A Detailed Analysis of Brexit's Impact on Penny Market's Operations

This report provides a detailed analysis of the impact of Brexit on Penny Market's business operations. It begins with an introduction outlining the context of Brexit and its effects on the UK economy, particularly for businesses like Penny Market. The main body of the report utilizes various analytical frameworks such as SWOT analysis to evaluate the internal environment, PESTLE analysis to assess the external environment, and Porter's Five Forces model to understand the competitive landscape. The SWOT analysis examines the strengths, weaknesses, opportunities, and threats facing Penny Market in the post-Brexit environment, while PESTLE analysis explores the political, economic, social, technological, legal, and environmental factors. The report then applies Porter's Five Forces to assess the competitive dynamics within the industry. The conclusion summarizes the key findings and implications for Penny Market. The report emphasizes strategic recommendations for the company to adapt to the changing market conditions and leverage new opportunities. This analysis aims to provide insights into the challenges and opportunities arising from Brexit, helping Penny Market make informed decisions to maintain and improve its market position. The report is a valuable resource for understanding the complex interplay between business strategy and macroeconomic events.

Contemporary
Business Environment

Table of Contents
TASK 2 ...........................................................................................................................................3
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluating the internal environment with Swot analysis.......................................................3
Analysing the external environment with Pestle Analysis.....................................................5
Porter five forces model.........................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

TASK 2
INTRODUCTION
The business environment is currently changing most of the companies are improving
various factors which will help them to perform better as the given marketing conditions. The
report aims to analyse about understanding the impact of Brexit on the UK economy. The
organisations has change their way of carrying out the operations due to Brexit. On the other
hand, in this report the main focus is to analyse the affect of Brexit on different business in an
effective manner (Exchange, 2019). Penny market is the supermarket chain which provides
various goods and services to the customers at discounting rates. They are generally operating in
various countries and have 3550 stores. It was founded in Leibbrand Gruppe in 1973. The chain
was bought by the Ed brand of carrefour group in order to expand their business in multiple
regions. There are various theories and strategic models which can be used in order to evaluate
the impact in a proper manner. Along with that, there is brief analysation about understanding
the internal and external environment. For further instance, the major focus is to providing the
specific recommendations about the penny market. They can use new methods to improve the
business structure.
MAIN BODY
After the impact of Brexit there are various factors which needs to be assess properly by
the organisation. There are various strategic actions which is taken by them in order to provide
great quality products and services to the customers. The policy decisions is the major which has
been impacted the European union and the economy of UK. After the Brexit there is the free
movement of goods and services which can be regulated in multiple regions. In order to
understand the impact of Brexit in various business. The theories and models will help to
understand it strategically (Mikalef, Pateli, and van de Wetering, 2021). Penny market needs to
analyse the market situation properly which will help them to carry out the operations in an
effective manner.
Evaluating the internal environment with Swot analysis
Swot analysis is the appropriate framework which is been used in order to identify
various forces in an effective manner there are various stages in this particular tool which is been
described below:

 Strengths – This is the first factor which can helps the firm to gain a competitive and
increase their reputation in the market with their particular strength. The British decisions
to leave the European union has certainly open the rods for various assumptions. The
main strengths of the Brexit decisions is that there are no restrictions on the SME's. The
small and medium enterprise is have the positive impact of no restrictions. They can
supply the goods and services in various regions (Řehoř, and et.al, 2020). Penny market
is the chin which provide the products to the customers at discount rates. With the
changed policies after the Brexit they needs to provides the fulfil the policies. There is
extra duty which they have to give to the UK government while exporting their goods ans
services. This is the major disadvantage for the organisation in the UK market.
 Weakness – This is the factor which will help the firm to analyse the weak areas and
they can improve it in a significant manner to achieve better results in the desired
industry. After the impact of Brexit there is certain shrink in UK market. UK economy is
the single market in which there are no tariffs on the goods and services. The negotiation
power is also uncertain in that regions (Strašek, Pušavec, and Likar, 2020). This is
creating the major difference for the organisation. In relation to the Penny market they
need to become more flexible in the UK countries in order to successfully achieve great
results in the market. With the changing market conditions they need to adopt to the new
challenges and move freely in the region. With the new innovation they can have the
position impact on the UK economy. They can also dominate the region in a systematic
manner.
 Opportunities – There are multiple opportunities which has been arise for the companies
after the impact of Brexit decision. After the impact of Brexit the European Union has
leaved. It has make the UK one of the Independent region in which they are able to
supply their goods and services in an effective manner in multiple regions. In context to
the Penny market they can dominate the new regions by providing exciting discounting
options on their products and services. This will certainly help them to attract new
customers. The organisation can also focus on bringing new innovation which will help
them to gain competitive advantage in the market.
 Threats – There are multiple potential threats which needs to be properly analysed by the
organisation. Brexit is one of the most influential decision which is been taken by the

