Research Project: The Prospect of Brexit Effecting Rail Gourmet

This research project investigates the potential impacts of Brexit on Rail Gourmet's operations, focusing on key areas such as employment, immigration, the economy, and the supply chain. It examines the challenges businesses face due to Brexit-related uncertainty, including potential price increases, difficulties in employing qualified staff, and supply chain disruptions. The research employs both qualitative and quantitative methods, using surveys and interviews to gather primary data, supplemented by secondary data from journals, articles, and books. The study aims to understand how organizations are preparing for these changes and how their operations will be affected, covering aspects like legislation, taxation, finance, immigration, employment, and trade. The research concludes with suggestions, recommendations, a personal reflection, and a final conclusion, offering insights into navigating the complexities of Brexit's impact on multinational businesses. Desklib provides access to this and other solved assignments for students.

Research Project
(Assignment Code: K/601/0941)
Research Project Title:
“The Prospect ofBrexit Effecting in Rail GourmetOperations”
By
Gabriel Mancebo Toribio
(Student ID: MRC/23667/HND)
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Research Project by Gabriel Mancebo Toribio – ID: MRC/23667/HND

Abstract
Brexit has become a main focus of attention for business around the globe,
especially for those businesses established in UK and unable to plan ahead because
Britishpoliticians do not relevant information about Britain economy future or do not
give any Brexit outcome. Since the vote in 2016, politicians couldnot guarantee an
agreement with EU, causing doubts, disruption and uncertainty, if the UK will survive
outside the EU without a deal and without a customs union and trading with other
markets. The research project has investigated and analyses the main four points of
Brexit that will affect businesses: Employment, immigration, economy and supply
chain.
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Research Project by Gabriel Mancebo Toribio – ID: MRC/23667/HND

Table of contents
1. Introduction …………………………………………………………….. Page5
2. Company Profile ………………………………………………………. Page 5
3. The Importance of this Research Project Study …………………… Page 5
4. Aims of this Research Project ……………………………………….. Page 6
5. Research Project Milestones ………………………………………… Page 6
6. Research Project Plan ………………………………………………... Page 7
7. Research Project Specifications …………………………………….. Page 7
8. Research Methodology ……………………………………………….. Page 8
9. Literature Review ……………………………………………………… Page 9
10. Research Results / Survey Results ………………………………..... Page
11. Interview Results ……………………………………………………… Page
12. Discussion ……………………………………………………………… Page
13. Research Recommendations …………………………….………….. Page
14. Research Limitation ………………………..…………………………. Page
15. Researcher Reflexion …………………………..…………………….. Page
16. Conclusion ……………………………………………………………... Page
17. Bibliography ……………………………………………………………. Page
18. Appendixes ……………………..…………………………………….. Page
16.1. Questionnaire …………………………………..…………… Page
16.2. Interview questionnaire…………..……………………….… Page
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Research Project by Gabriel Mancebo Toribio – ID: MRC/23667/HND

1. Introduction
This Research project will discuss and exposes the main key issue that British
business will be affected after Brexit. The researcher will use for this research Rail
Gourmet Ltd, a multinational company, due to their multinational logistic and
operation worldwide. To do so, the researcher will use in this research will start
explaining the importance of this research including the milestone, then the
researcher will discuss multiple theories from other researcher in the literature review
that will help the researcher to create hypothesis. Perhaps, the researcher will use
qualitative and quantitative techniques in form of survey and interview face-to-face
with customers and employees. Both techniques will help this research with more
specific information about Brexit and will allow the researcher to understand some
gaps that the literature review cannot cover. As mention the whole research will
cover different areas that Brexit is currently affecting or will affect if the United
Kingdom leave without a deal. Therefore, the researcher will cover all the areas,
mainly Employment, Law, Immigration and supply chain. To conclude with the
research, the researcher will conclude with some suggestion and recommendations,
a personal reflexion and a final conclusion.
2. Company Profile
The researcher has chosen Rail Gourmet as a business model for this research due
the operation around UK and Europe.Rail Gourmet Ltd, better known as RG or SSP;
Which is a multinational British company that operates worldwide and with main
headquarters in London (United Kingdom). The organization operates in more that
300 railway stations and 700 airports around the globe and has more 30.000
employees in UK and more that 300.000 employees around the globe.
3. The Importance of this Research Project Study
Since the Brexit vote in 2016, Brexit is the main concern of British and foreign
businesses due to the adverse changes in law, employment, supply chain, policies,
etc. Therefore, those changes force organizations to spend large amount of money
for adapting and preparing for those adverse changes. Perhaps, some organizations
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Research Project by Gabriel Mancebo Toribio – ID: MRC/23667/HND

