Future Generali

What measures should large scale and small scale businesses take during the pandemic?

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Deepali Naair:

I want you to differentiate between large enterprises and medium and small enterprises because the issues really are different when they have to deal with the pandemic today. The small and medium enterprises have issues such as cash flows. They are going to run out of cash. Whereas the larger organizations may have people issues and longterm business model reinvention. So when they have to deal with the pandemic and have to be ready for future how should the two different kinds of organizations look at the situation differently?

 

Rita McGrath:

Even with the larger organizations there are a number of them that don't have a lot of Slack in the system.

So if I look at airlines hotel chains large tourists operations they're in the same difficult position that maybe a smaller organization that doesn't have a lot of resources. So I'm not sure that they're that radically different. The biggest difference is probably what sector you're in. Think about this might be think about the recovery Y shaped right? So people who are in those very badly affected sectors it's going to take them a long time to recover. And the watch word in that case is going to be conserve cash and keep your core capabilities intact as much as you can. And think about where can you redirect those capabilities? So we're seeing an awful lot of companies converting their operations into supporting pandemic relief or making new pandemic related services/ products. On the other branch of the Y you've got these organizations that are developing things that are in huge and high demand and they're their big issues are how do I not destroy my corporate culture by taking off on his growth how do I find the capabilities that I need to do to extend. So I'm almost of the opinion that it's more and where you are in your in your sector than it is the size of the  company necessarily. I do think obviously big ones have more resources as a general rule than smaller ones.

The last thing I would say is some of the companies are really having to rethink their fundamental reason for being. So an example there would be a case study company called Rent the Runway. And you've probably heard of them and their stock in trade is they will rent like evening gowns and dresses. And increasingly they got into work clothing but we're not going to weddings. We're not going to parties. We're not going to work. What's their reason for being? And so they've had to dramatically reshape their business. Having to really rethink what they're all about.

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