Challenges Faced by SMEs in the UK and Role of Government in Supporting Them During Covid-19 Pandemic
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AI Summary
This report discusses the challenges faced by SMEs in the UK due to Covid-19 pandemic and the role of the government in supporting them. It also examines the economic environment and impact of global business environment on Virgin Money and the banking sector in the UK.
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Virgin Money
Disrupting the UK
Banking Sector
Disrupting the UK
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INTRODUCTION
Business surroundings is associated with the aggregate of all of the elements of the
commercial enterprise which influences the commercial enterprise of the employer from each
inside and from a distance. There are huge sort of inside and outside factors are gift with inside
the market which can impacts the advanced association in each sensational and sad manner. The
external variables impacting the cutting edge association are political, regular, social, technical
and a great deal of something different. The internal factors are culture of the association,
strength as well as manipulate with inside the agency. All the ones factors are very essential for
the agency and it will become the duty of the managers of the business enterprise to have a look
at the ones factors and attempt in their manipulate. There are large type of small and medium
companies are exist in United Kingdom which has more than one characteristic for the growth of
the economy. This report states portrayal associated with the impacts of inward environment on
the associations of United Kingdom. The SME's of United Kingdom has stood up to fabulous
sorts of disturbing conditions at the hour of Coronavirus so this report offers short disputes
associated with the responsibility of the UK government are given in this report which is
probably very beneficial for the agency.
TASK-1
Challenges affecting the internal factors of SME,s of United Kingdom
Covid pandemic is appeared as one of the best greatest issues for the undertaking. The
Coronavirus pandemic has affected the association undertaking and the affirmation of the
business undertaking in awful manner. At the hour of Coronavirus, the public power of the strong
states has mentioned to close regardless of the workplace exercises from the necessities. The
Business of the business undertaking has close for the extended time frame which reduces the
volume of liquidity with watching out and it also influences the advantages edges of the business
attempt in terrible manner. Covid pandemic has handicaps all of the capacities of the association
and makes them weakens to do their association in convincing manner(Adegboyega, 2020) .
There are numerous associations are to be had with in the market which is apparently having
negative components of the Coronavirus and makes them impedes to do their association. These
affiliations has near their associations which makes many issues with keeping watch. There are a
1
Business surroundings is associated with the aggregate of all of the elements of the
commercial enterprise which influences the commercial enterprise of the employer from each
inside and from a distance. There are huge sort of inside and outside factors are gift with inside
the market which can impacts the advanced association in each sensational and sad manner. The
external variables impacting the cutting edge association are political, regular, social, technical
and a great deal of something different. The internal factors are culture of the association,
strength as well as manipulate with inside the agency. All the ones factors are very essential for
the agency and it will become the duty of the managers of the business enterprise to have a look
at the ones factors and attempt in their manipulate. There are large type of small and medium
companies are exist in United Kingdom which has more than one characteristic for the growth of
the economy. This report states portrayal associated with the impacts of inward environment on
the associations of United Kingdom. The SME's of United Kingdom has stood up to fabulous
sorts of disturbing conditions at the hour of Coronavirus so this report offers short disputes
associated with the responsibility of the UK government are given in this report which is
probably very beneficial for the agency.
TASK-1
Challenges affecting the internal factors of SME,s of United Kingdom
Covid pandemic is appeared as one of the best greatest issues for the undertaking. The
Coronavirus pandemic has affected the association undertaking and the affirmation of the
business undertaking in awful manner. At the hour of Coronavirus, the public power of the strong
states has mentioned to close regardless of the workplace exercises from the necessities. The
Business of the business undertaking has close for the extended time frame which reduces the
volume of liquidity with watching out and it also influences the advantages edges of the business
attempt in terrible manner. Covid pandemic has handicaps all of the capacities of the association
and makes them weakens to do their association in convincing manner(Adegboyega, 2020) .
There are numerous associations are to be had with in the market which is apparently having
negative components of the Coronavirus and makes them impedes to do their association. These
affiliations has near their associations which makes many issues with keeping watch. There are a
1
seriously enormous number troubles are created with the useful resource of the usage of the ones
situations with in the market which turns into now no longer feasible for them to do their
association in convincing manner. One of the most difficult issue made with the supportive
resource of the use of the Coronavirus pandemic with in the market is to propel the volume of
joblessness of the market. The affirmation of joblessness are augmentation with the useful
resource of the usage of the huge huge range at the time of pandemic because of the truth there
have been many organizations are to be had with in the market whose companies turns into closes
simply so they fireside location the delegates in light of the skewed money related spots of the
affiliation. This makes screw with keeping watch and prepares them to fabricate the bad behavior
blame for inside the market. There are range relatively few affiliations are accessible with in the
market which could do their the financial reasserts at the hour of Coronavirus pandemic. The
huge reasoning in the constancy in the ones organizations is the strong economic characteristic of
the organization which lets in the organization to carry out their agency in effective manner.
