Contemporary Business Environment: Impact of Brexit and Covid on EasyJet

CONTEMPORARY
BUSINESS ENVIRONMENT

Abstract
Business environment refers to factors that surround a business organisation and these
factors have very important impact on organisation and its functioning. This report have
discussed business environment of EasyJet. Concerned with this, several points have been
discussed in this report and this include market structure of UK in which EasyJet operates.
Followed by this economic factors affecting EasyJet were also discussed in report. Economic
factors that affect EasyJet include demand and supply, income level, inflation rate and several
other factors. Later impact of Brexit on EasyJet was also discussed. Followed by this, impact of
Covid-19 on EasyJet was also discussed in report.

Table of Contents
1. INTRODUCTION.......................................................................................................................3
2. DISCUSSION AND ANALYSIS...............................................................................................3
2.1 Market structure of UK in the concept of EasyJet.................................................................3
2.2 Economic forces of UK and their impact on EasyJet............................................................5
2.3 Impact of Brexit on the business of EasyJet..........................................................................8
2.4 Impact of Covid over EasyJet................................................................................................9
3. CONCLUSION..........................................................................................................................12
4. RECOMMENDATIONS...........................................................................................................12
5. REFERENCES............................................................................................................................1

1. INTRODUCTION
Business environment is one of the important term that every company have to consider
before initiating their working operation and making the plan for future strategies. Business
environment refers to the environment in which every company have to survive and operate their
working (Rao, 2021). Any changes in this will have to be carefully analysed and accordingly
implemented by every company in order to survive in the market. Covid pandemic is one of the
biggest environmental change that has threatened the entire world. Every business and industry is
being affected by this pandemic. EasyJet one of the airline industry is also greatly affected due to
this pandemic. Its business is almost reached the stage of stoppage. It has also incurred major
financial loss due to this Covid situation. This report will study about the concept of market
structure of UK. In addition, this report also contain various elements and forces of business
environment along with their impact that could affect EasyJet and its working.
2. DISCUSSION AND ANALYSIS
2.1 Market structure of UK in the concept of EasyJet
Market structure:
It refers to the structure of the market which could either be competitive and non-
competitive. It makes the companies differentiate in terms of good or services that is being sold
by them in the market (Mongey, 2017).
Types of market structure:
Perfect competition:
It refers to that market structure in which there are large number of producers or
companies with no influence over the price. All firms produce the same products. This means
that these firms are price taker not the maker (Azevedo and Gottlieb, 2017). Under this form of
structure no single firm is having the power to determine the price or market force.
Monopolistic:
Under this form of market structure there are large number of buyers and sellers but the
product of each producer is different from each other. Also, the prices under this form of
structure can be changed and charged differently by different seller (A Guide to Types of Market
Structures, 2017). Due to variety of products customers have no knowledge about every product.
Oligopoly: