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Navigating FTSE 100 Markets Amidst the COVID-19 Impact
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This part of this total research paper would explain a simple brief on the entire research paper and this section of the paper will play a pivotal role based on some essential discussed matters which will cover a lot of points and topics under that. The introduction would introduce the need and research question of the paper based on some essential aspects. The project has the initiative to explain the impacts of covid 19 on the companies which are enlisted under the Financial Times Stock Exchange, London. The research paper would explain the changes in the factors which have occurred during the existence of the covid 19. Research background is discussed in this study thoroughly to understand the reason of study relating to the objective and the models and techniques that helped the combined to survive in the pandemic. As many of the businesses were forced to shut down due to the poor infrastructure in the business. In this research, various factors affecting profitability are analyzed in the companies listed under FTSE 100. The objectives and the aims related to the study are discussed to carry the project effectively. The results of the Cost and profitability strategy adopted by ethnogamies are thoroughly studied along with the companies that did not follow such strategies and the relevant impacts on the profitability.
Due to Covid 19 heavily impacting the FTSE 100 MARKET behind that causes the UK equity market to fall. It is noticed that the situation in the pandemic has pointed to a relatively slow down increment in the economy activity and also stirred the functioning of equity.
The research background part will explain the outlines of the total studies and this part of the paper would outline the total research paper with mentioning of the main or important topics of the research paper. This part will discuss the major and models which are being used in the research studies and the reason for adapting the models or design will be justified with the proper reasons and explanations. Here the research paper would consider the condition of the economy of the UK mainly as the financial time stock exchange has the enlistment of the companies which are mostly from the united kingdom and the top 100 listed company are mainly from United Kingdom, that is the reason of why most of the studies will keep a connection with the economy of the United Kingdom ( Tandfonlineet al. 2020) . The research background will discuss all the matters closely and most of the parts will be touched by the analytical part and the discussion would follow some statistical inference as well. The economy of the UK and the world economy largely depends on the companies which are enlisted under the FTSE. These companies work as the main market influencers and the supply demand function of the market is largely dependent on the companies which are enlisted under the market. The dependency on the company has played the main role behind the additional explanations( Liuet al. 2020) . Most of the companies keep a very good market reputation and some of the companies reports are transparent, that's why the dependency can be shown easily with the statistical analysis. This is the reason why the top 100 companies are chosen in the matter of research.
The government of the UK has recorded a severe bad record on the financial terms and most of the numbers are showing very less and below standard numbers. Most of the enlisted companies under the financial time stock exchange, London has recorded a negative growth rate in financial terms. As per the provided data, the price index has been showing a big downfall in the share market because of the covid occurrence and other things in the world economy. Most companies have faced a downward shift in their growth performance. Most companies have faced the problem of delinked shares in the month of January. All of these things have happened because of the covid situation present in the country which has brought down all the working activities and the companies have faced the problem of productivity and proper qualitative development in that period of time. Most of the companies under the financial time stock exchange have faced huge amounts of losses in the production procedure and most of the companies have faced sales problems in the market because of the sales downfall during demand creation problems in the market Mardini (et al. 20). The GDP of the nation is largely affected by the covid pandemic and the margin of equity has also suffered significantly. This is the reason behind making the project or research paper on the impacts of the covid 19. Covid 19 has affected most of the top 100 listed companies and the impact has been spread throughout the world as most of the companies have very good market power and another capacity over the world market. The companies like HSBC, British petroleum and other important companies are also associated with the research rationale ,as these are the companies which are the influencers of the economy this is the reason why the data of the companies are taken into the preference. Most of the company's data are well maintained and most of the are from legal background. FTSE plays a major role in the economy of the uk, as it shows the major economic significance and plays a major role in accounting of the economies growth and development method. The growth rate or the development schedule of the UK is largely dependent on the top 100 listed companies (Mardini et al. 2019).
The research work is significant because this research paper will provide a proper explanation on the solution that the economy has faced during the covid 19 period. The research study will help to summarize the reasons and the solutions behind the impacts of the covid 19. This paper will give a comprehensive study with an explanation of the “Reassessing cost strategy”. Reassessing cost strategy explains little about the price of the items, consumer behavior and some other important things like market structure, and demand creation process( Manzooet al. 2020) . Here the assessing theory is applicable because most of the things which are the main issues in this cost strategy are mostly related with the factors which are mostly related with the factors which are responsible for the downfall in the economy.