There are huge wide variety of SME's are present in the marketplace of United Kingdom which
might be going through stiff demanding situations because of the covid pandemic and the short
talk related with those mentioning conditions with respects with the effect on internal parts are
given underneath:
One of the greatest endeavor resisted through the SME's of United Kingdom is that the
control of those affiliation does now no longer contains explicit and master Information time
packs which makes them altogether less intense with inside the business place and downsizes the
interior parts of the undertaking. This moment there are different new and pervasive development
are progressed with inside the business place that can make the methodologies of huge business
more unmistakable solid and viable. The control of those SME's aren't capable of carried out and
used those technology of their firms due to the fact because of the dearth of monetary resources.
All the technology gift with inside the marketplace has excessive price which isn't viable for the
SME's due to their restrained scope of the enterprise and small budgets (Akhtar and Sushil,
2018). It could be very critical for the control of the organization that they makes a speciality of
those troubles which makes the organization greater aggressive in the marketplace. The
unavailability of the Information era shape with inside the organization makes the organization to
confronted distinct styles of troubles with inside the marketplace and makes them capable of
persue the statistics in powerful manner. One of the trouble which the enterprise has confronted
2
situations with in the market which turns into now no longer feasible for them to do their
association in convincing manner. One of the most difficult issue made with the supportive
resource of the use of the Coronavirus pandemic with in the market is to propel the volume of
joblessness of the market. The affirmation of joblessness are augmentation with the useful
resource of the usage of the huge huge range at the time of pandemic because of the truth there
have been many organizations are to be had with in the market whose companies turns into closes
simply so they fireside location the delegates in light of the skewed money related spots of the
affiliation. This makes screw with keeping watch and prepares them to fabricate the bad behavior
blame for inside the market. There are range relatively few affiliations are accessible with in the
market which could do their the financial reasserts at the hour of Coronavirus pandemic. The
huge reasoning in the constancy in the ones organizations is the strong economic characteristic of
the organization which lets in the organization to carry out their agency in effective manner.
There are huge wide variety of SME's are present in the marketplace of United Kingdom which
might be going through stiff demanding situations because of the covid pandemic and the short
talk related with those mentioning conditions with respects with the effect on internal parts are
given underneath:
One of the greatest endeavor resisted through the SME's of United Kingdom is that the
control of those affiliation does now no longer contains explicit and master Information time
packs which makes them altogether less intense with inside the business place and downsizes the
interior parts of the undertaking. This moment there are different new and pervasive development
are progressed with inside the business place that can make the methodologies of huge business
more unmistakable solid and viable. The control of those SME's aren't capable of carried out and
used those technology of their firms due to the fact because of the dearth of monetary resources.
All the technology gift with inside the marketplace has excessive price which isn't viable for the
SME's due to their restrained scope of the enterprise and small budgets (Akhtar and Sushil,
2018). It could be very critical for the control of the organization that they makes a speciality of
those troubles which makes the organization greater aggressive in the marketplace. The
unavailability of the Information era shape with inside the organization makes the organization to
confronted distinct styles of troubles with inside the marketplace and makes them capable of
persue the statistics in powerful manner. One of the trouble which the enterprise has confronted
2
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because of the dearth of IT is slow growth which creates mess inside the organization and it turns
into now no longer viable for the work. It isn't viable for the organization to end up up to date due
to the dearth of IT group inside the organization . It isn't viable for them to perform their
enterprise in those situations of the marketplace. It could be very critical for the control of the
organization to expand cloud offerings inside the organization in order that it turns into viable for
them to perform their enterprise in powerful manner.
The every other extraordinary venture Which the SME's of the UK is the absence of cost
range or the financial assets in those affiliations. The degree of undertaking exercises of those
SME's are very short and it integrates little arrangement of staff inside the business. It disables
the business' advancement the level of gathering inside the business and their price range will
become now no longer so strong. The requirement of the technology consisting of cloud offerings
and plenty of extra are very excessive work the employer which isn't always viable for a few
businesses to accumulate inside the market. It isn't always viable for the employer to carry out
their commercial enterprise capabilities in powerful way if their economic assets aren't as much
as the mark (Ciacci, Ivaldi and Soliani, 2021). It could be very critical for the business to
accumulate new and further develop age all together that it will become useful for them to take
the expansion of the brand new and it will become appropriate for them to play out their business
undertaking major areas of strength for in. These challenges are actually terrible for the control of
the employer.
It is one of the most extreme unfortunate mission which the control of the SME's needs to
defied inside the commercial center is that the degree of guide are considerably less in those kind
of associations each inside and remotely. The deficiency of guide has made many difficulty for
those foundations inside the commercial center. On the off chance that any mix-up are performed
through the control of the venture, there's nobody to make them get to the next level. These little
blunders of the control can turns into the depraved troubles for the corporation in the event that
they does now no longer clear up at big time. There are many demanding situations are came
about inside the enterprise that's now no longer feasible for the control of small and medium
enterprise remove due to the absence of understanding and the capacities so it calls for experience
anyway the deficiency of direct with the marketplace can create full-size troubles inside the
enterprise (King, 2022). If the control of the enterprise has get the guide from the marketplace
then it turns into feasible for them to broaden powerful facts generation inside the enterprise
3
into now no longer viable for the work. It isn't viable for the organization to end up up to date due
to the dearth of IT group inside the organization . It isn't viable for them to perform their
enterprise in those situations of the marketplace. It could be very critical for the control of the
organization to expand cloud offerings inside the organization in order that it turns into viable for
them to perform their enterprise in powerful manner.
