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          Formulating International Business Strategy Post COVID-19

          sharmaniti437 by sharmaniti437
          October 7, 2020
          in Business
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          business models for a post COVID-19
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          The world is going through a synchronized economic crisis due to COVID-19.

          The 2020 OECD report demonstrated a 6 percent drop in the global GDP with multiple countries’ economies slumping at negative rates. The report also mentions the advanced economies will suffer a larger drop at GDP, a size not seen even since the Great Depression.

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          This may be followed by bankruptcies at many households and a wave of large-scale insolvencies amongst the banking sector. The stock markets seem to have their worst nightmare, the worse quarter they’ve seen in 30 years with businesses plummeting.

          The number of coronavirus cases has surpassed the 1.5 billion mark impacting the society and economy at large. The revenue streams have gone down by 80 percent within weeks’ time affecting a varied range of industries.

          But if there is one good that is emerging from the crisis, it is the fact that businesses have been forced to reevaluate their business strategy.

          For instance, the tech community has helped communities adopt technologies to overcome challenges that are caused due to COVID-19 enabling some part or in some cases the entire organization to remain operational amid the current pandemic situation.

          The world will have a better outlook post-pandemic and so will the international business strategies and business models.

          The COVID-19 impact on international tax planning

          The impact of technology has fundamentally changed the way companies conduct business, generate revenues, source their inventory, and supplies as well. It has also allowed businesses to expand global operations. They have started seeking low tax jurisdiction as well as incentives offered by other countries as a medium to attract employees and businesses.

          Multinational companies dealing with the international business had to project their focus on the tax compliance issue. This needed to be done in the wake of the US FATCA implementation and international tax reform along with the increased OECD’s enforcement regarding the global initiative – BEPS.

          Organizing the business structure to reform tax efficiency and reduce international tax risks had kept many tax departments surprised

          With the ongoing global shortages happening across industries, many companies have started tapping into product reserves. They’re seeking to implement different business strategies to bring businesses back into the operational phase.

          Business leaders might even be forced to create necessity policies about “who gets paid first”. This could have a long-term effect forcing international businesses to rethink their business model along with their tax strategy.

          Why C-suite officers and business owners need to shift their focus?

          The HLB global survey of business leaders could identify the characteristics of a successful business model happening by the end of the year – more mobile, flexible workforce, and cloud-enabled. The analysis was made between what business leaders intend to improve within the next 12 months and what new business models or business strategy frameworks they need to follow for the upcoming decade. But then, the pandemic struck. This is where the C-suite offers were bound to shift their focus making them move toward flexible, mobile, and cloud-enabled models.

          Besides technology shifting their focus, even multinational companies had to navigate from the pandemic to survive on a country-to-country basis. Post pandemic, C-suite officers and business leaders foresee a new norm of international business structuring that will take place. Operational strategies include strategic workforce planning, HR policies, remote workforce planning, flexible contract along with employee efficiency best practices. Cloud-enabled IT infrastructure which includes enhanced cyber-security protocol will also be implemented. employee tracking software

          The COVID-19 crisis has forced businesses to innovate and adapt new strategies in managing the workforce, adhering to government mandates, reacting to the employee and customers’ needs, and how businesses operate.

          Though short-term predictions seem to be gloomy, history predicts that not only will the market recover after the crisis but it will be stronger than before.

          Tags: Business Strategybusiness strategy framework
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