Strategic Brand Management Report: Brexit and UK Foreign Investment

This report delves into the strategic brand management implications of Brexit on the United Kingdom's ability to attract foreign direct investment (FDI). It begins by defining Brexit and its context, highlighting the UK's desire to establish itself as an independent investment destination. The report then explores how Brexit is branding the UK for FDI, examining the potential for job creation, tax revenue generation, and the development of new businesses. It analyzes the impacts of Brexit negotiations on FDI, considering both positive aspects like increased production and technological advancements, and potential negative effects such as higher trading costs and reduced productivity in certain sectors. The report also presents findings from audits and data, showcasing the continued interest of foreign investors in the UK, particularly in financial and tech sectors, despite Brexit. Finally, it offers recommendations for the UK government to attract investors, including showcasing strengths, modifying commercial laws, and implementing tax incentives to encourage foreign investment and ensure the UK's economic growth. This report provides valuable insights into the complexities of Brexit and its effects on the UK's economic future, making it an important resource for students studying business and economics.

Strategic Brand
Management

Table of Contents
INTRODUCTION................................................................................................1
TASK ...............................................................................................................1
Brexit .......................................................................................................1
How Brexit is branding UK as a foreign direct investment destination.....2
The impact of Brexit Negotiation on foreign investment in the UK..........3
Information obtained by audit of the UK.................................................4
RECOMMENDATION..........................................................................................6
CONCLUSION....................................................................................................7
REFERENCES ...................................................................................................9

INTRODUCTION
In terms of marketing, management of brand is an eminent concept
which is used for evaluating and planning about how a particular brand could
be perceived in existing market place. In context to this, UK should formulae
specific strategies in order to make its unique image in front of civilians as
well as abroad investors (Inglehart and Norris, 2016). Thus, it help them in
seeking attention of large number of customers towards their deliverables.
The current report is based on United Kingdom. In this project discussion is
going on about how UK could establish itself as a destination of foreign direct
investment. It has been found that they are separating themselves from
European Union. This phenomenon is known as Brexit. Hence, the similar
construct of strategical brand management would be used by them in doing
so. In addition to this, important recommendation has also been provided in
context to this. This assist them in adopting proper schemes for attaining
their main aims and objectives.
TASK
Brexit
Brexit simply refers to the expected withdrawal of the United
Kingdom from the EU. This has been discovered from survey that in a
referendum that had occurred on 23 June in 2016, around 51.9% of the
involved electorate of UK were voted to leave the EU out of a assemblage or
gathering of approx. 72.2%. They are hoping to set up their own marketplace
without any interference of nations of various other countries. This is the
main reason of doing so. In this context, Theresa May (Prime Minister) has
declared that the United Kingdom would not desire in maintaining
imperishable membership or relationship of the single marketplace. In
addition to that, they are not interested in following the norms and policies of
union after leaving the European Union. For this, they have promised to
cancel the European Communities Act of 1972 and thus, are not
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incorporating in existent law or legislation of EU into domestic law of UK
(Hobolt, 2016).
How Brexit is branding UK as a foreign direct investment destination
Each and every nation wants to become independent and developed
as well in all terms either financially, politically or socially. United Kingdom is
also having these kinds of perception. This is their dream to represent
themselves as a destination of foreign investment so that different other
countries come here to invest and start their business. This would surely help
them in becoming rich and successful in comparison to many another places
or countries such as Germany, Europe, Italy, Russia,US and so on. After
leaving EU, Brexit is seem to provide them a golden chance of making
isolated and unique reputation in field of business so that they could take
their personal decision afterwards in affiliation to commerces.
When numerous of companies may enter into the market sphere of
United Kingdom then, they could easily generate huge quantity of jobs. This
is proved to be advantageous for entire nations since the people who are
unemployed may receive good occupations from that. This in turn upgrades
the overall productivity in several firms which are UK based or come from
another states to do business. Thus, these all aspects aids government of
refereed country in acquiring different types of taxes and hence could gain
higher amount of money. Afterwards, they can apply or utilise the identical
or received monetary amounts in welfare of citizens. At the same time, such
funds may also use by them in generating of creating another businesses in
order to impress their abroad depositors (Dhingra and et. al., 2016).
Therefore, it can be said that UK emerges as one of the popular brand after
leaving European Union wherein numerous of investors can invest their
currency.
