Analyzing the Impact of Brexit on HLP Recruitment's European Growth

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Growth and expansion strategies for
Europe Post Brexit for HLP recruitment
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Abstract
This report has literature review analyzing the Brexit and its impact on the UK and the
European economy. The report further has focused upon the growth of the European market
in the present scenario and how the business has expanded in the international market by UK
companies. This report is based on the objectivist research methodology in order to link the
study with the social environment of UK and UK businesses. The research philosophy is
based on the positivism research method in order get measurable as well as structured large
size data.The research study has used deductive reasoning in order to analyze appropriately.
Research design is based on the explanatory method and fulfills the reliability as well as the
validity of the research. The research study had followed ethical consideration in order to
carry out the project.
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Acknowledgment
I am grateful and thankful to my teachers and friends who helped me to develop the research
study. I would like to thank all the teachers and family members regarding establishing the
current study while researching for materials and establishing research aim.
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Table of Contents
Chapter 1: Introduction..............................................................................................................6
1.0 Introduction..........................................................................................................................6
1.1 Background of the study......................................................................................................6
1.2 Rationale..............................................................................................................................6
1.3 Research aim........................................................................................................................7
1.4 Research objectives..............................................................................................................7
1.5 Research Question................................................................................................................7
1.6 Structure of the project.........................................................................................................7
1.8 Summary..............................................................................................................................8
Chapter 2: Literature review......................................................................................................9
2.0 Introduction..........................................................................................................................9
2.1 Impact of the Brexit in the UK companies...........................................................................9
2.2 Post Berxit European market.............................................................................................10
2.3 Growth strategies of UK companies after Brexit...............................................................10
2.4 Consequences of Post Brexit situation in UK economy....................................................11
2.5 Theoretical implementation of Brexit on UK economy and international businesses.......11
2.6 Future condition of Brexit over international business......................................................12
2.7 Literature gap.....................................................................................................................13
2.8 Summary............................................................................................................................13
Chapter 3: Methodology..........................................................................................................14
3.1 Introduction........................................................................................................................14
3.2 Research Philosophy..........................................................................................................14
3.3 Research Approach............................................................................................................14
3.4 Research Design.................................................................................................................15
3.5 Research reliability and validity.........................................................................................15
3.6 Data collection Methods....................................................................................................15
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3.6.1 Data collection techniques and tools...............................................................................15
3.8 Data analysis......................................................................................................................15
3.9 Ethical consideration..........................................................................................................16
3.10 Timeline...........................................................................................................................16
3.11 Summary..........................................................................................................................16
Chapter 4: Data analysis...........................................................................................................18
4.1 Introduction........................................................................................................................18
4.2 Secondary data analysis.....................................................................................................18
4.2.1 Summary table................................................................................................................18
4.3 Discussion..........................................................................................................................19
4.3 Summary............................................................................................................................23
Chapter 5: Conclusion and recommendations..........................................................................24
5.0 Conclusion..........................................................................................................................24
5.1 Objective linking................................................................................................................24
5.2 Recommendations..............................................................................................................24
5.3 Limitation of research........................................................................................................25
5.4 Future scope.......................................................................................................................25
Reference list............................................................................................................................26
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Chapter 1: Introduction
1.0 Introduction
The Brexit influence the business organisations of the UK as well as European companies.
In the context of growth and expansion strategy, it is effective to expand and succeed in
business development and default options that affect the UK business organisations (Brown
et al., 2019). A post Brexit scenario impacts the UK businesses regarding business
development and internationalising. With UK leaving EU, business interests were
continuously creating red tape and thus, it has become more complicated for business
expansion. The research will investigate the post Brexit condition regarding navigating the
business world and many SMEs in the EU. Growth and expansion strategies for post Brexit
will be focused in the context of HLP Recruitment Ltd.
1.1 Background of the study
Several researches are focused to develop and involve the potential impact over drawing out
process for many companies and SMEs. During 2018, it seems that 1.5% investments are
lower than normal businesses (Growthbusiness.co.uk, 2018). It is found that current process
is focused to affect the broad aspects and development regarding business engagements in the
UK. HLP Ltd has faced negative effects of Brexit and as per the pre-exit strategy; trading
aspect and economic scenario are focused due to business process and expansion for the
companies. It is needed to develop the setting up in post Brexit scenario in the UK.
Moreover, EU employees in the HLP Recruitment have faced several economic and political
influences that affect recruitment procedures (Bailey et al., 2017).
1.2 Rationale
The issues can be considered that Brexit influences the UK companies regarding new
contracts and business growth. It slow down the business process and activity as post Brexit
scenario (Coulter and Hancké, 2016). The issues regarding Brexit influence the CEE
countries regarding business development and specific emigrant’s behaviour in business
aspects. HLP Recruitment has faced issues regarding EU employees and economic effects
due to Brexit (Hlpukltd.co.uk, 2019).