The every other extraordinary venture Which the SME's of the UK is the absence of cost
range or the financial assets in those affiliations. The degree of undertaking exercises of those
SME's are very short and it integrates little arrangement of staff inside the business. It disables
the business' advancement the level of gathering inside the business and their price range will
become now no longer so strong. The requirement of the technology consisting of cloud offerings
and plenty of extra are very excessive work the employer which isn't always viable for a few
businesses to accumulate inside the market. It isn't always viable for the employer to carry out
their commercial enterprise capabilities in powerful way if their economic assets aren't as much
as the mark (Ciacci, Ivaldi and Soliani, 2021). It could be very critical for the business to
accumulate new and further develop age all together that it will become useful for them to take
the expansion of the brand new and it will become appropriate for them to play out their business
undertaking major areas of strength for in. These challenges are actually terrible for the control of
the employer.
It is one of the most extreme unfortunate mission which the control of the SME's needs to
defied inside the commercial center is that the degree of guide are considerably less in those kind
of associations each inside and remotely. The deficiency of guide has made many difficulty for
those foundations inside the commercial center. On the off chance that any mix-up are performed
through the control of the venture, there's nobody to make them get to the next level. These little
blunders of the control can turns into the depraved troubles for the corporation in the event that
they does now no longer clear up at big time. There are many demanding situations are came
about inside the enterprise that's now no longer feasible for the control of small and medium
enterprise remove due to the absence of understanding and the capacities so it calls for experience
anyway the deficiency of direct with the marketplace can create full-size troubles inside the
enterprise (King, 2022). If the control of the enterprise has get the guide from the marketplace
then it turns into feasible for them to broaden powerful facts generation inside the enterprise
3
which allows the enterprise to come to be greater aggressive inside the marketplace. It is one of
the powerful advice to the control of the enterprise that they broaden powerful and wholesome
family members inside the enterprise which permits the enterprise get powerful guide from the
marketplace on the time of trouble with inside the enterprise.
One of the best project which the control of the SME's has to confronted whilst doing
their commercial enterprise with inside the marketplace of United state is to save the cooperation
of their labor force. It is one of the most extreme imperative and valuable quality of the control of
the business endeavor that they expand strong joint effort of their personnel in order that desires
and targets of the business enterprise may be done with inside the marketplace. Effective
collaborations within the personnel can most effective be accomplished because of the
improvement of powerful communique with inside the business enterprise (Ivanovich, 2020). The
powerful communique permits to sell the worker interplay with inside the business enterprise
which makes the business enterprise extra powerful. There are many issues and troubles are
received with inside the business enterprise which calls for the dialogue of the personnel, the
powerful communique of the business enterprise has permits all of the personnel to function their
commercial enterprise in powerful manner. It may be very vital for the control of the business
enterprise to make manipulate in those communique channels due to the truth the concern of
spreading tales with inside the business endeavor which will turn into the rationale in the
antagonism with inside the business venture.
It is one of the significant task for the business venture for the control of the organization
that there are huge amount of crime compliances are gift with inside the marketplace that are
having too many paper and additionally the intending with inside the marketplace. It could be
very crucial for the control of the corporation to increase powerful techniques in the corporation
which could resolve this problem. The authorities of the UK are usually attempt to lessen the
extent of complexities from the control which turns into beneficial for them to growth the extent
of the enterprise with inside the country. There are a few felony lawsuits are present which the
control of the corporation has to comply with at the same time as doing their enterprise with
inside the marketplace. These felony lawsuits are very poor for the control of the corporation
which makes the corporation much less powerful toward their middle enterprise due to the fact
the overall performance of the felony lawsuits has taken the greater time which debilitates the
control to work their venture I strong way. One of the main regulation which the SME's needs to
4
the powerful advice to the control of the enterprise that they broaden powerful and wholesome
family members inside the enterprise which permits the enterprise get powerful guide from the
marketplace on the time of trouble with inside the enterprise.
One of the best project which the control of the SME's has to confronted whilst doing
their commercial enterprise with inside the marketplace of United state is to save the cooperation
of their labor force. It is one of the most extreme imperative and valuable quality of the control of
the business endeavor that they expand strong joint effort of their personnel in order that desires
and targets of the business enterprise may be done with inside the marketplace. Effective
collaborations within the personnel can most effective be accomplished because of the
improvement of powerful communique with inside the business enterprise (Ivanovich, 2020). The
powerful communique permits to sell the worker interplay with inside the business enterprise
which makes the business enterprise extra powerful. There are many issues and troubles are
received with inside the business enterprise which calls for the dialogue of the personnel, the
powerful communique of the business enterprise has permits all of the personnel to function their
commercial enterprise in powerful manner. It may be very vital for the control of the business
enterprise to make manipulate in those communique channels due to the truth the concern of
spreading tales with inside the business endeavor which will turn into the rationale in the
antagonism with inside the business venture.