are preparing to move their operation to other European countries and panning to
stop all the operation in UK, because they believe that the economy will be seriously
damage after the Brexit. Businesses are facing uncertainty due prices increase (If
not trade deal is agree) inability to employ qualified employees outside UK due
changes in the immigration law and most importantly the supply change.
The researcher wants first to understand the behaviour of this organizations, using
Rail Gourmet ltd as a main business model for this researcher due their multinational
operation around the world. This research project studies the main issues of Brexit,
how businesses are preparing for his changes and most importantly how Brexit will
impact on businessoperations.
4. Aims of this Research Project
This research aims are to identify the key factor that organizations will face or
recently facing due the uncertainty of Brexit using as a main source of information
Rail Gourmet operations. Before achieving those aims, the researcher will set some
important key points, objectives, that need to be addressed
1) Understand the Rail Gourmet operation and how Brexit will impact their
operation.
2) Identify the main concern that Rail Gourmet operations will face after Brexit.
3) Identify which business operation will be affected.
4) Suggest for avoiding certain risk of Brexit that may affect the operation.
5) Recommendation of how drastically changes need to be address and how to
adapt to further changes.
5. Research Project Milestones
The main milestone of this research is that the researcher will use primary and
secondary. Primary data will be obtained from both quantitative and qualitative will
consist in a number of questions or survey and an interview with candidates in case
the researcher need more information. This will allow the researcher to obtain
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Research Project by Gabriel Mancebo Toribio – ID: MRC/23667/HND

essential information necessary for this research. On the other hand, secondary data
will be obtained from journal, articles, books and educational website, that will allow
the researcher to better understanding of the theories and techniques done by
another researcher works. Another milestone to add in this research is the
discussion that will allow the researcher to explain deeply all the data collected from
primary and secondary sources, by mixing both main sources to clarify the whole
content of the information obtained.
6. Research Project Plan
The researcher has been given a time set from the lecture to complete this research
project. This research will start at 7th of January 2019 and finishing on 23rd of March
2019. The researcher will commence this research by completing the literature
review first, as suggested from the lecture. Then once completed, the researcher will
start creating a questionnaire and inviting candidates to attend the survey and
interview. Once the researcher completes the survey and interview, the researcher
will analyse carefully the information collected and will create a discussion where the
researcher will mix primary and secondary source, which are link to the main topic of
this research, for better understanding of the whole research and the outcome. Once
all tasksare completed the researcher will submit his work to the lecture for further
feedback and will made changes if is need it.
7. Research Project Specifications
During the literature review, the researcher identified an issue with customer
behavior when purchase a product. Majority of the customers do not want to
purchase expensive products or luxury products, because the result showed that
majority of the customers cut of the shopping due the Brexit result and prefer to
spend more in products with major necessity such as food, drinks or personal
hygiene. On the other hand, the literate review along with the result reflected that
organizations are suffering for recruiting new staff and they are unprepared for
changes in legislation, law and importation prices. Perhaps, the incising taxation
after Brexit is the main worry of organizations.
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Research Project by Gabriel Mancebo Toribio – ID: MRC/23667/HND

Therefore, in this research project, the researcher will identify the main key points that
Brexit will impact in organization, using Rail Gourmet (RG) operation as model and
example for this research and the researcher will explore how the economy may also
affect the organization. The main key issues that will affect or is affecting are changes
in the legislation, taxation, finance, immigration, employment, supply change and
exportation and importation. Perhaps, the researcher will examine how organizations
are preparing for those changes and how their operation will change.
8. Research Methodology
Firstly, the methods that the researcher will use to obtain data will be primary and
secondary methods. The primary method will consist in obtaining data from the
candidates that will participate in the survey and interview. On the other hand,
secondary data will be obtained from other researcher or authors journal,
newspaper, article, book and appropriate websites that also is related with this
research topic. Perhaps, the researcher will mix both methods during the discussion,
allowing the researcher to create hypothesis.
The researcher will use two approach in this research deductive and inductive. The
deductive approach will consist in collecting data from primary and secondary
sources for formulating different hypothesis. Inductive approach will consist setting
the aims and objectives of this research. Perhaps, inductive approach will allow the
research to compare the data collected, allowing the research to explore and create
different theories for the discussion and conclusion.
The simple size in this research will consist in forty candidates. All candidates are
employed by the organization, the researcher selected 30 employees and 10-line
manager. The researcher was not able to invite more candidates for the survey and
interview due busy pick time in the locations (Mostly airports and railway stations)
and some manager did not want to disclose private information about the
organization. Perhaps, some employees did not want to participate. Therefore, the
researcher uses the non-probability sampling, which is consisting in selecting
random candidates.
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Research Project by Gabriel Mancebo Toribio – ID: MRC/23667/HND

