IBus 3510 Assignment: Impact of COVID-19 on International Business

This report examines the multifaceted impact of the COVID-19 pandemic on international business, drawing upon several articles and business management concepts. It analyzes the pandemic's effects on various sectors, including healthcare, the global economy, and small to medium-sized enterprises (SMEs). The report explores crisis management strategies, including incident management planning and stakeholder communication, and discusses the implications for human resource management, such as managing workforce needs and potential downsizing. It also highlights the importance of government intervention and the resumption of production, identifying barriers and suggesting solutions to mitigate negative impacts. The analysis emphasizes the significance of effective decision-making, resource acquisition, and communication for international businesses navigating the challenges of the pandemic. The report draws on concepts like crisis management, lean business structures, and the importance of aligning internal and external stakeholder interests to overcome the challenges posed by the COVID-19 crisis. The report also highlights the need for effective communication strategies and the protection of employee rights during times of crisis.

Running head: IMPACT OF COVID-19 ON INTERNATIONAL BUSINESS
IMPACT OF COVID-19 ON INTERNATIONAL BUSINESS
Name of the student
Name of the University
Author note

1IMPACT OF COVID-19 ON INTERNATIONAL BUSINESS
Question 1
The outbreak of the coronavirus has led to the creation of a global pandemic through
the spread of the disease called Covid-19. This pandemic situation has not only resulted in the
loss of numerous lives throughout the world, but has also affected all the industrial sectors
across the world. In this regard, it can be mentioned that the pandemic caused due to the
spread of the novel coronavirus has caused a serious impact on international business
activities among various countries as well as the local industries operating in specific regions
of the world that have been particularly heavily affected by the disease. In order to evaluate
this impact of the global pandemic of Covid-19 on international business certain articles
published throughout the world may be analyzed with regard to certain important theories
and concepts of business management.
The first article pertains to the response on several business organizations to the
impact of the coronavirus or Covid-19. The article has identified the several fields in which
the impact of the novel coronavirus has been observed, that is particularly on the global
healthcare industry (Pwc.com 2020). However, the article also does not fail to highlight the
impact of the pandemic situation on other business sectors and the global economy at large.
According to the article, the Global Crisis Centre of the PwC has been aiming to develop
specific strategies that may in turn help the global business organizations to tackle the
challenges that they have been facing as a result of the impact from the global pandemic
situation of the Covid-19 disease (Pwc.com 2020). The various concepts of business and
strategic management that has been explored through this article pertain to the scope of
strategy development processes and effective crisis management.
The concept of crisis management involves the identification of the several threats
and challenges that may be faced by a business organization through an evaluation of its

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external and internal business environment. In this regard, the process of crisis management
also involves the scope of devising effective means for the business organization for the
purpose of overcoming these threats and challenges (Booth, 2015). In order to tackle these
challenges and threats as faced by the organization, it may be required to incorporate certain
changes in their business operations and systems (Williams et al., 2017). In this regard, it
may be noticed that the scope of crisis management in business organization additionally
involves the requirement for integrating the different interests of the internal and external
stakeholders so as to align them with the interest of the organization to overcome the
challenges and threats that it has been faced with (Pwc.com 2020).
The second article is based on the impact of the pandemic situation on the global
economy as a whole and thereby the means that can be adopted by the international business
organizations in order to protect themselves from getting adversely affected by the declining
global economic conditions (Economictimes.indiatimes.com 2020). The concepts associated
with this article pertain to the adoption of lean business structures and downsizing of
employees in order to tackle the condition of recession that the global economy might be
heading towards. Furthermore, changes in the manner of investments made by the
organizations may also be able to alter the impact of the pandemic on international business
organizations.
The third article pertains to the scope of the impact of the pandemic on the small and
medium sized enterprises in China, the country where the coronavirus was first detected. This
article has been developed by the International Food Policy Research Institute and focuses on
the aspects of resumption of production and cash flow systems in these small and medium
sized enterprises in China (Ifpri.org 2020). The different barriers to business operations
owing to the global pandemic situation have been discussed in detail, along with the
identification of certain measures that may turn out to be productive for these organizations in

3IMPACT OF COVID-19 ON INTERNATIONAL BUSINESS
the long run. In order to identify the impact of the pandemic situation on the small and
medium sized enterprises of China, the article makes use of surveys conducted.
The three articles chosen complement each other as they provide for a basis of the
identification of the various threats and challenges that may be faced by the organizations as
well as the methods, which can be utilized in order to effectively manage such crisis
situations. The articles separately focus on different aspects of business organization, thereby
providing a holistic approach for the business organization to tackle the pandemic situation
affecting international business organizations in an effective manner.
Question 3
As observed in the earlier section, the global pandemic situation as a result of the
outbreak of the covid-19 disease has led the global economy and thereby the international
business organizations to face several negative impacts. As per the observation of the first
article, the process of crisis management in international business organizations pertain to the
scope of the development of plans for incident management and developing effective means
of communication with the different internal and external stakeholders of the business
organizations (Pwc.com 2020). Furthermore, the article also focuses on how these
international business organizations may align their business operations to support the
workforce and prevent the occurrence of unnecessary downsizing.
I have been considering the scope of my career in the field of human resource
management, and in this regard, it may be observed that the global pandemic situation has
resulted in a lot of pressure on the human resource management systems of the international
business organizations. The scope of human resource management systems in the
international business organizations are currently pertaining to the scope of managing the
needs and interests of the workforce n several organizations and integrating them with the

