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

Contemporary
Business Environment

Executive summary
The concept of contemporary business environment considers the fundamental and
applied aspects of environmental processes and impact of human on environment. It tales into
consideration of both internal and external factor which puts an significant impact on economy.
This factors of environment helps in identifying opportunities and threats for any business
organisation. It makes essential for the director to determine and evaluate the component along
with to manage such forces. In report the discussion is based on various economic impacts due to
Covid-19 and Brexit. Also, consider major consequence by Bank of England and UK’s
Government.

Table of Contents
Executive summary .........................................................................................................................1
INTRODUCTION...........................................................................................................................1
DISCUSSION AND ANALYSIS...................................................................................................1
Impact of COVID-19 on the UK's Economy.........................................................................1
Major Economic Responses of the UK's Government and their implications.......................2
2.3 Major responses of the Bank of England and its implication to UK economy................4
2.4 Impacts of Brexit on the UK’s economy..........................................................................6
CONCLUSION................................................................................................................................8
Recommendations ...........................................................................................................................8
References:.......................................................................................................................................9
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INTRODUCTION
Business environment involve all those factors which implies an affect on the business
operations. It is necessary for the business organisation to analyse all those factors in order to
avoid the challenges which the organisation will gonna face in future. Favourable business
environment make business operations easy and effective. Natural environment, political
environment, economic environment and cultural environment are consider as the several factors
of contemporary business environment. Changes in all these factors result in the changes in
business operations of an organisation. In order to maintain the business growth and success, the
evaluation of such factors is necessary. The economy of United Kingdom has been effected
several times such as Brexit and COVID-19 (Bagchi and et. al., 2020). This report include the
impact of COVID-19 on the economy of United Kingdom along with major economic responses
of government and Bank of England. Furthermore, it also deals with the impact of Brexit on the
economy of UK.
DISCUSSION AND ANALYSIS
Impact of COVID-19 on the UK's Economy
COVID-19 highly effect the health of general public which result in the global pandemic.
The entire world was battling with such a huge pandemic. Its impact has been also seen on the
economy and financial market of United Kingdom. Several of precautions have been also
adopted by the government of country in order to protect the general public from virus such as
social distancing. The circular flow of income is found as a model of economics which leads to
presenting the big exchange which include products & services, money and many more. This
model present the flow of money starts from manufacturers to labour in the form of wages and
then it reverse back to manufacturers as the payment which they receive from selling products.
Majorly, this model is applied for the purpose of analysing and understanding the flow of money
within the economy of a country (Bell, Gardiner and Tomlinson, 2020). The COVID-19
pandemic has presented several economic consequences on the country which include reduction
in the income of public, disruptions in the service of manufacturing industries and transportation,
increase in unemployment rate and many more. The earnings of people living in UK has been
directly affected because of premature deaths, work place absenteeism, reduction in productivity
and many more. Several of manufacturing companies stop working which result in the loss of
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