The impact of Brexit Negotiation on foreign investment in the UK
After the Brexit negotiation, there are so many implications of Brexit in
relation to the foreign investment in the United kingdom. These can impact
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the whole foreign investment process and activities in positive or negative
way. The key impacts is explained below :
 This has been seen that negotiation of Brexit is impacting on UK. For
instance, they are receiving specific amount of money from EU but also
giving them same. The FDI (Foreign direct investment) would increases
overall level of production of this territory. This in turn offers them in
yielding best outcomes and revenue. Various international
organisations will supports in bringing good technological as well as
managerial tools & techniques. As a fruitful result, companies
operating under referred country could easily perform and manage
every types of organisational chores, therefore, they come to know
about better manner of working and this effectively raises their entire
turnover per annum. Along with the same, FDI also supports in
encouraging national or regional enterprises for the improvement. For
instance, this may help in giving tough competition to other one by
giving them powerful supply chains (Howard and Kollanyi, 2016).
 UK comprises of nearly more than £1 trillion in its FDI stock. This could
be said that such a ratio is very high which is around half of the some
other member of the EU. Therefore, United Kingdom is a suitable place
for doing investment since they could easily beat up or access the
single market of European Union. It is the key reason that numerous of
investors from abroad are attracting toward them after the
introduction of Brexit negotiation. They are thinking to may spend their
precious revenue and time in denoted nation since this will surely
support in earning great amount of profitability. Hence, all state would
generate more and more turnover only by spending their money in UK.
But, It is to be noted that after Brexit, high cost of trading with the EU
might probable to depress FDI.
 It is estimated that there adverse influence of Brexit negotiation
process, especially on the sector of auto- mobile. The degree of
productivity affiliated with cars has been reducing. The production of
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nearly 181,000 cars i.e. 12% has fall down, due to this their costing has
increased by around 2.5 % which is too high. Even though, if
mentioned state may manage and control a comprehensive dealing in
trade along with keeping tariffs at zero, the production might
decreased by 36,000 cars (Dorling, 2016).
 UK is considered as one of the largest recipient of FDI in terms of
industries of fiscal services. Herein, point to be noted that limitations
on rights like 'single passport' by following Brexit will causes big cuts in
the action. Moreover, this country is also not able to challenge different
types of principles and regulations of European Union at the their court
of justice.
Information obtained by audit of the UK
Some of the important data which is accumulated after doing deep
investigation are presented as follows :
 It has been observed that many financial projects of UK are keep on
seeking attention of overseas depositors (Barrett and et. al., 2015). As
per the report formed by accountancy giant EY, approx. 69 of the fiscal
assignments has attracted various investors who visited London in
recent years. On the other hand, only 12 projects of Frankfurt and just
19 of French one are approved. This shows that more people from
several another states or territories are liking UK as a fertile soil since
it aids in growing seeds of profits and advantages (Kierzenkowski and
et. al., 2016).
 New data has been compiled for London and its partners which is
reveals that venture capital investing into the sphere of tech of United
Kingdom has reached at a great hight in 2017. Companies operating
and performing under UK has acquired approximately £2.99bn of new
funding. This is nearly or roughly twice in relation to figure of 2016 that
is about gross of £1.63bn.
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 There are numerous of firms which has been invested in denoted
country after their decision of leaving EU. Some of the key ventures
are Aberdeen, IGNIS, InfraRed, CBRE, Lloyds Banking group, M&G real
estate, Mansford, PALMER, Zara, SEGRO, Virgin Atlantic, TOPLAND
group, etc. This is representing that large number of capitalists have
spend their currencies in performing commerces at this place. Thus , it
contributes a lot in generating higher quantity of production and
receiving huge sum of profits in return of the same (Colantone and
Stanig, 2018).
 It has been observed that in London many ventures associated with AI
(Artificial Intelligence) are also enjoying a better year since the amount
of fund has been raising now a days. Bigger dealings for corporations
such as Callsign (£26.92m), Starship Technologies (£13.95m), Babylon
Health (£47.56m) and many more have saw speculation in London AI
firms are going above £200m for first and foremost time. This
represents that there has occurred around 50 percent increment
herein when compared with last year that is 2016. Companies
belonging from AI has been elevated a record and reached at £488m
past yr in all over United Kingdom. It is some how more than double as
much as founded in 2016.
