Contemporary Business Environment: SME Analysis and Government Support

This report analyzes the contemporary business environment, focusing on the challenges faced by Small and Medium Enterprises (SMEs) in the UK, particularly during the COVID-19 pandemic. It investigates the internal challenges SMEs face, such as leadership, tradition, and strategic planning, as well as their interactions with the external environment. The report also examines the role of the UK government in supporting SMEs, including financial assistance and tax relief measures. Furthermore, the report explores the economic environment in which Virgin Money operates, considering the worldwide business climate and its impact on the UK. The analysis utilizes relevant theories and models to support the arguments presented, providing a comprehensive overview of the challenges and support mechanisms within the UK business landscape.

Contemporary
Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
Determine the key challenges that affected the internal environment of the company..........4
Plan of action of interaction with the outside environment during a period of Covid-19
pandemic.................................................................................................................................6
Investigate the role of UK government in supporting the SMEs during the Pandemic.........7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
INTRODUCTION.........................................................................................................................10
TASK 2..........................................................................................................................................10
Examine the economic environment within which Virgin Money business operate in the
United Kingdom...................................................................................................................10
Inspect the worldwide business climate and its effect on nations with an accentuation on the
United Kingdom...................................................................................................................11
Use relevant theories and models to properly analyse the case study and support your
arguments.............................................................................................................................13
Theory in context to Virgin Money:.....................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Contemporary business surroundings are always shows the upward trend of competitive
and vital market in the economy. These changes are occurs by updating techniques and tools in
the business world that includes the quick fluctuation in the accounting control concepts in order
to increased the motions (Abuselidze and Slobodianyk., 2019). Therefore, it is important for the
organization or firms to control and develop the logical and useful values for business
forecasting or consuming accounting methods in order to support the business planning,
directing and future decision making. In this report, the discussion are related to the business
environment of SMEs in the nation UK that include analysis of key challenges which effected
the internal surrounding of the firms and their methods of communication with the external
surroundings within past 2 years. Moreover, it investigate the role of legislative of UK in
supporting the small and medium sized enterprises during the pandemic. The report is followed
these points in the form of essay.
TASK 1
Determine the key challenges that affected the internal environment of the company
The SMEs are play a big role in business environment from the past years. In UK, some
SMEs are everlasting and some of them are specifically relevant because of the present political
roughness. Due to this the challenges are also generated which effected the business firms but
from past year these issue are increasing quickly because of Pandemic situation. In the following
some challenges are described in Context of the Small and medium-sized enterprises:
Leadership: The small and medium-sized enterprise do not need a knowledgable and skilled
leader to regulate the business firms that why the average skilled people also regulates its own
business on SMEs and develop its profile as an entrepreneur. But this practice generate most of
the challenges at the time of running the organization and leading employees because of
acquiring lack of knowledge and experience in the field (Oey and Lim., 2021). During the
pandemic time this problem are faced by every peoples or leader whether knowledgable or not
because at this time the situation impacts the population health and decreases the economic
position of the country. But this period also describes the quality or capability of every
entrepreneur whether they are using right techniques or not in running the management.

Tradition: Each and every SMEs needs to follow the right path or tradition to run the business
enterprises smoothly and this will all done with the help of the business owners. It is important
for the organization to make a crystal clear objectives for bringing the value in the management
system. These values generally include four types are honesty, gives best services to the
customers, time to time innovation and the respect. All these value are the key to well run the
enterprises (Koh., 2020). In the period of Covid business hits badly but it is important for the
companies to assure that values are regulated accordingly and works towards creating a lively
tradition.
Plan of Action: The less degree of knowledge in SMEs leaders effects the entire organization
because their planning are not well and planned. Presently, the innovation are take place in a
very huge level where the enterprises are helpful in making the good plan. These innovated tools
does not take a more time to getting the ideas and spent its time in thinking about where the
business position in 3 years period and how the ideas can be accomplished.
Strategy Carrying out: The strategic plan are always helpful for the SMEs to achieve a strategic
goal by executive the proper plan, strategy and ideas. After meeting the objectives in every 3
months, entrepreneur facilitative in keeping the advantages of marginal gains which are acquire
by meeting every target.
Implementing an “A” group: It is the one such challenge which is most appropriate and useful
in every SMEs because they all search for the candidate who have a lot of knowledge in growing
and expanding the business (Nah and Siau., 2020). These functional areas are production,
accounts, sales and business operation. For running the business firms smoothly, it is important
to manage or maintain the daily operation activity and this will only done by the business
owners and directors.
Making the business concern Stand out: It is hard for the company to detect the competitive
edge because the market of the economy are very broad in the present time. This practice are
important for the SMEs but takes lot of time, cost and resources for examining and assuring
everything it can be stand out. To make a position in the market business needs to maintain
quality, convenience, price and customer services.
Putting the Employees first: The business organization need to be done it practices according
the demand of the consumers and this will only done by when the company puts its candidate
who are well trained and experience.

