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TMI BlogSWOT ANALYSIS -- COVID 19 LOCKDOWNX X X X Extracts X X X X X X X X Extracts X X X X ..... SWOT ANALYSIS -- COVID 19 LOCKDOWN - By: - ANIL ANIKHINDI - Other Topics - Dated:- 14-4-2020 - - Across the globe in over 175 countries, everybody is worried about current situation and trying to protect/defend oneself with the help of available resources. Let us analyse this lockdown into SWOT: STRENGTHS Lowest impact in India as compared to other countries like America, Italy, Spain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etc Fortunately India is yet to cross 2 nd stage Prompt/early corrective actions taken by Central/State Governments On-going peak summer season Successful overcoming experience of 2008 crisis unlike other developed countries At least 11 months financials are ready in hand which may not much affect the financial year Equity Investors in India are only 2% against global 40% and MF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penetrators are 12% against global 60%- Much scope for attracting small investors into equity/MF markets Hand-in-Hand co-operation between Central and all State governments WEAKNESSES Thick populated cities, urban suburbs Unawareness of general public not easily willing to accept changes in lifestyle Reluctant to adopt new things like Work from Home (except IT sector) Health ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... system network is very poor in India Large scale Un-organised labour sector Industrial imbalanced growth resulting into migration Unintended moves of neighbouring countries Financial illiteracy amongst major business class Traditional way of handling business transactions in cash Carrying huge unaccounted money Habitual nature of finding out legal loop-holes, Reluctant f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or legal compliance across business sector OPPORTUNITIES Once in a life opportunity to adopt new things in day-to day operations Boost to E-commerce, on-line transactions, Work from Home in all segments Adoption of new technological innovations Relaxations announced by Govt. in Income Tax/ GST procedures Financial Package declared Decisions of RBI in relation to CRR, REP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O, Reverse REPO etc Moratorium announced by lenders Availability of stressed assets at very low prices th r Insolvency bankruptcy Code -IBC (presently average resolution rate is around 30-40% of outstanding bank loans with waiver of all other creditors) Initiate registration of all unorganised/migrated labourers so that structured policies can be framed by Govt./employers (India has 70% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unorganised class) MSME companies relieved from risk of IBC due to increase in threshold limit of default from 1 lakh to 1 crore Finding Import Substitutes (especially from China) Start thinking Cost reduction actively and scientifically MF participation can be doubled To unlearn old things and learn new things Boost to Local employment Business Health Diagnosis, Business Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess Re-engineering will be inevitable New way of thinking 2020 BC (Before Corona), 2020 AC (after Corona) Big jump in Diagnostic sector E-learning model in education sector, virtual classroom, e-books will flourish Social Security will be on the top of Govt. Agenda Indigenisation, make in India movement will spurt India may have to shift from Services sector to Manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing sector Govt. spending will increase manifold, MSME sector benefits Rich class may be taxed high Individuals may develop good new hobbies, habits in the changing lifestyle environment THREATS Non abiding lockdown instructions Attacks on health workers, Doctors, Policemen Unintended organisation of social/religious events On-going global recession, Financial crisis, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Economic slowdown Chinese companies interested to take over certain Indian companies under IBC or other mode Pessimistic thinking Large number of NPA cases in banks (existing and new), increase in stressed assets Migrated labourers may not willingly return to job without some extra monetary benefits Employers may be required to pay for lockdown period without any productive returns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Great burden on working capital Banks may put extra restrictions in case of credit risk Force Majeure may be misused Health/Police personnel may think of Revolt Unemployment on large scale (30% already reported from US) Demand and supply both will drop significantly, going away from established economics theory GDP may drastically come down by 2% Business model of runnin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g behind profit will prove wrong Social life may come to halt at least for next few months Life vs Livelihood will become unintended choice Socio-economic inequality may increase Addict people may turn into violence Globalisation may be proved wrong to some extent Entire supply chain will be affected Suggestion:- Have patience, remain optimistic, wait and watch, m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aintain social distancing, create sustainability till medication/vaccination found on Corona. Take care of your health, family health, business health. By CMA, IP (Dr.) ANIL ANIKHINDI - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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