Understanding Business: The Impact of Brexit, Decarbonization, and Social Media

This assignment explores the impact of Brexit on various aspects of business, including exports, access to single markets, and foreign investment. It also examines the effects of decarbonizing the economy on UK businesses over the next decade, providing real-life examples and potential benefits. Additionally, the assignment discusses strategies for failing businesses to increase productivity, sales, and profits through effective social media utilization.

Understanding Business
1

Table of Content
Introduction................................................................................................................................3
1. Explain three areas of a business that would be affected by Britain leaving the EU.............4
3. Explain how decarbonising the economy will affect UK business in next 10 years, giving
real life examples and their potential benefits............................................................................5
5. Explain what failing business could do to increase productivity, sales and profits by using
social media................................................................................................................................6
Conclusion..................................................................................................................................7
Referencing List.........................................................................................................................8
2

Introduction
An organization or legal body made up of an association of individuals who share common
purpose and come together in order to achieve a common goal. In this assignment, the sectors
of business that have an effect on Britain for exiting the European Union will be discussed.
The project will also shed light on the economy that have an impact on the United Kingdom
over the next ten years. In addition, the project will provide real examples along with their
possible advantages. Furthermore, the project will explain the different ways that a failing
business can take up in order to increase its sales, productivity, and profits by means of social
media.
3

1. Explain three areas of a business that would be affected by Britain leaving the EU.
In the year 2016 on June 23rd, Britain nominated itself to exit the European Union.
Subsequent to this the value of pound fell down extremely just after the outcome was
declared (Market-inspector.co.uk, 2018). Owing to the effects that can arise because of
Brexit, the United Kingdom may face difficulties in maintaining its position as ‘the best
countries to commence a business’. The areas that might get affected due to the occurrence
of Brexit are explained below:
Impact on exports
As per the figures, in the year 2015, the Britain exported goods worth £133 billion to the
other parts of the European Union (Dhingra et al, 2016). It is expected that Britain will
acquire a loss of almost £4.5 billion in a single year if they exit the European Union without
bargaining a new ‘trade agreement’ with the union (Cadman, 2016). This can have an
adverse effect on the export business of Britain. This will happen so as the expenditure will
increase due to an augment in the tariffs. As a result, the business in the United Kingdom will
become less competitive in the European Union markets and worldwide. However, the
businesses can opt to sustain its business by lessening the prices, but this will also result in
obtaining fewer profits (Gillespie, 2018).
Access to single markets
The United Kingdom was the founding member of the EFTA (The European Free Trade
Association) that was formed in the year 1960. The United Kingdom might lose its access to
single markets, if the European Union makes a decision to alter the policies post Brexit. The
United Kingdom requires bargaining ‘free trade agreements’ with the European Union and
other nations worldwide, within a period of two years flanked by the Brexit union and the UK
leaving the EU in real (Howarth and Quaglia, 2017). It has been discussed b y several
economists that the United Kingdom will incur a loss of £75 billion if they do not have access
to the single market (Asthana et al, 2018). It has been predicted that though the UK will not
have to pay £9 billion in the favour of the budget of EU, the expenses will overshadow the
abovementioned advantage to the United Kingdom (Howarth and Quaglia, 2017).
Foreign investment, which businesses receive
4

Most of the Foreign Direct Investment stock is obtained from the rest of the parts of the
European Union, which is estimated to be about £1 trillion (Dhingra et al, 2016). Post Brexit,
the investment in the United Kingdom will decrease due to the higher tariffs and costs. As per
official analysis, the foreign direct investment will decrease by 22% after the UK exits EU,
thus resulting into a negative impact in the inflows of FDI in the country (The Conversation,
2018). United Kingdom attracts a number of foreign investors, as it is a part of a single
market and does not face expense barriers due to high tariffs and costs. However, this may
not be the case post Brexit.
5

3. Explain how decarbonising the economy will affect UK business in next 10 years,
giving real life examples and their potential benefits
The United Kingdom leadership has placed its businesses to obtain benefits of the largest
investment opportunity. It has been estimated that low carbon investment worth £17.5 trillion
is emerging economies by the next ten years (Gov.uk, 2018). The United Kingdom is
redefining its position in the market by means of latest trade bargaining. The UK companies
can take up ‘low carbon solutions’ in the home market as well as export them to the fast
decarbonising international market, by applying industrial policies to go with the ‘Clean
Growth Strategy’ of the government so as to meet its assurance to safeguard the natural
surroundings and environment (Gov.uk, 2018).
Decarbonising trade or business is not just related to the economy of the nation. It also
concentrates on the impact of the changing climate, being a key donor of facilitation. The
nation that has occupied a lead on lessening its emission of carbon, the United Kingdom is a
significant supporter of rising economies mapping low carbon trails. In the subsequent ten
years, most of economic spending and infrastructure spending will occur in the southern part
of the world. Future trade will open up opportunities that advantage the United Kingdom and
their worldwide partners for the impending years and not mirror the technologies, policies
and investment challenges of the precedent years (Serrenho et al, 2016).
Figure 1: Global Market Value 2015 vs. 2030 Projection
6

(Source: Bing.com, 2018)
The United Kingdom has a ‘direct national interest’ in making sure that the entire world
undertakes changes in the climate, given the probably overwhelming impact that unimpeded
change in climate might have in this nation. The United Kingdom accounts for presently 2
per cent of the worldwide emissions, so their long-standing prosperity and security is based
on the efficient worldwide action (Gov.uk, 2018). The United kingdom’s approach will
concentrate on organizing EU and UK technical, economic, development and political
possessions to persuade international economic and political situations to safeguard activities
from other nations to minimise ‘greenhouse gas’ release. Serving developing countries to
create the climate pliability of their financial systems and move in the direction of ‘low
carbon growth’ in the coming years; and functioning for a inclusive worldwide climate
change concurrence (Mulholland et al, 2018). In order to take this occurrence forward, the
Government of the country is dedicated to functioning personally with the partners in the
‘non-governmental organisations’, ‘private sector’, and ‘civil society’.
7

5. Explain what failing business could do to increase productivity, sales and profits by
using social media
The different ways that a business can adopt in order to increase its sales, productivity and
profits with the help of social media are as follows:
Increase their social media presence
Social media offers a powerful tool for outreaching the consumers. The company can
increase its social media presence in the market by sharing stories, post about their offers and
events an also by discussing the services and solutions to the issues with the impending
clients and other interested consumers. Social media makes available an open-end platform in
order to engage and communicate with the consumers. The company can make use of the
social media in order to understand and comprehend the consumers and cater to their
requirements (Ashley and Tuten, 2015). However, the businesses must focus on a particular
or only some social media platform as several platforms are available in the market and it is
not possible for a business to focus on all of it.
Adopt aggressive marketing tools related to social media
The businesses can take up different marketing tools that are related to the social media in
order to increase its sales and productivity as well as profits. They can make use of social
media tools such as Twitter, Facebook, Instagram, and so forth for marketing purpose. In the
present scenario, the consumers are hugely independent on the social media for their
purchasing decision, therefore, it is the best option for the business to make use of the social
media tools in order to communicate with its consumers and provide them with their
requirements (Gerbaudo, 2018).
Prioritize customer service
The business organizations can also make use of the social media platform in order to
increase its productivity and sales by giving first preference to its customer service. The
organizations can gather regular feedbacks of the consumers with the help of different social
media tools and implementing them during the production process. This will help the
business organization in building a direct connect with its customers and know what their
requirements are, therefore, resulting in increased sales and profit (Iyer and Krsek, 2016).
8

Conclusion
The above assignment shows that the different sections of business such as access to single
markets, influence exports and foreign investments and how they are affected subsequent to
the Brexit when Britain left the European Union. The project has also put lights on the
economy that will have an effect on the United Kingdom in the subsequent ten years. The
project has also provided a range of examples to support the report. The project has further
demonstrated several methods such as, to take on different marketing tools that are connected
to the social media, precedence customer service, and so forth in order to increase the profits,
productivity, and sales of the business.
9

Referencing List
Ashley, C. and Tuten, T., 2015. Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement. Psychology & Marketing, 32(1),
pp.15-27.
Asthana, A., Boffey, D. and Perkins, A. ,2018. Theresa May says Brexit will reduce UK
access to single market. [online] the Guardian. Available at:
https://www.theguardian.com/politics/2018/mar/02/theresa-may-says-brexit-will-reduce-uk-
access-to-single-market [Accessed 6 Mar. 2018].
Bing.com, 2018. Cite a Website - Cite This For Me. [online] Bing.com. Available at:
http://www.bing.com/cr?
IG=92DD328CC41D450F9B30E6740F5E2C90&CID=0E6ADF3A463265F3195ED490479
D64E1&rd=1&h=7z8k2WWY8JcqfG95uGhNjVkQzURA5fkVJwv7XSfGIag&v=1&r=http
%3a%2f%2fwww.boeing.com%2fresources%2fboeingdotcom%2fcommercial%2fabout-our-
market%2fassets%2fdownloads
%2fBoeing_Current_Market_Outlook_2015.pdf&p=DevEx,5078.1 [Accessed 6 Mar. 2018].
Cadman, E., 2016. UK after Brexit: Options for trade deals is voters elect to leave. Financial
Times.
Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. The impact of Brexit on
foreign investment in the UK. BREXIT 2016, 24.
Gerbaudo, P., 2018. Tweets and the streets: Social media and contemporary activism. Pluto
Press.
Gillespie, P., 2018. How Brexit impacts the U.S. economy. [online] CNNMoney. Available
at: http://money.cnn.com/2016/06/24/investing/brexit-impact-on-american-global-economy/
index.html [Accessed 6 Mar. 2018].
Gov.uk., 2018. Cite a Website - Cite This For Me. [online] Gov.uk. Available at:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/47621/1358-
the-carbon-plan.pdf [Accessed 6 Mar. 2018].
Howarth, D. and Quaglia, L., 2017. Brexit and the Single European Financial
Market. Journal of Common Market Studies, 55(S1), pp.149-164.
10

Iyer, K. and Krsek, C.M., Adobe Systems Inc, 2016. Organizing and classifying social media
conversations to improve customer service. U.S. Patent Application 14/590,794.
Market-inspector.co.uk. ,2018. Impact of Brexit on Businesses in the UK | Market-Inspector.
[online] Available at: https://www.market-inspector.co.uk/blog/2016/10/impact-of-brexit-on-
businesses-in-the-uk [Accessed 6 Mar. 2018].
Mulholland, E., Teter, J., Cazzola, P., McDonald, Z. and Gallachóir, B.P.Ó., 2018. The long
haul towards decarbonising road freight–A global assessment to 2050. Applied Energy, 216,
pp.678-693.
Serrenho, A.C., Mourão, Z.S., Norman, J., Cullen, J.M. and Allwood, J.M., 2016. The
influence of UK emissions reduction targets on the emissions of the global steel industry.
Resources, Conservation and Recycling, 107, pp.174-184.
The Conversation, 2018. How Brexit would reduce foreign investment in the UK – and why
that matters. [online] The Conversation. Available at: http://theconversation.com/how-brexit-
would-reduce-foreign-investment-in-the-uk-and-why-that-matters-57909 [Accessed 6 Mar.
2018].
11