It is one of the significant task for the business venture for the control of the organization
that there are huge amount of crime compliances are gift with inside the marketplace that are
having too many paper and additionally the intending with inside the marketplace. It could be
very crucial for the control of the corporation to increase powerful techniques in the corporation
which could resolve this problem. The authorities of the UK are usually attempt to lessen the
extent of complexities from the control which turns into beneficial for them to growth the extent
of the enterprise with inside the country. There are a few felony lawsuits are present which the
control of the corporation has to comply with at the same time as doing their enterprise with
inside the marketplace. These felony lawsuits are very poor for the control of the corporation
which makes the corporation much less powerful toward their middle enterprise due to the fact
the overall performance of the felony lawsuits has taken the greater time which debilitates the
control to work their venture I strong way. One of the main regulation which the SME's needs to
4
control along with their endeavor withinside the commercial center that is General data security
regulation. In this sort of regulation the control of the partnership needs to review the wellbeing
and the security of the data of the clients.
Examine the role of the UK government in supporting the SMEs during the Covid-19
The specialists of United state is one of the most extreme rumored specialists which
ordinarily makes a speciality of the publicizing of big businesse with inside the us of a in order
that the financial system of the us of a may be taken efficaciously with inside the market. It
additionally facilitates the control of the company to function their enterprise in powerful manner.
There are huge range of demanding situations and troubles are arises with inside the enterprise
surroundings of the us of a which disables the SME's to function their enterprise in powerful
manner (Luiz, Ganson and Wennmann, 2019). The authorities of UK has look at the impact of the
Coronavirus pandemic at the organizations of the SME's and advanced tremendous scope of plan
for the publicizing of the undertaking with inside the organization. It could be exceptionally
significant for the control of the organization that they look at those plans of the specialists and
endeavor to take their benefit with inside the market. It moreover works with the contrary
enterprises of the us of a to upgrade the situation in their organizations that is demolished due to
the happening of the Coronavirus pandemic. The fast exchange related with the plans of
administration are given beneath..
Coronavirus worker retention scheme :- It is associated with the plan of the specialists
underneath which all of the endeavor of United Kingdom enlisted underneath the PAYE
plot are qualified for obtained the pronounce of 80% of vacation faculty of the
association.
Covid-19 corporate financing facility :- it's far associated with the ones plan of the
specialists beneath which the specialists of the United state has provided the focuses of
the money to the SME's of the enterprise. It enables the ones enterprise of the United state
which can be economic crunches of their enterprise because of the covid pandemic (Nam,
and Bao Tram, 2021).
5
regulation. In this sort of regulation the control of the partnership needs to review the wellbeing
and the security of the data of the clients.
Examine the role of the UK government in supporting the SMEs during the Covid-19
The specialists of United state is one of the most extreme rumored specialists which
ordinarily makes a speciality of the publicizing of big businesse with inside the us of a in order
that the financial system of the us of a may be taken efficaciously with inside the market. It
additionally facilitates the control of the company to function their enterprise in powerful manner.
There are huge range of demanding situations and troubles are arises with inside the enterprise
surroundings of the us of a which disables the SME's to function their enterprise in powerful
manner (Luiz, Ganson and Wennmann, 2019). The authorities of UK has look at the impact of the
Coronavirus pandemic at the organizations of the SME's and advanced tremendous scope of plan
for the publicizing of the undertaking with inside the organization. It could be exceptionally
significant for the control of the organization that they look at those plans of the specialists and
endeavor to take their benefit with inside the market. It moreover works with the contrary
enterprises of the us of a to upgrade the situation in their organizations that is demolished due to
the happening of the Coronavirus pandemic. The fast exchange related with the plans of
administration are given beneath..
Coronavirus worker retention scheme :- It is associated with the plan of the specialists
underneath which all of the endeavor of United Kingdom enlisted underneath the PAYE
plot are qualified for obtained the pronounce of 80% of vacation faculty of the
association.
Covid-19 corporate financing facility :- it's far associated with the ones plan of the
specialists beneath which the specialists of the United state has provided the focuses of
the money to the SME's of the enterprise. It enables the ones enterprise of the United state
which can be economic crunches of their enterprise because of the covid pandemic (Nam,
and Bao Tram, 2021).
5
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CONCLUSION
This file concludes description associated with the affects of inner surroundings at the groups of
United Kingdom. The SME's of United kingdom has confronted exceptional sorts of demanding
situations on the time of covid so this file concludes quick dialogue associated with the
contribution of the United Kingdom authorities are supplied on this file which can be extremely
useful for the office are finished up on this document.
6
This file concludes description associated with the affects of inner surroundings at the groups of
United Kingdom. The SME's of United kingdom has confronted exceptional sorts of demanding
situations on the time of covid so this file concludes quick dialogue associated with the
contribution of the United Kingdom authorities are supplied on this file which can be extremely
useful for the office are finished up on this document.
6
7
8
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TASK 2
INTRODUCTION
It is identified that the United Kingdom and the banking sector in the particular area
convicts of the certain number of private, international banks and building societies. It is very
important that the banks which are situated need to determine the market position in order to have
an effective working within the organisation. It is assumed that the banking sector is growing in
the United Kingdom where the online and mobile banking is increasing day by day. The Virgin
group is recognised as an United Kingdom based business enterprise. The company was founded
by Richard Branson. (Bagby, J.W., Reitter, D. and Chwistek, P., 2019). .his is the report which
will include the various topic such as the Virgin money of the group,the economic environment
with the banking sector, then it will include the global business environment which can impact
the organisation and how this has impacted the country United Kingdom.
