"Understanding Business Page | 1 Table of ContentsEconomic Impact of UK withdrawing from EU ............................................................................. 2Working Environment affecting the organization’s performance .................................................. 4Impact of self service machine on UK business ............................................................................. 6Reference List ................................................................................................................................. 8Economic Impact of UK withdrawing from EUAs per an article published in The Independent, the decision of Britain to exit the EuropeanUnion has had several impacts on the country. The Independent’s Oliver Wright on Saturday 18June 2016, states that the decision of Britain to use their right of withdrawal from the EuropeanUnion under Article 50 of the Treaty on European Union has had major implications on theeconomy of Britain (Uddin and Boateng, 2011, p.547). It has restricted the free trade of thecountry with the other member nations of the European Union which would restrict their revenuefrom the export and import trade; business analysts predict that Britain might not be able to enterwith a replacement policy of free trade with the other 27 nations of the European Union. The exitlimit the extent and volume of economic trade that Britain had with other nations and thisrestriction has lead the business analysts to predict a growth rate of only 1.1 per cent in 2017 ofUK compared to the growth rate of 1.8 per cent in 2016. European Union was a good source ofattracting investment from the foreign nations for UK. However, after the decision of exiting the European Union, the flow of investment will berestricted which will in turn restrict the growth of the country and also cause the foreign firms toreturn to the boundaries of the nations who are still a part of the European Union (Callan et al.2011). Owing to the loss of foreign investment, the International Monetary Fund has predicted agrowth rate of only 1.9 per cent for the year 2016 for the country (Ottaviano et al. 2014). Thegross domestic product will also decline since the growth rate will decrease and the amount ofPage | 2 investment will also reduce. Brendan Sharp also suggested in the newspaper article that thesedrastic turns in the economic scenario of the country would sharply affect the standard of living othe citizens as the people would start losing their jobs as the foreign organizations start taking thedecisions of pulling out their funds from United Kingdom. For example, BMW, the carmanufacturing company has warned their employees and staff of the loss of job scenario. Due tothe limitations in free trade and constant flow of investment in the country, the cost of livingwould increase which would decrease the standard of living of the citizens of the country(Theodoropoulou and Watt, 2011). With the progress of time, Britain’s decision of leaving theEuropean Union only seems to have a negative impact on their economy. The decision of Brexitwill increase the labor wages as the free movement of trade will be restricted earlier, individualsfrom the EU member nations travelled to UK in search of jobs which ensured that UK had agood labor force to be employed at factories and organizations. But due to the restrictions on thefree movement of individuals, the number of laborers to be employed will decrease which will inturn increase the wages of the laborers and the labor cost incurred by the company.The value ofthe British currency has also declined and is expected to fall to a rate of $1.32(independent.co.uk, 2017). Page | 3 Working Environment affecting the organization’s performanceThe working environment of an organization is one of the major factors affecting theorganization’s performance in the market place. As indicated by Margareta Pagano of TheIndependent on Wednesday 8 July 2015, in her article, the performance of the employees islargely governed by the environment they are provided with in their workplace. It is a knownfact that the organizations performance depends on the performance of the employees who strivehard to ensure that the organizational goals and objectives are fulfilled. If the employees areprovided with a friendly and a good working environment then there productivity will alsoincrease and the extra output generated by them will help the organization to achieve their goalsand aims more efficiently. A good and healthy working environment is one where the employeesfeel motivated and their morale is high (Chiang and Hsieh, 2012, p.180). It is the responsibilityof the managers and the supervisors to create an environment where the employees feelmotivated and comfortable sand are also free to share their thoughts and views regarding thebusiness operations and management. If the employees are able to provide feedbacks to theiremployers regarding the business operations, then they would feel that they are also an importantpart of the organization and would hence, strive harder to accomplish the goals and aims of thecompany (Rich et al. 2010, p.618). This feeling in them would reduce the error rate in theemployees which would hence, increase their productivity and output. It also encourages theemployees to become innovative and provide ideas that help the organization to employtechnologies and innovate their manufacturing process or their marketing plan which would helpthe organization to earn financial benefits and profit. If the good working environment isprovided to the employees, the rate of absenteeism and labor turnover also decreases which againincreases the output of the organization. If the employees are motivated, then they will also wantto collaborate with the other employees and find out ways to increase the efficiency in theirperformance level; it would induce the feeling of co-operation and enhance the team work in theorganization. This collaboration of employees will help them in providing each other withconstructive feedback and improve their performance in the company (Li et al. 2010, p.4). Asper the article published in The Independent, a favorable working environment for the employeeswould help them in identifying a unique identity with the culture of the organization. The cultureof the organization implies the mission and vision statements of the organization, the objectivesPage | 4 "