Penny Market: UK Grocery Market Business Environment and Brexit Impact

This report provides a comprehensive analysis of the UK grocery market, focusing on the perspective of Penny Market, a German supermarket chain considering expansion. It begins with an introduction to the business environment, defining internal and external factors influencing organizations. The main body delves into the key elements of the internal environment, such as mission statements, organizational structure, culture, resources, climate, policies, and human resources. It then explores the external environment using a PESTLE analysis, examining political, technological, economic, sociocultural, legal, and environmental factors, including the impact of Brexit. The report further discusses the global business environment, highlighting the benefits of international trade, including increased accessibility, strengthened relationships, and access to raw materials. The analysis concludes with a summary of the business environment, the global business environment and its impact on the UK grocery market for Penny Market, providing insights into how the company can navigate these challenges and opportunities.

ASSESSMENT 2

Table of Contents
PART-2............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The key elements of the internal environment of organizations and the interaction with the
external environment. .................................................................................................................3
Global business environment:......................................................................................................5
Why countries benefit from trade with other countries...............................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

PART-2
INTRODUCTION
The business environment is referred as the collection of external and internal factors
such as customer needs and expectations, employees, demand and supply, suppliers, company
policies, organization structure, market trends, technology innovation and economic changes,
etc. the penny market is the supermarket chain which based in the Germany and it operates the
3550 stores and company have 43773 employees within the organization. The penny market is
the supermarket which based in the different European countries and wants to invest in the
United Kingdom grocery market. This report elaborate the business environment and Brexit in
changing in it within the UK. This report analysis the selling, external and internal environment
and provide the recommendation for penny market to invent in UK grocery market.
MAIN BODY
The key elements of the internal environment of organizations and the interaction with the
external environment.
The internal elements of the organization are factors are based ion the business and it
includes the various factors such as mission, values, organization culture, organization structure,
technological and physical resources and human resources as well as management style (Naidoo
and Gasparatos, 2018). The business environment are collaborated the both internal and external
market and it helps in analysis the changing business environments and its impact on business
such as Brexit in United Kingdom.
 Mission statement: the mission statement explain that what business stand and why it is
existed. It helps in define the purpose of penny market and includes the value's and
attributes that helps in distinguish it from the business and its type. The mission statement
of business is identified he intents of business such as products and services, customer,
philosophy and location.
 Organization structure: the penny market conduct the formal structure within the
organization and it is the hierarchical arrangement of people and this types of structure
helps in determine the work flow within the organization during the change business
environment. The formal structure of business is determined the organization chart which
helps in display the communication line and authority line within an organization.

 Organization culture: penny market culture are distinguished from the other market
because it shapes the actions of its market and others. The business consist the various
component within the business such as values, social networks, rites and rituals for attract
more customer and beliefs that helps in define the success in organization.
 Resources of business: the resources are referred as the information, people,
infrastructure, equipments, finances, supplies, machinery, facilities at an organization. Its
is most important element because the availability of the resources helps in value the non-
human and human resources because it impacts the environment of business.
 Organizational climate: the climate of the business is consisted the tone of the morale
and workplace to its employees are element of the daily climate (Chu, 2018). Change in
the climate is affect the internal factors of organization and it can also face the working
environment of employees within the organization.
 Company policies: it is also the key elements of the internal environments because it
over the certain organizational situations and establish the policies to provide the
guidance to managers and employees within the organization to make the decision on the
base on company policy.
 Quality of human resources: It is the important factors of the internal environment of
business because the business organization is depended on the capabilities, skills,
commitment ad attitudes of employees
In the context of external factors, it includes the forces for business outside environments
that impact on the organization. It is under no control of business. There are some main external
factors which can determine using the PESTLE analysis and it stands for political, sociocultural,
technology, economic, legal and environmental factors.
 Political factors: The internal factors of business is correlate with the external factors in
the aspects of political factors because it relates with the companies policies because it
changes according to the regulation by government (Christodoulou and Cullinane, 2019).
Business also includes the tax policies and tariff policies. Due to Brexit, change in the
trade tariffs because of the changes in the political offices impact on company ability o
perform abroad.

 Technological factors: the technology in business is fade out according to the change in
advance technology so, business require to adopt the new technology within the
organization to perform well. Advance technology helps in manage the resources of
business and able to meet the new demand of customer with market trends.
 Economic factors: this factors is impact the market within the marketplace because it
includes the various factors such as employment rates, interest rates and disposable rate.
Here the internal is interacted with the external factors of environments because penny
market focus on the interested and employment rate within the organization (Dalirazar
and Sabzi, 2020). For example the economy is entered the unemployment rates and result
in the lower level of income so according to this the penny market that sell the non-
essential items and it may suffer.
 Socio cultural factors: This factors is also influenced the business and this factors
interact with the internal factors because in this company present itself and it includes the
cultural and demographic trends which helps in attract the customer and employee within
the organization. It interacts with the organization culture and its structure to improve the
performance of business.
 Legal factors: the legal factors also influence the business because it includes the laws
and regulations that impact on organization. Due to the Brexit, it changes the business
environments and various laws as well as regulation that impact on business. Penny
market face the steep price rises as the cost of the importing and some basic groceries are
also cost retailers more.
 Environmental factors: The environmental factors also influence the penny market and
it impacts on business operations along the supply chain (Hendry, 2018). The
environmental factors is interacted with the organization climate because the change in
the natural disasters and climate as well as trend towards the clean energy affected the
choice of business during the Brexit. For example, penny market made some investment
in the supply chain to change the energy methods to clean energy.
Global business environment:
Global environment primarily consist of business interactions among firms which
operates at global level. International business environment has various driving forces which
depicts the trends and prevailing business wave in the market. There are various factors which