MAIN BODY
Examine the economic environment within which businesses operate.
It is very important for the organisation to analyse its internal environment which has a major
influence over the business operations. There are two types of analysis which can be micro and
macro. There are various micro factors which is affecting the organisation and discussed below in
context Virgin money :
Value system: It is identified that it is essential for the business organisation to work in a
particular direction in order to improve the customer experience within the banking sector. Her
the main objective of a bank is to provide with the different services in order to have a
competitive advantage and also can focus on customer satisfaction(Chapman, R.J., 2022)
Vision mission and objective- The organisation has a main objective of providing the quality of
services where they need to include the online banking system in an effective way. It is very
important that the banking sector and the organisation includes the digital facilities for the day to
day transactions. This will help the customers to enjoy the services in an effective way. It is very
important that organisation focus on these services which are provided with the digital platforms.
9
INTRODUCTION
It is identified that the United Kingdom and the banking sector in the particular area
convicts of the certain number of private, international banks and building societies. It is very
important that the banks which are situated need to determine the market position in order to have
an effective working within the organisation. It is assumed that the banking sector is growing in
the United Kingdom where the online and mobile banking is increasing day by day. The Virgin
group is recognised as an United Kingdom based business enterprise. The company was founded
by Richard Branson. (Bagby, J.W., Reitter, D. and Chwistek, P., 2019). .his is the report which
will include the various topic such as the Virgin money of the group,the economic environment
with the banking sector, then it will include the global business environment which can impact
the organisation and how this has impacted the country United Kingdom.
MAIN BODY
Examine the economic environment within which businesses operate.
It is very important for the organisation to analyse its internal environment which has a major
influence over the business operations. There are two types of analysis which can be micro and
macro. There are various micro factors which is affecting the organisation and discussed below in
context Virgin money :
Value system: It is identified that it is essential for the business organisation to work in a
particular direction in order to improve the customer experience within the banking sector. Her
the main objective of a bank is to provide with the different services in order to have a
competitive advantage and also can focus on customer satisfaction(Chapman, R.J., 2022)
Vision mission and objective- The organisation has a main objective of providing the quality of
services where they need to include the online banking system in an effective way. It is very
important that the banking sector and the organisation includes the digital facilities for the day to
day transactions. This will help the customers to enjoy the services in an effective way. It is very
important that organisation focus on these services which are provided with the digital platforms.
9
Organisational structure- It is identified that the organisation is adopting the decentralised
structure. This is the type of the structure where the various responsibilities are distributed by the
top level of management to the lower and missile level of management.
Corporate culture- It is analysed that the bank has a digitalised banking system where the
company offers the various services for the ease of the customers..
Human resource- The human resource department of the organisation focus on hiring the best
suitable talent for the organisation in order to achieve the goals and objectives. also the HR
department focus on giving the best experience to its employed with the knowledge and
increasing their skills and abilities. (Kila, K., 2018)
Resources and technological capability: there are various sources which has been used by the
organisation such as business analytics, cloud automation, data structure in order to analyse the
various data and create the working in an effective and efficient manner.
Bank specific external environment that affect the operation and function of the organisation are,
interest rate, inflation, employment rate, bank size, GDP, tax rate, recessions, consumer trust,
income.
Inflation- the costs which are increasing in a immensely, in a ambiguous state it is
relating to the rate of profits. In the scope of the United Kingdom, the amounting inflation rate
has scaled down to 23%, the authorities of banks which are greatly influence the rate of inflation,
the rate of interest which increases and decrease heavily.
Tax Rate- the arrangement plan in the United Kingdom tax rates, is followed by the 27%
taken by the tax rates, which involves 19% of the tax rate, in addition to it 8% are the surcharges
included. (Loy, and et.al., 2021)
Area of Banks- the operational functioning of the banks, in respect to the sizes of the
banks, involving small and medium. The organization of Virgin Money, which is descriptive as a
government sector of the United Kingdom, it expands its operational functional all over the
globe.
Recession – this phase is considered as the darkest phase in the economic paradigm,
under the conduct of this factor, the rate of interest will crumble, by which the banks highly get
affected ad drown in loss, the scope of profits get damaged, due to this recession phase. In the
10
structure. This is the type of the structure where the various responsibilities are distributed by the
top level of management to the lower and missile level of management.
Corporate culture- It is analysed that the bank has a digitalised banking system where the
company offers the various services for the ease of the customers..
Human resource- The human resource department of the organisation focus on hiring the best
suitable talent for the organisation in order to achieve the goals and objectives. also the HR
department focus on giving the best experience to its employed with the knowledge and
increasing their skills and abilities. (Kila, K., 2018)
Resources and technological capability: there are various sources which has been used by the
organisation such as business analytics, cloud automation, data structure in order to analyse the
various data and create the working in an effective and efficient manner.
