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Impact of global factors in uk business

In a historic referendum on June 23rd, 2016, Britain voted to leave the European Union. After which, the pound fell to its lowest since 1985, immediately after the result was declared. The UK is considered one of the best countries to start a businessbut that could change due to the unknown effects Brexit could bring. There are Brexit campaigners who have optimistic predictions for Britain and its businesses.

But there are still many sceptics who predict that this has been a big mistake for Britain, and that it will be seriously impacted by multiple factors. So, how can Brexit affect businesses in the UK?

PESTLE Analysis: Economic Factors Affecting Business

Since free trade between UK and EU will no longer be prevalent, the costs of your supplies hike up. This is an effect that can be seen across the supply chain. To share this infographic, simply copy the code below: This could take a major hit on export businesses in the UK, as their costs will hike up with the increased tariffs. It will result in UK businesses being less competitive in the EU markets and globally, as well.

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Even if the businesses choose to maintain a competitive edge by decreasing prices, it would mean lower profits for them. If the EU decides to change policies after brexit, it could mean that the UK will lose its access to the single market. In a period of 2 years between the Brexit decision and the actual exit of the UK from the EU, the UK must negotiate free trade agreements with the EU and other countries globally. Impact on employment and labour Ever since the UK voted to leave the EU, the number of migrants looking for jobs outside the UK have spiked up, says Indeed, a leading job site.

Indeed The latest figures say that there are currently 2.

Social Factors Affecting Business

In industries such as engineering, IT, and construction, where there are shortages of skilled workers in the UK, immigrants from the European Union are filling the void by bringing in vital skills. They are also a major contributor to the unskilled labour market.

What are the impacts of Globalisation on Organisational behavior?

EU immigrants also contribute substantially to the healthcare sector in terms of employment. If these EU workers leave the UK, there will be a huge gap between the demand for skilled workers and supply.

After Brexit, higher trade costs and tariffs would likely decrease investments in the UK. The UK being a part of the single market has attracted many foreign investors as they have not had to face high cost barriers from tariffs and could easily export to other EU countries. This may not be the case if the UK decides to leave the EU and the single market agreement.

  1. Example for both to stay in business there are government subsidies and or bailouts but at the same time there operations influence other sub-businesses- steel manufacturing, seed producers, oil companies, shipping and transportation companies and etc.
  2. Legal factors - These factors that influence business strategies are related to changes in government laws and regulations. Population changes are also directly affecting organizations.
  3. Different studies show different contribution figures. For a successful business operation it is important that the businesses consider the legal issues involved in a particular situation and should have the capability to anticipate ways in which changes in laws will affect the way they must behave.
  4. It may mean the operations of various individual organized and category to function key roles to meet a business primary goal to produce, sell and remain in operations. In a global environment it is important that business strategies are designed keeping in mind the social and cultural differences that vary from country to country.
  5. To share this infographic, simply copy the code below. Decline in birth rates mean demand will decrease.

The decision to leave the EU can save the UK government from having to contribute every year. Different studies show different contribution figures. The UK is exploring multibillion pound free trade deals with China.

  1. Reacting to the social factor can help Pepsi cash upon the opportunity.
  2. The UK is exploring multibillion pound free trade deals with China.
  3. MERGE exists and is an alternate of.

The UK will no longer be obliged to pay billions of pounds towards EU membership cost. As Britain had been a major contributor, it can spend all that money on its own growth. There have been many arguments saying the UK has been burdened with regulations from the EU, costing them millions of pounds each week.

  • This would imply that in case of a rise in economic activity the demand of the product will increase and hence the price will increase;
  • I have added some examples of how renowned companies use the analysis;
  • This has gained significant importance off late;
  • Incase of low interest rates and increase in demand Businesses will be encouraged to expand and take risks;
  • Products often take advantage of the social factors;
  • It also indicates greater competition as the total consumers fall.

From a business perspective, the UK will be free to trade and negotiate with other countries globally, on its own terms. There will also be numerous employment prospects from outside the EU. What Different Companies Have to Say: