1. Sectoral Impact of the COVID-19 Outbreak and Value of Business Group Affiliated Firms in Korea.
Author : Sakshi Wagh
The COVID-19 outbreak had a profound sectoral impact on businesses in Korea, with varying effects across different industries. This paper explores how the value of business group affiliated firms in Korea was influenced by these sectoral impacts during the crisis period. The study finds that the value of a chaebol affiliation depended significantly on the firm’s industry performance during the pandemic. Contrary to previous crises, where chaebols may have subsidized affiliates in heavily affected industries, during the onset of the COVID-19 crisis, efficient group-wide decisions were made that improved the overall value of the business group. However, this approach may not necessarily benefit minority shareholders who lack ownership stakes in all affiliated firms. Interestingly, the study notes that direct and indirect ownership stakes of chaebol controlling families were not significantly correlated with firm value during this crisis. The findings suggest that mimicking the portfolios of controlling families or holding ownership stakes in all affiliates within a business group could be a profitable investment strategy, particularly during periods of crisis characterized by differential sectoral impacts. This research not only provides insights into the dynamics of Korean business groups during crises but also has broader implications for academics studying business groups in emerging or developed countries and practitioners involved in valuing Korean firms for mergers, acquisitions, or minority stake acquisitions.
- The impact of COVID‐19 on small business owners
Author : Sakshi Wagh
The impact of COVID-19 on small business owners has been profound, as evidenced by research conducted during the first three months after widespread social-distancing restrictions were implemented. This period was marked by significant challenges and disruptions across various aspects of small businesses’ operations and financial stability. Here are some key findings from the research:
Revenue Loss and Financial Strain: Small businesses experienced substantial revenue loss due to reduced consumer demand, forced closures, and restrictions on operations. Many struggled to cover fixed costs such as rent, utilities, and payroll, leading to financial strain and cash flow difficulties.
Operational Challenges: Social-distancing restrictions and lockdown measures forced small businesses to adapt their operations rapidly. Many had to pivot to online sales, remote work arrangements, and contactless delivery options to continue serving customers while complying with safety regulations. However, these adjustments often required additional investments in technology and infrastructure, adding to the financial burden.
Employment Impact: Small businesses faced tough decisions regarding staffing levels, with many being forced to lay off or furlough employees to reduce costs and survive the downturn. The loss of jobs and income had ripple effects on local economies and communities, exacerbating unemployment and economic hardship.
Access to Financial Support: Despite government aid programs and relief measures aimed at supporting small businesses, many owners reported challenges accessing financial assistance due to bureaucratic hurdles, eligibility criteria, and limited funding availability. This lack of timely and adequate support further exacerbated financial distress for small businesses.
Psychological Stress and Well-being: The uncertainty and stress associated with the pandemic took a toll on small business owners’ mental health and well-being. Many reported feelings of anxiety, depression, and burnout as they grappled with the challenges of keeping their businesses afloat amidst the ongoing crisis.
Adaptation and Resilience: Despite the hardships, some small business owners demonstrated resilience and innovation by finding creative ways to adapt to the new business landscape. This included diversifying revenue streams, collaborating with other businesses, and engaging with customers through social media and digital marketing channels.
Overall, the research underscores the profound and multifaceted impact of COVID-19 on small business owners during the initial months of the pandemic. It highlights the urgent need for targeted support and resources to help small businesses weather the crisis, rebuild their operations, and contribute to economic recovery efforts.
3.Measuring the Impact of COVID-19 on Businesses and People – Census Bureau’s Experience
Author : Sakshi Wagh
Measuring the impact of COVID-19 on businesses and people has been a critical endeavor, and the Census Bureau’s experience offers valuable lessons in this regard. Here are some key insights gleaned from their efforts:
Timeliness and Frequency: The Census Bureau emphasized the importance of timeliness and frequency in data collection to capture the rapidly evolving impact of the pandemic. They recognized the need for real-time or near-real-time data to inform policy decisions and interventions effectively.
Adaptability and Flexibility: Flexibility and adaptability were crucial in adjusting data collection methodologies and survey instruments to accommodate the unique challenges posed by the pandemic. The Census Bureau implemented innovative approaches such as remote data collection and virtual interviews to ensure continuity in data collection efforts while adhering to health and safety protocols.
