Understanding Brexit's Impact on UK Business: Range Rover Case Study

This report, submitted as part of an Inquiry Based Learning module, investigates the impact of Brexit on UK businesses, specifically focusing on the automotive sector and using Range Rover as a case study. The report begins with an introduction outlining the research aim, objectives, and questions, followed by a literature review that analyzes existing research on the effects of Brexit on the automotive industry, including the decline in productivity, the impact on exports and imports, and potential job losses. The methodology section describes the data collection methods, types of investigation, research philosophy, research design, and ethical considerations. The results and discussion section examines the challenges faced by the automotive industry, such as increased regulations and the 2019 production shutdown experienced by Range Rover. The conclusion summarizes the negative impacts of Brexit on the UK economy and the automotive industry, while the recommendations offer strategies for dealing with these challenges, such as focusing on alternative technologies and marketing campaigns. The report concludes with references to the sources used.

Inquiry Based
Learning
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Table of Contents
Introduction......................................................................................................................................3
Literature review..............................................................................................................................3
Methodology:...................................................................................................................................6
Results/Discussion...........................................................................................................................7
Conclusions......................................................................................................................................8
Recommendations............................................................................................................................8
REFERNCE...................................................................................................................................10
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TITLE – “To understand various impact on business of UK because of Brexit, challenges and
strategies associated with dealing overall impact” A case study on Range Rover.
Introduction
Brexit has a lot of impact because of the brexit referendum on the overall trading
arrangements that work revealing between US and UK search solution and agreements have been
withdrawn. It has led to overall economic growth of UK and the automotive industry is one of
the major factors that have been affected because of this changing in economy of UK (Bailey,
2017). Present report is based on how and what are major challenges because of brexit that has
resulted to touch Automotive sector and what can be some basic strategies that can be used in
minimization of the negative impact of such brexit referendum on the automobile sector of UK.
Research Aim:
“To develop understanding of the impact of brexit on business in UK automotive sector”
Research Objectives:-
1. Understand the basic impact of brexit on UK automotive sector
2. Challenges associated with brexit
3. Strategies to deal with the negative impact of Brexit
Research Questions:
1. What do you Understand the basic impact of brexit on UK automotive sector?
2. What are some of the Challenges associated for automotive industry with brexit?
3. What can be some effective strategies to deal with the negative impact of Brexit?
Literature review
Basic impact of brexit on UK automotive sector
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According to views of Jonathan speed, 2018, it can be said that there are lot of significant
changes that has been taken place in UK because of the brexit. It can be said that there is a
significant impact on the automotive sector as productivity of the sector has declined faced
decline to a great extent. There are two main factors that can be understood with regards to
automotive industry in UK the reaction of brexit referendum will result into declining of the
British Crown that has been lowest in the 30 years (Bailey and Propris, 2017). There can be a
positive impact informs that exports can become more prices competitive but there is an adverse
impact that various imported goods will face high rise in prices. Manufacturers in UK especially
in case of automobile industry have been benefited from the height of message demand in recent
years as UK has been integrated in one single market (Ani, 2019). The brexit referendum is
going to affect the automotive industry in form of all the people working in this industry might
lose their jobs that is the risk of approximately 823000 of workers because of this brexit
referendum (Brexit potential implications on automotive sector, 2018).
In case of Range Rover this automobile brand has suffered a lot because of in a
production shutdown in the year 2019 ending October and starting November where the
company has lot about production of 12000 ka and it has been a one of the major losses recorded
in a period of 10 years for this brand. Apart from this there have been huge implications in form
of high production cost and losing of jobs by people working in this industry in case of Range
Rover.
Challenges associated with brexit
According to views of Professor Philip Mccann and professor Raquel Ortega, 2019 there are
many different challenges that are associated with the brexit referendum the basic next step in
overall Brazil process will be the conclusion of the withdrawal agreement and that will be
coming till end of the year 2020. Till then the European Union rules will be applying to UK
agreement has to be finalized and rectified according to the referendum of brexit. There are many
challenges in concerned with the automotive industry such as the movement of goods will be
restricted and there will be increase in export and import formalities. The UK presently export
about 80% of their overall or cars are assembled here and 50% is so if there will be introduction
of export taxes then there will be a significant rise in the overall implications of cost.
