BMP4003: Analyzing Brexit's Effect on the Trampoline Business Sector

This report examines the impact of Brexit on the trampoline business, focusing on the economic challenges and consequences faced by organizations in the shipping and transportation sectors. It highlights the rise in shipping costs, particularly for large items like trampolines, and how this affected pricing and consumer demand. The report also discusses microeconomic theories, including supply and demand, cost and production, and how these concepts played a role in the industry's response to Brexit. Ultimately, the analysis underscores the importance of understanding the business environment for sustainable growth and navigating the complexities introduced by geopolitical events. Desklib offers a wide range of solved assignments and study resources for students.

BMP4003 Business Environment
Assessment 1 - Individual Presentation

Article Review - Economic Concepts And
Models
Name:
ID:

Contents
MAIN BODY
Trampoline business has impacted widely due to Brexit
Microeconomic theory
CONCLUSION
REFERENCES

INTRODUCTION
• Business environment refers all the areas which
influences the business operations internally and
externally and provides the result accordingly.
• To run a business or an organization an individual
needs and required to understand its different
elements including the economic concepts at
definite manner.
• The report will illustrate the issues caused due to
Brexit which affect the transportation and shipping
industry widely. It will include the two major issues
or consequences that the organizations faced due to
Brexit in regard to transportation areas.

Trampoline business has impacted widely due to
Brexit
• At the time of the Brexit, there are many organizations
and business have an impact which makes them to
obtain the difficulties in each sector.
• During the Brexit, the shipping cost has taken the rise at
the larger toys such as swings, climbing frames and
trampoline. The trampoline prices soar 50% on the
shipping charges where the business obtains the great
issues in running their business and organization
definitely.
• In year 2016, the UK people have voted to leave the EU
from which they can be able to set their own trading
rules and regulations and can be able to control the
issues such as labour agricultural areas. The crucial
separation of the UK and EU needs to agree to the terms
of future relationships.

Continue
• After the Brexit, the situation has been created where the customs check the goods
entering the EU where they can have the more additional information and
paperwork of the in and out the moving goods.
• At once, the UK and EU countries has increases their shipping charges and costs on
the lorry services occurs the issue for the many organizations. The Brexit has made
the many companies to suffer from loses especially at the time of the imports and
exports as the government has increases the rates and cost of the shipping areas.
• Due to this, the organizations of the different sectors has also increases the prices of
their good and products as they thought they can still obtain the profit and outcome
in wider manner. But it has been known that consumer and people always looks for
the process which are lower and affordable for them so that they can be able to get
the quality product at medium range.

Microeconomic theory
• Microeconomic theory is the process where company has a right to make
the choices of the allocation and utilization of the different resources.
• The term microeconomic simple defines the good and services market
and addresses the economic concerns. There are different kinds of
economic theories where two of them has been described below:

Demand and Supply
• The term supply generally means delivering of the good and product to the
consumers which has been known as supply and shipping. Whenever the
process and cost of the product increases the manufactures willing to
produce the more product and results to gain the profit from which they
can be able to obtain the more outcome.
• Similarly, the falling prices of the product make the manufacture to not
produce the wide quantity of the products and not able to cover their
inputs cots upon the selling of the goods.
• On other hand, the term demand which comes from the consumer which
increases the prices of the goods and products which makes the particular
market to gain the profit by selling those items.

Continue
• According to the Adam Smith economic theory of
supply and demand, where it refers that there are
multiple factors that affects the market micro and
macro economically as well.
• Understanding the market conditions can help the
individual to supply and demand areas where it
creates the issue for the government as they are not
able to control the supply and demand of the
consumers, so they rise up the shipping charges of
the goods and products widely such as during the
Brexit the trampoline product shipping rises up-to
50% which creates a hurdle for the companies.

Cost and Production
• The supply and demand theory also includes the factor of
cost and production. The term cost simply means the value
of any product and goods according to the demand of the
consumer. And term, production means the manufacturing
of the goods and products.
• Here, cost and production defines the price of the item is
determined by number of resources spent to create it.
• It includes the land, labour and capital where the cost
comprises the factors of the production. The production
price includes the all the resources of the manufacturing of
the goods and products, and then they implement the cost
of the particular product so that they can be able to obtain
the maximum profit and outcome.

Continue
• This factor includes the labour cost as well from
where the company can be able to get the profits and
can create a definite value.
• Accordingly, during the Brexit the supply chain
management of the toy companies gets disturbed
which also impact the manufacturing industries who
produce the large toys like trampoline as the rise in
shipping charges may lead them to obtain the
difficulties and issues widely.
• Through this the companies are unable to get the
profit and productivity which also decreases the
demand of the particular product due to unavailability
of the services.

Conclusion/Summary
• The report has concluded the understanding of the business environment which an
individual needs to know for the better growth of their business and organization.
• The report has included the brief detailed about the consequences that the
organization had to face after the Brexit in the context of the shipping and
transportation areas which pouts the impact on the mentioned business and many
organizations and leads them to not able to obtain the appropriate outcome and
results.