Bank specific external environment that affect the operation and function of the organisation are,
interest rate, inflation, employment rate, bank size, GDP, tax rate, recessions, consumer trust,
income.
Inflation- the costs which are increasing in a immensely, in a ambiguous state it is
relating to the rate of profits. In the scope of the United Kingdom, the amounting inflation rate
has scaled down to 23%, the authorities of banks which are greatly influence the rate of inflation,
the rate of interest which increases and decrease heavily.
Tax Rate- the arrangement plan in the United Kingdom tax rates, is followed by the 27%
taken by the tax rates, which involves 19% of the tax rate, in addition to it 8% are the surcharges
included. (Loy, and et.al., 2021)
Area of Banks- the operational functioning of the banks, in respect to the sizes of the
banks, involving small and medium. The organization of Virgin Money, which is descriptive as a
government sector of the United Kingdom, it expands its operational functional all over the
globe.
Recession – this phase is considered as the darkest phase in the economic paradigm,
under the conduct of this factor, the rate of interest will crumble, by which the banks highly get
affected ad drown in loss, the scope of profits get damaged, due to this recession phase. In the
10
consecutive spectrum of two quarters will reflect the reduction in the rate of GDP, during
observation of the period of recession, which brings about a lot of stress on the fiscal cycle of the
banking industry. The values of loan decrease, there are much more components which get
affected by the environment of the bank, which describes the goals, politics, trade and commerce,
liquidity, management, the reputation, the scope of profits, the clientele base, the evaluation of
market platform, etc.
There are generally three kinds, in which the bank operate, which are mentioned below:
Competitors Banks- the economic surroundings, has there own similarities which are
presented to give an understanding of the competitors banks, HSBC bank, is involved in a
state which can operated a threat. The fiscal tools, money market and other various kinds
of assistance which are provided by the banks, can sometime be difficult to differentiate
as the directives shows no creativity, as a proven fact, there are hard hitting competition
the banks. The policies and regulations of the United Kingdom are strong and tight
knitted, which advance the working of the banks, and brings about less competition.
(May, T. and Bhardwa, B., 2018)
Banking Rules- the spectrum of banking must be folded to be strong, in order to protect
the economy of the country, there must regular advancement in the regulation for the
banking industry, the enactment which are made must maintain the conduct. The banking
industry undergoes interchange very frequently in regard to the rate of interest, repo rate
and other enactments. The groundwork of the legislation of the United Kingdom, include
the Financial Services and Market Act, 2000, which includes the regulations which are
followed in the scope of the capital requirement directive, the market of financial services,
predatory market, abuse of market, cost shortage regulation, payment of the services
protocol, infrastructure of market. In the parameters of the United Kingdom, involves
three banking system ,which states, The Bank of England, Prudential Authority
Regulation, Authority of Financial Conduct.
Components of International Banking- for the scope of expanding the business through
the international boarders, which involves the organization to follow various rules and
regulations in regard to the enactment of the internal market platform. Different kinds of
economy is influenced by different regulations, the bank has expanded its roots to South
Africa, and the expansion has leading to many difficulties due to the difference of opinion
11
observation of the period of recession, which brings about a lot of stress on the fiscal cycle of the
banking industry. The values of loan decrease, there are much more components which get
affected by the environment of the bank, which describes the goals, politics, trade and commerce,
liquidity, management, the reputation, the scope of profits, the clientele base, the evaluation of
market platform, etc.
There are generally three kinds, in which the bank operate, which are mentioned below:
Competitors Banks- the economic surroundings, has there own similarities which are
presented to give an understanding of the competitors banks, HSBC bank, is involved in a
state which can operated a threat. The fiscal tools, money market and other various kinds
of assistance which are provided by the banks, can sometime be difficult to differentiate
as the directives shows no creativity, as a proven fact, there are hard hitting competition
the banks. The policies and regulations of the United Kingdom are strong and tight
knitted, which advance the working of the banks, and brings about less competition.
(May, T. and Bhardwa, B., 2018)
Banking Rules- the spectrum of banking must be folded to be strong, in order to protect
the economy of the country, there must regular advancement in the regulation for the
banking industry, the enactment which are made must maintain the conduct. The banking
industry undergoes interchange very frequently in regard to the rate of interest, repo rate
and other enactments. The groundwork of the legislation of the United Kingdom, include
the Financial Services and Market Act, 2000, which includes the regulations which are
followed in the scope of the capital requirement directive, the market of financial services,
predatory market, abuse of market, cost shortage regulation, payment of the services
protocol, infrastructure of market. In the parameters of the United Kingdom, involves
three banking system ,which states, The Bank of England, Prudential Authority
Regulation, Authority of Financial Conduct.
Components of International Banking- for the scope of expanding the business through
the international boarders, which involves the organization to follow various rules and
regulations in regard to the enactment of the internal market platform. Different kinds of
economy is influenced by different regulations, the bank has expanded its roots to South
Africa, and the expansion has leading to many difficulties due to the difference of opinion
11
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of the citizens and the differentiation I the regulations. The banking services further
relates to the SME's which leave an impact on the EU. (Newman, M. and McDonald, M.,
2018)
Examine the global business environment
It is very important to understand the influence or the affect of the various external factors
for the international business organisation. Here the organisation can focus on using the Pestle
analysis which determines the different factors which have a influence over the business
operatisations and several activities. It is identified that for an organisation it is important to
analyse the market before entering into the foreign market for the expansion of the organisation.