“Removal of unprofitable product line strategy”is applicable in this scenario as the theory ensures the removal of unprofitable product line strategy as this theory states the importance to remove the items which are not profitable for the companies. This theory states the facts in favor of profitability and which is most needed in the covid period, as the costing becomes the main matter so some of the product removals can prove pivotal in favor of the profitability (et al. 20). This strategy of policy would help to make operational works during the covid 19 period easier. As during the covid period time, it is very much important to produce and continue the production process in a good method.
“Reevaluating pricing strategy”can be discussed as a good point to explain more on the situation which is taken under the assumption and this can be proven as a good method of consideration and that can be proven more efficient for better results. this theory focuses more on the reevaluation of the prices which are not making sufficient footing in the market so the evaluation of the new prices can be proven pivotal in favor of the market, as in the covid 19 time the market has changed lots of the factors and these the lockdown situation has changed some of the situations completely.
Some of the studies have shown different results in different cases as most of the companies have moreover the same demand-creating situation and the solution becomes a very hard thing to find( AlAliet al. 2018) . The matters in this are to be discussed in different ways. The different models are being assumed and stated with proper explanations and three other important things. The covid 19 occurrence has changed many phenomena in the market of the up and as well as the world and the top 100 companies which are enlisted under the FTSE , London have to maintain a world reputation as the companies are the huge influencer in the world market. As a result these companies also can change the demand of the UK market and as well as the world market.
The aim of this research includes the study of the companies listed under the FTSE 100 to assess the position during the pandemic. The threats faced by the companies during covid is communicated in this part. The companies that recovered their position in the market earlier than the rest of the companies listed under FTSE 100 depict a better position of the company. The structural foundation of the companies has been discussed accordingly (Khan et al. 2020) . The research may help the investors in viewing the position of the company before and after covid. The recovery rate in the profitability and revenue may help the financial analysis in determining the best option to invest in the companies listed in FTSE 100.
The research paper has set the objective to show the paths for better recovery and better results in the UK market. The first 100 listed companies have also faced a lot of issues in survival and in securing the minimum profit level in the market. The statistical data is showing some bad results in terms of business-related outcomes which are reported by the companies in the stock exchange. The matter of survival in the market has become more important in the existence of covid 19 (Muhammad et al. 2020). The covid 19 has changed the demand path of the economy of the UK and changed a lot of calculations that were present in the pre-COVID period. The aims and objectives are
Some of the research questions will be raised according to the operational structure and other issues. As the situation is highly dominated by covid so at the end of the day most of the objectives are to be set according to the change in the covid situation in the country. As per the most of the statistical outputs the companies listed under the financial time stock exchanges. This is the reason why some of the research questions have been raised because of the untoward situation in the end. The matters which are discussed under the impacts of covid 19 have included the fact of the other thighs also (Özdemiret al. 2020) . This part of the research paper has shown that Most of the companies under the financial time stock exchange have faced huge amounts of losses in the production procedure and most of the companies have faced sales problems in the market because of the sales downfall during demand creation problems in the market. This is the reason why the questions making a level of minimum profit is being monitored closely and effectively by the studies of the projects. Some of the questions can be arised due to the matters which are considered in the research paper. The matters are to be discussed with some of the research questions and these are
The structure of the dissertation has followed the structure of the introduction, aims of the research, the rationale of research, research background, aims and objectives of the research and some other important topics. The dissertation has followed a proper and ideal structure which a proper dissertation should follow. The dissertation will show some good level results and with some company reports and others importance.
The paper provides a small review on the impact of covid in the economy of the UK. Most of the parts of the projects have shown the reasons and the bad impacts of the covid 19. The impact of covid on the economy of the uk is a crucial matter which needs to be described. The research background section has shown the backgrounds and the other important impacts behind covid 19, the background has shown different impacts and most of the impacts have been discussed briefly in this section, the section of the background has shown most of the possible ways and outcomes with brief result analysis. The research rationale has explained the rationale behind accepting this procedure. The research rationale has explained the outline of the total project and the other important things. This project has explained a comprehensive study on the covid impacts and the condition of post covid part in the market of UK. The project has provided a proper overview of the basic things which the market has been facing since the occurrence of the covid. The project has raised some research questions to make the outcome more familiar and comprehensive. The project has set some of the basic objectives to remove some of the market resistance.
The project has aimed to provide some solutions to get over this situation which is related to low-level of returns (Grimaet al. 2018). Some of the research questions have been raised for better opportunity creation. The matters which are related to the market structures are commonly discussed concerning proper marketing models. The models which are taken under consideration are represented properly in the explanations. The research paper has set the objective to show the paths for better recovery and better results in the UK market. The first 100 listed companies have also faced a lot of issues in survival and in securing the minimum profit level in the market. Most of the company’s data are analyzed according to the reports which are represented by the data which are enlisted by the companies which are under the FTSE. Some of the top 100 companies like HSBC, British petroleum, shell, and Pepsi data have been taken under consideration (Johnmanet al. 2020). The project has given a comprehensive study on the analytical jobs and the other things which are related with the impacts of covid 19.