System and Processes: Currently the customers uses lot of the online shopping where they get a
feature of feedback. But in small scale business these features and systems are not available
because their uses are less competitive in this businesses (Čavoški., 2020). If the business
enterprises uses these well considered, good, tried and process and tested system then the
organization are helpful in analysing the what time the delivery are taken place, what type of
product are delivered, etc. Due to this customer are also give the right response and purchase
more products and services.
Fruitfulness: It is depend on the quality and consistency of the product and services for gaining
a fruit full result (Iwuoha and Aniche., 2020). It is more than challenge because it is the
awarance of operation to check each and every product quality by reducing the wastage.
Measuring Performance: Performance measuring is a big challenge for small and medium-
sized enterprises because it detect the error and practice which are implementing in the
organization are good or not.
Plan of action of interaction with the outside environment during a period of Covid-19 pandemic
SMEs play a huge role in nation economic growth or heath and poor plan of action
activity are planned to be most specific reason of SMEs inadequate success. Hence, finding out
the area of strategic management are important task of this organizations. The strategies of small
and medium sized enterprises is managed through an informal way and instinctive trend through
the approach of fire fighting, focusing on short term projects. These plan of action are framed
and control by the business owner and managing director. Therefore, it indicates and figures that
the awareness of strategic plan in the SMEs managers and its entrepreneur is critical evaluation
determinant of business concern survivals and objectives in the long run (Moon and Chan.,
2022). The manger of successful Small and medium sized enterprises examine the integral
performance of practice either deliberately and visibly or deliberately or invisibly. Hence, these
Small and medium-sized enterprises are plays a major role in country economy and also thoughts
that proper and strategic operation is main key field which SMEs managers need to put for
emphasis on in relation to long term competitive stay . During the pandemic time all the nation
economy along with business enterprises are effected because the global challenge are formed
which effects the health of the population badly. UK are the well developed country in the world
but it is also effected from this situation so, the small and medium sized enterprises implemented
the strategies for running the business without facing any problem. These strategies includes

ensuring the subsequent planning for the survival of organization. This investigation are goes on
the significant level of agility strategic among the telecommunication company, teaching
enterprises, expanding the firm and fresh company tradition were speedily mobilized on the basis
of accurate or better directing or leadership from the group of management. All these points are
implemented specially for setting the underlying growth ability in the New space plants that
contain structural consumption ability in the ecosystem that provides the firm to perform the
activity smoothly without facing any type of global challenges (Widarti, Desfitrina and
Zulfadhli., 2020). The government or financial institution of UK also supports the 88% SMEs at
the time of Covid-19 and half of the UK small and medium sized enterprises modify its business
model by implementing the digital working and also they provide its employees a temporary
leave according to their needs. It further gives the facility of Work from home to its employees
as per their demand or by following the government guidelines.
Investigate the role of UK government in supporting the SMEs during the Pandemic
UK economy is immensely influenced by the small and medium-sized enterprise. They
are affected by the country's bad economy during the covid-19. Small and medium-sized
enterprises are contributing almost 50% of the total gross domestic products (GDP) and a higher
percentage of the revenue in the total revenue of the UK. Covid-19 crisis have affected the small
and medium sized enterprise to a great extent as the during such period UK's economy hits a
major downfall (O'Hara and Toussaint., 2021). Due to this crisis, small and medium-sized
enterprises of UK suffered with many difficulties like non-repayment of the loans that causes an
increase in the no. of defaulting on loans. Due to lack of funds, small and medium-sized
enterprises considered their ability whether they are able to retain their employees for future and
doubting whether this crisis have affect their entire supply chains. Their supply chain have
disrupted due to this crisis and this is concerning the small and medium-sized enterprises
whether they will be able to reset its entire supply chain again after the pandemic get over.
Because to this crisis, small and medium-sized enterprises are concerned over the ongoing
growth projects which required to be either stop or work with less efficiency.
To support all the small and medium-sized enterprises of the UK is critical, but still UK
government provided some sort of relief. Those small and medium-sized enterprises having more
than 10 employees and have an annual revenue more than £2 million are benefited by the UK
Government by allowing the annual earning taxes on deferral payment system and reducing the

