Topic 3: Impact of COVID-19 on Multinational Companies MNCs (such as BHP, Rio Tinto) businesses around the world. The length of the assignment would be maxim 3000 words (plus -minus 10%). Research...

An Introduction:
The new corona virus outbreak which was started in the China and spread all around the globe is having the vast impact on the Australian economy and to the growth and prosperity of the multinational entities in the economy. The Corona virus is a global pandemic has not caused infections and deaths, but it has also weakened the global economy and it is having the potential for destroying the businesses, industries and multinational companies. China is the biggest trading partner of the Australia and is considered as the part of the supply chain management for all the consumer related products and the world is considering the Australia as the option against the China for all the businesses. There are some areas which will be having great impact includes exports, education and tourism. Thus, the cut down due to the pandemic will lead to the downfall in the GDP growth of the economy. Thus, it will b have vast impact on the economy of the country and on the multinational entities in the country and all around the world.
Impact of COVID 19 on Multinational Companies
The COVID 19 pandemic has resulted in the downfall in the growth of the multinational companies and the resulting slowdown is having adverse effect on the various range of markets and it will hamper the ability of the multinational companies in hitting the target for the year 2020 and caused adverse effect on the forecast of the corporate and business plan for the current year. The primary impact of the pandemic is on all the sectors which causes decrease in the demand of the industrial production and construction and thus the reduction in the demand will lead to the decrease in the price of the products of the entities (Timothy Laing, 2020). Thus, the dramatic fall in the prices of the products of many of the multinational companies will caused the fall in the share price of such entities. Further the spread of the COVID 19 it is having adverse effect on the demand and also lead to the disruptions in the confidence and supply chain management. In addition to this the entities is facing and addressing the depreciation in the currency caused by the combination of the collapse in the oil prices and downfall of the global financial markets. This will result in the challenge for the entities in regard to the pricing strategies and customer price sensitivity in the coming time globally irrespective of the level of spread of the COVID 19. This will make the requirement for the entities for revising the targets and expectation for the current year and should address the disruption in the supply chain management. The entities should set the priority markets which will have resilient demand and should tackle the credit and liquidity challenge related to the customers and distributors. Further the impact of COVID lead the entity to test their strategies in relation to investment and in investigating the supply chain management for improving the stability of the entity (Peter Muchlinski, 2020).
The COVID 19 pandemic has forced the 70% of the entities for reduction of the hours of their staff and about 43% of the entities place their workers on unpaid leaves. Further due to this pandemic the revenue of the entity has decreased a lot and the cash flow of the entities has also shown downfall in the current year. The entities have also faced decreased in the demand by the consumers. Due to this pandemic the business has changed their way of doing business and some had done renegotiation of their leases and some has deferred the loan payments. The COVID 19 pandemic has made many disruptions in the businesses and it also has led to the stoppage of the trading completely. The entities are still making some type of changes in the workforces such as temporary reducing the staff or rise in the working hours or changing the location of the work to be performed or placing the staff on leaves or retrenchment of the staff. This had led to the vast impact in the entities in the hospitality sector.
There are various major exports of the country such as iron ore, thermal coal, natural gas and energy related products and China is one of the biggest buyers of such products and thus the entities dealing in such products will suffer a great loss. Australian producers of the resources such as BHP Limited is facing business uncertainties in the coming year after assessing the impact of the virus on the entities in the near term (Zack equity research, 2020).
Further it was believed that the ban on the travel will be having the immediate impact on the tourism entities and the impact of the virus has caused disruption in the tourism industry. The COVID 19 pandemic has made many disruptions in the businesses and it also has led to the stoppage of the trading completely. The entities are still making some type of changes in the workforces such as temporary reducing the staff or rise in the working hours or changing the location of the work to be performed or placing the staff on leaves or retrenchment of the staff. During the time of this pandemic the BHP Limited has lost 68% of its value of its previous year and Rio Tinto has suffered the loss of 88% of its value of its previous year. Further due to this pandemic the revenue of the entity has decreased a lot and the cash flow of the entities has also shown downfall in the current year. The entities have also faced decreased in the demand by the consumers. Due to this pandemic the business has changed their way of doing business and some had done renegotiation of their leases and some has deferred the loan payments.
For instance, the BHP Limited is taking new initiatives for enabling the socially isolated people for sustaining the social connection among...