Contemporary Businesses Environment

CONTEMPORARY
BUSINESSES
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1 Market structure of UK.............................................................................................................3
2 Effect of economic factors of UK on Penny market.................................................................4
3 Impacts of Brexit on the business operations...........................................................................7
4 Impact of covid 19 on the business...........................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Contemporary business environment is the type of business environment which are
having the competitive market which changes rapidly with the market trends and under this the
organization should understand the requirement which is needed to face the fast market change.
Under this companies should adopt logical business strategies and use management tool to
control over market. Penny market is a retail company which deals in grocery. It is a Germany
based company which has its branches in many European countries. It has a complete range of
grocery items. Penny market is known for the quality product they serve. This report will discuss
market structure in the UK within which company will operate. Economic factors in UK that will
affect the business. Impacts of Brexit on the business operations and also the impact of covid 19
on the business operations of the company.
MAIN BODY
1 Market structure of UK
The market structure of UK is oligopoly. Normally in UK there is oligopolistic market.
Oligopoly means there are few companies in the market which are manufacturing similar goods
and services. Because of limited companies in the market that's why in oligopoly there are
limited competition. Under this all the firms are affected by the prices or different factors of each
other. So in that case price remain rigid only. In oligopoly there are barriers to enter the market.
Because big companies don't allow other company to come in the market. They want that few
companies are there and that will only rule over the market (Picard, 2017). Company under
oligopoly do aggressive advertising campaign because they have intention to capture large
market share. In this, behaviour of one company affects remaining other companies as well.
Under oligopoly there are few companies but have strong competition between them. The entry
is also restricted because under this high capital is required. If any of the firm reduce the prices
of its products then the remaining company will also do the same and eventually that will not
benefit to any of them. For example in UK companies under oligopoly started loyalty cards
facility to increase their profits like Tesco issue club card facility, free home delivery etc.
oligopoly can create problem for the company in entering the market. Company have to come up
with such strategies through which they can easily enter into the market as penny market have to
face tough competition form the few companies which are already there in the market.

Digitalization or doing business by using digital platforms is emerged in UK. Consumers now
are more interested and comfortable buying online. Penny market if comes in UK should use
digital platforms to target the consumers. Companies of the UK has understood that it is the
market demand of the country to sell online. Because online shopping is very convenient for the
consumers. There they can easily compare products of different companies and then select the
best and or buying goods consumers do not have to go to the store with the help of mobile
application only they can do it. Digitalization got high because of the coronavirus also. People in
this pandemic are not ready to go out from the home to buy products and in this case they chose
the option of online shopping. Many companies now having its presence online which earlier
was not available online.
UK has completely adopted digitalization. From food to clothing to electronics everything are
not available online. Online shopping saves time, provide easy comparison option, flexible can
do it at any time and on some products consumers even get free home delivery. It is also the
strategy of some companies of UK of providing free home delivery to the customer in order to
attract them to buy. Digitalization is the new era and it will grow more in future so its better for
the company to adopt this as soon as possible. Digital platforms also help the company in the
promotion (Benetton, 2018). Social media promotion is the cost effective, consume less time and
efforts. Nowadays people are using social media so doing promotion on them will create good
customer base.
Government of the UK are very supportive towards the company who bring innovation and
innovation is also the market demand nowadays. If penny market comes with innovative
products then the company can easily enter into the market and can create the market space for
them. For innovation expertise are required.
2 Effect of economic factors of UK on Penny market
Economic factors:
Economic factors or economic environment consists of various forces including the
situation of economy, interest rate, inflation rate, current trends and many more which affects the
business or companies as well as there working and sales or profits on a serious note. Thus, in
order to sustain in the market or meet the competition of the existing market or starting the
business in the local market of different country it is very much essential for companies to
carefully analyse the economic factors and their impacts over the business so that companies can