Contemporary Business Environment

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
DISCUSSION AND ANALSIS......................................................................................................3
Various Market structure.............................................................................................................3
Market structure of UK's grocery industry .................................................................................4
Economic Factors of UK and its affect on organisation.............................................................5
Impact of BREXIT over business operations of organisation....................................................7
Impact of COVID-19 on business operations of company.........................................................8
RECOMMENDATIONS...............................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment comprises several internal as well external environment such as
demand, supply, customers, employees and many more which significantly affect overall
performance of company at market place (Bruter and Harrison, 2016). It is analysed that retail
industry is evolving rapidly across the globe. Here, several new and advance techniques are
required to adopt to grab the opportunities of success and growth within retail industry. The
following discussed insights regarding retail market of UK along with several factors which
affect it. In this, Penny Market has been taken into consideration which is a renowned discount
supermarkets store based on Germany. It has nearly 3500 stores in different countries. Company
was started in the year of 1973. It analyse existing structure of grocery market within UK along
with several economic elements such as inflation rate, demand, supply, foreign exchange and
many more. In addition, impact of Brexit and Covid 19 over business also discussed in the
following report. Lastly, some recommendations has also been given in report that will be
helpful for Penny Market to expand its business in country.
DISCUSSION AND ANALSIS
Various Market structure
Market structure refers to the level of competition prevailing at market place for goods
and services. It comprises number of firms, their market share and other factors which influnece
the presence of company in market. There are several kind of structure are present in market in
which organisation work and perform various activities (Cahen-Fourot, 2020). It is analysed that
market structure of UK is centralized as majority of business functions and operations are taking
place in London. Here, service sector gives significant contribution in overall GDP of country.
There are several renowned Hotels, resorts are present in nation which are major source of
employment and revenue for individuals. In addition, financial sector of UK is also evolving
rapidly as there are numerous financial institutions, banks and investment companies that are
working at wide level. Some other industries such as Oil, gas, pharmaceutical, agriculture and
construction are also present at market place and play a major role in overall growth and
development of nation. It is analysed that Aerospace industry of UK has been ranked between 2nd
and 3rd worldwide. In addition, research, development and pharmaceutical has been ranked as
third largest globally. Further, tourism industry of country is also making money and give

significant contribution in growth of nation. There are several individuals visit the country every
year that is enlarging the industry at wide level. Due to Covid 19 a deep recession has been
monitored in tour and travel sector of country.
Market structure of UK's grocery industry
There are numerous structure such as perfect competition, oligopoly, monopoly are
present at market place under which companies operate their business. It is analysed that
Oligopoly market structure is prevailing in retail industry of UK. It is a market place where
lower number of firms acquire higher share at market place (Graham and Mudambi, 2016). In
this, number of firms are limited but they acquire exponential market share. In UK, there are
certain organisations such as TESCO, Sainsbury and more that are working at large level and
have great influence over customers. They are consider as market leaders for retail industry who
bring new and evolve practices which follow by other companies of respective field. TESCO and
Sainsbury are two large and renowned organisations of retail sector in UK. In addition, ASDA is
also giving higher competition to these two large firms. Prior the concept of Discount stores
there were mainly four big retail stores in UK such as TESCO, Sanisbury, ASDA and Morrisons.
It is analysed that in 2015 nearly 73.2 % market of grocery is owned by these firms. After
Brexit, there is a great shift has been analysed in consumer's interest as now they look for more
cheaper products and services that were rendered by small firms such as Aldi and Lidl. There
were several takeovers has been done by organisations in order to enhance their market share.
For instance, Aldi takeover Co-operative and Waitrose were acquired by Lidl.
Here, grocery market of UK was nearly 190 billion pounds in 2018. This market grow
post 2004. Although, between 2013 to 2016 rate of business growth in grocery market was slow
but in recent years higher growth ratio has been analysed. In recent years, online channels are
generating higher revenue than traditional approaches of selling (Hudson, Urquhart and Zhang,
2020). It is monitored that there are huge opportunities are present in grocery market of UK
which can be avail by Penny market. Likewise Aldi which is also a German company that grab
the opportunities of success and growth within UK grocery market.
From the above discussion, it is examined that there is extensive competition is prevailing
in market of United Kingdom as there are already several organisation who are working as
market leader. However, there are also numerous opportunities of future growth which can be