The main aim of the proposal is to analyze the impact of COVID-19 on UK FTSE 100 Objectives
The literature review is based on the effect of the covid-19 on the “impact of COVID-19 on the FTSE market” in the UK. Here, the discussion is made on the concept of COVID-19 and FTSE 100 in the UK and its market position in the UK. The impact of COVID-19 on the different volatility of the stock market in the UK. The uses of the different theories and models may help to mitigate the issues that occurred in the market due to COVID-19. The theoretical concept of the “Efficient Market Hypothesis,” “Modern portfolio theory,” and “Prospect theory” will suggest choosing a better mix of low risk. These concepts may help in the future growth of FTSE 100 in the UK.
The factors of the covid19 against the FTSE-100 in 2020, reflect on the business of the UK and the deep recession on the corporate profit, employment, and dividends (Bbc, 2020). The mid-cap FTSE 250 index, may consider a Brexit barometer in the sentiment that rose by 0.1%. The FTSE 100 has recorded the best year since 2016, in the FTSE 100 index has been falling by 14.3% over the year 2020 (Reuters, 2020). This has made a worse performance since 2008, due to a slump of 31.3%. On the other hand, the poor performance of the blue-chip index was covered since the pandemic was lower than the current day. The Blue chip FTSE rate rose by 0.1% (0803) GMT, which was struggling to break the previous 10-month high hit (Reuters, 2020). Ashted Groups, an equipment rental company, was made the best potissio9n in the way of performance of FTSE 100 stock. It has been relayed by 73% after the revenue of the company was boosted up to the economic rebound. Furthermore, London lagged some major European indices, with the FTSE MIB of Italy up by 23%. On the other hand, the Oil prices have rebounded by 50% during 2021, which has been lifted by caution, an increase in production, and higher demand. Moreover, the prices of Gold in the UK dropped by 4% in the respect of the higher interest rates which dampened the assets' appeal that provide income (theGuardian, 2020). Despite this, the recovery of the year in the FTSE 100 sector in the UK may be still below 6.5% at the peak of 7903 points. This was set in the year 2018, May, while the market in the UK, US, French, and German hit the previous record in 2020. The exposure of the pandemic impacted the UK market which closed down by 3.46% or 266 points in the index of FTSE 100 (Theguardian, 2020). Furthermore, the other sector was also affected due to these covid-19 in the UK. The Whitebread (-8.7%)andHotel chain operatorsin the sector of InterContinental (-9%)were the top faller in the UK. Furthermore, the different sectors related to Standard Chartered bank (-8.9%) and Conference groups Informa (-9%) also faced a larger quantity of falls in the UK market of UK (Theguardian, 2020).
The method of “Efficient Market Hypothesis” in the market of FTSE 100 UK, will examine the weak form of the efficiency. Seasoned investors and various fund managers will constantly take action based on these types of theories to protect their investment portfolios. These will help at the time of the post-investment in the UK market FTSE 100. The comparison between the FTSE 100 and the US equivalent may show that the FTSE 100 fell sharply during the period of COVID-19 (BBC, 2020). This means that the movement of the cash has happened on the risky markets that may move to safer places. The theory aims to control the “Severe Acute Respiratory Syndrome (SARS)” outbreak during the pandemic. Therefore, the investors in the market in the UK will improve and manage their investment to get the best return rate of the investment.
There may be a higher risk at the time of the investment in the market with the stocks and shares. The period of covid-19 is the higher risk period for the investment in the market (Realized, 2021). The “Modern Portfolio Theory (MPT)” is the type of theory that will help to analyze the risk of individual securities. The main advantages of the use of MPT in the sector of the investment of stock in the UK FTSE 100. The use of these types of the theory by the investors in the market FTSE 100, after the pandemic, will reduce the diversification of the portfolios. According to (Wolfstreet, 2022), the UK FTSE 100 price index dropped by 3.5% and 6.7% in the year 2020 to 6987. The above figure 3 shows that the index has fell by 10% from the all - time high in 2018. On the other hand, in the UK market from the last 22 years ago, there may have been a high Bubble that occurred during the downfall of the market (Wolfstreet, 2022). Furthermore, in the year 2020, there was also a bubble that occurred in the market. The “Modern Portfolio Theory (MPT)” will provide a clear view of the investment in the different business sectors in the UK, to the investment. These will potentially generate the fare view on the steady rates of return.
