Evaluating the Contemporary Business Environment

Evaluating the
contemporary business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Describing the market structure of the UK with reference to the company that is willing to
operate..........................................................................................................................................1
2. Explaining the economic factors of the UK that will affect the working of the firm..............2
3. Defining the impact of Brexit on operations of the business...................................................4
4. Explaining the impact of COVID-19 on business operations..................................................5
CONCLUSION................................................................................................................................6
RECOMMENDATIONS.................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Contemporary business environment can be referred as a dynamic market situation that is
changing very fast and the owner of a firm that operates in such environment have to cope with
up that (Xu, Chan and Yilin, 2020). The owner must be agile, flexible, and must have a potential
to dominate the market so that the firm will be profitable in the current as well as future market.
In this report there is a description about a firm named Penny market which is a supermarket and
is based in Germany and is willing to expand its operations in the UK. This report covers topics
such as different market structures and the market structure of the UK in which firm is willing to
operate as well as it includes the economic factors of the UK that affects the working of the
business. Apart from this the impact of Brexit in the working of the firm is also explained
briefly. Further COVID-19 impact on the firm that is Penny market is also described in the report
that is given below.
MAIN BODY
1. Describing the market structure of the UK with reference to the company that is willing to
operate
Market structure can be defined as the characteristic of a market in which a firm wants to
operate (Aarikka-Stenroos and Ritala, 2017). It can be a relation between seller to seller or seller
to customer or both depending upon the conditions. There are various market structures that are
explained briefly below-
 Perfect competition- It is a market condition in which there are a large number of buyer
and sellers. All the firms sells product that are identical to each other and there is freedom
of entry and exit in the market with no barriers. Firms in this market obtain normal profit
due to the market conditions that prevails.
 Monopoly- In this type of market there is a single seller of a product and it dominates the
market due to presence of large number of buyers. This market does not have freedom in
entry and exit of firms that is many barriers are there in the market. Due to all these the
firm that operates in this market enjoys profit above the margin because price can be
changes according to the needs of the company that operates in the market.
 Oligopoly- In this type of market there are few number of sellers that renders their
product and services to a large proportion of customers (Bangwal and Tiwari, 2019). In
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