Moreover, the research will follow the empirical analysis and consistency over establishing
better resources along with expansion strategy in the UK. The research will focus on
establishing better resource and international level along with political implementation. The
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identified issues are identified as analysing the political and economic impacts over business
growth and expansion (McGrattan and Waddle, 2017).
1.3 Research aim
The aim of the research is to identify the growth and expansion strategies for post Brexit
scenario on Europe in the context of HLP Recruitment Ltd.
1.4 Research objectives
The objectives of the research are:
 To identify the growth and expansion strategies for Europe Post Brexit towards the
UK business
 To evaluate the impact of Post Brexit for HLP Recruitment and UK business market
1.5 Research Question
The research questions are:
 How can the growth and expansion strategies be identified for Europe Post Brexit
towards the UK business?
 What is the impact of Post Brexit for HLP Recruitment and UK business market?
The sub-questions are:
 What is the effect over the UK market after Brexit in the context of HLP Recruitment
Ltd?
 What are the recommendations for growth and expansion strategies for Post Brexit for
HLP Recruitment Ltd?
1.6 Structure of the project
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Figure 1.1: Structure of the project
(Source: Created by Author)
1.8 Summary
The chapter is focused to identify the key research aim and objectives while developing
consistent research project in Post Brexit in the UK companies. The chapter has identified the
background of the research topic with developing key issues that have been focused in the
following chapters.
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Chapter 2: Literature review
2.0 Introduction
This research focuses upon the impact of the economic integration and Brexit on the
Europeans and other individuals of the CEE (Central and Eastern European) countries. This
assessment is required for the opinion of the public and the literature show negative and
positive effect on the UK and European economy. This research paper has to analyse the
effect on the recruitments for European post Brexit in the UK Companies.
2.1 Impact of the Brexit in the UK companies
According to (Simionescu et al., 2017), the constant reduction of the EU immigrants in the
company after Brexit has slower the economy growth of the UK. The four things are get
affected by the economic integration are persons, capital, goods and services. The (Ebell and
Warren 2016) has stated because of the labour mobility and free movement in services and
goods the Europeans has attracted towards the UK for the recruitment purpose. In context to
(Robison 2015), the Brexit will affect businesses because of the more uncertainty and affects
the movement in the capital in the business. In addition to this, the UK will become less
attractive for the multinational companies. The damage would be caused to the UK economy
and for the long term, the growth in the national income will be reduced. The companies also
can get the negative impact on the revenues, profits and the share prices.
An impact of the Bexit on the finance industry and Business of the UK can lose its
importance in various sectors. The approach of the (Djankov 2017) suggests that if the
European Union and United Kingdom union trade will fall down from 12-18% in finance
industry revenue and 7-8% falls in the employment according to World Trade Organisations
rules. The estimated fall in the finance industry is up to 6.4%. this suggest both countries of
the d=finance industry is valuable.
2.1.1 Equilibrium trade model
The most widely approach was general equilibrium trade models adopted for studying the
Brexit. The assumptions can be drawn from theses trade models that how Brexit affects the
trades, production, consumption and welfare between the European and UK. According to the
economic theory, the international market will increase as the mobility of the production
factors ensured the better resource allocation (Grosu and Dinu 2016). According to
endogenous growth theory, benefited the industry as liberal trade generates a healthy
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competitive advantage for the companies (Vitunskiene and Serva 2015). This theory has
proved to provide the fast growth and has gained the reduction in the product cost unit.
2.2 Post Berxit European market
Berxit has involved the following two approaches, the first, the effect on the bilateral trades
of the both countries, which has decreased the trade levels and decrease in the geographical
distance, economic size and other factors, which affected the trade cost. Secondly it affect on
the per capita income to obtain the effect on the EU membership. The European free trade
has decreased the 25 % (Dhingra et al., 2017). The European Commission has trying to
remove the obstacles across the border related to capital market transaction after the Brexit.
There is change in the capital markets, insolvency laws and legal enforceability in the
business operated by the European countries. There is also a reason for the market to
introduce the new technologies and innovations for growing in the trade openers. The rate has
also increased for the human resources skill and capacities (Balcerzak, 2016). This can only help
the economy to go in the long run.
The (CEE) Central Eastern European Countries are having the high growth rates in the opening of the
new trades. The presently the total trade index in 2014 for the CEEs countries have reached to the
136.4percent that has comparatively be increased from the 2000 by the 45 percent. It can be
importantly noted that trade open index have the least trade open and the average is of the 81.3% for
the EU member’s states. The olds members of the EU trade are now closed for the international trade
business as due to increase in the competitive market. According to the World Economic Forum the
European states have obtain fifth position in the Global Competitiveness Index. However, the trade
opening is up to 85% a slight higher than the EU average. The country has less chances of to opening
ne trades for the Europeans and vice versa (Pilinkiene, 2016).
