Impact of Brexit on Business Sectors: Struggle and Prosperity

This article discusses the impact of Brexit on business sectors that will struggle and prosper in the next 12 months. The struggling sector is the finance sector, which has lost jobs and market share due to Brexit. On the other hand, the retail sector is expected to prosper due to investments and agreements with EU's largest retailer. The article also provides suggestions for amateur investors on legal structure and market competitiveness.

BM461 GLOBAL BUSINESS
MANAGEMENT

TABLE OF CONTENT
2A)...................................................................................................................................................3
Consumer confidence..................................................................................................................3
Business sector which will struggle for the next 12 month.........................................................3
Business sector that will prosper for next 12 month....................................................................4
2B)...................................................................................................................................................5
REFERENCES................................................................................................................................7

2A)
Consumer confidence
Consumer confidence refers as the economic indicator that tracks the optimism degree which the
consumer feel about, means how confident they are about the complete economy state. It affects
their decision like in purchasing activity (Amankwah-Amoah, Khan and Wood, 2021). It is
important because it allows the businesses to make effectual decision based on customer
behaviour.
Business sector which will struggle for the next 12 month
Finance sector is seen as highly suffered sector due to the Brexit effect, most of the finance
company have left the UK because of the their EU origin. It left UK suffered the most; people
lost their jobs because of exit of banks firm. After this UK’s bank are not allowed to continue
their services in providing the accounts to the EU residents (Blocher and et.al 2019). Lloyd bank
British commercial bank and consider as the greatest clearing bank. But after Brexit Lloyd
banking organisation suffers the most they have lost around 30 percent share price due to Brexit
impact. Due to this company has cut down around 3000 jobs they also announced to shut down
their 200 branches due to the changes drives in economy rate. Firm also announced to shut down
the 44 other bank branches in September to November month (Leonidou and Hultman, 2019).
As per the FTSE performance, revenues for the Lloyd seen as gradually dropping down they
have lost around 1.74 to 53-61 points, market for the firm decreased by huge margin.
Before Brexit UK”s trade are control or manage by the EU but after Britain’s exit from
the EU, creates a lots of impact, as most of the banking organisation are from EU, due to this
they left UK market which develops the high unemployment rate in the nation, as well as
businesses has to face the tariffs and customs at borders. When UK were part of the EU it was

easier for the finance firm to export their services without requiring any licence or authorisation.
But after Brexit they have lost their rights (Kačerauskas, 2019). Majorly finance sector is
impacted because majority of the bank are not from UK, and their exit creates a lot of impact
over the economy.
Business sector that will prosper for next 12 month
Brexit almost hit all the sectors because of the new restriction over the import and export. Retail
organisation faced problem in supply chain, because of this they were not able to deliver the
product on time. Customers in the market have no other option left due to the insufficient
delivery of the product (Nambisan, Zahra and Luo, 2019). For the Tesco firm their deliveries of
the products in Northern Ireland suffer and also face disruptions because of Brexit. For the Tesco
there investment in booker and in Carrefour is the great decision taken by their firm, it boost
their buying power. As agreement with the Carrefour EU’s largest retailer is beneficial for them,
due to this they will be able to exert pressure on the supplier even in Brexit situation. As per the
FTSE information retail industry of UK seen as slower recover than the European peers, but after
the changes drives in the Brexit law retail sector is now able to import export their raw materials
(Pinto, Morais and Quick, 2020).
After the negotiations between the Britain and EU, brexit has less impact over the UK
based businesses, also the tariff which was imposed on the border has taken away, for this only
term is apply which defines, as no customs regulation can imposed on import export goods if
they are originated from the UK or from EU otherwise tariff will be applied if goods are from
different region (Nehme and Jizi, 2018). As compared to the other sector retail sector seem as
less affected by the brexit also retail organisation sustained their growth in the market. As
retailers contributes 5% in UK economy and also due to this their citizens are making their
earning, government is trying to making negotiation to reduce the brexit effect.
Suggestion for amateur investor
As for investing in the market, retail market is best for investment, it is the fastest
growing sector. This sector is directly linked with the consumer so retail stocks seen as go much

