Brexit's Impact on UK Businesses: Vodafone, Burberry, Booker & Thistle

This report examines the multifaceted impact of Brexit on several UK-based businesses, including Vodafone, Burberry, Booker Group, and Thistle Hotels. The analysis begins with a SWOT analysis of Vodafone, evaluating its strengths, weaknesses, opportunities, and threats in the context of Brexit. It then explores the interests of various stakeholders of Burberry, such as customers, employees, suppliers, shareholders, and the government, and assesses how Brexit might affect them. The report further delves into organizational policies, using Booker Group as a case study to illustrate the implementation of change management models like Kurt Lewin's three-step model to address the challenges posed by Brexit. Finally, it examines the organizational structure of Thistle Hotel, discussing how different levels of management (top, middle, and line) are impacted by and adapt to the changes brought about by Brexit. The report concludes by summarizing the positive and negative impacts of Brexit on the selected companies and emphasizing the importance of organizational structure and change management in navigating these challenges.

Business Organisational
Policy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2 ..........................................................................................................................................2
TASK 3 ...........................................................................................................................................3
TASK 4............................................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
In modern times some of the companies in United Kingdom are from the EU referendum.
In European union it is a economical and political partnership which involve the 28th European
countries. Here the Brexit refer that the UK is leaving the EU, Brexit is merging from the two
words i.e. Britain and Exit. Present report is based on different organizations for all covering
four parts. Here, the first case of Vodafone is taken and SWOT analysis of the same is done.
Further, interest of different stakeholders and impact of Brexit on them has been analysed. Apart
from this, organizational structure has been explained by taking into account contemporary issue
of UK (Wilkinson, 2010).
TASK 1
The task one is based on Vodafone group plc which is British multinational
telecommunication company in London. The contemporary scenario of Brexit has direct impact
on performance of Vodafone due to end of membership with 28 countries. The impact of the
same can be understood with the help of SWOT analysis of Vodafone-
Strengths
 Vodafone has opportunity to move out from UK as now country will have its own
regulations.
 Strong advertising campaign and introduced the concept of Zoozoo. Thus company has
high brand visibility. Largest mobile service provide of world by subscribers
Weaknesses
 Vodafone network does operate in the rural areas. Market has been shrunken to UK only as European countries will be not be accessed due
to Brexit.
Opportunities
 Vodafone has opportunity to expand business in other developing countries without any
interference of EU. Rural areas can be covered for expansion of business as company will be operated on the
basis of regulation imposed by UK government only.
Threats -
1

 Sudden decrease in the stock price and exchange rate due to effect of Brexit
 Increased rate of tax due to changing rules and regulation of UK as now telecom
regulations will be changed.
The current target of the Vodafone is to make strong position in the world's top five
brands. The current business strategy of the company is to grow through the acquisition of the
new customers, to retain the existing customers, through geographic expansion and increasing
the usage of the mobile operator through innovations in technologies (Richardson and Mazey,
2015). However, now rules and regulation of government will be changed and accordingly
Vodafone can change its internal strategy. However, plan can be implemented to expand in rural
market. At the same time, firm can also expand business in other countries where it can generate
higher profitability.
TASK 2
A. Here, scenario of Burberry can be taken which is a fashion brand providing variety of
products and services to customers. There are basically two types of stakeholders of firm such as
internal and external stakeholders. The company have to identified the interest of stakeholders to
retain them in the organisation for a longer period of time. The interest of different stakeholders
and impact of change on them are explained as follows- Customers-Customer expect good quality of product at cheaper price. However, after
Brexit their purchasing power may go down and accordingly they might switch to
another brand for buying less expensive product. Employees–Here, Brexit may impose recession/inflation in the market which can affect
job of workforce. It is because employees basically interested in high pay scale and job
security (Van Marrewijk and Yanow, 2010). Suppliers–Suppliers seek for regular payment and credit position of the business as they
provide raw material for continuity of the same. Owing to this, Brexit can affect decision
of suppliers regarding price of raw material. In this manner, they may switch to another
brand which negative affect performance of Burberry. Shareholders-They invest money in the business for its growth and expansion. They
interested in increasing rate of return by investing enough among in the firm. However,
Brexit affect their return by minimizing currency value and affecting performance of
Burberry.
2