The prospect theory will help to track problems, usually the investment, the different markets choosing the assets. There may be a different type of optimal portfolio that is very difficult to rebalance and manage (Britannica, 2022). This theory is also known as “loss aversion theory”, which helps to make decisions under the condition of various types of risk. This theory will analyze the form of efficiency in the sector of “Financial Times Stock Exchange 100”. These will improve the comfort opportunity related primarily to gaining the risk-seeking in the realm of the different losses due to covid-19 (Britannica, 2022). These elements will recognize the most robust finding in the model, these recognize the diverse theory in the mind of the investors. Furthermore, the investment of the investors in the different mind respects may examine the robustness of the different strategic options on the UK’s FTSE 100 index. According to the data of the FTSE 100 index on the trade of LIFE, that obtained the settlement of the prices (Citeseerx, 2022). These may help to the settlement and are associated with the underlying index values.
The financial disruptions created by COVID-19 have lowered the UK equity market. This was a major issue in the country and had a substantial negative impact as well. It is observed that the pandemic has not only affected the operation of equity but also showed a comparatively slower growth in the economy. Although the country has seen a 60% growth in the e-commerce market, the downfall in the equity operation has extensively affected the GDP of the UK (Semanticscholar, 2020). The profit margin in the equity is affected and it has increased the volatility of the stock market in the UK. The report suggests that the price index in the early weeks in the pandemic period was quite steady. It showed a sharp and substantial decline in the weeks that followed the announcement of the lockdown in countries all over the world. And then the price index experienced its lowest downfall during the week of the announcement in social distancing in the UK. The equity market showed a decline of 35% in January (econstor, 2021). However, when the announcement of ending the lockdown was made across the world as well as in the UK, this decline in shares was reversed with the overall decline in the share index in the FTSE 100 21% over that period.
In the escalating crisis surrounded by the global recession due to the pandemic, the FTSE 100 faced the second-largest crash in history. In the year 2020,23rf of March, it showed the lowest value of the year with 49993.89. As the pandemic continued, the FTSE 100 index continued to make a recovery from the crest fall between late March 2020 to early June 2020 (Business Perspectives 2021).
The percentage change in prices of shares from 2nd January to 20th May of the year 2020 remained stable. According to the author (Dias et al, 2020) the shares of Tesco fell by 3% during the pandemic as the overall performance of the FTSE 100 was hit hard. The market shares of the research and biotech industries excelled in their performance in the market and a certain period dominated the market with a huge number of shares in equity market of FTSE 100(researchgate 2020). The shares of medical firms outperform the market by an increased share value of 6% in comparison to the decline faced by the overall downfall in the FTSE 100 of 21% as reported.Year 2020, in that year evolution of the local capital market became atypical, same situation happened in global market.
The shockwave of the Covid 19 had spanked the share prices of the leading stock exchange of Britain by 25% after the biggest drop in 1987. The stocks in the 100 Index had rallied during the period as the world economy has been followed by unpredictable measures for the mitigation of the impact of the pandemic. The FTSE index has been running by 2000 points below as it was started early at the beginning of the year. The biggest crash has been recorded regarding the early position of the index as it was at the all-time high at 7542 at the beginning of the year (The guardian, 2020). At the same time, the biggest components of the FTSE index the Oil sectors, airline sectors, Travel Firms, and Banks have been slashed by the pandemic, and the values of these industries along with the companies also reduced (Khan et al. 2020). According to several data sources, the share prices of the travel companies have been reduced by almost 42% as the entire world has been quarantined and the travelers have also needed to protect themself rather than traveling. At the same time, the value of the oil industry also reduced by 65% as the price of the oil barrels has been increased by $22 and the demand for the oil has also been reduced as the global economy is headed to recession. On the other hand, the banks, airlines, and travel companies have been suffering from the biggest losses because of the Covid, and the main reason for the recession is the lower demand. The share values of the airlines and the travel companies have been reduced by 75% and the value of British Airlines which is the key element of the London Stock Exchange reduced by 67%. Therefore, the biggest challenges the index faced can be stated as under.
The main challenge for the FTSE 100 index is the second-largest crash in the prices of the index. The prices of the index have been recorded as 5671 at the end of march 2020 which was traveling around 7500 at the beginning of the year. Therefore, the falling of the prices provided the challenges for the recovery of the index to its previous nature.
According to the current market position and the world economy the investors will not be able to invest in the down trends market. The redirection of the share index will be next to impossible as there will be no money for the regulation of the shares of the listed companies (He et al. 2020). Moreover, the biggest components of the FTSE index have been averagely slashed by 50 %-60% as a result the recovery can be hung.
