Impact of Brexit on UK companies : Report
Added on - 22 Jul 2020
TASKP1 Areas of business that will affect by Britain leaving the EUIn this competitive era, it is essential for every organisation to recognise their all aspectsof their business which are getting involved in accomplishment of business activities andoperations. If management have proper knowledge of their business practices then they caneasily plan all strategies and policies (Cumming, Johan and Zhang, 2014). While performing inexternal market managers should describe those areas which will get affected by Brexit.Since 2013, British Prime Minister has announced they get highest vote on continuing theUK's membership with European Union. It had been much speculation as to achieve possibleeffects which is called Brexit. WhenUK voted to leave the EU, the number of migrants lookingfor jobs outside the UK have spiked up. The unemployment rate is likely to increase due torecession, which is a loss equivalent to million and billion jobs (Los and et. al., 2017).AfterBrexit will happen i.e. Britain will leave European Union, Share of EU will get declinedtremendously in the field of trade and it happens due to enormous growth in economy oreconomic system of emerging countries. Furthermore, Brexit will also influence the functionalareas of corporations in positive and negative manner because Brexit stifle development forcompanies that operate in Europe.Brexit poses a fundamental challenge to the future of theUnited Kingdom by removing the European Union law that has helped to bind it together,a committee of lawmakers from the British parliament’s.Apparently, UK government as well as well established corporate businesses andentrepreneurs will face so many problems because of Brexit. Many entrepreneur and start-upswill face hurdles in the field of financial funding. This will impact badly on their organisationgrowth, sales and goodwill. In addition, Export and import as well as trade policies will also getchanged drastically after Brexit, which results huge losses in commercial business organisationin the sector of productivity and customer retention rate which reflects on company overall socialas well as economic growth and sales. (Rong and et. al., 2015).Brexit will provides wide range of benefits due to reduction in immigration; EUimmigration has done no harm to the average wages and job chances of the UK-born. In fact,because EU migrants are better educated than the UK-born and more likely to work, they help topay for our public services and pensions, and give a modest boost to productivity.
For example – In Auto-mobile industry, export and imports of cars is more difficult aswell as company have recruit new labour force which is most costly in terms of previous withregards to commercial business. Along with this, European Union will have a pervasive impactof Brexit in terms of employment rules and legislations as the a social policy is created i.e. redtape for entrepreneurs(Los and et. al., 2017).It could a eliminate laws which are required toemployment and immigration policy. In addition to this, it will provide a detailed information forUK government regarding rules and regulations which might helps in increasing the viability ofbusiness entities or not.For example – After Brexit billions of peoples will leave UK, which will create hugeproblem for specially small -medium industries as well as big corporates also in the filed ofworkforce. Now they will have to recruit new workforce again from UK itself and which willprovide them proper training regarding work. Previously they recruit or selected employees fromdifferent European Union nations on the basis of their skills and knowledge.Trade within Europe-UK region plays crucial role in trading sector in European Union that good for both EUand UK region but post-Brexit results are differ in terms of reduction in trades and raise thetrading cost among UK and Europe that will damaging for both sides. The EU and UK region,both of them are their trade partners of each others but United States demand regarding bilateraldeficits which US have to faced because of Brexit and it will impact negatively on theireconomic growth (Basole and et. al., 2015). Whereas commercial businesses of UK willcomparatively better in the sector of supply chain and productivity with quality maintenancefrom European nation companies.P2 Issues for business of reducing a birth rate in nations.Declining is birth has been become a major issue for all developing countries. Although,fertility rates are higher but due to broadmaternal and perinatal mortality, there is a diminutionin birth rate. Along with this, in many nation children are treated as labour force and due toliving independently people are avoiding to take the responsibility of children. In this modernera, human being are aware about all terms and conditions of paternity. People living longermeans they also stay in work longer, and in UK an ageing population, lead to a 'skills gap' .Itresults that, those workforce who work from past decades have tremendous experienced but theycan't share knowledge and skills with younger generation employees(Trompenaars and