Impact of COVID-19 on Penny Market in UK

Contemporary business
environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................4
Q.2.1 Explain various structure of market?................................................................................4
Q.2.2 Describe different economic factors and how it makes impact on Penny market are also
describe in details? .....................................................................................................................5
Q.2.3 On the Penny market's business what are the likely impact of Brexit in United
Kingdom?....................................................................................................................................7
Q.2.4 Impact of Covid 19 on Penny market in UK? .................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment can be defined as a collection of entities, individuals and various
other factors that may or may not be under the control of the company but it can make impact on
their growth, survival, profitability and performance. All the organisation runs their business in
different environment as it cannot exist in isolation. The r3espective environment make influence
business and with its activities it gets affected. The company that was choosen in this report is
Penny market. It is a grocery based retail organisation based in Germany. In many different
European countries it operate their business. It has its headquarters in Cologne, Germany. It was
founded in 1973. In the project market structure of Grocery industry is explain in detail. Various
different economic factors and how they will affect the market of Penny is describe in this
assignment. Impact of Brexit on Penny's businesses market is also cover in this. Describe
immediate & long term impact of COVID-19 will have on penny market it makes investment in
UK(Atteridge, 2018)
TASK
Q.2.1 Explain various structure of market?
 Perfect Competition: There are huge number of buyers & sellers in such type of market
structure. In the market small sellers are present and high level of competition are exit
between these small sellers. No big sellers are present in the market. Therefore all the
companies are price takers in such type of market.
 Monopolistic Competition: In this form of competition there are wide range of buyers
and sellers present in the market but their products are not homogeneous. The purpose of
the products are similar but the features are slightly differentiated. The seller are
responsible to charge higher price as per their wish for their item. In this sellers are the
price setters(Becher, 2018)

 Oligopoly: In this type of market there are large number of buyers and few number of
sellers. So in this type of business organisation set the prices and customers are the price
takers. In the market there are various entry barriers exist and it is very difficult for the
company to establish themselves in the market.