Due to the market instability and the market position, the valuation of the listed companies can also be reduced because of the pandemic. Therefore, the companies may also lose their market capture and position.
The earnings of companies in the sector of the Oil and gas industry in the UK have grown by 5.2% per year from the analysis of the year 2020. The revenues of the companies will be increased by 14% per year. According to the above data the oil and gas industry in the UK has risen by 1.8% during the year 2021 from the shell of 2.1% (Simplywall, 2022. It may be estimated that in the last three years 2020, the industry has had the best rate of return on investment. There may be an assumption of growth of 1.2% per annum for the year 2020. Furthermore, there may be different survivals in the sector of a long-term decline in the petroleum demand in the UK due to covid 19. Therefore, the next decade for the oil and gas market becomes a very difficult situation. The Global oil demand may fall by 25% and sharply cut off the losses by 8%. Moreover, the process of oil and gas has underperformed based on the metals and broader S&P 500 index by about “10% and 25% and 6% and 10%, respectively, since July 2020” (Deloitte, 2021). Therefore, it may also impact the heightened and Mass layoffs cyclicality on employment to continue the challenges. The reputation of the industry as a reliable employer that had laid off about 14% of the permanent employees in 2020. According to (Deloitte, 2021), this may show that 70 % of employment was lost by the end of 2021 due to the pandemic.
The forecasting of the growth is based on the last three years, 2020, 2021, and 2022 in the stage of oil and gas storage. There may be an estimation of the 41% growth for the last 5 years. According to (Simplywall, 2022), the industry in the sector of oil and gas expected earnings to decline by 16% per year over the next few years. The different investors of the UK will be the most optimal in the oil and gas industry which may be below 3 years of the average of 11.5%.
The investors in the UK have created a clear view of the plans of the companies in the UK for energy transmission. There is some strategy has been taken for the mitigation of the issues.
The government has provided massive support in the sector of financial support to protect firms and households. The FTSE has dropped about 1.7% despite the sharp slide in the UK. The COVID-19 crisis may accelerate the awareness of the urgent shift to a neutral carbon economy at all levels of the government (Oecd, 2021). The “post-crisis of recovery” strategy may have the unique opportunity to allocate funds to reduce the intensity of economic activity. The UK mid-cap stock of FTSE 100 suffered its worst day in 3 months of 2020 to fight a fast-spreading to the new strain of the covid (Business, 2020). Therefore, these strategies will help to mitigate the issue of the economic crisis of the FTSE.
They evaluate the different decisions about the growth of the core business and the scaling of new business. The sector of the oil and gas industry in the UK may resolve the problems that have been generated due to COVID-19 (Mckinsey, 2021). There may be challenges to mitigate the cost, investment decision, and the arrangement of supply. The strategy of rebalancing the capital portfolio will help to enable reliable, ubiquitous remote connectivity and security.
The strategy of Mega 25 will help the sector of recording the market capitalization to gain a category of its own. There may be a collectivity that added £5.8 trillion in value to the increase of £ 231 billion (Mckinsey, 2021). There may be an overall rise of the market by £ 14 trillion over the past year. The oil and gas industry has faced high levels of loss during COVID-19 which impacted the fortunes of the business of the UK. The pooling of investors for the future and capital investment to the expected duration of the pandemic and its impact on the consumers. The start of “Mega 25” will help to generate capital in the market by helping the investors. The exceptional market by performing the skew in the industry will promise new growth. Furthermore, these will increase the growth collectively in the increment of the value by 1.8 trillion to represent 12% of the total gain (Mckinsey, 2021). These will make 5000 companies in the UK convert the market into half of the 53 companies for market gain.
In this research study, Khan et al. (2020) clearly explained the recession phase and its impact on the FTSE market but failed to explain the future expectations regarding the growth of the market. Mckinsey (2021) fails to explain the surge of oil and gas impact on the growth of the FTSE 100. The research study helps to gain deep insight into the impact of COVID-19 on FTSE 100 and looks after the development of the future growth of the FTSE market in the UK.
This is to conclude that, some of the industries of FTSE 100 which included the leisure and tourism department which also includes the air travel department had the hardest hit. The companies which produced fossil fuel and shares of other large-scale manufacturing units were adversely affected. On the contrary, few industries dominated the shares of the market such as the druggist, chemist and food manufacturing units. In the year 2021, 1st January the market value of FTSE 100 shares increased to 6856 index value. Also, the shares of FTSE 100 on 14th of April 2022 the value of shares were7616.8. Thus, it recovered the crest from the fall due to the pandemic and started to perform well in the market supporting the GDP of the UK positively.
