Contemporary Business Environment: Impact of COVID-19 on UK Economy and Government Policies

This project includes an essay on how the COVID-19 pandemic has affected UK's economy in many different ways. It also covers the policies and plans developed by government of UK to deal with issues and challenges created by COVID-19. In addition, it includes an analysis of the internal and external environment of British Broadcasting Company using the VRIO framework.

Contemporary business
environment

Table of Contents
PROJECT 1......................................................................................................................................3
INTRODUCTION ..........................................................................................................................3
ESSAY.............................................................................................................................................4
PROJECT 2......................................................................................................................................8
INTRODUCTION...........................................................................................................................8
Analysis of internal environment of the company......................................................................8
A brief analysis of external environment of the business entity...............................................10
Globalisation and its aspects.....................................................................................................12
Impact of globalisation on decision-making of British Broadcasting Company......................12
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

PROJECT 1
INTRODUCTION
In the development of a company, contemporary business environment plays an
important role by highlighting key factors present in business surroundings. The contemporary
business environment develops a key approach for a business entity to deal with the external and
internal factors. Most of the business organisations focus on contemporary business environment
in order to develop a precise strategy for business growth and development. This project includes
an essay on how the COVID-19 pandemic has affected UK's economy in many different ways.
The essay also includes the policies and plans developed by government of UK to deal with
issues and challenges created by COVID-19.

ESSAY
In the development of a company, it is essential to focus on all major threats which can create
obstacles and challenges for the company. In the recent times, COVID-19 is considered as one of
the major threats that has impacted on economy of United Kingdom. The situation created by
COVID-19, has created a question mark on economy of United Kingdom. It is affected the major
areas of social development and also adversely affected commercial business activities. Many
famous companies of UK like TESCO and Marks and Spencer has faced decrease in profitability
and sales ratio. The lock down was imposed by government of UK has led to the shut down of
many companies. Many small business organisations also faced difficulties in operating and
decreased their income. For the citizens, pandemic created many obstacles and hurdles that made
them inferior in going outside their house. Social development of economy diminished with the
increase of cases related to COVID-19 pandemic. It has also led to create changing in
government's plans and policies in order to deal with situation created by pandemic. The
government has also created social media advertising in order to create mass awareness in whole
public. The global pandemic has also led to create a loophole in the economy which is impacting
on major functions of the country. Various economic factors like Gross domestic product of the
country has declined due to the devastating effect of COVID-19. The national income of the
country decreased by a large amount.
COVID-19 created a major issue for the economy which is unemployment, due to shut down
of many companies. Thousands of skilled and trained youth lose their job because of COVID-19
pandemic impact(Kabalina, Zelenova, and Reshetnikova, 2019). The unemployment is now a
type of major issue for the country and it is important for the government to focus on providing
employment to the citizens. Per capital income of the society also declined with the rise of
COVID-19 which is a major issue. In the corporate world, it is essential for a business entity to
provide best services. Major companies also faced delivery issue due to the social distancing
guidelines issued by government of UK. All major companies of UK are now coming up with
effective and major business strategies that are effective in controlling impact of COVID-19. It is
also necessary for the company to focus on long term development of goals and objectives with
the help of appropriate planning frame work. In the year 2020 and 2021, economy of UK shifted
its operations from traditional approach to digital approach. Many companies provided virtual
environment to employees in order to promote work from home. The companies should

understand, major plans and policies of government in order to lead the marketplace. In order to
resolve the issue of unemployment, government is taking help and support from ministry of
economic affairs. The vaccination is another major challenge for government of UK, which is
necessary to be delivered to each and every citizen of UK. Companies of UK also making it
compulsory for the business entities to get their all employees vaccinated. In order to stop the
impact caused by COVID-19, it is also essential for the central bank to come into action. The
actions taken by central bank will help economy to boost up in the marketplace with major
consequences and challenges. Central bank of UK is now involved with formulation of effective
monetary policy to increase circulation of money in economy. There is a strong need of
circulating money in the marketplace of UK in order to give rise to economy. The companies in
the international marketplace should follow the instructions developed by government in order to
perform ethical business. This is the major policy of government of UK in order to control and
develop effective supervision on companies. The companies should also include monitoring tools
with the support of information and technology in order to perform accurate and quick operation.
It is also a major responsibility of management of a company to follow all parameters of legal
development in order to lead the marketplace(Jabłoński, and Jabłoński, 2020). Employment
legislation must be also followed by the company in order to develop at the marketplace in a
short period of time. Companies in the international marketplace should also focus on analysing
the competitors for development of better approach after COVID-19.
The government of UK is now giving clear instructions to central bank for increasing the
money circulation in economy(Kalitanyi, 2019). It is also the major role of central bank to
provide monetary assistance in the form of loan to different companies in order to increase their
potential. In order to develop a focused approach it is also very necessary for the company to
provide clean environment to different customers. The company should also majorly focus on
key aspects of development in order to prepare strategy with the help of top level and strategic
management. This is also a crucial role of ministry of economic affairs of government to
facilitate the long term development of a business by providing them with effective funding. The
government of a country is the key stake holder in functioning of a business, so it is ethical duty
of government to support various companies. In the year 2022, government of UK is planning to
come up with major policies and plans that are supportive for development of whole business in
order to lead the development parameters. The government of UK has also increased chances of

development of the economy in order to satisfy companies after the impact caused by global
pandemic. In many developed countries like USA and France, government is supporting business
start ups to develop and support new business organisations. The USA and France are also
coming up with subsidies and compensation to different companies in order to support start ups.
All major companies in the recent times, are demanding help from government of their country
to support them in business development after COVID-19(Hamilton, and Webster, 2018). The
central bank of UK is also changing its monetary policy of the country in order to complete
competitive advantage related benefits. The economy of UK has also faced a major decrease in
number of start ups, so the company is coming up with new policy related to start-ups. All major
companies in the international marketplace should focus on plans introduced by government of
UK in order to achieve major objectives of the company. This is the major priority of
government to focus on major objectives and long term goals of the company in order to develop
effective competitive edge. The economy of UK needs a strong attention of government policies
and plans in order to develop infrastructure and corporate laws. In order to gain results in a short
span of time, it is necessary for the government of UK to focus on development of whole
economy in order to realise importance of sustainable development. The monitoring and risk
management tools are important to be developed by government of UK in order to control
specific plans and policies.
The Central bank of UK is also coming up new economic policy which is beneficial in
increase strength of whole economy. There are different parameters of economy which can
impact on functioning of the company. In order to increase potential of all companies in the
international marketplace, it is important to develop long term goals and achieve them with help
of economic policy. Major economic policies which are related to economic development are
essential in order to formulate major strategic actions. The main responsibility of a company is to
focus on developing online sales delivery system in order to handle consequences of COVID-19
pandemic. It is also ethical duty of government to plan systematically for development of
economy and to develop the economy in a sustainable manner. Growth of a business entity is
now the utmost priority of government in order to increase employment rate. The government
needs to develop a major strategic framework for focused and precise growth in a set period of
time. The central bank is also coming up with modified loan schemes for the companies in order
to uplift them. All companies which are present in the economy of UK should take into

consideration major sources of funding in order to fulfil financial requirements of the business.
This is also one of the major function of central bank of UK to create development based plan
with the help of economic ministry to satisfy different customers. All the companies in
marketplace should also follow specific strategic actions in order to develop at the marketplace.
The central bank of United Kingdom is now focusing on developing foreign reserves in order to
set provision for the economy. Companies in the international marketplace are also
recommended to follow policy and plans developed by world trade organisation to cope up with
government policies and plans.
The government of United Kingdom is also formulating long term strategy and planning
framework for economic development(Halbert, and Ingulli, 2020). This is the major role of a
company to also focus on various factors related to business growth by following all policies of
government in an ethical manner. Central Bank of UK is also concerned with providing financial
support to major companies of UK. This is also key role of central bank to also provide loan
facilities to small and medium enterprises in order to achieve growth of whole economy. The
companies are also playing an important role in development of parameters that are crucial in
analysing competitive forces. It is also a major role of a company to develop attention about
various policies and plans of government for sustainable development of the business. If this
path of recovery is developed by major companies of UK, then in a short period of time economy
of UK will gain a good growth. The government should also formulate and design laws in order
to make amendment in current policies for easing smoothness in operations.

PROJECT 2
INTRODUCTION
In the functioning of a business, decision-making plays a crucial role in order to deal with
several aspects and functions of the company. It is crucial for a company to focus on major
factors which impact on decision-making of the company. The internal business environment is
the major component of a business entity which helps in development of working conditions. On
the other hand, external environment is the key focus of a business in order to analyse all the
macro environment factors associated with the business. This project includes a brief assessment
of internal and external environment in order to develop effective competitive edge. In this
project example of British Broadcasting company is taken into consideration which is a major
company dealing with media broadcasting of UK.
Analysis of internal environment of the company
VRIO framework is a business analysis model which is used by organisation in assessing
their potential for gaining competitive edge in the existing market(Geppert, and Pastuh, 2017). It
assists businesses in identifying varied resources and capabilities that an organisation have to
create a differentiated position in the market. It consists of some values or features that is unique
to company and gives it an opportunity to gain sustainable competitive advantage. It benefits the
company in reviewing its varied strengths and covert it into opportunity. Assessment of various
elements of VRIO framework in relation to British Broadcasting company is as follows:
Unique
resources
Value Rare Inimitable organised Competitive
Implications
Human
resource
Yes Yes No No Temporary
competitive
advantage
Service quality Yes Yes Yes No Competitive
advantage.
Research and
development
department
Yes Yes Yes No Competitive
advantage

Strategic
management
Yes No No No Competitive
parity
Equipments Yes Yes Yes Yes Sustainable
competitive
advantage
Valuable – These consists of unique resources that an organisation has to maintain in order to
survive in market. These are the valuable resources which is used by companies in meeting the
varied demands of customers in an effective manner. If company is not able to maintain its
valuable resources, it loses competitive advantage. In relation to British Broadcasting Company,
its valuable resources are human resources, research and development department, service
quality, etc.
Human resources- company has valued their employees very much as they provide them
differential training and development programmes to enhance their skills.
Research & Development department - British Broadcasting Company has valuable research
and development department which aids organisation in identifying as well as assessing varied
market needs along with customer preferences.
Service Quality- British Broadcasting Company provides excellent quality of service to its
customers and various investors as well as sponsors(Bogdan, and Beata, 2018).
Strategic management- British Broadcasting Company has developed many business practices
strategically. It helps organisation in measuring their progress effectively.
Equipments- British Broadcasting Company uses equipments of good quality that provide best
experience to its customers. It helps in complete business operations smoothly and reduces
repetitive tasks.
Rarity- These comprises of those resources which are rare to organisation and competitors do
not have any hold on these. British Broadcasting Company has rare resources like human
resources, equipments and service quality, etc. If organisation fails to have any rare resources,
then it can face competitive parity. Rare resources of British Broadcasting Company is as
follows:

Human resource- British Broadcasting Company considered their human resource as rare. As
they provides them best training to enhance their skills and competencies for using them in their
business operations.
Equipments are also rare capabilities that British Broadcasting Company have. As organisation
makes a huge investment in their equipments. Even trained workers are also appointed to tackle
those equipments(Hawryszkiewycz, 2019).
Service quality of British Broadcasting Company is also rare as huge resources is spent in
maintaining them.
Research and development team of British Broadcasting Company is rare to organisation as they
provide them accurate information which help organisation in staying one step ahead of
competitors.
Inimitable resources are which are difficult to copy by another establishment and if competitors
try to imitate that, it incurs huge cost. Inimitable capabilities that British Broadcasting Company
have are equipments, service quality and research & development department.
Equipments are inimitable and non-substitutable resources of British Broadcasting Company. As
company purchase customized equipments which are hard to copy by competitors.
Service quality of British Broadcasting Company is an inimitable and unique resource. Quality
of service which organisation provides is not easy for competitors to copy it.
It is hard to find another research & development team from company's competitors. This team
collects exact and reliable information which helps company in operating their business activities
effectively. Organised resources are those which help in capitalizes varied resources and
capabilities of an organisation. These resources assists in gaining sustainable competitive
advantage. In relation to British Broadcasting Company organised resource is its equipments.
These are utilized in best possible manner in order to create a differentiated position of company
in market.
A brief analysis of external environment of the business entity
PESTLE ANALYSIS
This framework is used by the company marketers to analysis the micro-environment
factors that have an impact on the company. Industry which analysis all the political,
environmental, social, technological, along with legal and political changes, can differentia from
the competitors and manage to make competitive advantage over others. British broadcasting

company is the biggest corporation in broadcast sector. In aspect of BBC Pestle analysis is
discussed below:
Political – These Factors includes government policies and foreign trade policies which
interfere in business. UK government provides such stabilities that helps business for garbing
opportunities(Birch, 2017). During the Brexit British broadcasting corporation losses its revenue
because of war in between EU and UK then the government controls the amount of licenses,
charges so company faces the pressure from the government because of that company don't get
the license to broadcast will never issued and then conflicts happened.
Economic - This accounts the various factors of economy and how they impact on any
organization, factors which effect this are interest rates, economic growth rates and inflations and
GDP. UK inflation rate directly impact the BBC demand, by higher demand inflation may need
company to continuously increase price in line of inflation which decrease the level of brand
name.
Social - factors includes the environment of market like culture barriers, demographics,
population growth, consumers view etc. UK, population is estimated to reach over 74 million
and create the opportunity for the industries to gain more profit. UK is the leader in a digital
revolution and strives to enhance the quality of living. BBC introduces channels for small kids
under the age of 12
Technological – These factors involve innovations or smart operations which is used by
industries to increase its sales like technology innovations and technological awareness. UK,
technological sector is major contribute in country economy. BBC inflate to its website, which is
currently seen by over 25 million people on every week by this technology, it become easier for
the customers to pick out news and stories.
Environmental – It includes all the factors which are related to physical environment
and surroundings like climate change, weather, global climate change, pollution. UK climate is
very changing by this impact, BBC supply chain and business model for example supply chain is
flexible it can lead to hold it shipments from one country delayed because of climate
change(Belyaeva, 2018). Company also following the environment awareness and global urge to
protect habitat, they tart the rainwater harvesting system. Plastic cups are not allowed in the
office and they start recycling point for waste, apart from these organization also improve the
light saving initiatives and use fair trade goods

