Case Study Question: CH 01 & 05
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Impacts of COVID 19 on States and Organization
Introduction
COVID 19 has had a major impact on everyone in the world, especially the economy. This outbreak caused various problems and turmoil in the world system, all confusing. I couldn’t imagine how this deadly virus would spread and infect anyone in such a short amount of time. COVID 19 has had a major impact on the corporate organization of the economy and death, life, nature, and systems. 2020 was a dangerous year for everyone. The coronavirus has killed countless people, but more and more people have been killed and infected. The virus infects approximately 24 million people worldwide and kills more than 800,000. More than 50 countries were affected. No one was allowed into the country due to blockages, travel restrictions, and flight suspensions in all parts of the world. Besides, trade, tourism, global trade, investment, and supply chains worldwide have been disrupted and still exist. As it is today, China’s economy is very closely linked to the world economy. 17% of world GDP comes from the Chinese economy. The domestic market accounts for 34% of GDP since the deadly SARS crisis of 2003. Coronavirus has been gradually increasing around the world since March 2020. The global economy grew 3.1% in 2020, and China’s GDP growth fell from 5.9% to 5.4% compared to pre-crisis coronavirus projections. This didn’t help after that because it didn’t end right away, but that’s it. It still exists. Not only that. Oil prices and interest rates and currency and gold prices have risen to previously unpredictable levels. Global GDP growth was less than 2%, as this serious pandemic intensified and was uncontrolled (Bartik et al., 2020). This paper will focus on evaluating the impact of COVID 19 on organizations and countries based on Morgan’s metaphoric approach. It will offer the different approaches that are used to determine overcome the challenges. The discussion will also offer own metaphoric, which will describe the impact of Covid 19 on states and economies. Finally, the paper will provide future developments as far as the pandemic is concerned.
Morgan Technique of description
According to Morgan metaphoric approach to organizations, corporates are supposed to be compared with other aspects to understand better the occurrences (Tohidian & Rahimian, 2019). In the COVID 19 pandemic, the strategies used to address the issues will be based on metaphoric approaches, that is, comparisons. The metaphoric approaches I to organizations include the perception of organizations as either classical or mechanical. Organizations are also perceived as brains, organisms, the structure of politics, psychic prisons, culture, flux, and tools for domination (Tohidian & Rahimian, 2019). This influences the perception of an ideology. COVID 19 has greatly affected the business aspects based on the metaphorical approaches.
Organizations are perceived as machines.
This perception is based on the assumption that the organization focuses on increased efficiency and maximum labor use. Typically, the organization is viewed as machines that are difficult to adapt to different changes (Tohidian & Rahimian, 2019). Typically, fast adaptation is inhibited. This makes the leaders focus on precision, reliability, predictability, and efficiency. All these mechanistic approaches have to be integrated into the organization for efficiency. Covid 19 has greatly affected the mechanistic aspects of organizations, thereby affecting their efficiency.
Market leaders have streamlined their supply chains, established their day-to-day operations, and made tough economic choices. Analysis by some experts suggests three economic conditions that may become clear. It’s a pandemic of rapid recovery, a global slowdown, and a recession. The cost-effectiveness of the more positive evolutionary outcomes of COVID 19 is considered to be underestimated. First, rapid recovery in this situation increases the number of patients given the high levels of transmission of the virus. This inevitably creates solid public protests and declining demand, but it is relatively less of a national problem because different countries can exercise the same swift control as China. Working older people and children’s low mortality rate suggests that anxiety levels are beginning to decline as the disease continues to spread.
Adult workers are always worried about their parents, older relatives, colleagues, neighbors, and measures taken to protect their well-being. Adults and the elderly, especially those with underlying disabilities, refuse certain activities. Many people continue their normal lives outside the transmission complex. This situation suggests that young people are sufficiently affected to change certain daily habits. For example, do it more often, washing your hands for survival therapy, or taking action at a higher level. Another example is not going home to work or keeping your child out of school. The main complex factor that has not yet been investigated is that employees in this economy, such as drivers, have to report their work, even though they are being asked to work from home. Generally, this has affected the mechanistic aspects of organizations.
Corporate as a brain.
The brain has mostly been associated with cognitive aspects, whereby the urge to learn prevails (Tohidian & Rahimian, 2019). In this case, the organization should learn new concepts due to changes in the market structure and working environments. This is the brain metaphor. There is a recommendation based on the approach that systems should conceptualize the internal diversities within systems that control themselves. Based on the brain metaphor, it is evident that systems have to be self-adjusting, optimizing, and regulating to face the various changes environment in the case of the COVID 19 pandemic. This has mostly been associated with the double loop learning approach.