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Apart from this the manufacturers of UK have to comply with the whole vehicle type approval
system more conformity assessment procedures that have to be a lengthy process of re
certification can result in to suspension of many manufacturing activities until there are equal
side approval that have been obtained (Humphreysand Munro, 2019). The overall effect of such
factors can be informed of decline in the competitiveness of the sector of UK and there will be
completely location of the manufacturing activities to countries that are part of EU (Brexit and
the UK’s regional and urban challenges, 2019).
Other major challenges could be the potential application of tariff on the supply chain disruption
can also result in many local Sourcing of components for the assembled cars in UK. Present 40%
of various components comprising cars are built in UK and the source from different
manufacturers for UK as compared to 60%. The autonomous vehicles and other automotive
technology are still primary development focus for the Government of UK.
Strategies to deal with the negative impact of Brexit
According to view points of Chengwei Liu, 2020 The component market can also assume some
growth from UK based organisations avoiding of costly imported. Another measure of strategy
that can be used by manufacturers is establishment of some domestic supply chain that can be a
costly process but can help in minimization of the serious supply chain destruction that has been
caused because of brexit (Mackiewicz and McCaleb, 2018). There can be a attractive opportunity
for UK to get partnership with different technological is strong emerging economy such as India
and China so that they are able to become more market leader in this breakthrough of brexit that
are less respected by traditional Automotive sector and high number of regulations. Government
is making progress towards addressing different brexit related issues for the automotive sector
there are clear intentions high amount of uncertainty because of such brexit negotiations (The
Need for a Brexit Strategy, 2020). Agreement such as “no deal” that has been formed by
government of you can significantly lead to harming the industry for those who are operating at
short to medium term manufacturer of vehicles but these issues can lead to benefits in longer
duration of time. Industry can prioritise to deal with the negotiation of government Framework
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that replicate space of the existing regulatory rules and trading rules for protection of this vital
Automotive sector.
Methodology:
Research methodology can be determined as a fact of process that can help investigators in
conducting research in a systematic way. It is one of the most important factor that helps in
supporting investigator in providing various explanations about different method that have been
adopted in presenting the research work in appropriate manner the present section discuss about
different research methodology used in this particular Research and are discussed below
Data Collection methods:
These are determined as one of the most effective method that helps in collection of the
required information by a researcher according to the set research topic (Syafrian, 2020). Data
Collection methods can be basically of two types that is primary methods and secondary
methods. For conducting Research and appropriate manner investigator have to use secondary
method of Data Collection the major reason behind choosing collecting data is to achieve
maximum information in the Limited period of time. Indirectly helps in contributing towards
achievement of valid research outcomes in a more effective manner.
Types of Investigation:
It can be determined as the most effective way that can help in collecting of information
by the researcher it can be of two types quantitative and qualitative. In the present research work
researcher has adopted qualitative method that will help in supporting overall analysis of
information in a detailed manner and also taking support of the human perception and evaluation
technique.
Research philosophy:
It can be acknowledged that it is a method that can help a researcher or investigator in
analysis of the collected information in a more detailed way. It is basically of two type that is
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interpretive and positivism. In case of president the investigator has made use of interpretive
philosophy that can help in providing support for evaluating the information in effective manner
and justifying the findings.
Research Design:
It can be regarded as the effective structure that can be used by investigating for
conducting the resource in a more appropriate manner. Experimental, exploratory descriptive
these are basically Three Types of research designs that can be used by investigator for
conducting a research in a more effective and appropriate manner (Magaña Bennasar, 2019). In
case of the present investigation researcher has used the explanatory Research Design that helps
in collecting the information and then explaining it according to required Framework for
achievement of valid outcomes over a limited period of time. The major reason behind choosing
this Research Design is to provide support in collecting of Information and then detailed
evaluation in a more authentic and reliable manner.
Ethical consideration:
It can be determined are the different ethical values that has to be used by investigator while
conducting their research in a more appropriate manner. With reference to the present
investigator has used 13 secondary approaches for performing the investigation they have
collected information in a more ethical manner. There have been used of different authentic
sources for the purpose of collecting required information there has been more preferences to
article standards and other online available information related with the desired topic and valid
objectives.
