Question 2 “The new economy re-emerge when COVID-19 has officially been designated a pandemic by the World Health Organization (WHO). IMF stated that a covid-19 has caused an unprecedented human and health crisis. The crisis has already transformed into an economic and labor market shock, impacting not only supply (production of goods and services) but also demand (consumption and investment). Sustaining business operations will be particularly difficult for Small and Medium Enterprises (SMEs). Malaysia is not spared from this crisis where, Bank Negara Malaysia has predicted GDP growth at between -2 percent to 0.5 percent in 2020…” Based on text above, answer the following questions: How important is the environment to the performance of SMEs industry? What does this suggest regarding the industrial organization (I/O) model to explain how SMEs can earn positive returns?How can strategic leaders be successful during COVID-19 crisis?
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