Examining Economic and Global Business Environment for Marketing Management

This report analyzes the economic and global business environment for marketing management. It discusses the factors that influence business growth and stability in the UK, including GDP, inflation, income level, and employment rate. It also examines the impact of political, economic, social, technological, and globalization factors on international business with an emphasis on the UK. The report uses Virgin Money as an example to illustrate the impact of these factors on the banking sector.

Marketing Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Examining the economic environment within which businesses operate in the UK:..................3
Examining the global business environment and its impact on countries with an emphasis on
the UK:.........................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
The economic environment is defined as the external economic factors that helps in
influencing the habits of the consumers and his spendings. This is the reason it has large impact
on the performance of the company in different sectors. These factors can not be controlled by
the company and factors like the inflation, interest rate and the consumer behaviour comes under
it. Being fifth largest global economy in the world, United Kingdom has strong influence on the
business sector (Hamilton and Webster, 2018). The virgin money in United Kingdom provides
banking, financial and other services such as montages, credit and pension etc. to its consumer in
the United Kingdom and is greatly affected by the global business environment. In this report we
are going at analyse the economic environment of U.K. Within in which business operates and
later, we are going to examine the global business environment and its impact on countries with
an emphasis on united kingdom.
MAIN BODY
Examining the economic environment within which businesses operate in the UK:
Economy is most important pillar of every country, without this pillar nation might fall.
Economy is combination of different sector, business sector is one of the critical pillar of every
economy. Business growth strengthen whole country in terms of economic stability, if economy
is weak then firm might fail to survive the market (Ghauri and et.al., 2021). Market condition
and other factor of the UK denote how businesses would have succeeded in economy, even after
COVID-19 and Brexit, UK's economic is one of the most stable in the entire world allowing firm
to become active in dealing across international boarder. There are certain factors of economic
environment which provide support to business operation and continuous growth, these factors
are:
GDP: Gross Domestic Product, this is one of the most important factor of economy in which
firm focus on monetary value of final product and service, if there is high GDP rate then business
can create job opportunity by setting new manufacturing plant and paying higher wages and
GDP is booming but if vice versa can be seen then there will be low job creation and wages
paying will be reduced. GDP denote growth of business, UK's small and medium scale
businesses get impacted if there is any impact on economy (Kahiya, 2020). For example;
COVID-19 impact economic stability of UK, this was major impact which affected almost every
business. There was drastic fall in GDP rate impacting firm's performance. Banking sector of the

UK was affected, there was policy modification by Bank of England where bank including
Virgin Money have to reduce interest rate and need to bring easiness in loaning process to
improve GDP of the UK.
Inflation: Inflation is one of the most important element in the economy in which firm face
drawback and limitation in dealing if there are certain changes in inflation rate. It is very clear
that inflation rate is connected with economy which means if economy fall then inflation rate
will rise but if economy is booming then inflation rate will be low. Inflation simply means there
increase in price, high inflation means rapid increase in prices of raw material where business
can not purchase material to continue their operation, if production continue in high inflation
then firm will sell the final product in increased price to cover their cost. Inflation majorly
impact banking sector in which Virgin Money was affected, after COVID-19 impact price of
labour and supply and raw material was high, banks was not ready to provide business loan to
any sector to continue their operation.
Income level: Income level does impact economic growth and stability, every consumer have
their own spending capacity in which they spend amount of their wealth in self-satisfaction.
Income level of consumer denote how well economy is going, if income level is low then
economy is not performing well but if income level including spending capacity is high then
economy is performing as per the requirement. UK's economy is performing well after COVID-
19 and Brexit impact, income level of citizen are stable but not as per the requirement.
Occupation and rapid rise in unemployment have reduced income level, there is no extra
spending no lifestyle impacting retail industry as well (Morrison, 2020). Income level also
impact banking industry in which spending capacity of businesses and private firm owner have
reduced, every private bank face faced customer turnover due to low income and low spending
capacity of citizen. After COVID-19, most of the spending can be seen on medical and other
area, banking sector have seen no income from citizen because they are more interested in
securing their life.
Employment and unemployment rate: Employment and unemployment is one of the critical
factor of economy in which high employment rate denote growth of economy whereas high
unemployment denote the worst economy sign. It is very clear that every firm need employees to
manage their operation but due to high unemployment, selection process become critical, talent
does not get chance to highlight their talent in organization because firm already have secured

