Evaluating the contemporary business environment

Evaluating the
contemporary business
environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explain the main economic impact of COVID-19 on the UK's economy.............................3
What are the major economic responses of UK's government and their economic implication?
................................................................................................................................................4
Analyse the major responses of the Bank of England and their implications to the UK's
economy.................................................................................................................................6
What are impacts of Brexit on UK economy ........................................................................8
Recommendations ...........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is define about overall external factors that determined towards
business firm and having major impact on its growth. It majorly target the factors and forces like
customers, competitors, government, suppliers and others. The importance of assessing business
environment as it provides different range of opportunities that are essential for develop better
performance in business (Beynon-Davies, 2019). To make early identification gives an
opportunities towards enterprise where first opportunities instead for loosing them to competitors
In this following report, the topics is reflect on UK situation basis, as their government faces
implication through COVID-19 in economic response. Further, discuss about the major
economic challenges within United Kingdom. Illustrate about the main implication which Bank
of England faces within UK economy.
MAIN BODY
Explain the main economic impact of COVID-19 on the UK's economy.
The economic and social disruption that caused through the pandemic situation(Covid-
19), during Covid-19 it has created drastic impact on business growth at global level. As millions
of people are undertaking their life in risk to falling into extreme poverty. The impact of Covid-
19 has not only increase the poverty but also large amount loss of human lives within worldwide.
It presently challenge to public health, food system and world of work
(https://www.ons.gov.uk/economy/grossdomesticproductgdp/articles/coronavirusandtheimpacton
outputintheukeconomy/december2020).
In following there are some points that highlights about how UK face pandemic destruction in
their Economy:
 As the GDP of UK is quite stable by 1.2% during December 2020 but further it
remained 6.3% below after getting cases of Covid (Chen, Han, and Jebran, 2020).
 At the end of December 2020, services grew by 1.7% following the easing of
restrictions within many parts of the UK early in the month (Lin and et.al, 2018).
Whereas, construction business decrease their growth by 2.9% production and
manufacturing business were diminishes by 0.2% approx.
 The impact of services like hospitality industry gets high impact by Covid-19 where
Five star or domestic accommodation services are present in United Kingdom not

attain turnover. This is because government declared their Covid related restriction
policies and regulations as Lock down. Due to lock down many companies have to
faces drastic losses.
 Manufacture of automotive, transport equipment, chemicals where product and
services such as finance communication. The finance communication are the most
exposed sector in Brexit. Hospitality, tourism, transport and arts entertainment are the
most exposed economic impact of COVID-19. The automotive industry which is one
of sectors that has experienced within due to Covid-19.
 The current economic and labour market situation that hits the United Kingdom
specially hard in comparison towards international counterparts. It is most recent
monthly GDP figures which showed the United Kingdom bounce back (Smajlović,
Umihanic and Turulja, 2019). It was continuing to slow even before further lock
down restrictions were announced.
 In Finance well-being which unprecedented through government support, financial
well being was drastically. Many employees losses their jobs and faces high rate of
unemployment.
 The situation of Communities and Central belonging where theme across about the
evidence rasise the important role towards community led responses. It is depend upon
the local knowledge and resources which better build capacity and also channelise
about interconnectedness between government community organisation in public. The
evidence is clearly shows that those communities that entered in pandemic situation
are best place to response.
 Through Covid-19 it has significant and unequal affects which depending on where
UK people live their livelihoods of education, socio-economic and better health status.
What are the major economic responses of UK's government and their economic implication?
As the Covid-19 is creates global destruction in global level, but in UK it creates serious
implications for people's health and other healthcare services. In this Covid would creates
important impact on business and economy (Haji, 2021). The implication makes more drastic
situation where UK economic system experience financially and mentally. Many people are not
capable to keep up their livelihood and due to that government approval their activity to direct
and stabilised condition as per the guidelines which they form. As UK government seek many