business tax rates for the pandemic period. This amounts in the saving of cash outflow for the
small and medium-sized enterprises for that period as well as they will able to manage the
overall funds (Becken and Hughey., 2021). Few small and medium-sized enterprises are even
suffered for their survival, to make them sustainable for longer period UK Government provide
them financial assistance in the form of debts with subsidised interest rates, this will help them in
satisfy their financial requirement for the business and with this they would be able to make
sustainable for a short period until pandemic gets over and things become normal. We examine
various variables which make commitments to this idleness - like the haziness of evaluating
structures, as well as the need for a more noteworthy trustworthy exchanging way later in our
reaction. However, concur with that likewise gauges here, even as supportive, will demonstrate
lacking to address customer dormancy and make an additional a unique market, except if the
crucial difficulties that originate from the free-if-in store financial life sized model and the
resultant impetus structures for the two organizations and purchasers are not tended to at the
indistinguishable time
CONCLUSION
In this report it can be concluded that the company mainly concentrating on the small
medium enterprises in the UK nation. Which mainly face some challenges which create an
impact on the internal and external working environment of the firm and their plans of
comparison with the external environment of the last two years. This factors create disruptions in
the internal and external activity of the firm which highly create an impact on the working of the
business. Apart from this it analyse the objectives of the UK government which basically support
the small medium enterprises at the time of Pandemic situation. Because at the time of COVID -
19 small medium enterprises suffer a lot they don't have enough funds to provide their
employees in the organization. On that basis, government of UK country support them and
provide funds for their business endurance.

REFERENCES
Books and Journals
Abuselidze, G. and Slobodianyk, A., 2019, December. Pandeconomic crisis and its impact on
small open economies: a case study of COVID-19. In Energy Management of
Municipal Transportation Facilities and Transport (pp. 718-728). Springer. Cham.
Becken, S. and Hughey, K.F., 2021. Impacts of changes to business travel practices in response
to the COVID-19 lockdown in New Zealand. Journal of Sustainable Tourism. pp.1-19.
Čavoški, A., 2020. An ambitious and climate-focused Commission agenda for post COVID-19
EU. Environmental Politics. 29(6). pp.1112-1117.
Iwuoha, V.C. and Aniche, E.T., 2020. Covid-19 lockdown and physical distancing policies are
elitist: towards an indigenous (Afro-centred) approach to containing the pandemic in
sub-urban slums in Nigeria. Local Environment. 25(8). pp.631-640.
Koh, E., 2020. The end of over-tourism? Opportunities in a post-Covid-19 world. International
Journal of Tourism Cities.
Moon, H. and Chan, H., 2022. Millennials’ staycation experience during the COVID-19 era:
mixture of fantasy and reality. International Journal of Contemporary Hospitality
Management, (ahead-of-print).
Nah, F.F.H. and Siau, K., 2020, July. Covid-19 pandemic–role of technology in transforming
business to the new normal. In International Conference on Human-Computer
Interaction (pp. 585-600). Springer, Cham.
O'Hara, S. and Toussaint, E.C., 2021. Food access in crisis: Food security and COVID-
19. Ecological Economics. 180. p.106859.
Oey, E. and Lim, J., 2021. Challenges and action plans in construction sector owing to COVID-
19 pandemic–a case in Indonesia real estates. International Journal of Lean Six Sigma.
Widarti, W., Desfitrina, D. and Zulfadhli, Z., 2020. Business Process Life Cycle Affects
Company Financial Performance: Micro, Small, and Medium Business Enterprises
During The Covid-19 Period. International Journal of Economics and Financial
Issues. 10(5). p.211.

