The business world has evolved over the past few decades, a change fast-tracked by the COVID-19 pandemic. Many corporates were unprepared and as such the shock was significant and its reverberating effects linger. The “VUCA” acronym is a term best used to describe the current state of the global landscape. It stands for Volatility, Uncertainty, Complexity, and Ambiguity, and is used to accentuate the challenging and unpredictable nature of the contemporary business environment.
Since 1914, the world has experienced several global shocks. Over the course of several decades, beginning with the world wars and continuing through the great depression, all facets of society have been impacted in increasingly negative ways. To prepare for these uncertainties and promote economic recovery, businesses should focus on building corporate resilienceIndeed, the COVID-19 pandemic disrupted business operations, turnover, capacity utilization, and workforce dynamics.
Producers should create buffers for upcoming shocks by making provisions for emergency funds. They should also consider diversifying their revenue sources, investing in supply chain digitization and development, and strategic integrations, especially M&A and backward integration. Also, the interconnectedness of the business world implies that no business thrives in isolation. This reinforces the global call for corporates to promote equitable recovery.