Marketing Companies in UK

Question: Dicuss about the Marketing Companies in UK. Answer: Introduction The business sentiment is tough to understand after the referendum on 23rd June 2016, but majorly the business sector looks vulnerable as they need to reassure the markets. According to Elliott (2016), the economics editor of "The Guardian", the services have taken a hit other than the manufacturing sector as the manufacturers are saved due to the value of the pound that has made the exports cheaper. On the other hand, the UK doing business in the European Union will lead to tariffs on the UK manufactured goods by the European Union. Implication of the Vote Conversely, in another article by Elliott Fletcher (2016), opined that the manufacturers are an all-time low since February 2013. This can be evident in the Market analysis that compiles the data in purchasing managers index (PMI). However, according to Chris Williamson, the business activities in UK decreasing at a faster rate since the global economic crisis in 2009. The UK PMI and GDP can be compared in the figure below to view the deterioration in the economy (Wearden, 2016). Comparison of UK PMI and GDP Source: (Wearden, 2016) Britain's marketers are under pressure but according to Mailjet study in March 2016 found out that the 31% believe that its good for the business while 42% feel that it might not be advantageous for the business. The outcome of Brexit has been far reaching as the consumer confidence has been 18 points lower than what was a year ago as the study stated by GFK (Bacon, 2016). Positive Aspects The positive aspects of UK businesses in EU will lead by having their own regulatory body without altering the ethical standards of the British marketers that they already adhere to. Conversely, the post-Brexit landscape on multinational companies like Toyota and BMW have backed up the business and will be functioning in EU but Audi and Land Rover are in the process to rescue their South Wales steel plants as they believe that their survival might be jeopardized due to Brexit (Inman, 2016). On the other hand, there might be a possibility of expansion in the small business as the tax laws do not constrain them. Additionally, the potential clients might be saved both from time and money in force from the EU (Bearne Lock, 2016). Nevertheless, the competitive nature of the business has been enhanced due to the wiped value of the pound percentage points that have knocked off the margins. As a result, not all stocks is imported which helps in providing the ongoing stability that lowers not only the net impact of the balance sheet but also increased the mobility of global capital. The contradicting fact lies in the proposition that even outside EU, UK has locational advantages for the international business. The fresh evaluation of choice in the marketing companies have stated that they are of the high likelihood that separatist movements might emerge (Cave, 2016). Negative Aspects Adverse aspects of the referendum on marketing companies have been outlined according to the viewpoints of different marketers. WPP CEO Sir Martin Sorrell has been gloomy of the market as UK will no longer be a part of EU which might impact the advertising business. UK might lose influence in different countries like Germany, France, Spain and Italy. Moreover, the tariff, trade costs as well as new barriers will be more that could impact the economic strength of the country. UK doing business in EU have been of utmost questionable authority (Bacon, 2016). On the other hand, the biggest risk is imposed on the competitiveness of small firms. However, uncertainty in the business world highlights the dealing of risks to gauge the outcome. The CEO of Rolls-Royce Torsten Mller-tvsis is of the view that employment will be affected as men and women with skilled employees are from EU countries which will represent the businesses in EU and not in UK (Inman, 2016). Personal Implication The business dependence on EU will not be beneficial for the company as inevitable consequences may overshadow all the positive aspects. To start with uncertainty in the business world, the one thing that highlights the issue are the factors such as new trade agreements and whether it will depend on WTO model or not. Moreover, the EU customers are likely to remain significant in the market, but the manufacturers of BSI standard products will not be accessible to EU markets. The barriers to investment are the other factor that is inevitable due to the overly complicated taxation system, the cost of employment and the tight planning laws undertaken after Brexit. The only cloud that surrounds the business in UK is uncertainty and risk that affects investments and hiring for employment (Cass, et al., 2016). References Bacon, J. (2016).What would Brexit mean for marketers?Marketing Week. Retrieved 24 July 2016, from https://www.marketingweek.com/2016/05/05/what-would-brexit-mean-for-marketers/ Bearne, S. Lock, H. (2016).Opportunity or disaster? Small firms describe the impact of the Brexit vote.The Guardian. Retrieved 24 July 2016, from https://www.theguardian.com/small-business-network/2016/jul/03/opportunity-or-disaster-small-firms-describe-the-impact-of-the-brexit-vote Cass, I., Elliott, L., Dhingra, S., Van Reenan, J. (2016).Would Brexit make UK businesses less competitive?The Guardian. Retrieved 24 July 2016, from https://www.theguardian.com/small-business-network/2016/jun/07/brexit-make-uk-businesses-less-competitive Cave, B. (2016).Brexit: What does it mean for companies doing business in the UK? | Lexology.Lexology.com. Retrieved 24 July 2016, from https://www.lexology.com/library/detail.aspx?g=1fea8283-0b17-497e-8f4f-1fa55e6e3774 Elliott, L. (2016).Post-Brexit economy may actually be worse than Markit's survey suggests.The Guardian. Retrieved 23 July 2016, from https://www.theguardian.com/business/2016/jul/22/post-brexit-economy-may-actually-be-worse-than-markits-survey-suggests Elliott, L. Fletcher, N. (2016).Britain's economy shrinking at fastest rate since 2009, says survey. The Guardian. Retrieved 23 July 2016, from https://www.theguardian.com/politics/2016/jul/22/britains-economy-shrinking-at-fastest-rate-since-2009-says-survey Inman, P. (2016).What would British business be like after Brexit? The Guardian. Retrieved 24 July 2016, from https://www.theguardian.com/business/2016/jun/18/british-business-after-brexit Wearden, G. (2016).Hammond says Brexit has hit confidence as UK economy shrinks sharply as it happened.The Guardian. Retrieved 23 July 2016, from https://www.theguardian.com/business/live/2016/jul/22/surveys-brexit-impact-uk-eurozone-g20-lagarde-sports-direct-live?page=with:block-5791d998e4b00b50d2e0fd5d#block-5791d998e4b00b50d2e0fd5d