UK Business Environment: A Case Study of Virgin Money's Operations

This case study provides an analysis of the business environment in which Virgin Money operates in the United Kingdom, focusing on both the economic and global factors that influence its operations. The report examines elements such as employment rates, inflation rates, infrastructure conditions, and consumer demand within the UK's economic environment, highlighting their impact on Virgin Money's strategies and performance. It also explores the global business environment, considering political, economic, social, technological, environmental, and legal factors, and their implications for the company's international operations and sustainability. The study concludes by emphasizing the importance of understanding and adapting to these factors to achieve long-term success and growth in the competitive market.

Business Environment
Individual Case Study

Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Explanation of the economic environment within which businesses operate in the United
Kingdom......................................................................................................................................1
Explanation of global business environment and its impact on countries with an emphasis on
the United Kingdom.....................................................................................................................3
Conclusion ......................................................................................................................................5
REFERENCES................................................................................................................................6
Online-.............................................................................................................................................6

INTRODUCTION
Environment of economy involves of several different elements which impacts the
purchasing condition of the customer base. These elements are known to be the uncontrollable
for the organization therefore organization is needed to make several different efficient as well as
effective plan of action in order to encounter several different negative influence of some of the
negative factors that are in the business environment of the organization. In addition to this small
and medium enterprises effects the economical business elements majorly as well as negatively.
Also the organization is needed to evaluated there environment of international business suitable
is so that management can conveniently detect the potential opportunity for the growth and
success of the commercial business globally (Abed, and Nasr, 2022). The following report is
based on the organization Virgin Money which is known to be one of the largest organization of
the United Kingdom which is basically founded in the year 2009. Moreover today’s the
following report will cover about the brief description of the economic atmosphere within the
respective organization function in the England and also the brief description of international
environment of the business as well as its influence on the nations specifically concentration on
the United Kingdom.
Main Body
Explanation of the economic environment within which businesses operate in the United
Kingdom
There are several different elements of the economic environment that has the influence on the
operations of the business of the respective organization Virgin Mobile and these economic
atmosphere are described below in brief.
Employment rate- It is refers to the percentage that shows in which how much a country
population is basically employed. In relation to the United Kingdom rate of employment of the
country in the year 2082 April is known to be at 75% that refers in which the United Kingdom is
possessing higher rate of employment. In addition to this population of the UK is basically
suitably employed and they are agreed in order to function more efficiently and effectively
whenever they got the suitable opportunity for their success (Bertrand, Betschinger, and Brea-
Solís, 2022). So this can provide assistance to the respective organization Virgin Money banks in
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order to recruit and select suitable as well as talented workers for maintaining the operations of
the business more effectively.
Inflation rate- It is refers to the percentage at which the rates of all the goods and
services and answers in a specific time and it basically gives the outcome in decline in the
buying birth of the money. In addition to this enhanced level of inflation rate as commonly
known as dangerous for the growth of economy of any nation. In addition to the set will also
enter the operations of the business because of the inflation consumers will buy low products if it
is compared to the earlier purchasing power of the buyers. In case of the country United
Kingdom 9.1% is the rate of inflation there that is known to be the extremely high rate of
inflation. It can also be dangerous for the economy of the nation as well. United Kingdom is
having highest level of inflation rate after 1982 (Koo, and Kim, 2022). Moreover to this in case
of the Virgin Money bank because of the higher inflation rate in the United Kingdom tends to
enhance the rate of interest on the loans of the people. In addition to this it will also enhance the
interest rates on several different types of the loans as well which will lead to the more costly
EMI. Also it will lead to the tendency of the consumers in order to not to take any type of the law
if the rate of interest are higher in the organization. Therefore because of this enhanced rate of
inflation in the nation the management of the Virgin Money are not able to influence their
consumer base in order to take the facilities of the loans from their organization.
Infrastructure condition- This is very crucial for the nation in order to groove the
condition of their infrastructure suitably because improved infrastructure will represent that the
country is developing suitably. In addition to this in relation to the country United Kingdom,
nation is having one of the best conditions of the infrastructure there and they are also having
more developed roads, facility of transportation, buildings, offices and various more. Therefore
management of Virgin Money will develop suitably with the assistance of the top quality
infrastructure situation of the nation as well as of the bank and because of this it will provide
assistance to the organization in order to attract more and more consumer base in order to utilize
their services of bank and to trust them also (Long, Pardalos, and Li, 2022).
Demand- It refers to the quantity of the consumers that are focuses on willing to spend
money in order to buy the goods as well as services in accordance to accomplish their
requirements and desires within a specific time. In the United kingdom’s consumers are having
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enhanced level of demand for utilizing the services of banking in which most of the people are