 Government – Government of nation expects tax revenue for development of country.
However, change in internal policies might lower down revenue due to slow growth of
industries (Bleijenbergh, Peters and Poutsma, 2010).
B. The managers plays the important role to diverse the interest of the stakeholders.
Diversified of the interest of stakeholders can be recognized as their different relationship in the
organisation. Here, management of Burberry can organize meeting with shareholders and
provide them information related to actual performance. On the other hand, buyers can be
offered little discount on brands by revising the price. Apart from this, employees can be
motivated with the help of non-monetary reward for short time span as Brexit might make it
difficult to offer monetary reward for some time (Klüver, 2012). In addition to this, clear
communication will be established with suppliers along with advance payment so as to retain
them with business.
TASK 3
a. Here, scenario of Booker group plc is being taken which is the largest food wholesale
operator. Being senior manager of the company I am responsible to introduce/implement the
organisational policies in the organisation. At this juncture, effective policies are framed to cope
up with change popped up because of Bexit. Here, management focuses upon reducing cost
structure through increasing expertise of personnel. At this juncture, three step change model of
Kurt Lewin can be applied under which at first unfreezing will begin. Firstly, acknowledge and
understand the need of change that why it is necessary to implement the organisational policies.
It is made possible by creating situation whereby workforce can get to know about need of
change. This facilitates to initiatives planned change by focusing upon values and behaviour of
employees.
The second stage of change will be implemented in Booker group plc by moving people
towards change. Here, roles and responsibilities of workforce will be changed for making them
more responsible. At the same time, clear communication will be maintained to make them
aware regarding need of change. Employees are also motivated to find their own solution by
detail discussion with them.
At last, stage of freezing start under which employees of Booker group plc start making
schedule to work accordingly to changed roles and responsibility. It can be critically evaluated
3

that resistance of personnel start at very beginning which tend to consume more time of business
and affect its overall performance to a great extent (Boussena and Locatelli, 2013).
b. Senior manager of Booker group plc will manage the resistance to change in the organisation
through before any changes made in the policies it will provide new technologies, inventions in
the organisation. However, employees will be involved in the decision making procedure and
they are asked to provide their suggestions to manage the change. Apart from this, they will be
provided training and learning to manage change.
TASK 4
Here, scenario of Thistle hotel has been taken where structure of company plays
important role. It assists management to provide guideline for all employees and ensure consists
flow of growth. The issue of Brexit create chaos for business as management of Thislte hotel
face issue in retaining buyers and reducing cost of offering services. At this juncture, different
levels of organizationals structures and decision taken at each level of explained as follows- Top level management-Top level management include CEO, managing director and
other related managers who control entire business by framing varied strategies. Top
management of Thistle hotel take decision for expansion of business or motivation as
well as growth of workforce. According to the given scenario, Brexit assists management
to modify current strategy of business related to expansion. Middle level management-It is another level of management who directly approach line
managers for getting work done on time. However, the current situation of Brexit
affected performance of Thistle hotel due to less scope or choice regarding growth and
development. They can apply suitable motivation strategy for increasing satisfaction level
of employees. It would be effective to manage the current situation of Thistle hotel and
retain workforce for longer time span (Nunan, Campbell and Foster, 2012).
 Line management-It is the lower management who handle all the operation related to
rendering good quality of services to end users. For this purpose, it is necessary for
employees to work on the basis of guidelines provided middle level management. It
would be effective to create competitive edge of Thistle hotel in the marketplace.
4

CONCLUSION
From the above report it can be concluded that Brexit has positive and negative impact on
performance of companies selected. It assists country to form its own regulation and releases
businesses from the particular level of interventions. It can also be concluded that organisation
structure is important so as to manage all related functions accordingly and motivate staff
members to render good quality of services to end users . In addition to this, change model is
applied by corporation for management of changes and support businesses to motivate staff
members to cope up with the same.
5

REFERENCES
Books and Journals
Bleijenbergh, I., Peters, P and Poutsma, E. 2010. Diversity management beyond the business
case. Equality, diversity and inclusion: an international journal. 29(5). pp.413-421.
Boussena, S and Locatelli, C. 2013. Energy institutional and organisational changes in EU and
Russia: Revisiting gas relations. Energy Policy. 55. pp.180-189.
Klüver, H., 2012. Informational lobbying in the European Union: The effect of organisational
characteristics. West European Politics. 35(3). pp.491-510.
Nunan, F., Campbell, A and Foster, E. 2012. Environmental mainstreaming: The organisational
challenges of policy integration. Public Administration and Development. 32(3). pp.262-
277.
Richardson, J and Mazey, S. eds., 2015. European Union: power and policy-making. Routledge.
Van Marrewijk, A and Yanow, D. eds., 2010. Organizational spaces: Rematerializing the
workaday world. Edward Elgar Publishing.
Wilkinson, I., 2010. Business relating business: managing organisational relations and
networks. Edward Elgar Publishing.
Online
Organisations, Markets and Policy. 2017. [online]. Available through
<http://www.herts.ac.uk/research/centres-and-groups/business-management/organisations-
markets-and-policy>. [Accessed on 3rd January 2017].
6