The methodology is an important topic and part of any kind of research paper, this is the reason why this part is considered the heart of any research, and the most important parts which are mostly related to data are being discussed here in this topic. The methodology part consists of some subparts like research onion, research philosophy, research approach, research design, data source, sample size, sampling techniques, data analytics, and some other important topics.
The part methodology will explain the methods of data handling and some of the other important processes like data collection, analysis, and the approach of research. The methodology part of this chapter will explain the condition of the FTSE 100 market in the post-COVID period and all the impacts of the covid 19 will be discussed with proper data analysis and other parts. This section will provide a composed and comprehensive part on the data studies.
The research will be introduced to explain the different types of matters on FTSE 100 in the post-COVID period and all the data or information will be supported by legal and proper citations (Griffithet al. 2020). The research onion is present for a better understanding of the relative data and information. The experimental research conducted by the researchers regarding the performance of the companies listed under the FTSE 100 has been discussed in this part. Systematic research regarding the performance of etyn stocks is analyzed through various strategies adopted by the researcher. The choice of the researcher in conducting the research regarding the selection of companies and performance is discussed with the time horizon. The techniques and procedures involved in this research have been specified. The various stages in the data collection may be best understood by this method.
The research philosophy is the process by which the total research procedure is conducted and the research studies are decided. This part decides the sides and the objective showing of the total research studies. The primary objective of this section in the paper is to show the impacts on the FTSE 100 in the post covid period, as the occurrence of covid is not a general phenomenon and it is considered as once in a hundred-year phenomenon so any of the common research philosophy can not be aligned with this topic or particular case study. The right explanation on the proper research studies can be achieved only by acquiring a proper research philosophy (Brydgeset al. 2019). This is the importance behind the adoption of the correct philosophy in any kind of research work activity. In the research study on the impact of covid 19 in the post covid period, the research philosophy of realism is accepted as the best fitting.
The theory of realism is related to every kind of realistic approach and most of the cases need to be closely discussed with a proper realistic experience and explanation of the reason behind the adoption of this research philosophy. The theory will help to explain the complicated realistic things which have occurred in the post covid period in the market. The FTSE 100 is the top 100 companies which are enlisted under the London stock exchange and most of the companies or organizations have faced so many factors in the market after the occurrence of covid 19 (Wang et al. 2019).
The philosophy is related to realistic expression in any time or condition and the reason behind having this philosophy is to get the actual and proper explanation of the current situation.
The report is based on the situation of the covid 19 and its impact done towards the market of the FTSE 100. The project's purpose is based on the study of how the company aims at all the objectives, impacts, and overcomes them. The project is based on research that is to be done based on rational research which is based on the research or data taken during the analysis and investigation that is provided by the company financial statement. There will also be a price index which will show the downfall very sharply in the weeks during the lockdown. The rationale is based on the e-commerce increases in sales. The research aims would be based on the potential effects of the covid 19 situation on the market equity index. It will also highlight the changes in the price of the index of the market. The research will also be done on the changes in the industry sectors of banking, manufacturing, medical and tourism, and so on. It will provide a brief growth based on this thing in the project. There would be some questions regarding how the covid 19 pandemic affects the market of equity in the UK the research would be done by taking some modules and analyzing all the data collected from the modules. There would be a brief design based on the research on the covid 19 impacts done in the market, and the issues faced by the market because of the covid 19 situation. All the financial gaps are due to the pandemic between the companies and their objectives. The behavior of the market regarding the price can be easily identified with the help of the phases of the market based on equity. The research aims to obtain all the information regarding the stocks that are listed in the market and equity index. All the issues are important regarding the loss in demand and services of the goods because of the shutdown of the operation during the covid 19 situation. All the data should be collected with the help of sources that are qualitative and quantitative data. The analysis is also based on the ethical issues of the companies. The research is also based on the changes in the price of the market based on the equity of the UK that is bought during the covid 19 pandemic. All the research that is to be taken and analyzed bed on this reaches only to see the outcomes of the 100 companies which are effective during the covid 19 situation how they overcame it and the impacts of covid-19 pandemic and main upon those companies. It would be seen how the FTSE 100 is gaining from the year 2011 which has decreased in covid 19 situation. All the damages that are done due to the COVID-19 situation will be mentioned in the report. The market stock that crashed during the covid19 is also being mentioned as how it affects it globally.
