Contemporary Business Environment: Economic Consequences of Covid-19, Government Response, and Lloyds Implications on UK Economy

Contemporary Business
Environment
Contents

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Main economic consequence of the Covid-19 on the UK economy...........................................1
Economics response of UK’s Government and their implication process..................................2
Major response of Lloyds and their implication to the UK based economy...............................6
Impact of Brexit on the UK’s Economy......................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The term contemporary business environment is belongs to the environment which
relates to similar period of time and having a better understanding in the vast competitive at
every level. It will be helpful for become most competitive changes at very pace and make
owners in different business to eligible to understand the requirement that needed to be required
in more effective manner (Albonico, Mladenov and Sharma, 2020). It also encompasses all those
factors that affect a company's operation and includes customers, competitors, stakeholders,
suppliers, and industry trends. The overall development of the economy help to the country in
different sector which provide a brief management process in applicable manner. But due to
actual Covid-19 on the UK economic system along with the major economical responses of the
government and their economic impact in Covid-19. For this report, the banking company
Lloyds Banking Group is a British financial instituted formed of HBOS by Lloyds services
organisation. This reports highlight the various necessary responses of the Lloyds and their
implication to the UK's economy. Furthermore, the impacts of Brexit on the UK's economy are
evaluated in different sectors and growth in economy.
MAIN BODY
Main economic consequence of the Covid-19 on the UK economy
 Increase of unemployment – Unemployment refers to those individuals who are not
doing job or are unable to find job. Covid creates a great impact on employment because
mostly employees are terminated from jobs due covid positive cases. Due to current job
crises unemployment is still rising (Alradhawi, Shubber and Ali., 2020). Due to covid
scenario organization initiated various new recruitment policies regarding hiring of new
candidate in organization. In context to lloyds banking group, management are
responsible to increase and execute the job opening properly. This job openings helped to
increase employment rate in organization.
 Financial well-being – Due to covid 19 financial situation get highly disturbed and
inflation get highly increased. In inflation the prices of grocery and household items are
highly increased. Due to increase in prices employees face many difficulties for fulfilling
their basic needs. For solving this all types of problems it is necessary for organization to
to prepare proper financial strategies for employees. In context to Iloyds banking group,
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management are responsible for provide proper packages to employees according to their
job. This strategy also maintain employee satisfaction.
 Decrease in customer purchasing power – Purchasing power by consumers was highly
decreased due to covid. Because in covid times lock down strategy was implemented by
government. Then due to lock down consumers are not able to come to organization for
availing the services. This strategy creates strong barriers and created negative
relationship between organization and customers (Chen, Yang and Shrestha,, 2020).
Because services are highly decreased at that time. In context to Iloyds banking group,
management must initiate effective strategies for maintaining strong relationship
consumers.
 Policy adoption techniques: Many of the government banks are able to adopt techniques
and provide different policies which are helpful to banks for mitigate the impact. After
the outbreak of pandemic, UK economy has majorly fluctuate in different factors and
announced by the different business sectors and growth in co-working abilities. There are
different financial and effective business workers are able to achieve higher support
techniques and make growth in businesses, workers and different public pandemic to
make economic uncertainties in the business environment.
 Decline of GDP: This is majorly affected for the growth in different challenge in UK
economy. It is needed to be considers to work and make a setup in analysing the
technique and achieve higher failed sectors due to Covid-19 impact. This will be related
to the declining GDP if the company and it will reduced the impact of 25% in April
(Chronopoulos, Lukas and Wilson,, 2020). The impact of this pandemic on the Lloyds
bank is that they are not able to assess and manage their platform for the successive
growth in managing entertainment, finical and different travelling industry. After
recovering powerfully from the economic system and different profitable growth. It is
important to appear slow in the fiscal year of 2021 to analysed that the explosion has
been risen over in 2021,
Economics response of UK’s Government and their implication process
The economical impacts of the Coronavirus on UK has been majorly turbulent to affecting
almost all the sphere on which economic system organized. Through the drastic impact of Covid
in United Kingdom it has make drastic impact through which global effects. Many people loose
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