Granularity and Detail: Recognizing the diverse impact of COVID-19 across different sectors and demographic groups, the Census Bureau emphasized the importance of granularity and detail in data collection and analysis. They strived to capture nuanced variations in the impact of the pandemic on businesses and individuals, including disparities in access to resources and support.
Integration of Multiple Data Sources: The Census Bureau emphasized the value of integrating multiple data sources, including administrative records, survey data, and external datasets, to enhance the comprehensiveness and reliability of their analyses. By triangulating information from various sources, they were able to provide a more holistic understanding of the pandemic’s impact.
Collaboration and Partnerships: Collaboration and partnerships with other government agencies, academic institutions, private sector organizations, and community stakeholders were instrumental in leveraging expertise, resources, and data-sharing agreements to enhance the Census Bureau’s capacity to measure the impact of COVID-19 comprehensively.
Transparency and Communication: Transparent communication of methodologies, data limitations, and uncertainties was essential in building trust and credibility with stakeholders and the public. The Census Bureau prioritized transparency in their data collection, analysis, and reporting processes to ensure the integrity and reliability of their findings.
Long-term Monitoring and Evaluation: The Census Bureau underscored the importance of ongoing monitoring and evaluation to track the evolving impact of COVID-19 over time. They recognized that the effects of the pandemic would persist beyond the immediate crisis period and emphasized the need for sustained efforts to monitor and address emerging challenges.
Overall, the Census Bureau’s experience in measuring the impact of COVID-19 on businesses and people highlights the importance of agility, collaboration, transparency, and long-term monitoring in conducting effective data collection and analysis during times of crisis. These lessons are invaluable for informing future research, policy development, and response efforts to mitigate the impacts of similar crises.
- The impact of Covid-19 on businesses’ expectations
Author : Sakshi Wagh
The impact of COVID-19 on businesses’ expectations has been a subject of significant interest, and evidence from the Decision Maker Panel sheds light on this issue. The Decision Maker Panel (DMP) is a survey of UK businesses conducted by the Bank of England and several academic institutions, providing valuable insights into firms’ expectations and behavior during the pandemic. Here are some key findings from the DMP regarding the impact of COVID-19 on businesses’ expectations:
Uncertainty and Volatility: COVID-19 introduced unprecedented levels of uncertainty and volatility into businesses’ operating environments. Firms faced challenges in forecasting future demand, managing supply chain disruptions, and adapting to rapidly changing market conditions, leading to heightened uncertainty about the economic outlook.
Demand and Sales Expectations: Many businesses experienced sharp declines in demand and sales following the onset of the pandemic, particularly in sectors directly affected by social distancing measures and lockdowns, such as hospitality, tourism, and retail. The DMP revealed widespread pessimism among businesses regarding the prospects for demand recovery in the short to medium term.
Investment and Hiring Intentions: COVID-19 dampened firms’ investment and hiring intentions, with many businesses scaling back capital expenditure and recruitment plans in response to weak demand and revenue prospects. The DMP showed a significant decline in investment and hiring intentions across various sectors, reflecting businesses’ cautious approach to expansion and growth amid economic uncertainty.
Financial Conditions and Access to Credit: The pandemic exacerbated financial pressures for many businesses, particularly small and medium-sized enterprises (SMEs), which faced liquidity constraints and cash flow challenges. The DMP highlighted concerns among businesses about access to credit and financing, as well as the availability of government support measures to mitigate the impact of COVID-19 on their operations.
Supply Chain Disruptions and Resilience: COVID-19 exposed vulnerabilities in global supply chains, with disruptions in production and distribution channels affecting businesses’ ability to source inputs and meet customer demand. The DMP revealed efforts by businesses to enhance supply chain resilience through diversification, localization, and closer collaboration with suppliers.
Government Policy Responses: Businesses closely monitored government policy responses to the pandemic, including fiscal stimulus measures, monetary policy interventions, and public health measures such as lockdowns and social distancing requirements. The DMP provided insights into businesses’ perceptions of the effectiveness and adequacy of government support measures in mitigating the economic impact of COVID-19.
Overall, evidence from the Decision Maker Panel underscores the significant and multifaceted impact of COVID-19 on businesses’ expectations, operations, and decision-making processes. By capturing firms’ sentiments and intentions in real time, the DMP offers valuable insights for policymakers, researchers, and practitioners seeking to understand and respond effectively to the challenges posed by the pandemic.