 Apart from above discussed sector, technological region in UK is also
constantly alluring almost various of the starring world – wide players
with, Apple , Google & Amazon. These all are making epochal
investments in mentioned nation in previous years. Along with this,
Spotify has also proclaimed that it would spread out its operation
associated with R&D in London and this will double its headcount
(Möller and Oliver, 2014). On the other hand, it has been found that
one of the largest Social media company named as Facebook has
affianced to UK that they will create roughly an extra 800 occupations
for its new London headquarters. From this, civilians living over there
as well as workers would receive most facilities. For instance,
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personnels may attain so many opportunities of job. This could
improve their existing conditions as there is no need of running here
and there in search of job. At the same time, living standards of
citizens would also improved from such things.
RECOMMENDATION
As UK desire to set up their own kingdom, they need to focus on
various strategies in order to seek attention of large number of capitalist
towards their country. For this, they could show the benefits of investing in
their market and convince them for doing so. Some of the plan of action
which would proved to be more beneficial is stated below :
 They can represent their strength to all those capitalist which are
probably seem to be interested in doing business at their own country.
It will surely draw or attract them for doing the same.
 Since UK is still a member of EU, thereby they are not having the
permission to work alone but after isolating from the similar,
government of UK may acquire the opportunity to design various
legislations of their own. In this context, they should improve or modify
the laws and order regrading commercial activities. Government ought
to form some enact which may give benefit to all those foreign
members that might likely to be a part of United Kingdom. For
instance, legal bodies would permit each and every venture for doing
commerces at their native place by offering them no taxation polices in
terms of import as well as export for a specific period of time. Herein,
those firms many be attracted as they would be not liable to pay any
kind of taxes when ever they might use to export and import
merchandise or services. Thus, it is a good idea which assist in pulling
attention of huge crowd of international investors. On the other hand,
government might take action against any form of unfair activities
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regrading business and at that time those companies which founded
guilty may be punished financially or in some other way.
 Especial team members should be hired by higher authorisation of UK
and provide them duty to collect data regarding probable or expected
overseas depositors so that they could keep their eyes on the same
and could easily make strategies for impressing such nations by
offering special relaxation or rebate on their trading actions.
 Government ought to focus different obligations on improving their
current circumstances in context to finance, technology, social
conditions, transactions, transportations, supply chain management,
maintaining smooth and ethical environment at work stations and
many more. These all contributes in alluring larger number of firms
from various other places.
 Legal bodies should make effective and effectual schemes in order to
handle assorted types of barriers which may come in their way of
attainment.
CONCLUSION
From the above based report, it cam be concluded that the decision of
leaving EU is good for the United kingdom as this will give them a chance to
emerge itself as a great nation regarding business. In other words, it can be
said that this would help them in becoming a unique brand in existing
market place. This in turn aids in attracting so many investors from foreign
nations in order to put their funds and integrating their businesses with the
referred country. It is proved to be more beneficial for UK since after these
huge investment, they may become dock of commercial activities and every
other firm want to spend money over there. But there are also some
negative implications of isolating from Europe Union. For instance, this is
very difficult to beat up all such countries which are a part of EU. This could
be proved from the recognition of reduction in the productivity or
manufacturing of cars. Therefore, if UK wish to become successful and
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achieve all of their predetermined goals, then they has to design some
strong strategies so as maintain its presence in corporate world.
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REFERENCES
Books and Journals
Inglehart, R. and Norris, P., 2016. Trump, Brexit, and the rise of populism:
Economic have-nots and cultural backlash.
Hobolt, S.B., 2016. The Brexit vote: a divided nation, a divided
continent. Journal of European Public Policy, 23(9), pp.1259-1277.
Dhingra, S and et. al., 2016. The consequences of Brexit for UK trade and
living standards.
Howard, P.N. and Kollanyi, B., 2016. Bots,# strongerin, and# brexit:
Computational propaganda during the uk-eu referendum. Browser
Download This Paper.
Dorling, D., 2016. Brexit: the decision of a divided country.
Kierzenkowski, R and et. al., 2016. The economic consequences of Brexit.
Colantone, I. and Stanig, P., 2018. Global competition and Brexit. American
Political Science Review, pp.1-18.
Möller, A. and Oliver, T., 2014. The United Kingdom and the European Union:
what would a “Brexit” mean for the EU and other States around the
World? European and global perspectives. DGAPanalyse.
Barrett, A and et. al., 2015. Scoping the possible economic implications of
Brexit on Ireland. Dublin: Economic and Social Research Institute.
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