The COVID-19 pandemic affected the UK market and it has also affected the current businesses that come under the FTSE 100 and UK equity market. The UK equity market has also been affected by The Covid 19 pandemic and most of the companies who are listed in the index have also been affected and have faced big losses. The London stock market was increasing its profit margin before the pandemic and after the Covid outbreak, it started to reduce its share prices which also affected the UK’s overall economy (Journals, 2022). In the years since the world has changed, the lives of the people have also been changed and it was not fortunate for the companies as well as the economic condition of the country. Up-down of the share pieces is also noticeable which has created many issues in the company's internal process and internal business operations (Mckinsey, 2022). The fundamental trends were accelerated, pooling some companies forward at record speed.
The inventors were affected the most because of the covid 19 pandemic, and inventors' beliefs were also reduced which had a direct impact on the company’s internal business operations and capital funding. The capital market was also reducing its strength(BBC, 2022). The capital market is the power indicator to understand the overall performance of the companies and affected the FTSE 100 index After the pandemic hit the UK equity market, the FTSE 100, which is leading UK shares closed 3.7% down, while primary markets of Germany, India, and the USA sank. According to the BBC, (2022), shares in the travel industry, film industry, and airline industries were hit the hardest among the other industries. On the other hand, Food delivery firms were increasing their inventors and an FTSE 100 riser was food delivery organization Ocado, up to 4.5% share growth has been determined during the Covid-19 pandemic (Journals, 2022). On the contrary, Cruise operations servers were also closed for a longer period and it affected the FTSE 250 share index. 15% of shares fell during the pandemic and on Wall Street, the Dow Jones index slumped by 2.8% during the holidays.
The stock market was declining and the government was taking steps to control the effect of the pandemic which was not easy at that particular time. Uncertainty was increasing because of the lockdown, however, many companies implemented new business methods to run their business which was helping the equity market of the UK and it was the only possible method that companies should take during the pandemic (Ons, 2022). 7 months after the pandemic, the UK equity market started to increase its strength, and many companies revived their business operations which also increased the profitability factor of the companies. Because of the COVID-19 pandemic, UK GPO growth was stopped and the UK has lost 19.4% of its GDP growth (BBC, 2022). Furthermore, it has been concluded that the FTSE 100 and the UK equity market faced a big loss during to Covid 19 pandemic which created a direct impact on the UK economy.
Other than the FTSE 100 index, the US S&P 500 was also affected by the pandemic. Similarly, India’s NIFTY 50 and Sensex also reduced their overall strength. The market fell by 10% in March and other countries were also suffering from the Covid 19 pandemic. Furthermore, the UK equity market amounted to a loss of 30% in market capitalization which was higher compared to the financial crisis of 2007-2008 (Journals, 2022).
Fuel prices are connected to the equity market and capital market which has been affected because of the Covid 19 pendant. Moreover, it is also read that many countries are dependent on fuel, and fuel pricing can affect the overall performance of the country's economy which was affected during the Covid 19 pandemic (Ieee, 2018). The price of the crude oil which is used to make petrol and diesel has gone up. The crude oil was cheap at the initial stage of the pandemic, most of the cars and vehicles were not using it so it was reducing its price margin. However, after a few months of the Covid 19 pandemic, the amount of crude oil has increased which affected the equity shares of the companies that use the oil for business purposes (Scholasticahq, 2020). After a few months of the pandemic, it returned to normal. During the pandemic, global oil demand fell by 30% which is a record fall, business slowdown, and low mobility was the main reason for low demand (Wiley, 2019).
The energy demand has increased which was the primary cause of returning to the normal price (Mckinsey, 2022). Most of the Oil reproduction companies suffered from the covid 19 situation which was directly affecting the UK capital market. OPEC countries were the most suffered countries during the Covid 19 pandemic and they faced the biggest loss during the Covid-19 pandemic. After analyzing the whole process and all aspects of the situation, it has been clear that, after opening all the production, oil demand faced a sudden hike in demand which was the primary reason for the surge in oil prices.
Oil pricing is dependent on the supply and demand factor and the oil market manipulates the overall oil pricing when demand and supply are not matched. On the demand side, containment measures and economic disruptions related to the Covid 19 outbreak.At the beginning of the pandemic, demand was low and because of that reason, the roving of crude oil was low.
Covid 19 pandemic affected many industries in the UK as well as globally. Employment rate was traded during the pandemic and most of the companies were facing the biggest issues during the covid 19 pandemic. Some sectors were losing their capacity and they are decreasing the profitability factors during the Covid-19 pandemic. New jobs were not created during that time which affected the UK economy (Commons Library, 2022). After December 2021, it has been measured that the Food sector has lost 11% of its revenue margin. On the other hand, the manufacturing industry has lost around 9% of its overall growth and revenues. On the contrary,
The defense industry has increased by 15% because the UK government created 74000 jobs in public administration during the pandemic. Their employees helped the government deal with the Covid 19 pandemic and government jobs increased during the pandemic. Almost all businesses were suffering during the covid 19 pandemic, and according to recent data, the average sales margin was lower than 21% and investments were 26% lower on average. 70% of the organizations reported that they were facing uncertainty during the pandemic and their business operations have also been affected. On the other hand, delivery industries were the industries that increased their profit margin because of the pandemic.
