Contemporary Business Environment: Key Challenges and Strategies for SMEs in UK during Covid-19

1 CIRCULAR FLOW
OF INCOME

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..............................................................................................................................3
TASK 1.......................................................................................................................................3
Key Challenges which affected the internal environment of business organisations ...............3
Examining the role of Uks government for supporting the SMEs in the covid 19 ...................5
Strategies of interaction with the external environment followed by the SMEs of UK.............6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Term business consists of various aspects internally and externally which might influence
the whole business significantly. The components can neither be outer or inner to business.
Business needs to control these components for reducing, controlling and managing the effect on
the business organizations(Kang, Burdon and Mooney, 2019). Internal components may be
environment of business, governing body, strategies, work force and many more. It is very
simple and easy for the companies for controlling and managing the internal components in
compare to external components. External components may be categorized in
suppliers,economy, government, competitors and many more. Small and mediums sized firms
plays a significant roles in United Kingdoms economy as the number of these SMEs firms is
very high in UK. They contribute a lot in nations economy. But the covid 19 pandemic has great
impact on these business organizations. There are many challenges which impacts the internal
business environment during the pandemic of covid 19. The project consists of different
challenges which were faced by small and medium size firms and strategies of the government of
UK for overcoming the challenges in the last 2 years.
MAIN BODY
TASK 1
Key Challenges which affected the internal environment of business organisations
Pandemic of Covid 19 had great impact on the proper functioning of many of the
business firms globally. In the covid pandemic the businesses had to suffer a lot. The covid
pandemics impacted the economy of the whole nation to a extent that the business's were not
been able to continue further. There were different challenges which impacted the internal
environment of small and medium sized business firms which are explained below-
 Raw material availability- In the covid 19 pandemic it became a major question for the
production business's for maintaining the supply of the raw materials constantly and at
reasonable prices. It disrupted the entire supply chain from starting to end. It become very
hard for the business's for fulfilling the requirements for raw material for manufacturing.
It leaded to the increase in period of operating cycle and the time for waiting of
consumers for goods which have increased. Business organisation suffered as lot of