The Impact of COVID-19 Pandemic on Multinational Enterprises (MNEs)

This report analyzes the impact of the COVID-19 pandemic on multinational enterprises (MNEs). It explores the responses and decision-making processes of these companies, focusing on how they adapted to the economic challenges and market disruptions caused by the pandemic. The report examines the strategies employed by MNEs, including adjustments to planning, funding sources, and operational structures. It also delves into the IBM theories and paradigms that influenced these strategies, emphasizing the importance of knowledge theory and competitive advantage. Furthermore, the report discusses future decision-making for MNEs, such as re-entering the market, securing internal funding, and maintaining customer trust. The analysis highlights the significance of effective cash flow management and strategic planning to ensure stable functioning and sustained profitability in a post-pandemic business environment. The report concludes by emphasizing the importance of adapting to the changing business landscape and making right decisions to gain competitive advantage.

THE COVID PANDEMIC
HURTS BUSINESSES INC
MNES

TABLE OF CONTENT
MAIN BODY..................................................................................................................................3
(a) MNE response and decision making......................................................................................3
(b) MNE’s IBM theories and paradigm.......................................................................................4
REFERENCES................................................................................................................................5

MAIN BODY
(a) MNE response and decision making
The government of the country is not giving funds to multinational companies in the
country since they are not having a stable economic factor. There is a set standards all the
businesses are having for themselves in the market therefore there has to be effective planning
and measures which have to be taken.
Response of IMB
The company is not having a stable economic factor therefore the company is not
operating international which is a great decision which the company has taken. The organization
is going to target the customers in the country so that they can gain the right profit margins to be
able to invest in the future so that there are going to be better decisions and functioning which is
going to be present. Due to the lockdown globally there were a lot of products and services
which went for waste and the company did not get the right revenue which they were expecting
in the market (Belavusau and Gliszczynska-Grabias, 2020). The company will have to change
their planning but the ethics, operations and structure of the company are going to remain the
same. The geographic and funding sources of the company are going to be improved so that the
company will be able to operate effectively.
Future decision making
For the future as well the company is going to take time in getting their old products back
in the market so that they would be able to make the base stronger again in the market. It is very
important for the company to have a strong portfolio in the market which is going to impact the
performance for the expansion factor as well which is very essential for the organization to have.
The company is going to opt for internal funding sources like netting which are going to have
higher interest rates but the company has good experience and knowledge of the market therefore
it is not going to be a trouble for the organization to have a stable functioning (Sjåfjell and et.al.,
2020). There has to be good flow and planned cash which has to be present in IBM so that the
company will be able to operate effectively and efficiently again in the market which is a very
essential factor.

(b) MNE’s IBM theories and paradigm
The paradigm for IMB is that they have to make sure that they would be able to make
direct investment in foreign market which is going to make the company be affected majorly.
Since the organization is not having good and stable economic factor because of the pandemic
situation it is important for the organization to be able to make the right decisions. The location
of the company is going to change and use of knowledge theory is very essential in IBM so that
the company will be able to operate effectively which is a very essential factor (Lemonakis and
Zairis, 2019). Expansion of the company is going to be planned by IBM but there have to be
effective measures which have to be taken by the organization so that there is going to be higher
working which is going to be present. This paradigm is going to help IBM be able to have a
stable economic factor after the Covid-19 situation in the world and the company will be able to
gain the competitive advantage again in the market which is a very important factor for the brand
value and image in the market.
Theory of knowledge is going to help IBM be able to overcome the Covid-19 situation
which has risen globally but there have to be right measures which have to be taken. The
products are going to be in a doubt till there is going to be no knowledge which is going to be
present. There has to be good trust of the customers which has to be present of the clients in the
products and services which IBM is providing in the market so that there is going to be stable
working and profit margins (Rowan and Galanakis, 2020). The use of knowledge and skills of
IBM is very essential so that the company will be able to operate effectively and the company to
be able to functioning smoothly in the future and since the competition in the market is
increasing it is essential for the organization to make the right decisions as well so that the
company will be able to operate effectively.

REFERENCES
Books and Journals
Belavusau, U. and Gliszczynska-Grabias, A. eds., 2020. Constitutionalism under Stress. Oxford
University Press.
Lemonakis, C. and Zairis, A., 2019. Managing “crisis” and public sector organizations. Access
at: https://www. europeanbusinessreview. eu/page. asp.
Rowan, N.J. and Galanakis, C.M., 2020. Unlocking challenges and opportunities presented by
COVID-19 pandemic for cross-cutting disruption in agri-food and green deal
innovations: Quo Vadis?. Science of the Total Environment. p.141362.
Sjåfjell, B and et.al., 2020. Securing the Future of European Business: SMART Reform
Proposals. University of Oslo Faculty of Law Research Paper. (2020-11).