Report on the Brexit and What It Means for Small Businesses in the UK

2021-07-15 10:01:31
6Ā pages
1535 words
University/College:Ā 
Middlebury College
Type of paper:Ā 
Report
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Management, innovation, and sustainability

1.0 Executive summary

This report focuses on a small UK company manufacturing new aircraft parts. The report evaluates some problems faced by the company. Some of the challenges include falling sales, limited European and international customer base, 10% reduction in production targets on previous year rates, 5% increase in product rejection rates, escalating maintenance costs, unusually high turnover of staff and lost time accidents. The report tries to offers solutions to the highlighted issues by pointing out the critical factor that influences organizational success. The paper will address potential factors leading to business by contrasting them against business organizations and environment, regulation and legislation, business ethics, management and group behavior, marketing, project management and the impact of the BREXIT.

2.0 Introduction

A small aircraft assembly company is assumed as the planned efforts of the business to provide aviation consumers with goods at a profitable cost. The small business is incomplete in the number of personnel and by amount of sales. Nonetheless, just like all other businesses, the small company has a purpose of earning profits. But the modern business landscape is very dynamic and quickly changing. This calls for any small company to spend substantial resources on R & D (Research and development) to endure the market. Small companies follow mass marketing and Mass production since diversification characterizes the modern business landscape. This is accomplished through the addition of new, distinct products for present customers (horizontal diversification). Current business can also diversify on the International scale. Nonetheless, significant companies with an extensive workforce cannot survive in the UK environment.

3.0 Falling Sales

3.1 Small Business organizations and the cooperate environment

The business environment refers to all outside factors which impact on the business operation. Environmental factors are majorly external factors that are well beyond the command of a single company and its management. The business environment can present challenges to a company while at the same time give enormous prospects for possible market exploitation (Stefan, Erik, Hansen and Florian , 2015). Environmental factors include factors like technology, the government, supplier, socio-economic and competition. Technology refers to the systematic integration of organized and scientific knowledge into practical tasks. Technology is dynamic and needs constant updates, hence small companies have to be alert to adopt advanced technology in the business. There's also a close connection between a small company and its economic environment. Small companies get all the necessary efforts from the commercial location, and it absorbs the productivity of corporate elements. The governmental environment, on the other hand, refers to the impact felt by the decisions of the judiciary, executive and legislature, in controlling, guiding, shaping, and, developing industry accomplishments. A dynamic and stable environment is crucial for business development.

A small company is the product of economic, technological, global, natural, political-legal, and social-cultural factors. Multiple factors are common to the interconnection between the environment and a small company. It indicates that a small business is inclined to the environment setting and some level it affects the external dynamics. The environmental factors are constantly changing as time go by, and so does the small company. A small company may not be able in a position to transform its environment by itself. Preferably, a small company can mold the environmental factors into its favor. The importance of learning the market conditions include developing long-term strategies and firms policies establishing action models to arrange to scientific advancements and to anticipate the influence of socio-economic changes at the international and domestic heights on the firm's solidity.

An environment breakdown involves a series of steps. Scanning the environment includes the overall investigation of all environmental issues and their connections to classify initial of signs of potential environmental change, detect an already underway environmental change. The environmental analysis also involves monitoring and tracking sequences of events, environmental trends, and streams of activities. Environmental monitoring involves tracking indicators or signals discovered during environmental scanning. Forecasting, on the other hand, requires strategic decision-making for future alignment. Unsurprisingly, the prediction is an essential part of the environmental examination and is related to creating credible plans of the intensity, scope, and direction of the market change. Assessing the business factors involves focused forecasting, monitoring, and scanning to find what the empathetic means for the business. Assessment endeavors to answer problems like the critical issues represented by the environment and some of the repercussions of such concerns for the organization.

4.0 Reduced Production Target

4.1 Management and group behavior

A decrease in production targets is associated with improper social responsibility. Social responsibility is the duty of the company executives do some measures that protect and advance the personal and societal welfare. All decisions taken by an entrepreneur must have their social implications. Whether you're talking about expansion, diversification or starting up a new agency and the termination of an existing branch, company executives need to keep in mind the social duty before deciding on any action.

The main concern with Social Responsibility is that social responsibilities can reduce the economic efficiency of a company. Social responsibility creates unnecessary business costs and decreased international markets. Only the businesses with high social involvement and power would thrive. Hence, the managers social responsibility is to identify some of the concerned groups that affect the effectiveness of a company and its operations. Social responsibility is concerned about how a company responds to the expectations and needs of the society. By promoting the social environment, a business manager can benefit from the advantages of societal- conduct. Social responsibility also eliminates additional government intervention and regulation. Besides, a small can have very significant power, which obviously needs to be accompanied by an equivalent quantity of responses. Social responsibility also protects the stockholders' interests, and therefore small companies need to have enough resources to take care of the societal problems.

Social responsiveness is the ability of a small company transmits its policies and operations to the social setting in a manner that equally benefits the society and the company. For instance, social responsiveness concerns with the managers anticipating, responding and managing the social responsibility concerns. It's the aspect of organizational social reactivity that leads to the concept of social audit. A company can improve its social responsiveness by contributing to civic and charitable projects, helping in fundraising campaigns for social voluntary. Social responsiveness is also concerned with minorities' promotion, equal treatment of the workers, right salaries and safe working conditions, proper material recycling, fair employment opportunity, avoiding and pollution control.

5.0 Unusual and High Turnover of Staff

5.1 Business ethics

Business ethics refers to the ability of a company manager to abide by the principles or rules defined in the business plan. Business ethics concerns justice, truth as well as other aspects of fair competition, consumer autonomy, corporate behavior and public relations. Moral management is a form of business ethics and is concerned with how the managers struggle for success while abiding by the ethical standards. Small company managers strive to succeed based on justice and fairness ideas. A good management style is the most critical long-term interest for any company. This method is neither moral nor immoral; in essence, this management system overlooks ethical considerations.

The importance of business ethics is directly compared to the basic human needs. Every person is expected to live up to ethical standards not only in the personal life but also in occupational scenarios. Ethics help the company to become value credible with the public. A business perceived by the public as socially and morally receptive is respected and honored by the community. A company's management with public credibility also gets employees trustworthiness. An ethical approach supports the administration in making better decisions since ethics compel a manger to create different social and economic decision making aspects. Companies that are value driven have assured long-term success.

The economic system is a social structure through which the population affords a living. A financial system is comprised of the government, firms, households, banks, factories, and individuals who interact to generate manufacture and consumer goods. Families and Individuals integrate resources like skill, labor, capital, and land into more than a single alternative use to make ends meet. A small company on the other hand purchase factors of production and arrange them in a production process to generate products and sell them to other customers who use them for separate projects. Consumers can acquire necessary goods, and the producers can produce and market different kinds of products in appropriate quantities. An economic system functions through an invisible hands technique where the market shapes supply and demand. Even more, a financial system is much complex with lots of people participating and contributing in the different working capacities like financers, workers, consumers, traders, and producers. Distribution and production of one commodity involve a lot of people.

A free enterprise economic system works on the necessary foundation that there's the least interference by an external force like the government. The major role of the administration is to safeguard free operation of the economy by eliminating obstacles to allow open competition. A government controlled economy is where the government controls, regulates and manages the government agencies. In such a system, the production resources are owned by the nation or society through private ownership of property and businesses is abolished. The consumers have limited freedom of choice to wha...

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