There are many tried and proved framework that many business follow to come up with strategic Management. This Include the Micheal Porters five forces which align Business on how to deal with competitive forces according to coordinates of threats and power. With Covid-19 which has taken Center stage of the world businesses need to realign themselves on how they come up with strategic plans During Covid-19 and Post Covid-19.
The pandemic is going to reshape how business is done. This will affect how to plan on future Eventuality for business continuity. Business affected negatively including:-
- Schools and Colleges
- Oil Companies
- Government services
- Hospitality Industry and many more
Other business have had a mileage through the same Pandemic including:-
- Communication industry
- Internet Industry, Customer care Industry
- Software companies
- health Facility
Companies needs to have ways to deal with “VUCA” (volatility, uncertainty, complexity and ambiguity) which has effect to any business.
At the same time individuals working in several have been forced to quit there jobs . Employees need to plan on how they can acquire skills to enable them have a way they can work remotely without facing challenges. Employees can laid off due to lack of skills to work virtually without supervision.
Many businesses need to change on there previous strategic plan to cater for unforeseen cost that came due to Covid-19 or that will come post Covid-19. This are but not limited depending on company:-
- digitization of organization information
- implementing virtual setup of the office
- implementing Platform as a service for easy sharing of Organisation information
- implement cloud infrastructure for there servers
- Cost training of staff on different technologies and how to live in crowded office
- Increasing office space to cater for Social distance
- paying dues of employees laid off, Fines from overdue invoices
- Loss of staff due to death from Covid-19
- Paying for rent of unused location
- Cost of advertising to improve brand quality
- Government loss of revenue from uncollected Tax from different businesses etc
Strategies need to aim the following
- Business are following government orders. Any given strategic plan to include government policies for business continuity. Some of the affected Industries will be Transport industry, Hospitality Industry, Health Services, Sports, Manufacturing Industry , Airline industry etc. Global supply chain has been affected different countries will lead to close borders with other countries,this will affect importation of goods and services since you can only import from a country which a country has allowed. Kenya and Tanzania have closed borders to each other meaning business that depended on export or importation from the given countries will be affected. Countries are providing packages to there businesses, this has an effect on how a business operates since if it is a loan businesses need to plan on repayment plan which might not have been in there previous strategic plan.
- Quantify and plan for threats that is ecological and environment is key in strategic plans. Most companies have been describing on the risks and effects of certain threats without having to quantify its effect to the business. This has to change and business leaders need to understand that with a given threat it can move a company down. As precautionary risk artificial intelligence should be used to map out the effect of a given Threat to the business and how each and every number can be handled. This will put businesses in a position for any eventuality without having fear. Some of recent times risks including Diseases, World war, Nuclear reaction , Border closing, Earthquake , Tsunamis, Regional conflicts and many more. Business leaders must quantify effects of any eventuality with proven data model.
- Good strategic plan need to have have good immune system. This has to made so that the company needs to be strong in regardless of any eventuality. Business need to continuously identify problems and find there solution. The threats and solution need to be well documented for future references. This end up create a strong organisation immune system that can handle any threat that arise . Risks need to be documented and structured. This enable future employees have a basis of the solution or reference. Technology is key on providing solution to new problems that arise.
- Businesses should aim for survivability and resilience. business leaders need to aim on how they can be sustainable before having a focus on profit. Strong foundation will make business withstand any threat that arise. This can be done having different option to sell products or services or having different option in getting supplies. With heavy dependency to China many companies are having hard time due to importation of there supplies. Good strategic plan needs to have option on unlikely of one supplier or market is affected what will be the option. Business continuity is paramount in any strategic plan hence it needs to have strong supply chain and strong distribution channel.
- Market diversification will be key in any given strategic plan. Company need to diversify to different industry . Will have business continuity if one business department is affected. This has been seen where USA Companies have participated in making ventilators which is not there core business. This enables business have flow of income even when there core business is affected