With a slowdown in global growth, it can be assumed that many countries will not be able to achieve the same rapid power as China in this situation. Communication in the US and Europe is large but still curtailed because individuals, businesses, and governments have adopted some credible measures, including school closures and large-scale events. In this example, the cumulative number of hits in the United States is projected to be approximately 10,000-500,000. It hosts about one huge epicenter. 40% to at least 50% of all cases, 10% to 15% of all instances, and two or three small centers in different cities with different instances. As a result, the demand shock will halve GDP growth from 1 to 1.5 by 2020, slowing global economic growth, if not a recession. The global collapse, in this case, will have a more serious impact on SMEs. Developing economies will suffer more than advanced economies and businesses. Again, not all industries are affected equally. Service sectors such as aviation, transportation, and tourism can be hit hardest. On the most profitable global routes, especially in the Asia Pacific region, airline traffic has plummeted. In the following states, airlines missed peak sales during the summer travel season, leading to bankruptcy (segment-wide alliances. A sharp drop in market demand slows consumer goods demand. This may mean that the supply labor capital constraints of various client and partner companies are small, which has implications, but May-June demand returns to concern about virus reduction. We have been. The impact of Nemours’ largest segment, Target, is primarily the decline in GDP at the global and national levels, partly due to various indicators’ direct impact. For example, oil prices have fallen below expectations. This hurts gas and oil. The systems have to adjust to the various changes in the economic spectrum. This is the learning process.
Organization as an organism
Corporate institutions have to adapt to changes in survival (Tohidian & Rahimian, 2019). This is based on the theory of survival for the fittest based on the various challenges that the organization face. This aspect acknowledges the significance of the internal and external environments, which are crucial for the corporation’s survival. In this case, Covid 19 has significantly affected the business environment.
Outbreaks and depressions in this situation are similar to a global slowdown, just considering that this coronavirus is not only seasonal in nature. Virus growth can drastically reduce global economic growth in 2020 to 1.5-0.5%. Besides, supply chain challenges for many companies worldwide, the most important reflection on the COVID-19 pandemic in the first few weeks, affected supply chains in or originating in China. Confusion has prevailed, and as a result, the supply chain has closed factories in China throughout the COVID period, which is not yet clear. Many large companies report that China has been using more than 90% of its features in other parts of China. Actual testing, such as migrant workers’ availability to transport goods from the factory to the port, will continue, but the carrying capacity is typically between 60% and 80% ((Rogerson & Rogerson, 2020). Delay issues now exist in the goods and services department from the 8th to the 10th from the factory to the port.
Fares have fallen by about 15% worldwide due to the corona crisis. In the coming months, development in the plant will be slowed down, and more tests may be done to protect the hazardous areas. Corporate inventories are declining rapidly. The shortage of spare parts is expected to be a new reason why China’s factories cannot operate at full capacity. It’s unimaginably great for supply chain managers and production managers who insist on products.
All industries around the world have changed. Some of them have more severe resistance, but some of them fight and always succumb to the unstable “normal.” If the configuration is unstable, the world’s supply chain is disrupted, and the load remains low, the customer requests the configuration. In various regions and markets, governments rely solely on the coronavirus crisis. Companies are relentlessly familiar with innovative and uncertain market conditions. Through day-to-day conversations with customers, the company provides industry-specific guidance on what leaders should reflect in their current and future work. (Funk et al., 2010).
Corporation as a culture
Culture is the process through which meaning in an institution is derived (Tohidian & Rahimian, 2019). The meaning assists in understanding the concepts in different systems or operations. Cultural metaphors are used to shape realities and create shared reality, which is the basis for obtaining an understanding of concepts. Generally, cultures arise as a result of shared task solutions. Generally, the cultural metaphor is mostly used to formulate solutions or strategies to mitigate particular challenges, as it is in the case of COVID 19 in corporations.
Besides, some other methods may improve emergency management by improving awareness of capital requirements rather than forecasting sound cash flow in the short term. Also, classify and use Quick Win to get stuck money or money saved by companies. By establishing tighter control over cash and cash-related cash to reduce leaks and adapt to lenders’ various proposals. For example, an entity can increase its receiving and paying accounts by negotiating payments between debtors to secure the goods it offers. Reducing payment accounts can help you investigate financial discounts, for example, by implementing a payment plan to avoid paying early. All of these factors help your organization fully operate and control everything.
As businesses slow down, some companies face lower revenues, resulting in lower cash flow. This is one of the biggest challenges for any company as it works for money. As a result, cash and liquidity management is difficult at the time of this, as few businesses remain on the market, and everything is shut down due to a lack of sales and rising costs. Short-term financial and cash management strategies in which a corporate organization uses a variety of strategies. Because this is an important part of the business line, companies ensure sound supply chain risk management. If this is not confirmed or supported, the business may be shut down immediately.
To maintain the cash flow of the business, it is necessary to develop short-term strategic liquidity. Besides, manage infrastructure and communicate with relevant stakeholders, landowners, tax authorities, suppliers, lenders, etc. (such as improving facility stockpiling and financing). Companies can also rebuild stakeholder trust to ensure sustainable corporate restructuring. Last but not least, quickly discover other financing options with investors / financial firms in the economy.