- COVID-19, Societalization, and the Future of Business in Society.
Author : Sakshi Wagh
The COVID-19 pandemic has brought about profound changes in societies worldwide, reshaping various aspects of daily life, including how businesses operate and interact within society. This period of societalization, characterized by rapid adjustments to new norms and behaviors, has significant implications for the future of business.
Digital Transformation: The pandemic accelerated the adoption of digital technologies across industries. Businesses rapidly shifted to remote work models, embraced e-commerce, and leveraged digital tools for communication and collaboration. This digital transformation is likely to continue as businesses recognize the efficiency gains and flexibility afforded by technology.
Flexible Work Arrangements: Remote work became the norm for many during the pandemic, leading businesses to reevaluate traditional office setups. Flexible work arrangements, including remote and hybrid models, are likely to persist post-pandemic as companies prioritize employee well-being, work-life balance, and talent retention.
Environmental Sustainability: While the pandemic led to temporary improvements in air quality and carbon emissions due to reduced economic activity, sustainability remains a long-term imperative. Businesses are increasingly recognizing the importance of environmental stewardship and are integrating sustainability practices into their operations and supply chains.
Reshaping Consumer Behavior: The pandemic altered consumer behavior, driving increased demand for online shopping, contactless payments, and essential goods. Businesses must adapt to these shifts in consumer preferences and invest in omnichannel strategies to remain competitive in the post-pandemic landscape.
the COVID-19 pandemic has accelerated existing trends and catalyzed transformative changes across societies and businesses. As we navigate the recovery phase, businesses must remain agile, resilient, and adaptable to thrive in an uncertain and rapidly evolving landscape shaped by the forces of societalization.
- COVID-19 Pandemic, Corporate Investment and the Real Option Value
Author : Sakshi Wagh
The COVID-19 pandemic has had a significant impact on corporate investment decisions, prompting firms to reassess their investment strategies in light of heightened uncertainty and volatility. Real option theory provides a valuable framework for understanding how businesses can adapt their investment decisions in response to uncertain and dynamic environments.
Real options refer to the strategic opportunities that firms have to undertake certain actions, such as investing in new projects or technologies, based on future market conditions. The value of a real option is derived from the flexibility it provides, allowing firms to delay, expand, contract, or abandon investments in response to changes in market conditions.
During the pandemic, businesses faced unprecedented levels of uncertainty regarding future demand, supply chain disruptions, regulatory changes, and economic volatility. In such an environment, traditional investment appraisal techniques, such as discounted cash flow analysis, may not adequately capture the value of flexibility and adaptability.
Real option analysis allows businesses to incorporate the value of flexibility into their investment decisions by explicitly considering the potential future scenarios and the strategic options available to respond to them.
Overall, real option theory offers a valuable perspective for businesses navigating the complexities of the COVID-19 pandemic and making investment decisions in uncertain and volatile environments. By considering the strategic value of flexibility and adaptability, firms can enhance their resilience, optimize resource allocation, and create long-term value for stakeholders.
- The Moderating Impact of COVID-19 Attitudes on Customer Brand Engagement and Loyalty.
Author : Sakshi Wagh
The COVID-19 pandemic has not only affected businesses’ operations but also influenced consumer attitudes and behaviors, including their engagement with brands and loyalty. Understanding the moderating impact of COVID-19 attitudes on customer brand engagement and loyalty is crucial for businesses to adapt their strategies effectively in response to shifting consumer preferences. Here’s how COVID-19 attitudes may influence customer brand engagement and loyalty, and how businesses can navigate this dynamic landscape:
Safety and Health Concerns: Consumers’ attitudes toward safety and health have been significantly impacted by the pandemic. Brands that prioritize and communicate stringent health and safety measures are likely to engender greater trust and loyalty among consumers who prioritize these values. For example, brands that implement contactless delivery options, enforce social distancing measures in-store, or transparently communicate their sanitation protocols may see increased engagement and loyalty from safety-conscious customers.
