Examining the Economic and Global Business Environment for Virgin Money in UK

This report examines the economic and global business environment for Virgin Money in UK. It analyzes the factors impacting the banking industry in UK and the global market, including political, economic, social, technical, legal, and environmental factors. The report also discusses the impact of global business environment on countries and on UK.

Business Environment

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Examining the economic environment in which business operates in UK..................................3
Examining the global business environment ..............................................................................5
The impact of global business environment on countries and on UK.........................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is mainly defined as the examining the forces and factors which
induces and impacts the working of the company while operation into the dynamic market.
Examining the business environment plays key important roles as it helps in analysing the
business strategies followed by the competitors for achieving success while operating in the
dynamic environment. Virgin money is the banking industry which is mainly operation and
serving with providing various financial services while operating in the UK economy. This
report provide details about examining the economic environment of the business which operates
in UK. Further, examining the global business environment and its impacts on the countries with
emphasizing on UK economy.
MAIN BODY
Examining the economic environment in which business operates in UK
Operating and Working in UK, it is mainly recognized as the highest and easiest place to
operate and function the business. As it is functioning with operating with the robust
infrastructure of the market with setting high standards for operating with highly governing
standards in the country. With using the Pestle model helps in examining the environment of the
UK country including all the economic and the other factors impacting the businesses operating
in UK (Radović-Marković, Salamzadeh, A. and Vujičić, S., 2019). As virgin money is mainly
operating in UK for serving financial and banking services, with establishing the innovative
digital platform. The min prioritises of the company is to achieve growth and perform function
for delighting consumers for achieving long term sustainable growth.
Political factors: the political factor for operating the business in UK are it is concerning
with stabilized government policies and rules with low corruption,. The country is mainly
operating with establishing strong administrative systems. This results in attaining and
establishing strong partnership and collaborating between countries. Also, adopting the
withdrawal of the EU benefit the businesses for achieving economic prosperity.

Economic factors: The country mainly accounts for 6 th largest nominal GDP
concerning with the diversifies economy which results in providing equal opportunities to grow
and flourish the business while operating in the UK economy (Brenner, 2018). This helps in
achieving success with accounting the high GDP level . Further more the society is diversified
and the individual living in the country are from the diverse backgrounds and the culture helps in
attracting large number of investors. Also with charging low tax rates helps in favourably
accounting and attracting the investors and the business to expand their operations in the UK
country. With the increase FDI helps in attaining and attracting large investors in different field
in technology, food, tourism, retailing and clothing and banking sector. With the positive
economy allowing the small business to achieve more probability wit the diversified economic
sources and operating into free market. Further more, the uncertain economic conditions due to
pandemic and the Brexit impacts the country and the investors (Fernández, Paz-Saavedra and
Coto-Millán, 2020). Also the exchange rates affecting relations with the suppliers and due to
constantly changing taste and spending habits creates pressure for increasing sales of the certain
goods also the financial service in the country mainly contributes around 8.6% for achieving
total economic output. This helps in attaining 3 rd largest position for the financial service
provider by the UK in the whole world.
Social factors: UK is mainly concerned with accounting the largest educated population
which helps in catering wide range of needs with providing various opportunities to the
businesses to invest in the country by expanding the operations and target market. Further the
UK government face issues for catering all the needs by offering limited number of public
service this results in hindering and maintaining the welfare projects in the country.
Technical factors: The country is mainly concerning for adopting high level of the latest
technology for serving the country. also, it has established various researching developmental
institutes which recognized as the great hub for financial and technical institutions (Burdon and
Sorour, 2020). As the technical sector is the great contributors for achieving the good economic
level in the country. This helps in providing various opportunities for the business as for using
various digital marketing and social media Chanel for marketing and promoting products in the
country.
Legal factors : The businesses which are pertaining in the UK are operating with
concerning the employment act, minimum wages act, protect rights of employees, and governing

with the equality act. This helps in protecting the personnel’s from various discriminatory
practices.
Environmental factors: The government of the UK is concerning and adopting various
measures for limiting the impact on the environment made by the companies. As taking
initiatives for lowering the impact. But the bad weather and due to the industrial development
causes environmental impacts on the economy of UK.
Examining the global business environment
Global business environment mainly aims in defining about all the factors and forces
which operations and influences the decisions for using all the resources while operating
businesses at the global level. Operating business in the UK helps in attaining various possible
advantages as complying with the flexible and liberal laws and providing range of products and
services with concerning and adopting the standards imposes by the government (Bhagra and
Sharma, 2018). As the global market of th UK is mainly concerning with various positive factors
for investing and expanding the businesses. The UK consisting of the highly mature and
spending consumer market providing liberal economy for increasing and operating the business
as to achieve growth and better performance. The country is mainly giving tax and incentives to
various international businesses. With wide availability of the talented and the potential
individuals helps in operating the business in more effective manner (Mohiuddin and et.al.,
2022). Various global factors concerning about the increase in international trading, increase in
the high level of interdependency and the economies of scale impacts operating the business in
the UK.
Due to pandemic and the Brexit conditions impacted the global economy and th banking
sector as whole. As the pandemics caused various financial losses to the banking sectors and this
global pandemics impacted the UK banking sector as a whole with witnessing the abnormal
losses which results in reducing the bank profitability. Due to this global pandemic and the
business environment resulted in affected and adopting the digital banking. With this more
saving were encourages and working remotely became the new ways for working due to the
uncertain global conditions. Before pandemic conditions the financial systems and the services
offered by the banks were strongly working and achieving the great heights while working and
serving the consumers with various services. The various challenges faced by the banking results