As it is identified that Virgin money is currently operated in 131 countries where it is providing
the banking to the small and medium business enterprises. The Pestle analysis is the tool which
is effective for the organisation in understanding the impact of the different factors which is
discussed below;
Political- This is the factor which is related to the extent to which government policies
may interfere within the business organisation. Such factor include trade polities, tariffs
etc. it is very important role of the organisation to identify the various factors which might
affect the organisation within the market. It is identified that as the company is working in
several countries and need to impose to the various policies. It is very important that the
organisation consider the various aspect in order to expand its business such as political
stability, tax policy so that the company can access the working in an effective and
efficient way. (Nomura, M., 2019)
Economical- This is the factor which is elated to the performance within the economy
which has a direct impact over the business organisation and its operational activities.
Such factors include inflation rate, direct taxes etc. it is identified there is the impact of
the various macro environment factors which impact in the poor performance of the banks
within the economy, the infrastructure and there government interventions may affect the
organisation. It is identified that the fluctuations in the economy where te literacy rate is
higher in the economy where the company can focus on the better quality of services. In
context of the banking sector it is identified that this is the major factor which is
impacting the organisation because of the GDP rate an the other factors such as labour
rate which is affecting in employees wages for the organisation.
12
relates to the SME's which leave an impact on the EU. (Newman, M. and McDonald, M.,
2018)
Examine the global business environment
It is very important to understand the influence or the affect of the various external factors
for the international business organisation. Here the organisation can focus on using the Pestle
analysis which determines the different factors which have a influence over the business
operatisations and several activities. It is identified that for an organisation it is important to
analyse the market before entering into the foreign market for the expansion of the organisation.
As it is identified that Virgin money is currently operated in 131 countries where it is providing
the banking to the small and medium business enterprises. The Pestle analysis is the tool which
is effective for the organisation in understanding the impact of the different factors which is
discussed below;
Political- This is the factor which is related to the extent to which government policies
may interfere within the business organisation. Such factor include trade polities, tariffs
etc. it is very important role of the organisation to identify the various factors which might
affect the organisation within the market. It is identified that as the company is working in
several countries and need to impose to the various policies. It is very important that the
organisation consider the various aspect in order to expand its business such as political
stability, tax policy so that the company can access the working in an effective and
efficient way. (Nomura, M., 2019)
Economical- This is the factor which is elated to the performance within the economy
which has a direct impact over the business organisation and its operational activities.
Such factors include inflation rate, direct taxes etc. it is identified there is the impact of
the various macro environment factors which impact in the poor performance of the banks
within the economy, the infrastructure and there government interventions may affect the
organisation. It is identified that the fluctuations in the economy where te literacy rate is
higher in the economy where the company can focus on the better quality of services. In
context of the banking sector it is identified that this is the major factor which is
impacting the organisation because of the GDP rate an the other factors such as labour
rate which is affecting in employees wages for the organisation.
12
Social- This is the factor which is related to the current trend in the market which has a
influence over the business organisation and its operational activities such factors include
the behaviour, lifestyle, attitude of the people. It is identified that this is the factor which
plays a major role in attracting customers. It is very important that the marketers focus on
the various current trend and the ways in order to promote the products and services. It is
identified that the people are looking for the digital platforms in a smooth way in related
to the banking sector. So this is the major concern which need to be understand by the
marketers in order to satisfy the customers needs and demands (Thomas, S., 2019)
Technological- This is the factor which is related to the innovations and development
around the world can impact the business organisation. Such factors include the
digitalisation, automation, research and development etc. In context of the banking sector
it is very important that the organisation focus on the new latest technologies in order to
attract customers in an effective way. It is very important that the company focus on the
various services in the digital way so that the customer have a benefit of using the online
services at any time. The research and development strategies which helps the
organisation to achieve the goals and objectives in an effective way.
Legal- This is the factor which is related to the certain laws which ned to be followed by
the organisation. Such factor include employment law, safety law etc. it is very important
that the organisation focus on the employment wages law which is most effective for the
organisation in order to avoid strict actions from the government.
Environment- This is the factor which is related to the surroundings of the environment
which can influence the organisation. Such factors include climatic conditions,
sustainability etc. it is very important that the organisation focus on the various aspect of
sustainable development in order to save the environment from the harmful affects. It is
very important tat the company is involve in the various practices in order to maintain the
balance of ecosystem.
CONCLUSION
From the above report it has been concluded that it is very important to analyse the
various aspects of the business organisation in the United Kingdom. There are various factors
13
influence over the business organisation and its operational activities such factors include
the behaviour, lifestyle, attitude of the people. It is identified that this is the factor which
plays a major role in attracting customers. It is very important that the marketers focus on
the various current trend and the ways in order to promote the products and services. It is
identified that the people are looking for the digital platforms in a smooth way in related
to the banking sector. So this is the major concern which need to be understand by the
marketers in order to satisfy the customers needs and demands (Thomas, S., 2019)
Technological- This is the factor which is related to the innovations and development
around the world can impact the business organisation. Such factors include the
digitalisation, automation, research and development etc. In context of the banking sector
it is very important that the organisation focus on the new latest technologies in order to
attract customers in an effective way. It is very important that the company focus on the
various services in the digital way so that the customer have a benefit of using the online
services at any time. The research and development strategies which helps the
organisation to achieve the goals and objectives in an effective way.