Digital Engagement Preferences: The pandemic accelerated the shift towards digital channels for shopping, communication, and entertainment. Consumers who have embraced digital platforms may exhibit different engagement behaviors compared to those who prefer traditional channels. Brands that invest in digital marketing, e-commerce capabilities, and personalized online experiences are better positioned to engage with and retain digitally savvy customers.
Community Support and Corporate Social Responsibility (CSR): COVID-19 has highlighted the importance of community support and CSR initiatives. Consumers may gravitate towards brands that demonstrate empathy, generosity, and social responsibility during times of crisis. Brands that actively contribute to relief efforts, support local communities, or address social and environmental issues are likely to foster stronger emotional connections and loyalty among socially conscious consumers.
Adaptability and Innovation: The pandemic has underscored the importance of adaptability and innovation in meeting evolving consumer needs. Brands that demonstrate agility and innovation in responding to changing market dynamics, such as introducing new products or services tailored to pandemic-related challenges, may capture the attention and loyalty of consumers seeking novel solutions.
COVID-19 attitudes can significantly influence customer brand engagement and loyalty by shaping consumer preferences, values, and behaviors. Businesses that understand and adapt to these shifting attitudes by prioritizing safety, embracing digital transformation, demonstrating social responsibility, fostering trust, and fostering innovation are more likely to cultivate enduring relationships with customers in a post-pandemic world.
- Features of the Termination of Their Activities by Entrepreneurs in 2020.
Author : Sakshi Wagh
In 2020, the termination of business activities by entrepreneurs was influenced by various factors, primarily stemming from the COVID-19 pandemic and its associated economic repercussions. Here are some features and factors that contributed to the termination of activities by entrepreneurs in 2020:
Economic Downturn: The pandemic led to widespread economic disruption, with lockdowns, supply chain disruptions, and reduced consumer spending causing many businesses to struggle financially. Entrepreneurs, especially those in hard-hit industries such as hospitality, retail, and tourism, faced significant challenges in sustaining their operations and were forced to consider termination.
Financial Strain: Many businesses experienced cash flow problems and revenue losses due to reduced demand and operational restrictions. Entrepreneurs may have found it difficult to secure financing or access government support programs, leading to financial distress and ultimately the decision to terminate their activities.
Operational Challenges: Health and safety concerns, as well as government regulations and guidelines, posed operational challenges for businesses. Implementing necessary safety measures, adapting to remote work, or complying with changing regulations may have strained resources and impacted the viability of business operations.
Market Shifts: The pandemic accelerated certain market shifts and trends, such as increased e-commerce adoption and changes in consumer preferences. Entrepreneurs who were unable to adapt to these shifts or lacked the resources to pivot their business models may have faced intensified competition or declining demand, prompting them to consider termination.
Overall, the termination of activities by entrepreneurs in 2020 was characterized by a combination of economic, financial, operational, market, legal, and personal factors exacerbated by the challenges and uncertainties brought about by the COVID-19 pandemic. Despite these challenges, some entrepreneurs may have also seized opportunities for innovation, adaptation, and reinvention in response to changing market conditions.
- A cross-country analysis of hotel leaders’ response to COVID-19: a way forward.
Author : Sakshi Wagh
A cross-country analysis of hotel leaders’ responses to COVID-19 can provide valuable insights into best practices, challenges, and opportunities for the hospitality industry as it navigates the pandemic and charts a way forward.
Preparation and Crisis Management: Examine how hotel leaders in different countries prepared for and responded to the initial onset of the pandemic. Identify strategies for crisis management, including communication with stakeholders, implementation of health and safety protocols, and contingency planning for business continuity.
Adaptation of Operations: Analyze how hotels adapted their operations in response to COVID-19 restrictions and changing consumer behavior. Explore innovations in contactless check-in/check-out, enhanced cleaning protocols, redesigned dining options, and flexible cancellation policies to meet guest expectations while prioritizing safety.
Customer Engagement and Loyalty: Explore how hotel leaders maintained customer engagement and loyalty during periods of reduced travel and occupancy. Analyze strategies for communicating with guests, offering value-added services, incentivizing bookings, and fostering loyalty through loyalty programs or membership benefits.
Financial Resilience and Recovery Strategies: Evaluate the financial resilience of hotels and their recovery strategies in the face of revenue declines and cost pressures. Examine measures such as cost-saving initiatives, renegotiation of contracts, access to government relief programs, and diversification of revenue streams to mitigate financial losses and facilitate recovery.