INTRODUCTION
Virgin Group is a UK-based company that consists of some businesses from Virgin Atlantic
Airlines to Virgin media and its entire group founder is Sir Richard Branson. In this report, the
discussions are related to Virgin Money which is a part of this group. Virgin Money is an
enterprise that deals in financial services and banking and its headquarters are situated in
England, United Kingdom (Hilton., 2022). It is founded in March 1995 and it is known as Virgin
Direct. In the year 2000, the business of Virgin Money expanded its management all over the
world. It is the service provider of Retail Banking and Small and medium-size medium-sized and
it also offers credit cards, pensions, insurance, limits of savings, and mortgage facilities.
Presently, VM occupies the 6th position as the largest bank in the UK along with 6.5 million
customers or clients, national stores, updated digital platforms, relationship managers,s and some
contact centers. But during the period of COVID- 19 the founder of Virgin group Richard
Branson faced so many difficulties in regulating financial gain and running the smooth business
especially in Virgin money. The following report investigates the market condition within which
VM businesses operate and their impact on the nation with the help of relevant models and
theory.
TASK 2
Examine the economic environment within which Virgin Money business operate in the United
Kingdom
A notion system why the monetary local weather is currently exceptional for UK
organisations is that money related increment (as estimated through GDP development) is
positive. This line of evaluation is mainly based on the significance of financial enlargement to
all good sized commercial enterprise pastime areas. Gross home product estimates the everyday
price of financial practice in an economy, comprehensive of customer spending, enterprise
subsidizing and specialists spending (Barbier., 2022). Financial improvement is as a result a huge
mark of how best run of the mill economic expectations are. In latest years the UK economy has
steadily recuperated from the downturn (when GDP fell fundamentally) that seen the world cash
related emergency in 2007-9. The downturn used to be particularly harming for the
overwhelming majority UK organizations and it caused many decreasing advent limit, lessening
financing and dropping positions as methods for endurance. The resulting improvement in GDP

development, while shockingly sluggish, has verified feasible and there has been a predictable
enchantment in patron and enterprise undertaking self-faith dismissing cuts in professionals
spending. The virgin Money of UK based organization's want is to force its manageability
aspirations through its enterprise mission rehearses so it can achieve via the precious open doors
from being a extra outstanding supportable activity and to reasonable the dangers that will have
an effect on its business in the long haul. Virgin Cash UK PLC is designated on three texture
subjects: working on financial prosperity and consideration; putting off restrictions commercial
enterprise project and local location achievement; and safeguarding and sustaining the climate.
These are the regions the spot Virgin Cash can have the biggest effect, the utilization of its
superb enterprise activity possessions to have a true and enduring effect (Pallant., 2021). It has
planned these against the Practical Improvement Objectives so it can discover how the enterprise
challenge is supporting the Objectives and riding an extra a maintainable future. During the
Pandemic time, the challenge are faced by the company and chances stay from the extend in
Coronavirus case numbers pushed by means of the new versions and the affect of the expulsion
of government help plots later in the year, the reinforcing setting offers scope for bigger idealism
about the speed of the recuperation," Virgin Cash said. The UK's 6th greatest bank expressed
normal supporter credits moved to 72.5 billion kilos in the three months to June 30, up 0.4% on
the first year. To overcome from this the Virgin Money launched its own app for supporting the
business enterprises. Virgin Cash assumes a necessary section in working with the UK's growth
to a low-carbon economy. They are dedicated to helping the manageability drives and plans
settled upon at COP26 to help the world arrive at net zero. Throughout the following 12 months
and a half, in accordance with Net Zero Financial Union's responsibility, they will propel our
net-zero technique, comprehensive of inserting 2030 points and its decarbonization guides.
Inspect the worldwide business climate and its effect on nations with an accentuation on the
United Kingdom
In every country or organization, when it comes to business, everyone is interviewed. It
means all the business are faced global challenges in the economy market. The global challenges
contain everything such as weather, pollution, jobless, low level of education and many more
(Baltzersen., 2022). The Worldwide Business Climate Program is an Unfamiliar, Federation and
Improvement Office Thriving Asset program, which works with states to improve the enterprise
pastime climate of accomplice Center Pay Nations, with the goals of assisting task resistance and

