Strategic Analysis of Financial and Operational Data During a Global Economic Crisis: Lessons from the COVID-19 Pandemic

ABSTRACT

Assessing the operational efficiency and financial health of a company, from a Strategic Management perspective, is a major challenge even during normal times. The economic crisis and its associated uncertainties, caused by the Covid-19 pandemic, have made these challenges even more daunting for business students, faculty, and professional analysts alike. In this paper, we first review the broad impact that the pandemic has inflicted on the industrial and economic climate globally. We then take an in-depth look at two representative industries and analyze how they have been impacted by the crisis. Specifically, we look at the airlines industry and the restaurants and food delivery industry, by reviewing and interpreting a select set of financial and operational metrics pre-crisis, during a crisis, and the post / recovery stages of a crisis. We look at performance indicators in these two industries and identify which metrics might provide us with the sharpest insights on the future performance of companies in these industries. We also provide more general guidelines for analysis of companies across other industries, their inter-connectedness, and the ecosystems that they operate in.