Based on this analysis, hotel leaders can identify lessons learned, best practices, and areas for improvement to inform their strategies for navigating the ongoing challenges of the pandemic and positioning their businesses for success in the post-COVID-19 era. Collaboration and knowledge sharing among industry stakeholders, supported by research and data-driven insights, can facilitate a collective way forward for the global hospitality industry.
- Green Banking for Sustainable Development: An Empirical Study on Customers’ Perspective During the Covid-19 Pandemic .
Author : Sakshi Wagh
An empirical study on customers’ perspective on green banking for sustainable development during the COVID-19 pandemic would investigate how individuals’ attitudes, behaviors, and preferences towards sustainable banking practices have been influenced by the pandemic.
Literature Review: Review existing literature on green banking, sustainable finance, and consumer behavior to establish a theoretical framework and identify gaps in research related to the impact of the COVID-19 pandemic.
Research Objectives and Hypotheses: Clearly define the objectives of the study, such as understanding customers’ awareness of green banking practices, assessing their willingness to engage with sustainable financial products, and exploring factors influencing their decisions. Formulate hypotheses based on the theoretical framework.
Methodology: a. Sampling: Determine the target population and sampling method (e.g., random sampling, convenience sampling). b. Data Collection: Design a questionnaire or interview protocol to gather quantitative or qualitative data on customers’ attitudes, perceptions, and behaviors towards green banking. c. Data Analysis: Use appropriate statistical techniques (e.g., regression analysis, factor analysis) or qualitative analysis methods (e.g., thematic analysis) to analyze the data and test the research hypotheses.
Findings and Discussion: Present the results of the analysis and discuss their implications for theory and practice. Explore how the COVID-19 pandemic has influenced customers’ attitudes towards green banking and identify opportunities and challenges for sustainable finance initiatives.
By conducting an empirical study on customers’ perspective on green banking during the COVID-19 pandemic, researchers can contribute valuable insights to the literature on sustainable finance and inform strategies for fostering environmentally responsible banking practices in the future.
References :
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Final Summary :
The diverse range of topics outlined above collectively underscores the multifaceted impact of the COVID-19 pandemic on businesses, entrepreneurs, consumers, and society at large. The pandemic has exerted differential effects across sectors, with businesses affiliated with larger groups possibly demonstrating greater resilience due to access to resources and support networks.Small business owners have been particularly vulnerable to the economic fallout of the pandemic, facing challenges such as financial strain, operational disruptions, and uncertainty about the future.Rigorous data collection and analysis, as demonstrated by the U.S. Census Bureau’s efforts, are crucial for understanding the full extent of the pandemic’s impact on businesses and individuals, informing policy responses and recovery strategies.COVID-19 has forced businesses to recalibrate their expectations and adapt rapidly to shifting market dynamics, emphasizing the importance of agility, innovation, and strategic planning in navigating uncertainty.The pandemic has accelerated societal trends such as digital transformation, remote work, sustainability, and corporate social responsibility, shaping the future landscape of business and emphasizing the interconnectedness of economic, social, and environmental factors.Firms are reevaluating investment decisions through the lens of real option theory, seeking flexibility and adaptability to navigate volatile market conditions and seize opportunities for value creation amidst uncertainty.Consumer attitudes towards health, safety, digitalization, and social responsibility are influencing brand engagement and loyalty, highlighting the importance of aligning business practices with evolving customer preferences.
Some entrepreneurs have faced the difficult decision to terminate their activities amidst economic challenges, underscoring the need for support mechanisms, resilience-building strategies, and adaptive responses to crisis situations.Across countries, hotel leaders are grappling with unprecedented challenges and implementing innovative strategies to adapt their operations, engage with customers, and navigate the path to recovery in a post-pandemic world.The pandemic has sparked interest in sustainable banking practices, with consumers increasingly prioritizing environmental considerations and influencing the evolution of financial services towards greater sustainability.The COVID-19 pandemic has reshaped the business landscape in profound ways, prompting organizations and individuals to rethink strategies, embrace innovation, and foster resilience in the face of adversity. As we move forward, collaboration, adaptation, and a commitment to sustainability and societal well-being will be essential for building a more resilient and inclusive post-pandemic future.