UK Economy Analysis: Impact of COVID-19, Brexit, and Argos Report

This report examines the impact of COVID-19 and Brexit on the UK economy, focusing on the retail sector and specifically on Argos. It begins with an introduction, followed by an analysis of how these events have affected businesses, highlighting the transition to online shopping and regional imbalances. A detailed SWOT analysis of Argos is provided, covering its strengths, weaknesses, opportunities, and threats. This is followed by a PESTLE analysis, assessing the political, economic, social, technological, legal, and environmental factors influencing the company. The report then explores the interrelationship between the SWOT and PESTLE analyses and presents a TOWS analysis to formulate strategic options. Finally, the report offers recommendations for Argos and concludes by summarizing the key findings and referencing relevant sources.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
IMPACT OF COVID 19 & BREXIT ON UK ECONOMY...........................................................3
ARGOS SWOT ANALYSIS...........................................................................................................4
1. STRENGTHS.......................................................................................................................4
2. WEAKNESSES....................................................................................................................4
3. OPPORTUNITIES...............................................................................................................4
4. THREATS............................................................................................................................4
PESTLE ANALYSIS......................................................................................................................5
1) POLITICAL......................................................................................................................5
2) ECONOMIC.....................................................................................................................5
3) SOCIAL............................................................................................................................5
4) TECHNOLOGICAL.........................................................................................................5
5) LEGAL..............................................................................................................................6
6) ENVIRONMENTAL........................................................................................................6
INTERRELATIONSHIP B/W SWOT & PESTLE ANALYSIS....................................................6
TOWS ANALYSIS.........................................................................................................................7
RECOMMENDATIONS.................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
This report studies about the impact of COVID 19 and BREXIT on the business
organisations operating in United Kingdoms (De Lyon and Dhingra, 2020). Under this, we’ll
also cover environmental factors affecting the businesses. After evaluating these factors, the
detailed swot and pestle analysis of ARGOS retail group will be done comprising the
interrelationship between them. Lastly, some points will be discussed as to how these situations
can be handled and taken a corrective step.
MAIN BODY
IMPACT OF COVID 19 & BREXIT ON UK ECONOMY
The Covid-19 emergency and its financial effect will likewise have significant underlying
consequences for the UK economy and business market as the emergency keeps on accelerating
existing patterns such as the transition to more internet based shopping, while seeing
development in new patterns like work from home.
The idea of both are probably going to prompt a long and extended rebuilding of the UK
economy, the effect of which will be felt for a long time to come.
The impact of COVID 19 & BREXIT on the business economy of UK:
1. As seen in most of the cases that the sectors and regions affected adversely through the
impact of COVID 19 are not totally exposed to the Brexit although it has some
exceptions, yet the two emergencies joined will broadly affect the UK economy than
either would have done in confinement.
2. Manufactures of automobile industry, transport gear, synthetic substances, compound
items and materials, and services for example in communications & finance sector are
the most affected areas to Brexit. The most exposed fields are the hospitality and tourism
sectors, entertainment industries in accordance with the impact of COVID 19. The
major downfall is seen in Automobile sector because of Covid-19 and also it is going to
be majorly affected by Brexit (Heald and Hodges, 2020).
3. The impact of COVID 19 and BREXIT will lead to regional imbalances in many states
of UK such as London, Wales, West Midlands and others.
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After analysing the impact BREXIT and COVID 19 on the businesses, we will illustrate this in
the case of Argos retail industry. Argos is one of the general merchandise subsidiary retail
company situated in United Kingdoms which was acquired by Sainsbury in 2016.
ARGOS SWOT ANALYSIS
1. STRENGTHS
The following are the Strengths in the SWOT Analysis of Argos:
1. Biggest general-merchandise retailer in the UK with more than 800 stores
2. Offers online administrations for shopping
3. Claims celebrated brands including Elizabeth Duke (adornments and watches), Alba, Bush,
Chad Valley, and so forth
4. Enormous working power with in excess of 51,000 representatives
5. Argos connects with 130 million clients and 18 million UK families
2. WEAKNESSES
Here are the shortcomings in the Argos SWOT Analysis:
1. A few discussions like working at Sunday, evaluating in Ireland have somewhat influenced the
brand name (Shtal and et.al., 2018).
2. Incredibly intense cutthroat market area implies restricted share of the overall industry
3. Lesser presence internationally when contrasted with some other supermarket chains.
3. OPPORTUNITIES
Following are the Opportunities in Argos SWOT Analysis:
Around 25% of deals are coming from internet based selling. Thus it can abide further into this
fragment. It also connects markets in the developing economies.
4. THREATS
The dangers in the SWOT Analysis of Argos are as referenced:
1. Global development of other brand would build rivalry
2. Value battle with other corporate store brands
3. Change of Government approaches and guidelines in the retail business
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PESTLE ANALYSIS
1) POLITICAL
In the UK, the public authority's guidelines, tax collection procedures, orders, standards of
initiative, and work guidelines are exceptionally adaptable for business. The UK is perhaps the
most encouraging business places with striking development in corporate world.