higher in average time (Halcro and et.al 2020). UK retail industry has 5.2 percent gross domestic
product GDP ratio, and consider as the integral part of the nation’s economy. Also retail sales
consider as the essential economic indicator.
2B)
Email
To : [e-mail]
CC: [e-mail]
From: [e-mail]
Dear friend
Purpose:
This email is generated for recommending friend about his business, as what legal structure
is suitable and to measure the competitiveness of market structure.
Legal structure for business
Legal structure also consider as the business ownership, which identifies what income tax
return process does the business has to file. Sole proprietorship and general partnership legal
structure.
Sole proprietorship, in which the business run by the single owner, it is good for starting a
new business. It is unincorporated business, which means there is no paper work required
for registering the business name, taxes are pays by owner itself. Main advantage of this
business as it is easier to start means solely handle by the owner and have full freedom to
make decision, it is also reliable related to the tax or have no restriction regarding hiring. Its
disadvantage are personal liability, because it operate with single owner therefore all debts,
other tax, employee insurance can paid by the owner only.
General partnership, in which business is handling by the two or more partner, both parties
are liable for maintaining the business functionalities. Every partner has equal liability to
pay the debts and taxes for the firm. Its pros are it is easy or simplest to begin with, also

there is no incorporation required, and compliances are found relatively easy. Its cons are if
there is any conflict between the partners, than it leads the business to failure path and it is
not an appropriate structure for raising the investor fund.
Suggesting best legal structure
Sole proprietorship is the best legal structure to begin with, because your work is to sell the
product which is been carried out from the China and Taiwan international market. This
business do not required the extra paperwork also you can easily run your business by
making your own decisions. As there is no concept for the board meetings and all, which
means there is no pressure from others, it also means that you will solely handle your
business, and can pay your business tax. Since this structure is not come under the
government, means they not have your business database to look into, but you only need to
do is to pay the taxes on time. Therefore it offers more privacy than other business where
government impact is more; you can also proceed to do some charity work so you can easily
get the community support which is good for running the business.
Market structure
It refers as how various industries are categorised and differentiated on the basis of their
competitive nature for product and services. There are different market structures which are
perfect competition, oligopoly, and monopoly and so on. Monopoly and oligopoly exist
when there is imperfect competition in the market, where company in monopoly state design
a product who has no near substitute, but in oligopoly large companies design the product
similar but with few different changes. Whereas in perfect competition firms produces the
same product which gives the customer a lot of options. In oligopoly there is barrier to entry
and exit but in monopoly and perfect competition there is no barrier.
Measure competitiveness of market structure
As per the porter five force framework, it helps to examine the competition in the market, so
that you can easily streamline your strategies accordingly to create awareness of your mobile
product. With the model’s analysis you will be able to know what is consumer and
supplier’s impact over your business. You can be able to know the sustainable drivers at
particular location, which will guide you to make a further step for sustaining in the market.
Through this you can also proceed to analyse your competition rivalry and their potential
power or to know about the substitute threat. As if top five or six firms have 60% market

sales then it is oligopoly but when company has 100% concentration ratio then it shows
monopoly industry. Perfect competition market structure is best for your business to initiate
with because it offers the free entry and also have the small firms which compete with each
other. Also consumers have the complete symmetric information as what will be their next
step.
Lastly you need to follow all HMRC revenue and customer import duties, which is
implemented by the UK government. To smoothly run your business it is important for you
to pay all taxes on time or to follow the government guidelines, it is beneficial in order to
prevent from any legal activities.
Thank you
John
REFERENCES
Books and journals
Amankwah-Amoah, J., Khan, Z. and Wood, G., 2021. COVID-19 and business failures: The
paradoxes of experience, scale, and scope for theory and practice. European Management
Journal. 39(2). pp.179-184.
Blocher, E.J. and et.al 2019. Cost Management (A Strategic Emphasis) 8e. McGraw-Hill
Education.
Halcro, K. and et.al 2020, September. Firm performance, innovation, and behaviour: is there a
business case for board diversity? An investigation of directors’ nationality within UK’s
FTSE 100 companies. In British Academy of Management 2020 Conference.
Kačerauskas, T., 2019. Ethics in business and communication: common ground or
incommensurable?.
Leonidou, C.N. and Hultman, M., 2019. Global marketing in business-to-business contexts:
Challenges, developments, and opportunities. Industrial Marketing Management. 78.
pp.102-107.
Nambisan, S., Zahra, S.A. and Luo, Y., 2019. Global platforms and ecosystems: Implications for
international business theories. Journal of International Business Studies. 50(9). pp.1464-
1486.
Nehme, R. and Jizi, M., 2018. The efficiency of corporate boards and firms’ audit fees: the case
of the FTSE financial institutions. Pacific Accounting Review.

Pinto, I., Morais, A.I. and Quick, R., 2020. The impact of the precision of accounting standards
on the expanded auditor’s report in the European Union. Journal of International
Accounting, Auditing and Taxation. 40. p.100333.