Own metaphor
Organizations can be compared to systems influenced by the environment, that is, organizations as systems. Typically, systems are determined by internal and external factors. The systems are influenced by the concepts of GIGO that are Garbage in Garbage Out. The garbage source may be due to unfavorable economic conditions, which influences the organization’s outcome. In this case, the Covid 19 pandemic is an input that was induced in all systems. The pandemic has greatly influenced labor in the working places as the populations to have to be controlled. A reduction in the amount of labor has greatly influenced the outcome.
To mitigate the challenges resulting from the harsh working conditions, systems are currently employing new working strategies such as remote working. This is in the case that the services of the individuals are not physically needed. In one-way, technology has been used as a strategy to bolster the working of the system. This is as far as organizational operations are concerned. Technology has substituted the physical requirement of some individuals. For instance, in the contemporary world, communication is currently virtual. This minimizes the physical contact of individuals.
Future developments of organizations
In the future, the Covid-19 pandemic brought acceleration and unexpected variables, and most of the current plans and units to combat outbreaks were not ready to be implemented. Many companies have developed event management tactics shortly before they occur and are now looking to the future. All a company has to do is influence the company’s management team in response to the crisis and work together to respond to the immediate corona crisis. This allows companies to move on to the next. Besides, once the company has settled down and focused on how to get people back to work, evaluate the company’s response to classifying areas for aisle changes in real-time. Companies need to pay attention to what organizational vision the crisis process has brought to support their strategy and take advantage of the opportunities for change during the event.
Organizations are employing different strategies to manage a health crisis. One of the approaches includes Mergers and Acquisitions. Mergers and acquisitions are common terms used to describe a company’s merger or asset through several types of financial transactions. During the COVID outbreak, the M & A in this scenario requires a level of internal M & A capacity that exceeds the available level to many companies. To achieve what they strategically want, M & A requires an increase in their work and transactions.
Proceeding with mergers and acquisitions requires processes, skills and resources, software solutions, and instructions that enable remote transactions of transactions offered in any market environment that fully support strategic withdrawal from the crisis. As companies face many acquisition challenges, for M & A to create value for the company at this time, they need to:
Some companies quickly moved to opportunistic merger and acquisition hotspots. For those who need strong motivation, a solid balance sheet, high stock prices, or a skilled workforce with good credit, the most promising growth solution for others to take advantage of the starter, Choose Your Dance Partner Now in Sector, Technology Potential buyers are still shocked or understand the company’s further steps. The data surveyed also suggests that qualified companies are buying instantly in various strategic transactions, with 49% banning sneaking purchases of suffering companies. 23% further expand their structure, targeting entirely new technologies, segments, or solutions. Future income. In the case of M & A, a creative bridge based on the described evaluation, gaps can be the key to closing a deal in the short term. For this reason, this refers to the level of due diligence of sellers that many buyers are just starting with (Strauss, 2020)
From a financial perspective, companies need to create new resource opportunities. After the outbreak of COVID-19, leaders needed to take immediate action to improve the company by balancing liquidity and risk and measuring the potential for expansion after the recession. These steps will bring a great future for most industries, not just businesses.
Some industries are thriving, as many companies are under stress. These are internet-based businesses such as online education, online shopping, online entertainment, and businesses related to food delivery for work. As the demand for cleaning products, fasteners, snacks, etc. increased, people changed their shopping designs, and since COVID 19, people are spending more time at home. (Jaworski e al., 2016)
Conclusion
Organizations and states are stressed by the COVID 19 pandemic, which has greatly influenced the operations (Rogerson & Rogerson, 2020). Businesses are not carried as usual. Based on Morgan’s theories, it is evident that organizations can be compared to the brain, organs, machines, etc. these are metaphoric perceptions that assist in the ideation of the processes involved in the organization’s operation. The ideations have effectively indicated an impact on any of the aspects greatly influenced the organization’s operations as it is in the case of COVID 19, which has influenced operation differently, as discussed in the preceding discussions.
Reference
Bartik, A. W., Bertrand, M., Cullen, Z., Glaeser, E. L., Luca, M., & Stanton, C. (2020). The impact of COVID-19 on small business outcomes and expectations. Proceedings of the National Academy of Sciences, 117(30), 17656-17666.
Funk, S., Gilad, E., & Jansen, V. A. (2010). Endemic disease, awareness, and local behavioural response. Journal of theoretical biology, 264(2), 501-509.
Jaworski, B., Kohli, A. K., & Sahay, A. (2016). Market-driven versus driving markets. Journal of the academy of marketing science, 28(1), 45-54.
Mevorach, I. (2011). European insolvency law in a global context. Journal Of Business Law, 2011(7).
Rogerson, C. M., & Rogerson, J. M. (2020). COVID-19 TOURISM IMPACTS IN SOUTH AFRICA: GOVERNMENT AND INDUSTRY RESPONSES. GeoJournal of Tourism and Geosites, 31(3), 1083-1091.
Strauss, S. (2020). Some Emerging Hypotheses on the Economic Opportunities and Challenges of the Post-Pandemic World. Available at SSRN 3633391.
Tohidian, I., & Rahimian, H. (2019). Bringing Morgan’s metaphors in organization contexts: An essay review. Cogent Business & Management, 6(1), 1587808.