The outbreak of COVID-19 is not the same as the crisis we have already heard about. Traditional mode of how to react to the crisis will not help your business. Thus, CEOs should act. Aggressively and rapidly.
Governmental actions to slow down and stop the corona spread across countries will lead to business disruptions. Hence, it does not depend on the severity level of corona in a specific country.
Thus, businesses should prepare for worst and hope, if such a scenario will not actually happen. Yes, the probability is high that sales will drop this year (top line). This will result in liquidity problems in many industries. The recovery will also not come immediately.
Therefore, CEOs should plan several quarters of low sales and secure its liquidity at the same time. Furthermore, to compensate the sales drop in the stationary retail (closed for unknown time period), CEOs should re-focus sales towards E-Commerce. Amazon & Co. will probably gain from the COVID-19 crisis, since the outbound logistic network to the final consumer are classified as system-relevant. At the same time, Brick & mortar retail is being forced to shut down.
Therefore, as CEO you should take immediate and aggressive actions to stabilize sales and “freeze” costs. Customers are now rapidly changing their buying behaviour, which business will experience also after the crisis is over. Consequently, your brave but thoughtful actions should both optimally prepare your business for the crisis and for the recovery, which will come, too.
To secure it, contact professionals of FOSTEC & Company, which will support your way through the crisis.
CEO action plan against COVID-19
FOSTEC & Company has developed a multi-step approach to exploit your business opportunities in the crisis. This approach will help you both to stabilize your business and to gain from the present crisis.
DownloadDownload CEO Action Plan COVID-19
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Markus Fost, MBA, is an expert in e-commerce, online business models and digital transformation, with broad experience in the fields of strategy, organisation, corporate finance and operational restructuring.Learn more