government. After the impact of Brexit there is the reduction of attraction in the UK
market. The major decision is that the organisation needs not to pay the tariffs. In the UK
economy the organisation can send their goods and services in various regions. In relation
to Penny market they need to focus on the potential threat. The organisation needs to
analyse everything properly after the impact of Brexit. It will help them to achieve
various goals and objectives in the market. There are various advantages which can be
taken by them in an effective manner. They can also diversify their business in multiple
regions and gain the best results in the future.
Analysing the external environment with Pestle Analysis
Pestle analysis is the tool which is been used in order to identify the potential factors
which will affect the business operations in a significant manner. There are multiple forces
which is been described below:
 Political Factor – This is the major factor which has been impacted various individuals.
Brexit has taken many years and the decision was made in order to make the UK
economy was free and liable to supply the goods and services in an effective manner. IN
relation to the Penny market they need to focus on building the policies and ethics which
is been implemented by the UK government in order to become successful in the new
regions and dominate it in an effective manner (Johan, 2019). There are multiple
concerns which can be taken by them gain the desired results in the economy.
 Economic Factor – These are the factors which regulate and affect the business
operations of the firm. After the impact of Brexit the whole economy of UK has been
briefly affected. There were some positive as well as negative outcomes which needs to
be analysed properly. Penny market chain needs to make the effective supply chin in the
UK market which will help them to focus on providing the quality goods to the
consumers.
 Social Factor – There are multiple social implication which needs to be analysed
properly. After the implementation of Brexit there is sudden rise in the aggression of the
individuals. There are multiple social media platforms which is been exploded. The
government has taken strict measure in order to minimise the violence. In relation to the
Penny market chain they need to focus on delivering the better results and fulfil all the
social impacts which includes providing multiple benefits to the individuals. They need

to gain maximum support over other consumers and establish the values base in the
market.
 Technological Factor – The organisation needs to invest in the technology to become
more competitive and provide better products to the consumer. Brexit does not directly
affect to the technology. Penny supermarket company needs to invest in the technicology
to become superior in the market. There are various competitors which is been present in
the industry (Masanja, 2019). The main focus is to offer the quality products and services
to the individuals.
 Legal Factor – There are multiple legal factors which is been implemented by the
government. The rules and regulations has been abided by the government to establish
the systematic economy (Manta, 2019). Penny supermarket company follow the changes
of UK government which is been implemented after the impact of Brexit. There are
major changes which could affect the organisation performance in the market.
 Economic Factor – This factors consists of various economic benefits which is been
provided in order to preserve the environment. Penny supermarket chain needs to use the
resources in an appropriate manner and reduce the carbon emissions in their production
process to provides certain benefits to the environment.
Porter five forces model
This is the model which is been identified in order to evaluate the forces of environment.
The company could gain competitiveness and become more efficient in their way of carrying out
the operations. There are five forces which is been analysed in relation to the Penny supermarket
company which is been described below:
 Competition in the Industry – This is the factor which is been used in order to become
more competitive in every manner. Penny supermarket company needs to focus on
analysing the market competition by evaluating various factors. In order to gain
competitive advantage there are new values and structure which needs to be implemented
by the firm to gain focus and dominate the UK market (Vučemilović, 2019). Due to the
impact of Brexit there are high number of competitors which is being present and they
can face the competition due to the local marketers are also selling their products to the
consumers.

 Potential of new entrants in Industry – In different industries there is the major threat
of competition which could affect the business operations of the company. Penny
supermarket company there are various advantages which could be taken by the
organisation. They could focus on implementing the new technology which will help
them to become more prominent.
 Power of Suppliers – There are various suppliers which is been present in the industry.
The organisation needs to build an effective supply chain. Through this they are bale to
fulfil the demand and supply the adequate amount of products to the consumer. Penny
supermarket chain needs to focus on various things. They are entering in the new
marketing conditions which is UK (Prashar, and Sharma, 2019). The main focus is to
enhance the relationship with the suppliers and help them to gain competitive advantage
in the new region.
 Power of Customers – The customers demands for new products and services it needs to
satisfy their needs and wants. Penny supermarket company have analysed the new
marketing conditions which is been in the UK economy. They need to provide the goods
which could help them avail various benefits and satisfy the needs of the customers.
 Threat of Substitute products – With the changing market scenario there are new
products and the treat of substitute products is generally high. In order to minimise the
impact of the substitute products (Dhamija, and Bag, 2020). Penny supermarket company
needs to put vital focus on enhancing the quality of their products and evolve it in a better
way.
CONCLUSION
From the above report, it has been concluded that there various models which is been
used in order to analyse the impact of Brexit. There are various challenges which needs to be
overcome in an effective manner. On the other hand, there is discussion about the new
technology which can be implemented by the firm in order to achieve the necessary goals and
objectives in the market. Along with that, the use of porter five forces model will help the
company to understand about the true competition which is been present in the industry. For
further instance, the major focus is evaluate the pestle analysis which helps the organisation to
gain the desired results.

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