Getting businesses ready to bounce back after COVID-19

Tiếng Việt

Getting businesses ready to bounce back after COVID-19

The COVID-19 pandemic is challenging businesses across Vietnam, with a vast majority of business owners reporting drastic declines in sales over the last several weeks, and uncertainty over when sales will pick up again.

Business and management

27 April 2020

The COVID-19 pandemic is challenging businesses and causing drastic declines in sales.

Some businesses experienced a total shutdown, such as hotels, bars and restaurants, while others are facing supply chain issues and decreased demand, like the textile industry and retail sector.

While the pandemic is deeply worrying for people, and disruptive for most organisations, experts say the current crisis can serve as a wake-up call for businesses.

RMIT University (Vietnam) School of Business & Management Program Manager Dr Burkhard Schrage said, “This external shock can be the ideal moment to review current business processes, such as hiring and workforce practices, supply and distribution chains, product development, and financial operations and strategies.”

A revamp of these processes will also be required by the digital revolution, often touted as a quintessential ingredient to get ahead in the global marketplace. A careful implementation of new processes can also make businesses more competitive in the long run.

“Now’s the time to get your company ready for the future, and perhaps the pandemic may be a ‘blessing in disguise’ to help companies sustainably compete in Vietnam and internationally,” Dr Schrage said.

RMIT University (Vietnam) School of Business & Management Program Manager Dr Burkhard Schrage said the COVID-19 pandemic may be a ‘blessing in disguise’ for local businesses.

Research from management consulting firm McKinsey & Company focused on why some businesses manage a crisis better than others, and come out of it in better shape than their competitors. Dr Schrage highlighted some important recommendations from this study.

Resolve: address the immediate challenges to the business, such as how to protect employees and manage the transition to a remote, decentralised workforce.
Resilience: address the near-term cash and supply chain challenges, as well as identify other key threats to the business in order to plan for different scenarios.
Return: create a detailed plan of post-crisis actions. While it is not possible to know the length of the crisis, businesses should be ready when the end is in sight.
Reimagination: the world will be different after the crisis. McKinsey & Company calls this the “next normal”. Consumers will value different features in products, competitors will compete differently, and supply chains will be configured unlike yesterday. The key is to adapt the business quickly to this new world that emerges.

“In challenging times, businesses with disciplined leadership, high empathy for their employees and fast execution skills will come out ahead once the sun rises again,” Dr Schrage said.

“We still don’t know what the ‘next normal’ will look like. But we know it’s going to be more digital, more agile, more resilient and with a more flexible workforce.

“Business leaders will have to create a vision of the post-pandemic world and draft strategies to achieve this vision. Good execution, which needs to have the new rules of the game in mind, will ensure the sustainable success of your business,” Dr Schrage concluded.

Story: Ngoc Hoang

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Getting businesses ready to bounce back after COVID-19

Getting businesses ready to bounce back after COVID-19

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