Negative impact

  • 69% of business decision-makers say that coronavirus has led to decreased events/in person meetings and business travel.
  • 47% of business decision-makers say that coronavirus has resulted in decreased revenue.
  • 44% of business decision-makers say that coronavirus has resulted in decreased morale.
  • 38% of business decision-makers say that coronavirus has resulted in decline in revenue leads. (Down from the previously reported 46%)
  • 38% of business decision-makers say that coronavirus has resulted in dip in the number of projects. (Down from the previously reported 46%)
  • 36% of business decision-makers say that coronavirus has resulted in decreased costs/business spending. (Down from the previously reported 44%)
  • 36% of business decision-makers say that coronavirus has resulted in decreased costs/business spending.

Covid-19 impact over time

  • 56% of business decision-makers feel pessimistic about the overall economy. (Up from previously reported 49%)
  • 45% of business decision-makers feel pessimistic about the overall employees’ outlook. (Up from previously reported 34%)
  • 36% of business decision-makers feel pessimistic about the company’s sales.
  • 35% of business decision-makers feel pessimistic about the company’s overall performance.
  • 35% of business decision-makers feel pessimistic about the employees’ productivity.
  • 29% of business decision-makers feel pessimistic about their own performance/productivity. 

How companies are dealing with coronavirus?

  • 25% of business decision-makers say that their company decreased the salaries.
  • 23% of business decision-makers say that their company provided option for furloughs.
  • 22% of business decision-makers say that their company undertaken major layoffs.
  • 18% of business decision-makers say that leadership in their company has taken the salary cut.

Strategies to mitigate business risks

  • 69% of business decision-makers say that their company is expected to align workforce planning with business strategy to prepare for evolving needs.
  • 65% of business decision-makers say that their company is expected to mitigate risks by understanding the pulse of its customers.
  • 63% of business decision-makers say that their company is expected to mitigate risks by identifying the financial and operational cost optimization levers.
  • 60% of business decision-makers say that their company is expected to mitigate risks by accelerating the digital transformation.
  • 57% of business decision-makers say that their company is expected to mitigate risks by formulating a crisis management team to mobilize response efforts.
  • 56% of business decision-makers say that that their company will mitigate risks by assessing prospects for relief from tax provisions.
  • 55% of business decision-makers say that their company is expected to mitigate risks by identifying new pricing strategy.
  • 55% of business decision-makers say that their company is expected to mitigate risks by formulating new supply chain strategy.
  • 48% of business decision-makers say that their company is expected to mitigate risks by deferring or cancelling the planned investments.

Priorities of the organizations

  • 59% of the business decision makers say that ‘Designing health & safety plans to protect employees from coronavirus’ is one of the top three priorities of their organization.
  • 51% of the business decision makers say that ‘Realigning the business targets based on the impact of coronavirus’ is one of the top three priorities of their organization.
  • 51% of the business decision makers say that ‘Reducing the non-essential spending to curtail operational cost’ is one of the top three priorities of their organization.
  • 44% of the business decision makers say that ‘Developing sustainability plans’ is one of the top three priorities of their organization.
  • 41% of the business decision makers say that ‘Adopting cost-cutting measures for business survival’ is one of the top three priorities of their organization.

Post Covid-19 technological changes in US corporate sector

  • 41% of business decision-makers think that post coronavirus the reliance on remote working will increase in the US corporate sector.
  • 20% of business decision-makers think that post coronavirus the US corporate sector will invest more in building virtual platforms.
  • 16% of business decision-makers think that post coronavirus the automation will increase in US corporate sector.
  • 12% of business decision-makers think that post coronavirus the US corporate sector will see development of Robotic process automation software.
  • 11% of business decision-makers think that post coronavirus the US corporate sector will implement more AI/machine learning.

About Savanta 

Savanta is a fast-growing data, research and advisory firm with five global offices and 347 staff. We inform and inspire our clients through powerful data, empowering technology and high-impact consulting. All designed to help our clients make better decisions and achieve faster progress. Savanta offers clients a full range of intelligence services, including:

  • Bespoke research – tailored solutions built using specialists from Savanta’s Industry Methodology Practices
  • Data collection and analysis – access to 100 million respondents through a proprietary technology platform
  • Intelligence products – including the BrandVue and MarketVue reputation tracking services

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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