Legal- This is the factor which is related to the certain laws which ned to be followed by
the organisation. Such factor include employment law, safety law etc. it is very important
that the organisation focus on the employment wages law which is most effective for the
organisation in order to avoid strict actions from the government.
Environment- This is the factor which is related to the surroundings of the environment
which can influence the organisation. Such factors include climatic conditions,
sustainability etc. it is very important that the organisation focus on the various aspect of
sustainable development in order to save the environment from the harmful affects. It is
very important tat the company is involve in the various practices in order to maintain the
balance of ecosystem.
CONCLUSION
From the above report it has been concluded that it is very important to analyse the
various aspects of the business organisation in the United Kingdom. There are various factors
13
which have been analysed which has a major impact over the banking sector. It is identified that
there is the impact of economic factor which is challenging for the organisation to plan and
operate its activities in the foreign market. It is very important for the organisation to identify the
internal and external factors which can influence the organisation. It is identified that the UK
government is supportive to the organisation in certain ways where the organisation can conduct
its operation in an effective and efficient way. There was the impact of the covid-19 over the
organisations and this has lead to loss for the organization.
14
there is the impact of economic factor which is challenging for the organisation to plan and
operate its activities in the foreign market. It is very important for the organisation to identify the
internal and external factors which can influence the organisation. It is identified that the UK
government is supportive to the organisation in certain ways where the organisation can conduct
its operation in an effective and efficient way. There was the impact of the covid-19 over the
organisations and this has lead to loss for the organization.
14
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REFERENCES
Books and Journals
Bagby, J.W., Reitter, D. and Chwistek, P., 2019. An Emerging Political Economy of the
Blockchain: Enhancing Regulatory Opportunities. UMKC L. Rev., 88, p.419.
Chapman, R.J., 2022. The SME Business Guide to Fraud Risk Management. Routledge.
Kila, K., 2018. Green bonds and the role of the financial sector in tackling global climate
change. Available at SSRN 3307043.
Loy, and et.al., 2021. Developing Transition Research for Disruptive Technology: 3D Printing
Innovation. In Advanced Perspectives on Global Industry Transitions and Business
Opportunities (pp. 1-20). IGI Global.
May, T. and Bhardwa, B., 2018. Cops and Twenty-First-Century Robbers. In Organised Crime
Groups involved in Fraud (pp. 69-93). Palgrave Macmillan, Cham.
Newman, M. and McDonald, M., 2018. 100 Practical Ways to Improve Customer Experience:
Achieve End-to-end Customer Engagement in a Multichannel World. Kogan Page
Publishers.
Nomura, M., 2019. Security of electricity supply after liberalization: implications of the
experience of UK market reform. International Journal of Economic Policy
Studies, 13(1), pp.43-64.
Thomas, S., 2019. Is the ideal of independent regulation appropriate? Evidence from the United
Kingdom. Competition and Regulation in Network Industries, 20(3), pp.218-228.
Zhongming, Z., Linong, L., Xiaona, Y., Wangqiang, Z. and Wei, L., 2019. Ministers and banks to
support small and medium businesses (SMEs) to seize Brexit opportunities.
15
Books and Journals
Bagby, J.W., Reitter, D. and Chwistek, P., 2019. An Emerging Political Economy of the
Blockchain: Enhancing Regulatory Opportunities. UMKC L. Rev., 88, p.419.
Chapman, R.J., 2022. The SME Business Guide to Fraud Risk Management. Routledge.
Kila, K., 2018. Green bonds and the role of the financial sector in tackling global climate
change. Available at SSRN 3307043.
Loy, and et.al., 2021. Developing Transition Research for Disruptive Technology: 3D Printing
Innovation. In Advanced Perspectives on Global Industry Transitions and Business
Opportunities (pp. 1-20). IGI Global.
May, T. and Bhardwa, B., 2018. Cops and Twenty-First-Century Robbers. In Organised Crime
Groups involved in Fraud (pp. 69-93). Palgrave Macmillan, Cham.
Newman, M. and McDonald, M., 2018. 100 Practical Ways to Improve Customer Experience:
Achieve End-to-end Customer Engagement in a Multichannel World. Kogan Page
Publishers.
Nomura, M., 2019. Security of electricity supply after liberalization: implications of the
experience of UK market reform. International Journal of Economic Policy
Studies, 13(1), pp.43-64.
Thomas, S., 2019. Is the ideal of independent regulation appropriate? Evidence from the United
Kingdom. Competition and Regulation in Network Industries, 20(3), pp.218-228.
Zhongming, Z., Linong, L., Xiaona, Y., Wangqiang, Z. and Wei, L., 2019. Ministers and banks to
support small and medium businesses (SMEs) to seize Brexit opportunities.
15
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