9. Literature review
During this section, the researcher will obtain information from articles, books,
journal and educational or government websites that are related with the main topic
of this research and necessary to create hypothesis during the discussion. Financial services affecting organizations after Brexit
Financial service in United Kingdom is available for businesses twenty four hours a
day and seven days a week, allowing organizations to acquire financial services
instantly. These financial services included payments, loan, banking or even
accessing to trade markets. According with Daniel Gros (2016), financial services
could be the first sector to be affected if a no-deal is reached due the low growth
economy and a possible financial crash (James, and Quaglia, 2019, p. 258-271).
This will force financial companies such as bank to move their operation overseas,
reducing their services or even to stop completely their services in UK. The
researcher agrees with Gros’s book that the financial sector will be the first to be
affected in the event of no-deal. However, in today’s world majority of the financial
services can be done online or phone, this could be an alternative for those financial
companies willing to move their operations overseas (Portes, and Forte, 2017, p. 31-
44). Taxation affecting organizations after Brexit
The low growth economy in UK and inflammation along with a possibility of
unemployment figures rising drastically in the event of no-deal agreement will be the
detonation for rising taxes, business rate and VAT (Wright et al., 2016, p. 682-686).
Such as scenario will force majority of British businesses to shut down due the
increasing of taxes and the VAT in goods, especially in products imported from the
EU (Bull, 2017). The researcher agrees with the Bull’s journal that organizations will
suffer to cope with their operation if the government decides to increase the taxes.
However, this scenario will not impact in businesses immediately after Brexit, the
process could take long time to take place (Coulter, and Hancké, 2016, p. 148-156).
Perhaps, the government will raise the TAX accordingly with the economy
circumstance. Legislation change affecting organizations after Brexit
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Research Project by Gabriel Mancebo Toribio – ID: MRC/23667/HND

After Brexit, there are many changes related to legislation will impact the
business approach of the organization. The legislation like MiFID, EMIR and Data
privacy will be change and will have a significant impact on the working of an
organization (Oliver, 2017, p. 519-532). According to analysis, the third country firms
will not be able to use the London based subsidiaries to maintain their business.
Moreover, the EMIR will not apply to the UK as UK firms will not maintain the
business with central counterparties (Dhingra et al., 2016, p. 2). The data protection
legislation GDPR will also not apply to the UK as an organization cannot share the
information related to the transfer of products and services. Immigration law change affecting organizations after Brexit
The immigration laws of the UK are changed after the Brexit, the new Start-up
visa was announced that involve open applications for experienced business
persons who can endorse the business. This kind of change is having a positive
impact on organizational operations as Tier 1 Entrepreneur Visa encourage the
innovation, viability and scalability for the business person to start the business in the
UK (Ringe, 2018, p. 1-34). The reform of immigration law is helping the overseas
entrepreneur to submit the application under the existing route and manage the
business operations from distance (Sampson, 2017, p. 163-184). Employment law change affecting organizations after Brexit
The free movement in the UK will be affected after the Brexit as the changes
in the current Points Based System for immigration. Now the higher skills worker can
get permission to work in the UK (Di Cataldo, 2017, p. 814-839). The employer can
hire and select people by considering knowledge and level of experience to manage
their operations. The employer can offer Tier 2 (General) Visa for the highly skilled
people and offer £30,000 salary. The immigration charges will be £1000 per worker.
However, the employer would not have to advertise non-shortage occupational roles
for foreign workers. Employment turnover affecting organizations due to Brexit uncertainty
The event of Brexit has increased uncertainty for foreign workers as changes
in laws and working conditions affecting the living approach. The organizations are
also not clear about the future approaches related to working visa and extension
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Research Project by Gabriel Mancebo Toribio – ID: MRC/23667/HND

