Pandemic Shock and corporate resilience

Pandemic Shock and corporate resilience

Pandemic Shock and corporate resilience

The pandemic crisis is an example of significant systemic risk, threatening the survival of firms on a global scale, with potentially devastating societal and economic outcomes. The pandemic has caused significant job losses, corporate bankruptcies and firm failure. The crisis raises fundamental questions: How can firms respond to systemic crises such as the current pandemic spread of the coronavirus COVID-19? What type of firms or organisational forms is likely to withstand systemic shocks? How may a firm’s capital structure and debt structure affect its chance of survival and failure? How may the pandemic affect the organisation of the market post- Coronavirus? Which strategies might increase corporate resilience and enable firms to better sail through pandemic crises?

 

Explain how firms should respond to deep recessions to survive and ensure longevity

Pandemic Shock and corporate resilience
Your assignment will require you to reflect on some of these questions. You will need to:
1. Explore how shocks such as the Covid-19 pandemic or the credit crunch 2007-9 may affect the economy and firms. You may benefit from a simple framework from economics to organise the analysis.
2. Explore in detail factors that contribute to a firm’s resilience and capability to withstand deep recessions. Your analysis should draw on relevant academic research.
3. Explain how firms should respond to deep recessions to survive and ensure longevity.
4. Which corporate strategies might allow firms to better prepare for the post- recession recovery?
You may draw on the materials posted on Blackboard to develop the first part of the essay.
Important: You should draw on economic, management, and strategy theories to develop the analysis. Failure to draw on relevant theories and concepts can lead to a low mark. It is important to inform the discussion by referring to relevant data. The use of peer-reviewed academic journals is essential too.
A number of notes will be placed on the course webpage to guide you through your research. A note will specify marking guidelines in details. You should follow the guidelines.