comes together and builds the global business environment. Yet global business environment is
highly facilitated by the globalization and internet. Globalization has made the business
operation globally possible with a vision of increasing the accessibility of products and services
to every one without the barriers of borders. It has facilitated the successful global expansions
and operations (Morrison, 2020).
Global business environment accommodates the integration of the economies at a fast
pace. It has been meeting the shortcoming of many countries in terms of satisfying the public of
the nation. Every product now days is available almost globally which makes the ease of living
for countries. It has provided many benefits to the countries over the years. It reflects the
connectivity of the different parts of the world. Global trade has contributed to various improved
business policies as well. Over the years business has evolved and especially because of the
international market practices which facilities the businesses to work in collaborative way.
As they need to incorporate and understand cultured, religion, beliefs, business values
etc. of the countries of operation (Wei, Thurasamy and Popa, 2018). Many underdeveloped
nations have got the benefits of charity work and recognition due to such trade movement
between the country. The global business environment can be defined as the environment in
different autonomous countries, with factors exogenic to the home environment of the
administration, influencing decision-making on assets use and capabilities. The global business
environment can be sorted into the internal environment and the external environment.
External environment sees the political, social, regulatory, tax, economic, cultural,
technological and legal environments. To function efficaciously and effectively, establishment
operating globally must translate the social state of affairs of the host nation they are operational
in. Today there are one thousand of MNCs which runs in many parts of the world. Such
establishment should present themselves with the communication and culture of the nation in
which they are functioning (Hamilton and Webster, 2018).
Global business environment helps the business to stay immune in times of economic
difficulties as when a country faces recession or poor business nationally global trade helps to
revive the business back and helps with the quality of trade and currency support. Also, it has the
capability to make the business very efficient in the global trade, it immune the countries and
helps ensure the longevity of the business. Exposure of the new market places in the global
market space is the special unique feature of global business environment. A product may fail in

the home land yet it may take the market by storm in the other new markets cross boarder
(Vlados and Chatzinikolaou, 2019).
Why countries benefit from trade with other countries
As global business environment benefit the countries by increasing the accessibility of
the goods and services at different locations in the world. The increased accessibility provides
countries the benefit of reaching to the potential customer base which enhances the business and
profits. Further it strengths the relationship among countries and trade commitment tends to
improve. When a country trades with another country, they tend to indulge in business affairs
which makes the bond between the countries serene. Such friendship between countries works
best by supporting them in tough times. As in today's world it is very important for the nations to
have strong bond with other nations (Brunet-Thornton and Martinez, 2018).
It supports the production or manufacturing companies by providing raw materials at the
cheapest rates, global trade has facilitated the import of raw materials at the lowest possible rates
from the best places in the world. It has made the cost stricture of the final product very simple
and convenient for the end users, further increasing the sales and profits of the business. Profit of
the business improves the economy as whole of the country. It is said that the major benefits of
the global business is the high quality goods at affordable price driven by the high competition in
the international market place (Yamazaki, 2019). Market is flooded with a lot of goods and
services which drives the competition higher and resulting in offering of the goods at lowest
possible prices. Countries, benefits from this competition as they produce and sell what they
have a competitive advantage in.
Technological adaptation and rapid advancements have taken the markets by storm. In
such times global environment avails the exposure to such technology which is prevailing in
other nations. It avails country to have the latest technology which makes the business operations
efficient and economic functionality effective. It immune an economy with the technological
know how. Earning the foreign exchange which makes a country very strong is another such
benefit which countries get while trading in global markets. As when a country trades with
another country it becomes very essential for them to earn in the currency which makes a country
have support system financially (Orozco and et.al., 2021). Especially while indulging in trade
with developing country like, UK, USA, Dubai, Australia etc. countries which has higher

currency, it becomes very important for the countries to get the currency of the different country
as it helps in delivering the value currency which is prevailing in the international market.
CONCLUSION
The above report has comprehensively elaborated the global business environment and
how it has been wrestled after the Brexit. When a business operates in global market place there
are various challenges and opportunities which are faced by the business. Brexit has impacted
the global trade and it requires businesses in the UK and European countries to prepare their
strategies accordingly for the best of business endeavours in UK. The report has illustrated
various statics and figures to help unleash a significant understanding. Also, various instances
has been used to depict the business benefits of countries from trading with each other.

REFERENCES
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