period for immigration. These factors are influencing the rate of employee turnover in
the UK. The high turnover rate in the services and manufacturing sector is having a
negative impact on the business productivity and profit level of the organization
(Schoenmaker, 2017, p. 119-138). Moreover, the lack of skilled employee is affecting
operational activities and the quality of the products and services of the organization. Supply change affecting organizations after Brexit
The changes in legislation and regulations for business and developing
partnership activities with foreign companies are affecting the supply chain function
in the UK. The leading organizations are facing issues for inventory, logistic planning
and delivery of the products and services (Simionescu, 2016, p. 1-18). The
organizations are not clear with taxation which will apply to the supply chain
operations. The lack of knowledge related to regulations is affecting supply chain
functions of the organization in the UK after the Brexit (Cumming, and Zahra, 2016,
p. 687-692). Stock change affecting the economy after Brexit
The GDP growth of the country after the referendum of Brexit is getting
slower. The British organizations are not able to export goods and services as a new
rule of supply chain and taxation was applied by the government. The trade
relationship of the organization was affected due to Brexit that has increased inflation
(Ziv et al., 2018, p. 487-498). The decline in production, trade and export of goods
and services is having a direct impact on the economic condition and stock change
values of the organizations in the UK as share prices are declining compared to
international values (McMahon, 2016, p. 95-101). International trading affecting organizations sales
The uncertainty in business operation and regulation related to trade is having
a direct impact on the international trading and sales of the organizations of UK. The
management of the company is not having clear information related to tax structure
after the Brexit and regulations of maintaining international trade with the EU
countries (Ebell, and Warren, 2016, p. 12-138). The exchange of products and
services was easy while being a member of EU but that Brexit has affected
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Research Project by Gabriel Mancebo Toribio – ID: MRC/23667/HND

international trading of UK organization and having a negative impact on
organizational sales. Transportation delays affecting organizations
The transportation delay is not a big issue for the organization due to Brexit.
The changes in supply chain rules and trading policies with EU countries are having
some influence on the supply of the goods and services that slowing the
manufacturing operations. The organizations are facing a delay in transportation as a
lack of information about new regulation for logistics and distribution of finished
goods (Lightfoot, Mawdsley, and Szent‐Iványi, 2017, p.517-524). The uncertainty
related to charges and supply changes is affecting the operations of companies in
the UK. Organizations affected due to slow growth in the economy
The event of Brexit has affected overall business rules and regulations in the
UK. The growth of the economy is slow due to new trade policies and relationship
with overseas organizations. The slow economy is having a direct impact on
organizational functions for manufacturing and distribution of goods and services
(MacMillan, 2016, p. 420-430). In addition to this, lack of trade relationship with EU
countries has increased the tax on services that creating an extra burden on the
organization to maintain the growth in the slow economy (Taylor-Gooby, 2017, p.
815-835). Organizations moving their operation to other European countries
By considering the impact of changes after Brexit the organizations are
looking to shift the business operation from the UK to other EU countries. The slow
economy and extra tax on export and import of goods and services are minimizing
the profitability of the organization (Ford, M., 2016, p. 473-495). These kinds of
complications are encouraging the organization to move the operation to EU
affiliated countries (Dhingra et al., 2018, p. 9-24).
10. Research Project Specifications
During the literature review, the researcher identified an issue with customer
behavior when purchase a product. Majority of the customers do not want to
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Research Project by Gabriel Mancebo Toribio – ID: MRC/23667/HND

purchase expensive products or luxury products, because the result showed that
majority of the customers cut of the shopping due the Brexit result and prefer to
spend more in products with major necessity such as food, drinks or personal
hygiene. On the other hand, the literate review along with the result reflected that
organizations are suffering for recruiting new staff and they are unprepared for
changes in legislation, law and importation prices. Perhaps, the incising taxation
after Brexit is the main worry of organizations.
Therefore, in this research project, the researcher will identify the main key points that
Brexit will impact in organization, using Rail Gourmet (RG) operation as model and
example for this research and the researcher will explore how the economy may also
affect the organization. The main key issues that will affect or is affecting are changes
in the legislation, taxation, finance, immigration, employment, supply change and
exportation and importation. Perhaps, the researcher will examine how organizations
are preparing for those changes and how their operation will change.
11. Research Results / Survey Result
During this section, the researcher will explain in detail each question answered from
the candidates and the translate all the data transformed in statistical data for better
understanding.
 Figure 1: Candidates gender
Female Male Prefer not to say
0
5
10
15
20
25
18
21
1
"Candidates gender"
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Research Project by Gabriel Mancebo Toribio – ID: MRC/23667/HND