4IMPACT OF COVID-19 ON INTERNATIONAL BUSINESS
interest of the organization to achieve and fulfill their goals and targets by tackling the
various challenges faced by them due to the pandemic situation. This situation of the global
pandemic therefore implies that I will be faced with a significant amount of work pressure as
a member in the human resource management department. Furthermore, I will also be
required to directly or indirectly communicate with the employees and actively participate in
the conflict management process undertaken by the organization. It will also be my
responsibility as a member of the human resource management department, to communicate
the needs and interest of the individual employees and workers to the higher levels of
management so that they may take these interests into consideration during the decision
making processes of the organization.
In order to adjust my skills and prepare myself to work efficiently in the human
resources management department I must be able to analyze the current business environment
of organizations in my industry over the world and assess how certain established global
business organizations are responding to the crisis situation with respect to the management
of their human resources. Furthermore, I must also develop my communication skills in a
better manner so that I may be able to provide an efficient medium of communication among
the different employees and managers operating within the scope of the organization
(Guarner, 2020). As it has been observed in the first article, the process of crisis management
is highly essential during the tackling of the pandemic situation in the international business
organizations (Pwc.com 2020). In this regard, it may also be mentioned that my role as a
member of the human resource management employee must also entail the protection of the
rights and freedom of the workers and employees so that they may not be exploited for the
interests of the organization to achieve their expected targets and restore normal business
operations and activities. As it has been mentioned in the second article, there is a highly
probability of the international business organizations to undertake the strategy of downsizing

5IMPACT OF COVID-19 ON INTERNATIONAL BUSINESS
in order to improve the cost efficiency of business operations
(Economictimes.indiatimes.com 2020). However, I must also ensure that the company is able
to retain the high performing employees in an efficient manner.
Question 7
From the above discussion pertaining to the global pandemic situation owing to the
outbreak of the covid-19 disease and the articles that have been analyzed, it can be deduced
that crisis management forms an integral aspect of business management during such
challenging global economic situations (Pwc.com 2020). The purpose of adopting effective
crisis management strategies is to not only ensure that the international business organization
is able to restore its regular business activities and operations but also align the interests of
the various internal and external stakeholders with the interests of the organization as a
whole.
The various important functions of business organizations have been severely affected
as a result of the global pandemic situation. These aspect include the supply chains, cash flow
systems as well the internal environment of the business organization with respect to its
employees and management (Economictimes.indiatimes.com 2020). The human resource
management system of the international business organization have also been given
important responsibilities of establishing effective means of communication so that the needs
and interests of the employees and integrated in an effective manner.
As a result of a steady loss of revenue faced by the international business
organizations owing to the global pandemic situation, the unemployment rate of the several
countries in which these organizations operate is also likely to increase significantly. In order
to avoid such drastic measures of mass downsizing, the government of the various countries,
acting as important external stakeholders of the international business organizations must

6IMPACT OF COVID-19 ON INTERNATIONAL BUSINESS
intervene in the form of efficient policy making strategies that can protect the interests of the
organizations as well as their employees (Pwc.com 2020). These policies may include the
provision of government aid and funds to important sectors like food and healthcare. Other
sectors that will get adversely affected by the global pandemic situation include the tourism
and hospitality industries of particularly the developing economies of the world, who in turn
may be subjected to incurring heavy losses being severely affected by the disease
(Economictimes.indiatimes.com 2020).
As is observed in the third article, the process of resumption of production is essential
to ensure that these international business organizations are able to restore their business
activities and functions in an effective manner (Ifpri.org 2020). However, there are several
barriers that may hamper such efficient resumption of production. These barriers include
several restrictions in international transportation of goods and services, import and export of
raw materials and other equipment from areas, which have been severely affected by the
global pandemic situation of the coronavirus disease. However, the international business
organizations will be required to plan their business activities and functions in an effective
and efficient manner so that the employment rates in the country do not get severely affected.
The key learning from the three articles can therefore be summarized in terms of the
importance of effective decision making procedures to be adopted by the international
business organizations, acquisition of adequate financial and other resources for the purpose
of resumption of production and the establishment of effective means of communication
among the various internal and external stakeholders. Furthermore, the scope of efficient
crisis management in the face of the challenges and threats faced by the global business
organizations have also been highlighted to be of utmost importance.

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References
Booth, S. A. (2015). Crisis management strategy: Competition and change in modern
enterprises. Routledge.
Economictimes.indiatimes.com. (2020). Global economy could shrink by almost 1% in 2020
due to COVID-19 pandemic: United Nations. Retrieved 9 April 2020, from
https://economictimes.indiatimes.com/news/international/business/global-economy-
could-shrink-by-almost-1-in-2020-due-to-covid-19-pandemic-united-nations/
articleshow/74943235.cms
Guarner, J. (2020). Three emerging coronaviruses in two decades: the story of SARS, MERS,
and now COVID-19.
Ifpri.org. (2020). Retrieved 9 April 2020, from https://www.ifpri.org/blog/covid-19s-impact-
chinas-small-and-medium-sized-businesses
Pwc.com. (2020). COVID-19: how you can prepare your organisation and respond. Retrieved
9 April 2020, from https://www.pwc.com/gx/en/issues/crisis-solutions/covid-19.html
Williams, T. A., Gruber, D. A., Sutcliffe, K. M., Shepherd, D. A., & Zhao, E. Y. (2017).
Organizational response to adversity: Fusing crisis management and resilience
research streams. Academy of Management Annals, 11(2), 733-769.