position with wrong candidate in the business organization. Currently employment rate of the
UK is 75.7% which is increasing after COVID-19 impact and rapid stability in the country.
Banking sector is concern about employment rate in the country, Virgin Money is enjoying
continuous stability and growth due to high employment rate, they have been hiring talent to
manage their operation and become stable in highly competitive market. Virgin Money have felt
pressure when there was unemployment rate, government was demand every business to hire
more candidate to manage unstable economy.
Examining the global business environment and its impact on countries with an emphasis on the
UK:
Global business environment simply means international market where firm deal across
different nation, certain factor need to be considered when dealing in international market, these
are:
Political: Political factor means government and its role in making global environment stable,
this factor has major impact on firm's performance because government role over every industry
and provide them policy and regulation accordingly (Kozubikova and et.al., 2019). Global
political environment means pressure from rising economies and their government, UK is one of
global political influencer who have certain power influencing business environment. Virgin
Money is one of the most the largest bank in the UK dealing across the global, this company face
political pressure from several countries who involvement banking and financial service. For
example; UK's Bank of England have introduced new interest rate which is acceptable across
different nation.
Economical: Economy of every country highlight their strength in global market, international
dealing is impacted due to reputation of country and their economic stability. UK is one of those
country which have stable economy providing opportunity to their brand dealing in foreign
market. This country have majority of large scale business organization who contribute not even
in UK's economy but this also contribute in world economy (Krasyuk, Kirillova and Amakhina,
2019). Every sector. For example; Banking sector of the UK have great influence on global
business environment impacting firms of other nation as well. Virgin Money is the best example
in which they provide and dealing in financial service range across every boarder, this company
have contribution to internation and national economic development.

Social: social factor does play vital role when it comes to international market and dealing, every
nation have their own culture and belief which impact country's performance in international
market. Social factor does play vital role in business environment, demand of consumer impact
firm and their operation. Multinational organization who deal in more than one nation follow
social factor and drive product and service crafting accordingly (Perera, 2017). For example;
Virgin Money may provide loan at lowest interest in the UK due to consumer and social
behaviour, but they might increase interest rate for another nation because of social factor and
certain differences.
Technological: Whole industry depend on technology, every business need advancement in
technological area allowing them to manage their dealing. Technological advancement provide
growth opportunity to firm but when there is advancement in this area then whole industry is
impacted. Cost of advancing technology is quite high, firm need sufficient budget to manage tech
in the process, global business environment depend on technology, if there is change then whole
industry need to adopt change. For example; whole banking sector needed to bring change after
digitalization in which financial service are provided with the help of digital technology in the
process. Global influence of digital technology can be seen on every sector, Virgin Money have
adopted certain advancement to manage their operation.
Globalization: Globalization is one of the most important factor of global business environment,
this term simply means connecting nation with the help of trade and technology. Every firm need
international trade opportunity to grow their business, globalization is process which allow firm
to stay connected with nation and improve their global footprint. For example; UK focus and
push their brands to become more global, they promote globalization which allow them to create
a valuable trade bridge between two nations (Ratten, 2020). Virgin Money focus on globalization
which allow them to deal in international market, this company focus on creating trade
relationship between the UK and other nation, active contribution of Virgin Money can be seen
in which UK have felt valuable in global environment.
Trade barrier: Trade barrier is another factor which negatively impact global business
environment in which firm fail to deal in international market because they do not get
opportunity to explore international market. Trade barrier can be seen even when firm is ready to
contribute in economic development. For example; high interest rate and import/export
restriction impacting firms performance. Dealing in global environment mainly get impacted

when business face restriction from government, it is very clear that every nation have their own
influence on multinational organization. Trade barrier can be managed if organization know the
best way to manage this issue. For example; Virgin Money have faced trade barrier from
different nation, they stopped their financial operation which created a pressure on government
by local businesses pushing government to remove trade barrier and create healthy relationship
with both country.
CONCLUSION
This report has discussed marketing management and its importance in business
organization, this simply means managing firm and its operation in international market. Later
this report has discussed economic environment and its factor influencing growth of business
environment, including factors like GDP, inflation, employment and unemployment rate and
mainly income level of consumer. At last this report has discussed global business environment
and its impact on countries with an emphasis on the UK.

REFERENCES
Books and journals
Ghauri and et.al., 2021. Research on international business: The new realities. International
Business Review, 30(2), p.101794.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kahiya, E.T., 2020. Context in international business: Entrepreneurial internationalization from a
distant small open economy. International Business Review, 29(1), p.101621.
Kozubikova and et.al., 2019. The impact of political factors' perception on suitability of
international business environment: The case of startups. Economics & Sociology.
Krasyuk, I., Kirillova, T. and Amakhina, S., 2019. Marketing concepts development in the digital
economic environment. In Proceedings of the 2019 International SPBPU Scientific
Conference on Innovations in Digital Economy (pp. 1-6).
Morrison, J., 2020. The Global business environment: towards sustainability?. Bloomsbury
Publishing.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Ratten, V., 2020. Coronavirus and international business: An entrepreneurial ecosystem
perspective. Thunderbird International Business Review, 62(5), pp.629-634.
1