Impact of COVID-19 on Business Sectors and Future Prospects

Global Business Environment

Table of Contents
2 (a) Newspaper article.........................................................................................................................2
2 (b) E-mail............................................................................................................................................3
REFERENCES:.........................................................................................................................................5

2 (a) Newspaper article
Consumer confidence refers to the economic indicator which is used for measurement of degree of
chances that the consumers feel for overall state of economy as well as their own financial situation.
When consumers have high confidence, they make higher purchases, and when the confidence is low,
purchases are low and consumers saves (Macready and et.al., 2020).
Before the start of the year, the sustainability of economic growth was expected. However, as the
starting of the year COVID virus element Omicron spread, business and economies have starting to
get affected. There are various business sectors in which investors have to invest carefully. Some
business sectors will struggle to survive and grow in next 12 months. Some of these sectors are
Tourism, real estates as well as auto component sectors. There are various supply and demand factors
which affect the business sectors. As due to Corona virus re-emission the sector which will get
affected majorly is Tourism. Countries and economies have to emphasis and rethink about pandemic
situation and some might some think to lockdown states again. This is affect the demand of
consumers as their preferences from travel to staying at home will shift. They will prefer to stay at
home than to go out. Due to decrease in demand, supply will get affected and tourism will drop. As
UK have put certain conditions before travel such as taking a pre departure test before travelling,
people are scared to go out (Lašáková, Remišová and Bohinská, 2022). This also affect the airline
sector and companies such as British Airlines.
There are various chances of uncertainty, so the real estate business will also suffer. The
supply is enhanced, but demand is less due to these factors the real-estate business is likely to suffer.
People are ready to sell their property as due to pandemic consumers have been left with low
disposable incomes. This affect their demand. The hospitality sector is also more likely to suffer
again. Hotel industry is mostly dependent upon the tourism and if tourism drops, the demand in hostel
industry will also drop. Due to drop in demand of tourists and travellers the restaurants and
entertainment industry will also suffer losses.
At the end of year 2021, the Sensex and nifty rates have finally up, but the risk have not yet
fully eliminated. As the COVID-19 variant Omicron have spread the chances of pandemic returning
have also increased. Due to the pandemic many businesses have suffered. But at the same time,
various sectors such as IT sectors, securities and FMCG (Fast moving consumable goods) are
expected to bloom (Uparna and Bingham, 2022). Due to pandemic and COVID-19 protocol, the
chances of lockdown enhances and if the states are lock down condition, they still have to follow
COVID-19 protocols which includes maintaining social distancing. Due to these factors the demand
for IT will enhance, as the world will thrive on digital technologies for their businesses ad daily life as
well. So, the companies such as Hyperlink InfoSystems and iTechArt group will prosper. The demand
for technologies will enhanced which will give a prospective impact on supply and the sector will
bloom. Another sector which is expected to bloom is FMCG sector. Due to re-spreading to COVID-
19, the population will panic and thus will start buying necessary goods in bulk. The demand for
FMCG will not decline throughout the pandemic. It is the sector which will not be shut down even in
COVID.
The other sectors which will bloom in the next 12 months are securities. As people are
panicking due to the uncertainty, they will look for options where their investments are safe. Investing
in securities will become a great option rather than the stock market. As the investment in securities
can be done from anywhere through digital resources, the demand for securities will increase. People
will see this as their best option for investments (Kraus and et.al., 2022).
As a result of the pandemic there are some sectors in which amateur investors can invest in. if
you look at the data from FTSE Index UK, of 2019 – 2020, it can be seen that it have performed way
below its average value in the initial starting of the year 2020. From the data of London Stock
Exchange the best companies to invest in include Unilever Plc., Royal Dutch Shell Plc., and