catalyzing shared flourishing. The World Bank Gathering (WBG) put into have an effect on the
program. Complete subsidizing distributed is £30m greater than a 4-year time span, of which
£28.5m is overseen via the WBG with the information of a solitary giver have confidence
reserve. The application works thru two crucial parts: the Worldwide Impact Window and
Country Commitment Window (Micklethwait and Wooldridge., 2020). The software likewise
focuses an orientation and consideration cross-cutting challenge in its exercises, as vital to
supporting extra outstanding comprehensive development, shared flourishing and destitution
decrease.
The Worldwide Impact Window (30% of the whole price vary for conveyance) creates
functionally relevant diagnostics and gadgets all thru the accompanying points of support:
investigation, exchange tool stash, versatile association plan, the Worldwide Speculation
Intensity Report and ordinary activities bringing on the entire policymakers, organizations,
international specialised professionals and scholastics. The core focuses of the world dedication
work through the Worldwide Impact Window are to utilize the World Bank's worldwide attained
and logical work to assist the graph and execution of adjustments in the central nations:
Fill drift holes in commercial enterprise challenge climate facts and examination,
Advance thought authority by using forming desolate tract mission climate subjects,
Build up the insightful premise of a lot enterprise activity local weather trade regions,
Reinforce the chart and execution of business environmental factors changes in MICs, and
Encourage shared concentrating on all via an expansive cross-segment of enhancing international
locations (Loy and Novak., 2021).
Worldwide powers affecting UK companies incorporate, but at this factor no longer limited to
increasing size of ordinary exchange, expanding degrees of multiculturalism in UK associations,
developing stages of between reliance of public economies and others. The giant affect and
predicted impacts across the central nations envelop someplace in the vary of 9 and 25 crucial
adjustments which will empower partnerships to develop, retailer on consistence costs, enhance
affectivity and seriousness, empowering more comprehensive blast (Kurniawan and et.al.,
2022). These consequences design to aid with facilitating countries to tempt unfamiliar financing
and spike economic increment and extra prominent earnings, which will thusly create non-
compulsory advantages for UK and worldwide organizations, as greater undertaking and product
treasured open doors. Moderate value determinations (set out in the enterprise mission case)

underwrite that advantages to the UK without everybody else would possibly need to go from
£50 to £170m north of 10 years. Activities to become aware of non-obligatory benefits are for
HM Government (Nwogbo., 2022). Other extra restricted time period auxiliary advantages will
consist of better UK subtle power with have legislatures
Use relevant theories and models to properly analyse the case study and support your arguments
Theory in context to Virgin Money:
On the basis of above explanation and method, the following report describe the revelant
theory, hypothesis of harms and models in support to the Virgin Money business:
Hypothesis of harm 1
Purchaser commitment with the PCA market is powerless, as the CMA notes,
Accordingly, exchanging ranges stay low, despite the presentation of CASS,
Consider these are each signs and side effects of a fundamental problem which is the
Construction of the PCA market and, specifically, free-if-in-credit banking.
Hypothesis of harm 2
The occupant banks, given their huge piece of the pie, have a levelheaded aggregate interest in
keeping business as usual,
They concur with that higher outcomes for clients are extra perhaps to come from challenger
banks as well as new participants than from the huge occupant banks.
Virgin Money has sent off an essential financial balance, intended to be the principal in a scope
of PCA items (Russo, Voto and Savino., 2021). We seek to enhance our presence in this market
after some time and concur with that rising our piece of the pie in PCAs would supplement major
areas of strength for us developing presence in the home loan, monetary reserve funds and
financial assessment card markets. We accept our driving client producer should make us
unmistakably situated to get this. In any case, we accept that this might be possible if and when
administrative and advertise requirements permit it. As a medium-sized challenger bank hoping
to develop our presence in PCAs and more through and massive in retail banking, we upheld the
Competition and Market Authority's (CMA) desire to make a Market Investigation Reference
(MIR) with recognize to the PCA market (Sheffi., 2021). This is on the grounds that we consider
that resistance is powerless in the PCA market and that further primary modifications will be
quintessential to animate extra noteworthy assortment of arrangement, competition and
improvement in PCAs, and deliver elevated ramifications for clients