Impact of COVID-19 on Business and Finance: Use of Sample in Dealing with Larger Data and Analysis of Inflation

This report discusses the impact of COVID-19 on business and finance, the use of sample in dealing with larger data, and the analysis of inflation. It also explores how increasing salary/wages can positively affect people’s lives.

Skills

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Use of sample when dealing with larger data and sampling methods.........................................3
Methods of sampling...................................................................................................................3
Impact of COVID-19 on Business and Finance..........................................................................4
Impact of COVID-19 on inflation...............................................................................................5
How increasing salary/wages can positively affect people’s lives..............................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Pandemic have affected drastically and many businesses are still struggling to survive from its
impact. It has affected almost every business industry in a negative manner which makes it
complex to operate. There can be seen a hike in prices of essential commodities and many
employees are affected due to high inflation rate (Syriopoulos, 2020). This project report is based
on impact of COVID-19 on inflation. The topic chosen for this report is Business and finance
and it will cover use of sample in dealing with larger data. In addition to that, it will depict a
brief discussion on analysis and evaluation of inflation on business sector.
TASK
Use of sample when dealing with larger data and sampling methods
Analysation and evaluation of big data can be complex for statistician in creating insights. So by
taking sample from larger data can be easier to interpret as it reflects larger data. It is important
to take sample size rather than taking whole data. It becomes difficult to analyse data and
statisticians may found it complex to analyse data. Sample size may be referred as the number of
pieces of information which is tested in a survey. Larger sample size has many advantages as it
provides with more data to researcher to work with, but taking sample from it makes it easier to
create insight for same.
Methods of sampling
 Simple random sampling- It is one of the mostly used sampling method used by
researchers. It helps in saving time and resources. It is a reliable method of acquiring
information in which a single member is randomly chosen.
 Cluster sampling- In this method, researcher divide entire population into various
clusters and sections which represents a population. These clusters are based on age,
religion and location. It makes it easier for survey creator to derive significant inference
from feedback.

Impact of COVID-19 on Business and Finance
The pandemic along with restrictions of social gathering and imposement of physical
distancing rules which leads to increase in unemployment along with income losses for
many people. In addition to that, it also altered spending patterns due to increase in
inflation rate (Armantier and et al., 2020). Due to pandemic, people have lost their job or
face reduction in their salaries, this creates a challenge for them. As per Consumer Price
Index, price of essential products was dropped by 4% in second quarter of 2020. But in
August 2020, prices of goods and services have hiked by 2.7% than August 2019.
Pandemic have a great impact on business and finance. Many businesses are still struggling
to overcome from impact of pandemic. Many small businesses have to shut their business
because of unavailability of working capital. This lead to end their operation.

Impact of COVID-19 on inflation
Pandemic have affected supply chain of products and this leads to higher inflation in
transportation and wages. Both the elements are connected to price of commodities as change in
these elements affects pricing of commodity. Increased in food prices have adversely effect on
the livings of low income households as they spend a major part of salary in food. A small
increase can confront family members of such households in difficult decisions. Job losses and
rising food prices are triggered by COVID-19. People of low incomes are facing difficulty in
earning livelihood due to increased prices of commodities (Kouvavas and et al.,2020). It has also
affected economy of very nation and makes it complex to earn bread and butter. It is needed to
address this issue or it will drastically effect on lives of various people.

How increasing salary/wages can positively affect people’s lives
As pandemic have affected lives of many people and faces challenges in earning livelihood.
Low income households are not meeting basic requirements. But, this issue can be addressed
by increasing salary/wages so that they would not face difficulty in earning food. This can
help them in meeting basic requirements such as food, transportation and clothing. By taking
care of employees can help business in attainment of objectives effectively and efficiently
(Broeders and et al., 2020). It is needed for an organisation to increase salary of its
employees so that they would not face complexity in earning livelihood. With this, they can
be capable to face inflation in food prices, transportation. Along with this, it makes
employees loyal towards their company. Increased cost of commodities and services have
negatively affected employees. By increasing salary/wages of employees, it makes them
satisfied towards work along with facilitates in reduced turnover. Employees can able to
face inflation by increased salaries. Employees are struggling with increased prices of
transportation, petrol/diesel and food items. This creates challenge for employees to survive
in low wage. Thus, it is imperative to raise salaries of employees so that they can meet basic
requirements.

CONCLUSION
From the above project report, it was concluded that pandemic have affected almost every
business in a negative manner. It is depicted that many employees are facing challenge in earning
livelihood due to hike in inflation rate. Due to disturbance in supply chain, it has great influence
on price of commodities. Increase in prices of food and transportation are common problems that
are faced by employees. This issue can be addressed by increasing salary/wages of employees.
By this, it becomes easier to meet basic requirements. It is imperative as it facilitates in elevating
organisation’s earning power. It makes employees more loyal and devoted towards company.
Along with this, it contributes a major part in enhancing performance of employees. It is
imperative to hike salary so as to minimise negative impact of inflation rate.

REFERENCES
Books and Journals
Armantier and et al., 2020. Inflation expectations in times of COVID-19 (No. 20200513). Federal
Reserve Bank of New York.
Broeders and et al., 2020. Gauging the impact of COVID-19 on market-based inflation
expectations.
Kouvavas and et al.,2020. Consumption patterns and inflation measurement issues during the
COVID-19 pandemic. Economic Bulletin Boxes, 7.
Syriopoulos, K., 2020. The impact of COVID-19 on entrepreneurship and SMEs. Journal of the
International Academy for Case Studies, 26(2), pp.1-2.