3. Uluslararası Yaratıcı ve inovatif Yaklaşımlar Kongresi
The Effects of the Covid-19 Pandemic Process on the Sustainable
Financial Structures of Production Enterprises
Prof. Dr. Orhan ELMACI
Kütahya Dumlupınar Üniversitesi, İktisadi ve İdari Bilimler Fakültesi
oelmaci@gmail.com / orhan elmaci@dpu.edu.tr
The Effects of the Covid-19 Pandemic Process on the Sustainable Financial Structures of Production Enterprises
ABSTRACT
Businesses have struggled to maintain their activities in a period of approximately 18 months since the first COVID-19 cases were diagnosed (December 1, 2019). It differs from other outbreaks in the 21st century in two respects. The first of these is the spread of the epidemic over a much wider geographical area. The epidemic started to show its effect all over the world in a very short time and therefore daily life was severely restricted. The second has been affected simultaneously by the globalization of the economy, in other words, due to the multilayered and interdependence of supply/value chains. In addition, the negative pictures observed one after another in countries show how unprepared the country's economies are for such a process. It was not only the virus and the health-related damages that were exported from one country to another, but the cessation of the production and transportation of the production and traded goods and intermediate goods became widespread at the same speed and with the same devastating effects. The pandemic continues to threaten businesses that face unmeasurable losses in a complex structure and with its non-linear dynamics. Especially in the production (product and service) sector; It has led to slowdown or stoppage of production, decrease in production quality, deterioration of supply chains and decrease in demand for manufactured goods. In this process, businesses had to develop new strategies to ensure their sustainability, not to disappear just like weak and incapable biological species. They made an effort to adapt to the current conditions and to survive with the least damage. In other words, they had to develop strategies about the lessons they learned from the crisis, what they learned, and what the future 'new normal' would be. Sustainability can only be achieved with success strategies that will be developed against opportunities and threats, especially regarding financial flexibility, which occur in thi process.
In this context, there are 3 different scenarios regarding the spread of the epidemic in our country. These are respectively: optimistic, neutral and pessimistic scenarios. This study aims to descriptively reveal the financial problems of production (service / product) enterprises in the context of sustainability performance, especially in this crisis period. Suggestions were made on how to create an integrated methodology for its solution. The study has been presented in a theoretical framework, and the conditions for its implementation in practice have been left open to discussion.
Keywords: Covid19, Manufacturing Sector, Financial Problems in Crisis Period, Performance Measurement, Performance Analysis.