Results/Discussion
It can be said from the above discussed and made analysis of the negative impacts of brexit on
the automotive sector of UK then there has been a lot of challenges that has increased for
automotive industry as there has been political struggle and lot of increased regulations that is
going to affect this industry and overall profitability in long run. Especially for brands like Range
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Rover there has been a lot of negative impacts and struggle that is to deal with these challenges.
The one week shutdown that took place in the year 2019 in November has also resulted a huge
loss for Range Rover and there has been a loss of job of approximately 10,000 workers that has
been provided figure because of brexit referendum (KarlssonMelin and Cullinane, 2018). Apart
from this if we talk about the figures there has been approximately 16 % of the production in cars
that has taken place in the period of 9 months has led to complete breakdown of the automotive
industry for the year ending 2019 (Douch, Edwards and Milne, 2017).
Conclusions
From the above discussed report it can be said that breaks it is a referendum that has affected
overall economy of UK and its GDP growth in negative manner and all the industries have been
affected because of this referendum that have the major part of contribution in increasing and
maintaining the GDP growth of UK. Automotive industry has been one of the nature Industries
that help UK to reach higher growth. So there is need of formation of certain effective strategies
to make people not losing their jobs and sustaining & contributing towards maintaining the
present level of GDP growth that has been growing high before prevailing of this brexit
referendum.
Recommendations
There are certain recommendations that can be made to the automotive industry in UK with
respect to dealing with challenges associated with brexit referendum:
1) There must be focus on alternative Technologies that can be used for dealing with the
reduction in production range Rover can focus on automation and usage of more advanced
Technologies.
2) To increase and maintain the overall sales that have been part of this brand with before brexit
can be managed by use of extensive marketing campaigns at low cost by use of digital media
tools such a social media sites for this effective strategy can be usage of social media handles of
all their associated stakeholders turning them into business account for the purpose of marketing
their new offers and attractive days for their present base of loyal customers.
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3) Another most effective strategy to prevent people losing job is to all the workers working at
different levels with range rover and other Automotive brands is to cut down a few percent of
their wages and salaries so that they can deal with this period of challenge and negative impacts
of tribes that can be managed in a more effective manner as such cut down in wages and salaries
can be used for the investment in different factors that can help in development of the backward
areas that has gone because of right that referendum.
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REFERNCE
Books and Journals
Ani, P.E., 2019. Brexit-The Benefit of Hindsight: King vs Rich Trade-off. Troubador Publishing
Ltd.
Bailey, D. and De Propris, L., 2017. What does Brexit mean for UK automotive and industrial
policy. The political economy of Brexit, pp.45-62.
Bailey, D., 2017. Brexit, the UK Auto Industry and Industrial Policy. Regions Magazine, 306(1),
pp.4-5.
Douch, M., Edwards, T.H. and Milne, A., 2017. International trade arrangements after Brexit:
Establishing the facts.
Humphreys, M. and Munro, D., 2019. Brexit and the Car Industry. Routledge.
Karlsson, J., Melin, H. and Cullinane, K., 2018. The impact of potential Brexit scenarios on
German car exports to the UK: an application of the gravity model. Journal of Shipping
and Trade, 3(1), p.12.
Mackiewicz, M. and McCaleb, A., 2018. The Impact of Brexit on Foreign Direct Investment and
Trade Relations Between the UK and China. In Brexit and the Consequences for
International Competitiveness (pp. 257-270). Palgrave Macmillan, Cham.
Magaña Bennasar, A., 2019. El impacto del Brexit en el sector turístico Balear.
Syafrian, D., 2020. Political Strategies of Multinational Companies in Managing Uncertainty:
Lessons from Brexit. In Non-market Strategies in International Business (pp. 75-100).
Palgrave Macmillan, Cham.
Online
Brexit potential implications on automotive sector, 2018 [Online]. Available Through:
https://www.twobirds.com/en/news/articles/2017/uk/brexit-potential-implications-for-the-
automotive-sector
Brexit and the UK’s regional and urban challenges, 2019 [Online]. Available Through:
https://ukandeu.ac.uk/brexit-and-the-uks-regional-and-urban-challenges/
The Need for a Brexit Strategy, 2020 [Online]. Available Through:
https://thinkers50.com/blog/need-brexit-strategy/
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