Legal – These factors are both external and internal sides, company needs to follow both
local and international market laws includes consumer laws, labour law, tax policies etc. UK is
well known for its protection law, BBC need to know about the consumer laws, what is the rate
of imposition and keep in mind on attitude toward the authority.
Globalisation and its aspects
Globalisation can be termed as a technique to integrate varied economies of world in
order to do trade of varied goods or services, information and technology. In business parlance,
globalisation states flow of information, data, goods, capital etc all over the globe. It encourages
and motivates people to innovate new practices and take initiatives. This practice provides
employment to large number of employees globally(Bansal, Shrivastava, and Stanciu, 2018). It
aids people in getting variety of products at lower costs. It assists companies in recruiting talents
from all over a globe. Because of globalisation, the whole world is connected to each other
providing various benefits. It helps establishments in adopting varied technologies all over the
globe. Globalisation help companies to earn more profits and sales as well as more emphasizes
on shareholder. It assists organisation in contributing to economic growth to increase nation's
income. It heightens competition of varied products and services in domestic market hence
hampers their market image. It can help companies to get the cheaper labour from the developing
countries that further aids in generating more revenue and profitability(Atiku, 2018). But there
are certain trade uncertainties that can hamper workings of organisation. Globalisation will also
help in British Broadcasting Company in moving in a bigger world economy and provide their
best services to larger number of people. It is very useful and valuable practice where
organisation can cater differential needs of varied consumers.
Impact of globalisation on decision-making of British Broadcasting Company
In the corporate world, there are different factors which are present in the business
environment and they impact on the functioning of a company in a major sense. It is also
important for British Broadcasting company to focus on implications of globalisation in order to
competitive advantage in a short span of time. The major implications of globalisation are
mentioned below:
 Trade laws- The trade laws are related to export and import duties which are to be
fulfilled by a company. All major trade laws in global market are compulsory to be
followed by a business entity in order to conduct a legal business. This impact on

financial decision making of a firm in order to make decisions based on economic
operations. Trade laws are developed by government of different companies in the
international marketplace. All trade laws include systematic approaches and policy along
with financial duty which is developed by a business firm. It is thus essential for British
Broadcasting company to follow all trade laws if it expands its operations in global
marketplace to conduct sustainable business.
 Trade governing bodies- In the global trade, there are various bodies which take care of
global trade and stops illegal trade practices. World trade organisation is one of the major
bodies which develops a precise approach at the marketplace to develop governing laws.
It is also compulsory for business organisations to follow all major policies and plans of
world trade organisation in order to follow ethical practices. In the decision-making of
British Broadcasting company, it is necessary for the company to follow all major
policies developed by WTO in order to conduct ethical business.
 Risk management- Risk management is considered as one of the major factor which
directly or indirectly impacts on the functioning of a business. The risk management
should be present in the organisation in order to deal with risk associated with different
operations(Aksenov, 2017). It is also essential for the company to focus on risk
management parameters in order to share or avoid a particular risk. Decision-making of a
company is majorly affected by all the risk related elements which are present in the
external business environment. It is the major role and responsibility of a company to
focus on risk elimination strategy which includes the assessment of financial and non-
financial risk associated with the business. British Broadcasting company should follow
major risk management models in order to overcome various issues and challenges at the
marketplace.
 Leadership- In the global business environment, globalisation also impacts on leadership
based functions that are important in managing employees. The leadership techniques and
styles should be adopted in a precise manner to manage professional employees in the
international marketplace. The democratic leadership style should be used by the
company in decision-making to formulate key decisions of the organisation. Also the
company should analyse situation based leadership in order to formulate decisions
according to business development and functioning.

CONCLUSION
From the above stated report it can be concluded that it is compulsory for a business to
focus on all aspects of business functions in order to develop it in a systematic manner. The
above analysis concludes the role played by strategic and top level management to focus on
developing business strategy. This project concludes the significance of internal and external
environment in order to develop a focused planning framework. This report concludes the
application of various theories and models which are important in overall development of a
company at the marketplace.

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