2.3 Growth strategies of UK companies after Brexit
According to (Boronska-Hryniewiecka 2016) the output will decrease by more than 1%. The
government has made policies about the workers come and work from the other countries in
the UK Companies. The skilled sectors are left behind due to Brexit and therefore the growth
strategies are implemented by the UK to introduce the employment and increase in the salary
of the employees. (Chu 2016) opined that the decrease in economic performance Brexit will
get suffered if immigration decrease becomes insignificant. The GDP will be stabilized and
with the help of that the per capita income will grow. According to (Booth 2015) by 2030, a
liberal policy will increase GDP. The UK has still receiving the employees from the EU
states and that have opted the low skilled jobs in the UK companies. The solutions might
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includes the temporary scheme for the EU migrants to the UK which would be helpful in the
case of post Brexit system (Koch, T., 2016). The UK companies has not specifically
restricted on the Europeans as UK encourages employing the talented employee for the
growth and development of their business. However, the Brexit has slowed down the growth
in the market of European countries. The companies of UK established in the Europe are
hiring more employees of the country in order to keep growing the business internationally.
2.4 Consequences of Post Brexit situation in UK economy
The most of the studies suggests that after leaving the European Union the British economy
will suffer the decrease in the foreign direct investments and will reduce the economical
growth of the companies at wide range. The foreign investors are allowed by the single
market to use the UK as an export platform for the future serving for the EU markets.
According to (Bruno et al., 2016), the production was reduce by the 12 % in UK in the
industry has increased the intra-firm coordination costs and heavy trade costs. There will be
reduction in the flow of the foreign direct investments by 22% in the UK market. The forign
direct investments have though increased the domestic productivity and investments and have
given the positive responses.
The UK companies required to give the open welcome to the European markets and involve
in the trade business in order to grow and increase the foreign direct investments. The
companies are affected by the trade policies and new implementations of the laws in the
market. The restriction was given to the European Companies in the UK markets has also
lower the growth of the companies and business overall.
2.5 Theoretical implementation of Brexit on UK economy and international businesses
The Brexit has also affected the both countries globally as the business that is collectively
done by the companies is now after the exit of the Europeans has become less profitable. The
companies are comparative to each other in the market internationally. The companies have
affected the policies in the business, as the UK based people are only get hire. After the
Brexit there was increase in the competition has also lower the job opportunities. There was
less immigrants of the Europeans and this reduces the business in the nation. According to
(Sampson 2017) the Brexit does not affected the UK economy and has not harmed in the
domestic market but it has affected the business of the UK economy in the international
market.
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The international market as now today helped in sharing information, knowledge and
opportunity to various groups of people, which come together in a single trade business.
Earlier due to lack of interaction, the business is limited in its small form, but due to increase
in movement of goods and services across the borders, it helped in increasing integration of
economies globally. The innovation in technologies and progress in the society also increased
the business around the world. As the market expands, the opportunities and resources also
grow as well which bring employment to both UK and European countries. Ideally, it helped
in increasing opportunities and accelerated the collaboration between the national and
multinational corporations. The new emergence bought new products and services to
different strata of the society, different communities are globally united for the single
business. Cultural as well as economical development helped in filling the gaps in different
communities and allows to do one trend business. The UK market will grow in the
international business by helping and taking the help of the European countries after Brexit
also (Wenger 2017).
2.6 Future condition of Brexit over international business
The Brexit has though affected the European market and has slowed the growth in the
economy. After sixty years, the Treaty of Rome established the European Economic
Community. The European Union was struggling with the so many hurdles like geographical
instability and global financial crisis in both southern and the eastern borders. The success of
the European countries at the international market depends up on the growth of the member’s
states by facing the challenges of the Brexit. The future of the EU has brighter scope in the
economic integration. The UK will also remain the member of the European free trade or
European Economic Area but the condition is it should not restrict the immigration for the
Europeans in the UK industries and in the countries like Norway and Switzerland. The
restriction might be harmful for the UK as well and can lose the trading agreements and have
to pay heavy trade costs (Whyman and Petrescu 2017).
There is need of the protection regarding the European countries and the people of the nation.
The UK can adopt the visa scheme policy for the not UK people and those who are
immigrants from the UK after the Brexit. It has to done in reference to the need of the future
requirements and creates no discrepancies among the companies. However, it is also
important that the UK will not cut the non skilled EU immigration and will only allows the
skilled EU immigrant as this will harm the balance in the economy of the international
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