Evaluating the contemporary business environment

Evaluating the contemporary
business environment

EXECUTIVE SUMMARY
Due to pandemic, many businesses has faced lot of challenges such as low productivity,
low performance of employees and many more. In this report t is described about the circular
flow of the income of UK and responses taken by the UK' s government in order to overcome
from COVID. In order to overcome with this problems bank of England has taken different types
of steps such as reduced service charges to banks, reduced interest rates, and provided many
schemes. By doing so, the bank of England has supported many businesses, industries and
households. Before making any important decision the company in UK, needs to focus on
immediate and future impact of Brexit on the UK's economy. This includes, unemployment,
poverty, recession, Growth and development and using advanced technologies.

TABLE OF CONTENTS
1. INTRODUCTION.......................................................................................................................4
2. Discussion and Analysis .............................................................................................................4
2.1 Circular flow of income and impacts of lock down on the economy of UK.......................4
2.2 Major economic responses of the government of the UK and its impact on circular flow of
income ........................................................................................................................................5
2.3. Analysing the major responses of the Bank of England and their implications on the UK's
circular flow of income...............................................................................................................7
2.4. The impacts of Brexit on the UK's economy.......................................................................9
3. CONCLUSION .........................................................................................................................11
4.RECOMMENDATIONS ...........................................................................................................12
5. REFERENCES..........................................................................................................................13

1. INTRODUCTION
Contemporary business environment plays a vital role in today's business and it can
influence on company's performance. Due to changing in business environment, the company
can also experience lot of challenges. It is vastly related with political environment, economic
environment, cultural and natural environment. This may include policies made by government,
economic policies, economic conditions, system related to economy. It is very important for
every company to know about the economic and non-economic environment of the country
because it will be helpful to top management team so that they can make the right decisions. By
using right and an effective strategy the company can easily access a lot of information about
market research.
The present report will be based on the main impacts of lock down on the UK's economy
by using circular flow of income. In addition to this, the report will provide detailed information
about major responses taken by bank of England in order to deal with lots of challenges.
Furthermore, it will also highlight the impacts of Brexit on the UK's economy.
2. Discussion and Analysis
2.1 Circular flow of income and impacts of lock down on the economy of UK
The global coronavirus that is COVID– 19 pandemic has affected the whole world in
terms of GDP and their flows of income as well. The forecasters have forecasted that this
coronavirus will lead to have effect the UK's economy as well as the global economy. With
happening of this there was a great reduction and contraction in the demands of the product and
services (Kim and Asbury, 2020). This as affected the profitability of the business and decreases
the flow of income in the markets of the UK. Having response to the pandemic it is seen tat it has
great impact on the statistics of the UK. There has ben unpredicted impact on the circular flow of
income and the expenditure In the economy of the UK which also include and have effect on the
businesses and households (McClure and Thomas, 2019). Due to social distancing there has been
decreases in the pandemic and the businesses were again have a great comeback with the help of
the government in the country.
The recession is caused with the happening of the COVID and has affected the GDP as it
was reduced by 9.7 % in the year 2020. In the first lock down in the country the GDP of the
country was reduced by the 25% and have affected the markets a lot (Keogh-Brown and et.al.,