utilizing different banking services for launching a new venture of the business, taking several
different loans, and various more. Therefore the demand of the facilities and services of the bank
and financial institute in the nation United Kingdom is very high so the management of the
Virgin Money bank will be having more and more opportunity in order to sustain and crew
suitably in the market area of United Kingdom through accomplishing the demands and
requirements of their consumer base effectively and efficiently (Mudjiyono, 2022).
Explanation of global business environment and its impact on countries with an emphasis on the
United Kingdom
Political factors-. It refers to the political stability, restrictions on trade and various other
which are imposed by the government of any nation. In relation to the United Kingdom country
is having 02 low restrictions in order to conduct the activities of the business and they also ravine
suitable conditions and appropriate political stability that basically means no party belongs to the
government did not try to enter the operations of the commercial businesses in order to satisfy
their personal needs (Turcan, Banta, and Babeanu, 2022). Therefore country United Kingdom is
possessing the suitable atmosphere that can provide assistance to the commercial businesses in
order to attain success as well as develop suitable in the nation. So in relation to the organization
Virgin money bank can scale up the operations of their business in such nations that are having
suitable bond with the United Kingdom so that organization can manage and accomplish goals
and objectives for the long term and it can lead to their long term success as well as sustainability
in the market area.
Economic factors- This basically refers to the rate of employment, several different
financial policies, rate of inflation, expense of living and several different more. Market area of
the United Kingdom he’s having the suitable rate of employment that is basically 75% so it
basically refers that United Kingdom is having several different and washed opportunity in order
to recruit and select the experienced as well as skilled workers for their commercial businesses. It
can also be implemented in several other nation in which the respective organization Virgin
Money bank desires to scale the operations of their business in other nations as well.
Management of the respective form are needed to concentrate if the nation is possessing the
effectual rate of employment or not and also they need to focus on the GDP of the nation as well
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as the country is having appropriate infrastructure in order to conduct the practices of the
business suitably.
Social factors- It means to the purchasing power of the consumers as well as behaviour
of the customers in the market area. In the way consumers get effect through the utilization of the
goods and services of the company. In case of the United Kingdom there people are basically
impacted in order to take the facilities of the financial institution for several different which are
in order to start a new business, to take the several different types of the loans and so on.
Therefore it acts as the major opportunity for the respective organization Virgin Money in order
to scale the operations of their commercial business more efficiently as well as effectively in the
market area. In addition to this management of the Virgin Mobile are needed to concentrate on
this element of the framework at the time of scaling they are organization in the global level and
they also need to assure that they will suitably conduct in depth research before tapping into the
new market area in order to evaluate if the consumers of that specific mock country can
conveniently get influence in order to utilize several different facilities in the sector of banking
or they are not willing to use it (Wu, and Wan, 2022). Management also needed to assure that
people of the specific nation that is opted by the organization should utilize services of financial
advice and they should also utilize different services of the bank as well.
Technological factors- It refers to the advancement in the technology and automation
within the nation and in relation to the organization Virgin Mobile management can expand their
operations in search nation in which consumers are willing to use several different online
methods in order to use the services of the bank. Therefore adaptation of the latest tech in the
operations of the company can lead to the major goodwill as well as growth in the market area
and it can also assist the company in having the edge over their competitors for the long period
of time.
Environmental factors- This is also crucial for all the sector of banking in order to focus
on security of the environment and protect it at the time of practicing the operations of the
business. Application of mobile banking of the respective organization Virgin money bank can
provide assistance in order to minimize the utilization of paper and paper is obtained from the
trees therefore various of the trees have been required to cut in order to make the paper so Virgin
Money bank is needed to assure that they should focus on using mobile banking applications to
their consumer base effectively and efficiently.
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Legal factors-.This is very crucial for all the commercial business in order to abide and
follow the imposed policies as well as laws of the nation in which organization have the
businesses. In relation to the organization Virgin Mobile management is scaling their operation
in the United States of America so it is very crucial for the organization in order to focus on
obeying every type of the imposed law and policy off The United states suitably in order to
function the operations of the business more smoothly (Veliz, Albuerne, and Echevarría, 2022).
In addition to this it will assist they too attain the faith of their consumer base and it can also
support them to increase their goodwill in the market area as well. Management of the Virgin
Money is needed to evaluate all the rules and imposed laws that are linked to the sector of
banking of the specific nation in which they are planning to scale their operation effectively.
Conclusion
From the above report it has been concluded that organization showed assure that they
will concentrate on the several different factors of economy in order to grow and attain success
in the market area for the long period of time. In addition to this elements of economy involves
of several different types of elements which are rate of inflation, employment rate, rate of
exchange of currency, demand of a particular market area and several other elements as well.
Moreover to base this factor of the nation can influence the operations of the organization
optimistically as well as negatively show management of the respective organization need to
concentrate on these factors appropriately.
.
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REFERENCES
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