The organization has exploited the positive UK monetary condition to extend its market
specialty. The steady economy of the UK has been a force factor for the organization's items
since the buying force of a significant number of its potential clients is high, particularly for its
food stores.
2) ECONOMIC
In spite of the worldwide financial emergency in 2009, the economy of the UK has recuperated
from these impacts and is right now one of the main monetary forces to be reckoned with in
Europe. The new period of prosperity in the UK has come about into development of numerous
organizations because of expanded interest for items and services (Xiao, Chen and Yu, 2021).
Being perhaps the most deliberately found organizations, the Argos Company situated to profit
by the economies of scale and improved incomes since it includes a few brands inside the UK
and Ireland.
3) SOCIAL
Numerous social issues influence any business area or industry. Nonetheless, the Argos
Company has adjusted its administrations to the objective market needs by effectively taking part
in arrangement of corporate social duty activities. Plus, the items and media services furnished
by the firm are lined up with the socio-social necessities of clients in the UK and Ireland. At
present, the firm is putting resources into zones where socio-social components advance its
business like the Argos TV.
4) TECHNOLOGICAL
The Argos Company has effectively consolidated online exercises inside its activities. As one of
the main retailers in the UK, the organization has dispatched the Argos Master Card, internet
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shopping entrance, and live customer support focus. Since the greater part of its activities depend
on the accessibility and ease of use of data innovation, the business has applied accessible
innovation to create and keep up the market chief status.
5) LEGAL
The general set of laws in the UK is entirely steady and functions towards serving the interest of
everyone similarly. When completing its business, the Argos Company needs to remember that it
needs to consent to all the business laws of the UK and government laws too. Being an expense
consistent store, the Argos Company has satisfied its legitimate order as a business and has the
opportunity to do exchange inside the domains of the UK and Ireland.
6) ENVIRONMENTAL
Prior to entering new business sectors or beginning another business in existing business sector
the firm ought to assess the natural guidelines that are needed to work in those business sectors.
A portion of the ecological components that a firm ought to consider in advance are - Climate,
Environmental change, Laws managing climate contamination, Air and water contamination
guidelines in Oil and Gas industry, Reusing ,mentalities toward "green" or natural items and
mentalities toward the support for sustainable power (Bentham, 2018).
INTERRELATIONSHIP B/W SWOT & PESTLE ANALYSIS
 The change of government can be legally bounding towards the organization but the
retention of customers can be a plus factor for the company.
 It has the opportunity to increase its customer base with the help of technology by
showing its online presence.
 Employees working on off work days can be affected socially as it can have an affect
their personal growth.
 Overall, it can be said in spite of facing such competition ARGOS is able to make itself
established as a brand in the market.
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TOWS ANALYSIS
EXTERNAL FACTORS/ INTERNAL FACTORS
 S/O - Argos have its online stores through which it can have access to wider area that
accounts to major share in its profits.
 W/O - Despite of having such high competition, Argos is able to maintain its market
position through its online presence.
 S/T – ARGOS can face problem in maintaining the value of its products compared to the
others but on the other hand it is associated with celebrated brands which is a major
advantage for it.
 W/T – ARGOS is not able to establish its presence in International markets which can
lead to increase in rivalry with the other brands (Jones and Comfort, 2020).
RECOMMENDATIONS
I. Argos should give its customer a branded experience when they step in its stores. They
should be given with better customer facilities after and before the sale.
II. Redefine the catalogue. What the customer needs are, what they are thinking to purchase
everything under one guide. Also, Argos should put its catalogue on its online sites.
III. Not just customers, but it should also focus on its employees. Employees must be given
job security and a healthier work environment so that they can grow themselves at a
personal level.
CONCLUSION
 By far, we have studied the impact of COVID 19 and BREXIT on the economy of UK.
 Through applying the SWOT & PESTLE analysis, we evaluated the internal and external
environment of ARGOS.
 Discussed the inter relationship between the two analysis methods.
 Turning the swot analysis into the Tows matrix, we combined the elements of swot
analysis together.
 Finally, some recommendations are given to improve the working of the company.
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REFERENCES
Books and journal
De Lyon, J. and Dhingra, S., 2020. Covid-19 and Brexit: Real-time updates on business
performance in the United Kingdom. Centre for Economic Performance, London School
of Economics and Political Science
Heald, D. and Hodges, R., 2020. The accounting, budgeting and fiscal impact of COVID-19 on
the United Kingdom. Journal of Public Budgeting, Accounting & Financial Management.
Shtal, T., and et.al., 2018. Methods of analysis of the external environment of business activities.
Xiao, B., Chen, Q. and Yu, Z., 2021, April. Research on the Investment Value of Sainsbury’s.
In 2021 6th International Conference on Social Sciences and Economic Development .pp.
(108-115). Atlantis Press.
Bentham, J., 2018. Business and Economics in the News–Sainsbury's and Asda-the decade's
mega-merger. Teaching Business & Economics, 22(3). pp. 11-12.
Jones, P. and Comfort, D., 2020. An exploratory case study of resilience and the leading retailers
in the UK. International Journal of Management Cases, 21(4). pp. 5-18.
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