UK Business Sectors: Will They Prosper or Struggle?

Global Business
Environment

Table of Contents
Coursework (a)................................................................................................................................1
Coursework (b)................................................................................................................................2
REFERENCES................................................................................................................................5

Coursework (a)
UK BUSINESS SECTORS: WILL THEY PROSPER OR STRUGGLE?
The current market conditions are acting as catalysts for growth for some business
sectors, while barriers for others. As per the survey conducted by ONS, it has been found that 83
per cent of the respondents displayed moderate or high confidence in the survival of their
business. Further, as per the Industrial trends survey carried out by CBI on monthly and quarterly
basis, it has been found that in December 2021, majority of the manufacturers were of the view
that the output will witness a rise over the next three months following which it would fall.
However, it can be seen that there was a decrease in the number of manufacturers with the above
view from the month of November to December (Brien, 2022).
Another data which is worth looking upon is related to the consumer attitude as depicted
by the GfK Consumer Confidence Survey. This index decreased by one point from -14 in
November to -15 in December 2021 in UK. This indicates that the inclination of consumers to
make major purchases has declined. The reason behind this could be the emergence of omicron
variant. Also, consumers have concerns about the high costs of living as well as the rising
interest rates (Dube, Nhamo and Chikodzi, 2021). While the general economic situation of the
country showing a better status, the expectations of the consumers in UK regarding the economic
situation in the coming 12 months have decreased. The major purchase index decreased it is still
16 points higher in 2021 than it was in December 2020 (Pre-Christmas Consumer Confidence
falls one point to -15 in UK, 2021).
From this it can be analysed that consumers are not inclined to make major purchases in
electrical and furniture goods. They are likely to spend on essential goods and services and be
inclined towards saving their remaining income (Khlystova, Kalyuzhnova and Belitski, 2022).
This provides information about the consumer spending patterns that have changed post
pandemic and after the emergence of the new variants of Covid.
The sectors such as healthcare, retail, food and agriculture are likely to prosper over the
next few months as the consumers are to spend on these rather than on luxury products and
services. Sectors such as transportation and logistics will also prosper in the coming months
owing to their critical importance in the smooth running of other businesses as well as in the
lives of the common people while they are travelling (Nayak and et.al., 2021). Communication
and information technology are other sectors that might flourish during the current and the
coming months as these are inevitable for both, the common man as well as the business and
industries. In order to work in an appropriate manner, the business organizations are always ion
need of string information and communication technology. Also, these sectors have not been
much affected by the Covid pandemic and its variants, owing to their flexible nature, which has
further added to their likeliness to succeed. Research is another sector that will prosper in the
coming months owing to the vast scope for exploration that Covid has created. Being an ever
changing and unexplored topic, Covid 19 and its variants have provided numerous opportunities
to conduct research and explore more about the virus and the various aspects associated with it.
Manufacturing and production service is another sector that will see growth in the
coming months. Considering the life cycle model, it can be analysed that insurance sector will be
prospering in the coming months as the insurers have adapted to the post pandemic growth. The
1