Doing business in UK Research Paper Example | Topics and Well Written Essays - 3000 words

Doing business in UK - Research Paper Example The four countries constituting the United Kingdom (UK) are England, Scotland, Wales and Ireland. It is true that they can be distinguished geographically, however, their strong sense of nationality and identity cannot be ignored. Originally known for having a very homogeneous society, since the Second World War, Britain has acquired extreme diversity in all spheres due to the large number of immigrants accommodated into its population. The high mix of ethnic cultures and groups makes it difficult to define the British culture as having a particular look or acting in a particular fashion. The British are considered to be more formal as compared to other nations. It is found that numerous people belonging to the older generation prefer to work with organizations and people who are known to them or their associates. The young businessmen do not require long and standing personal relationships before entering into businesses with people. Nor do they depend on intermediaries for making i ntroductions for conducting businesses. In other words the key to successful businesses lie in effective relationships and maintenance of long term relationships. The British are seen to immense respect for ranks as they prefer to deal with people belonging to their levels or higher levels. Businessmen prefer including an elderly statesman into their group as a representative of authority which is considered as being essential for having positive and health business relationships . 1. The project seeks to present the pros and cons of conducting business in UK. This is done using the study of the region’s macro environment that affects the decisions of businessmen and entrepreneurs of organizations. Considerations are taken with regards to changes in tax structures, changes in legislations, demographic changes and changes in the government policies. To summaries it the entire project makes a thorough macro analysis of the United Kingdom which would impact the entry, establishm ent and growth of businesses in the same2. 1. PESTEL Analysis There are a number of factors in the external environment of firms which affect the decision making of managers and entrepreneurs. These factors are political, economic, social, technological, environmental and legal factors which require consideration while setting up business in locations. 1.1. Political Factors The recent past political conditions in the United Kingdom were not very impressive for conducting business operations. However, the conditions have now changed. The government has been trying to schedule its activities as per its priorities for investing money. Blair has highlighted an Organization for Economic Co-operation and Development report in which he tried to show that Britain’s taxes were much lower as compared to the other industrialized nations across the world, Japan and USA being the only two exceptions3. Recently the government has been stressing on cutting duty on fuel which would be compe nsated by cutting costs in the form of pension reductions. The food prices had reached record levels and the prices of stables like food grains, had reached high levels however, the price rise has been curtailed. The aim of the government has been to build a solid foundation for a healthy economy and attempt to achieve full employment, lower inflation rates and maximize welfare of the economy (see 3). 1.2. Economic