in operating and trading with 1.0 times at book value and 47% banks were trading below the
book value due to global conditions and its impacting factors. Further more, various global
factors impacts the business, as the level of political instability, the terrorism, trade tariffs, global
copyrights are the global political factors which impact the business. Also, the uncertain
economic crises due to global pandemic, the economic globalization changes in the family
patterns at global level, immigration population increased. Also, the level of sustainable
practices, the in stable legal laws and non-compliances of rules and legal regulations impacts
operating the business in various countries. These all global factors pertain in the environment
which impacts the business operations while operating the banking business into different
countries.
Further more, the global business environment impacts th banking sectors as a whole.
Due to various factors impacting the operations of the global business aid in impaction and
comprising profits while partnering in various countries. As mainly the covid pandemic impacted
and declined the profits. Further this resulted in ever-increasing the cost of risk as the pandemics
created the credit crises. The virgin money is being recognised as the digitally first banks which
is mainly providing various services to the consumers.
Further more with using the absolute advantage theory in the international trading aids in
emphasising on ever-increasing the efficiency with manufacturing the products better than the
other country this helps in achieving highly advantage to the country. As in the virgin money is
mainly recognised for operating as the first digital bank in the UK country. The company is
mainly adopting and providing various services by adopting the sustainable practices with
limiting the carbon emission. With providing the services by adopting latest digital innovations
helps in achieving growth and efficiently working with developing the business operations. Thus,
this theory helps to establish absolute advantage for the country by establishing the first digital
bank in the country and specializing for serving the different services. As by providing the
travelling insurance, wealth referral services, private mortgages, assets finance and foreign
Exchange solution. Thus, this helps in establishing and attaining competitive advantage during
pandemic while operating as the first digital bank in the country
The impact of global business environment on countries and on UK
The global business environment impact operating businesses in UK. As the global
business environment impact operating businesses in the UK country. Due to the availability of

raw material, supply chain, labour supply, wages and the government regulations imposed in the
country impact the business operations and its working for achieving the best performance and
growth in the country. The level of stabilized political government, with operating by
considering the strong administrative systems, the strong alliances with the other counties and
the Brexit impact the business operations of the country.
Further more various trade tariffs, government rights, economic stabilising factors, cost
advantages, change in the trends and preferences of the individuals, with introducing new
technology aids in impacting the business operations while operating the banking businesses in
the UK. As the main factors impacting the banking business in UK is the global pandemic which
is mainly impose due to spread of viruses result in limiting and ever-increasing the cots with
achieving the abnormal losses for operating banking business in the country. But the company
operating as the first digital banking in the country results in minimising the impact of th covid
by taking steps with concerning abut adopting sustainable practice for reducing the
environmental and the waste impacts. The policy which is mainly adopted by the virgin money
as to reduces th pollution and minimize the gas emission with ever-increasing recycling
activities. This results in minimise the global environmental impacts by operating the banking
business in UK. Thus, the company is adopting various measures as for limiting the
environmental and the digitalizing impacts with concerning the first digital bank in the country.
As the global factors impacting the company is reduced by adopting and forming certain policy
for operating the banking business into the UK (Brenner, 2018). Moreover, the country economy
is concerned with stabilised policies, administrative systems, good nominal GDP, great
investments, stabilise tax rates, the best educational systems, leading with establishing best
researching and development institutes.
Further more global environment impact on other countries with the external factors. As
these factors mainly impacts the decision-making of countries with forming stringy rules and
regulations with taking appropriates measures for surviving in the dynamic and uncertain
conditions pertain to businesses. The legal, political instability, economical factors impacts
operating the banking and financial services in UK.
CONCLUSION
From the above report it can be concluded that, business environment is mainly defining
about the forces and factors impacting the decision making and processing the businesses while

operating in the country. The virgin money is mainly recognised and established for providing
wide range of banking services. The man priority of this bank is to provide and achieve growth
by adoption various sustainably practices. The VM is also established as the digital first bank
which help in achieving competitive advantage while operating in highly uncertain global
business environment. With using the pestle framework helps in identifying the economic
environment of the business while operating in UK. Further the global business environment
impacts operating the banking business in UK.

REFERENCES
Books and Journals
Radović-Marković, M., Salamzadeh, A. and Vujičić, S., 2019. Selection of organization models
and creation of competences of the employed people for the sake of competitiveness
growth in global business environment. International Review.(1-2). pp.64-71.
Brenner, B., 2018. Transformative sustainable business models in the light of the digital
imperative—A global business economics perspective. Sustainability. 10(12). p.4428.
Bhagra, A. and Sharma, D.K., 2018. Changing paradigm of employability skills in the global
business world: A review. IUP Journal of Soft Skills. 12(2).
Marcus, A.A. and Islam, M., 2021. Demography and the Global Business Environment. Edward
Elgar Publishing.
Mohiuddin, M., Wang, J., Al Azad, M. and Ahmed, S. eds., 2022. Global Trade in the Emerging
Business Environment. BoD–Books on Demand.
Burdon, W.M. and Sorour, M.K., 2020. Institutional theory and evolution of ‘a
legitimate’compliance culture: The case of the UK financial service sector. Journal of
Business Ethics. 162(1). pp.47-80.
Fernández, X.L., Paz-Saavedra, D. and Coto-Millán, P., 2020. The impact of Brexit on bank
efficiency: Evidence from UK and Ireland. Finance Research Letters. 36. p.101338.
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International business theories.2022.<https://theintactone.com/2019/02/22/ibm-u2-topic-7-
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