Business Environment Report: Brexit, Challenges, and Business Response

This report provides a comprehensive analysis of the business environment, focusing on the impact of Brexit on UK businesses. It explores the pros and cons of the UK's membership in the European Union, examining the political and economic shocks caused by Brexit and the resulting uncertainties for businesses. The report also discusses the responses of businesses to both local and global environmental challenges, including currency fluctuations, competition, supply chain management, and legal factors. It highlights the challenges faced by local markets and the impact of technological advancements and global market dynamics. The report concludes by summarizing the key findings and emphasizing the importance of understanding internal and external factors that influence business performance.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
(a) Considered, reasoned and critical argument as to pros and cons of continuing British
membership.................................................................................................................................2
(b) Analysing and discussing the response of businesses to local and global environmental
challenges....................................................................................................................................4
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
The present case study is based on the topic business environment which is the sum total
of both external and internal factor which the business must keep in mind . Also this report will
discuss the meaning of Brixit as it exit of UK from European country. It will also discuss the
impact of Brixit on the business of UK as it will impact the business to the large extent. Also it
will discuss the response of business to local and global environment and also it will examine the
impact on local market
(a) Considered, reasoned and critical argument as to pros and cons of continuing British
membership.
Brixit has been important source of uncertainty for many UK businesses and also Brixit is
likely reduce future UK productivity. Brixit affect the UK business to the large extent and also
new policies and regulation make business in stable (Prajogo, 2016). As it is very important for
the business in UK to have proper knowledge of laws and regulation.
All companies are concerned about the nature of Britain's exit from Europe especially in
terms with their EU employees. As after this there will be shortage of employees as currently
there are 3.3 million EU citizens in UK so this will affect the company to the large extent. But
the government has offered some reassurance to EU citizens.
The first task of government will be to trigger Article 50 and formally declare the UK's
intention to leave. Also half of the FDI stock in the UK originate from the EU(Hamilton and
Webster, 2018 ). By the Brexit it has been political and economical shock with affect the
business as there will be many new policies and procedures which might not favour the business
thus it will impact the business stability to the large extent and also by Britain voted to leave the
European Union as its will affect the economy as there will be many fluctuations in the economy
as in gross domestic product , inflation rate of the economy which will affect the UK
business(Deasy and et.al., 2016). And also there will also be an impact on public sector bodies as
employers ,whether that's in terms of changes to UK employment law.
Referring to the period after the 29 march 2019 to the 31 December 2020 or possibly
after to make everything in the right place and allowing the business and others to prepare for
the moment when the new post Brexit rules between the UK and EU begins may have impact in
both the positive aspects and the negative aspects to the economy(Prajogo, 2016). Continuing the

British membership may have pros and cons to the economy and the business. Some of are
explained as follows:
Pros
 Brexit `might help the country in experiencing immediate its savings as saving can create
the sufficient cash reserves that can be useful in variety of ways to the economy.
 Brexit shifts the focus of trade for Britain that is separating themselves from the Europe
union will give the country an opportunity to negotiate its own trade partnership instead
of depending and relying on the multinational governing body(Hamilton and Webster,
2018 ) .
 Brexit will reduce the issue with forced immigration associated wit the EU that is under
the laws of the European Union to their member nation can't prevent anyone from the
another state hich is also the member from moving.
 Brexit offering the opportunity and possibility if the enw jobs as ion estimation there are
3 million jobs ii the Britain which are connected to the trade policies and procedures.
Separation from the Europe can create a risk where the employment opportunities can be
lost(Deasy and et.al., 2016). If after the separation trading increase than there is chance of
creating of the job opportunities.
Consequences
 Brexit will eliminate the protections of equal pay , maternity leave, and safe workplaces
 this will change the perspective of Britain being the gateway to the Europe( Colantone
and Stanig, 2018)
 it can create a lobar shortage which can decrease the potential for the economic growth
within the country(Kljucnikov and et.al., 2016).
 Declining population leads to fall in the demand for the goods and services
 'Brexit leads to prevent the sharing of the intelligence information
 it can reduce the amount of the foreign direct investment which is received by the
Britain'(Hillary, 2017)

 hence, there are many numbers of pros and cons which impact the business and economy.
(b) Analysing and discussing the response of businesses to local and global environmental
challenges
There will be many challenges of business to local and global environment challenges as
it impact the local business to the large extent as there will be many foreign laws and regulation
which affect the local business as change in policies and regulation will affect the local market as
it will be important to have proper knowledge of the policies(Kljucnikov and et.al., 2016). And
also the global business use advance technology which give tough competition to the local
market and also it uses many innovative and creative products which attract many customers and
also it decreases the market of the local business.
The currency rate fluctuation is one of the most challenging business problem to the
local market . And also it will face tough competition from both local market and as well as from
global market because of technology up-gradation(Hillary, 2017). The other challenges will be
managing suppliers and supply chain as global marketer will offer more to the supplier so it will
be important for the local marketer to develop strong relationship with the supplier so that it
provide material on time.
The legal factors plays the biggest challenge to the local market as if the laws and
regulation which made by the government not favour the local market that it will act as a biggest
hinder in the growth of the business(.Hobolt, 2016). The other factor if the import of the country
increases then it will negatively impact the local market.
CONCLUSION
The above case study is base on the business environment which is sum total of external
and internal factors that affect the business to the large extent. It is important for the business to
have proper knowledge of internal and external factor that affect the business. This case study
has concluded the impact of Brixit as it the withdrawal of the United Kingdom from the
European Union.
This report has concluded the impact of Brixit on the UK business as it will affect the
business to the large extent. And also it has concluded the response of local and global
environment challenges and also the impact on local market.

REFERENCES
Books and Journals
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics.171.
pp.241-249.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Deasy, S and et.al., 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9,247,042.
Kljucnikov, A and et.al., 2016. The entreprenurial perception of SME business environment
quality in the Czech Republic. Journal of Competitiveness. 8(1).
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Hobolt, S.B., 2016. The Brexit vote: a divided nation, a divided continent. Journal of European
Public Policy. 23(9). pp.1259-1277.
Inglehart, R.F. and Norris, P., 2016. Trump, Brexit, and the rise of populism: Economic have-
nots and cultural backlash.
Colantone, I. and Stanig, P., 2018. Global competition and Brexit. American political science
review. 112(2). pp.201-218.
Online
Pros and cons of leaving the EU. 2019 [Online]. Available through
<https://www.ig.com/uk/financial-events/brexit/pros-and-cons-of-leaving-the-eu>.