Business management and their critical issues directly affects the business performance and the growth rate of the firm. In the business management, critical issues states that shortage of skilled workforces, the problem is related organizations functions, globalisation, activity overload, demand of the customers, supply chain customers, pressure of reducing the operation cost and product cost, shifting of the service providers or more. These type of issues directly affects the performance of the organization as well as the growth rate. This following report states that, the effects of Brexit on the small and large business as well as identify the main cause of the UK's Brexit decision. Furthermore, this report includes the strategic crisis of the management theory and the effects of this theory on the business. In addition to this, it will discuss the challenges of leadership which is faced by the senior management of the business management. Brexit is a major change and challenge in the business environment and affect the business performance as well. In this particular case of the Brexit, Entire business and growth of small and large enterprise affected by the rules and regulations of the European union as well as abide by them.
1. Analyse the causes of UK's Brexit decision
There are several reasons in case of why UK leaves European union and their all policies rules and regulations. UK's Brexit decision based on the various reasons but the main 3 reasons that forced UK to take that step are; Economic condition, sovereignty, Political elitism. These are the major factor why UK takes the Brexit decision. British voted for leave the European union and move from their policies and rules and regulations. Brief discussion about these factors is given below:
Economics: Economy is the main factor that directly affect the business of each and every organization. In this particular case, British people felt that European union(EU) fails to address all the economical issues and not able to provide best solutions for these particular issue. The main effect of the economical condition is on unemployment in several states of Britain. Before the Brexit, UK's economy was pretty well and their GDP growth is also strongest among all the major countries like Europe, US and more. Unemployment rate is also under control by UK's economy standards and maintain the rate of unemployment. After this UK takes the decision to leave the EU, so there are several possible reasons like; Inequality, stagnant earnings, In-work poverty, disastrous anger vote or more.
Sovereignty: It is the major reason for Brexit and it is rise from nationalism across the world. This is mainly cause due to the multinational financial uncertainty, trade and defence of organizations. British people thinks that EU does not understand the power of nationalism and because of that it attempts to retain the nationality. This is the most important issue faced by the country and because of that they want to leave EU on immediate basis. Basically sovereignty is the principle of UK constitution and in this, it is responsible for create and end any law, policy or rules. It is the issue that dominating the EU campaign or EU limits their ability to make the own decisions and choices.
Political elitism: Political conditions are the main reason behind taking Brexit and faced profound loss problem. A political system of UK majorly based on the limited principles, representation and rules and regulations as well. In addition to this, Brexit frightened by the financial market conditions and economic falls. Most of the Brexit supporters believes that financial industry's incompetence create the disaster and there is no benefit for them in any success in the business or financial industry. This is the contradiction between both the people one who want to remain with the EU and another one who don't want to remain with EU's rules and regulations. This is the vital process which is to be understood by the British people is that Brexit was the vote against elite.
2. Evaluate the effects of Brexit on business
There are several types of mix effects of Brexit on businesses either in positive way or negative way. UK's businesses majorly says that Brexit has negative impact on the business and directly affect the performance of the business. According to a survey in Britain, it results damaged in the several businesses in many ways. Decision of moving from EU, has an impact on the business in the way of earning hits, headquarters move, cost cuts and many more. The effects of Brexit on business which is gi