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This paper explores an article by Ian Welsh that reports about the response to economic pandemic and what preparations people can make for such a difficult time. Within a wide scope of possible choices to make, strategic choices are appropriate because they can have better results during and after the crisis. Understanding the organizational structure in the system is an important step to undertake as individuals can establish the favorable ways to survive. In addition, establishing the performance of the economy will help people understand better the trends of the supply and demand chains in the local or international markets (Welsh, 2009). Moreover, the behavior of the stakeholders helps understand well the appropriate measures to take to enable survival during and after the hard economic times. Therefore, this paper integrates the response by people during hard economic times and macroeconomics to establish better ways of managing demand and supply fluctuations.

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Difficult economic situation calls for better counteracting measures to survive the difficult situation. Surviving means, understanding the organizational structure of the market in how the demand and supply chains shift. Thus, people should take appropriate measures just like they “would take for any natural disaster” (Welsh, 2009) because the financial flows have the possibility of going down in hard economic situations. The consequent results are that majority of production, health and transit firms will lack the capacity to operate optimally reducing governments’ revenue and straining the demand and supply chains. Therefore, people find themselves in situations that call to establishing better ways of managing demand and supply fluctuations.

The roles that the government, commodity and financial markets play are crucial to note. Their participation affects the behavior of the stakeholders that include the suppliers and consumers’ behavior according to the decisions that authorities make and the trends of the markets hence the need to understand the prevailing economic performance. Thus, government will have the obligation to take management of some companies that cannot manage their businesses. Therefore, organization structures will tend to shift to sides that benefit the people (consumers) in need at that particular place in time influencing the manner in which the demand and supply shifts with grate concern of the basic needs.

Establishing how the economy is performing at that particular place in time increases the chances of survival. Proper ways of doing this can be tracking of the expenditure (Welsh, 2009) by both individuals and companies because mode of expenditure at difficult times can have dire consequences on demand and supply in the long term. An economic disaster can have unpredictable trend in the long term but starting from the current situations, one can evaluate it from the number of casualties in the consumer and supply categories. This eventually dictates the degree of effect on the Gross Domestic Product (GDP).

If the economic disaster causes death, it brings sadness to peoples and other stakeholders. Few casualties like 1 % of the entire population will have less effect to the overall GDP (Welsh, 2009).  Despite the casualties, business has high possibilities of continuing normally in such situations. An insignificant change in high demand indicates that supply has to remain steady to sustain the economy as other indicators like income also remaining considerably steady.

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On the other hand, heavy casualties affecting the productive ages can have great effect to the GDP of country because of decreased labor hence low production (output) (Welsh, 2009). In addition, low production increases the demand of the few available goods, which can have eventual effect of inflation. Because of its adverse effects of the increasing demand with decreasing supply chains, it will also affect other sectors apart from economic issues because it disturbs corporation and communication links between the parties meaning the basic requirements will not reach the consumers as necessary halting economic developments.

When economic disaster occurs, lose of jobs is a high possibility which indicates many of companies will stop manufacturing non essential goods thus going out of business, getting shut down by authorities or even maintaining minimal labor just for the sake of operating (Welsh, 2009). With no business transactions, means there will be less cash in circulation putting banks out of service and giving informal business (black market) a chance to thrive as a way of managing the crises. The result is none regulation of business transactions including goods and services in the market. This fuels up the provision of poor quality goods in the market that cannot satisfy the needs of their consumers creating another big problem bringing the old ways of trading like barter exchange trading which are inefficient.

Moreover, the behavior of the stakeholders as a response to the catastrophe is a clear indication of the performance of the supply and demand chains. Proper surviving means having better individual relationships with neighbors establishing the best social ties to maintain a sustainable supply chains as some can have and others can lack (Welsh, 2009). This means that people should have the obligation to take care of themselves to be on the safe side, be able to find ways to earn some income as well helps the needy.

The people’s response on how the companies and authority responded to the economic difficulties dictates the future of the goods and services they offer. If they respond appropriately, people will have trust in them and hence continue consuming their products and this can increase investment opportunities, saving possibilities and even international trade. If the response is bad, then, they loose consumer trust thus poor market for such producers. It also has effect on legislation, amending laws to govern the demand and supply lines influencing the business activities at a particular place (Welsh, 2009).

In conclusion, hard economic times call for better understanding of the best ways to manage demand and supply fluctuations to sustain the economy. For this to succeed, people should understand the organization structure of the authorities and the market that will help to evaluate the performance the prevailing economy. In addition, the stakeholder participation will determine the peoples’ (consumers) behavioral response to the disaster consequently determining the long-term effect on the people and the economy at large.

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