Food services’ sales margin was 50% lower than average sales in the past year due to the Covid 19 pandemic. Social distancing and working from home are reducing the sales margin of the companies which was impacting the business operations of the companies. During the pandemic, many small businesses shut their business operations which was not good for the UK economy. Recreational services suffered the biggest financial loss because of the pandemic and it was the main reason the UK faced a GDP loss (Ft, 2022). The average productivity level decreased by 5%, which is reducing the sustainability rate of the companies. On the other hand, the UK and the global market have faced the e-commerce boom and most e-Commerce businesses are increasing their profit margin which was the primary source for the UK to maintain their sustainability rate.
According to the Annual Retail Trade Survey (ARTS), during the pandemic, retail brands generated $800 billion in the global market, other than that, e-Commerce Sales increased by $244.2 billion or 43% in 2020. Furthermore, after 1 year, the UK market has created $571.2 billion. Uncertainty level increased after the COVID-19 pandemic and it went high after April 2020. After analyzing all the sectors and impacts of the Covid 19 pandemic, it has been clear that the Food and travel industry is the most affected industry (Census, 2022). The gasoline stations fell from $513.5 billion in 2019 to $428.1 billion in the financial year 2020 as communing became necessary. Online bookstores also increased the sales margin during the pandemic and they increased
What are the changes done to improve the position of companies after the pandemic?
The changes are done to improve the position of the FTSE 100 to raise the index as it had fallen in the pandemic up to 21.5 percent. As the damages were not spread worldwide, many sectors made a large proportion after the COVID-19 pandemic. This means the investors can invest their shares in various companies as listed on the FTSE 100 according to the author (POTURAK et al. 2022). They research and improve techniques for better analysis and also improve the performance of the companies. That includes healthcare, proper food provided, and personal items. Improve the rate of the investors for improving the company's position, and push the share prices high as related to the companies as there was a fall in the price during the COVID-19 situation (Höhler, 2021). The index will also heavily increase the company because if any investors bid on any shares of the company, the index will help to hold it (Fan et al. 2022). To improve its position back in the market they have to provide proper care to the investors and health care routine to the employees so it does not affect the performance of the company has already the company was effect during the covid 19 situation. The safety of the employees is the highest priority for them across the world the local team follows all the regulations or guidelines relating to the authorities of the health and the employee's safety whether it is in office, factory, production, retail facilities, and distribution.
What are the measures taken by the companies that are listed under FTSE 100?
The FTSE 100 is the largest public company which is based on the capitalization of the market which is traded on the stock exchange in London. The FTSE 100 has more than 75 percent of LSE (Tasi?, 2021). The measures and steps that are taken by the FTSE 100 are to indicate the tracking of all the securities and the instruments of finance. The Coca-Cola Company has taken measures to improve the safety of the customers, employees, and so on (Ichevaet al. 2021). After the covid 19, they ensured more safety for customers by providing more precautions and measures of hygiene to all the places or locations. There is a strict regulation of sanitizing each employee before coming, travel restrictions, social distancing, and all-stops remote meetings as well as working. Moreover, all the government regulations and accreditations to produce more products for sales and normal teams to remain in the working condition. All the measures are to focus on the customer's needs as well as the safety concerns.
Even to take care of the employees as they know the tastes and the needs of the customers and even what is going on in the markets, also to see whether all the employees are taking guidelines of the government as a concern (Voronova, 2022). Further, with all the attention and by reviewing the condition and tackling the support of the local communities in each of the 29 counties. The company plays an important role in providing the supplies flowing out to the community. The sales team also remains working on the ground alongside the customers for support in the task which is given also, with the help of the customers as they changed dramatically throughout the covid 19 situation. The sales have tried their best to serve the customers, maintain more contacts, and provide support as possible according to the authors (POTURAK et al. 2022). Also reduces the pressures on the supermarkets' chain of supply by providing direct delivery to the store. They also provide salespeople to go home to home which increases the selling of the remote capabilities of the sales teams. They also focus on the highest touch surfaces and restrict many visitors from going to the companies. If anyone has direct contact or indirect contact during the COVID-19 situation they provide all the protocols to them. They also offer many employees to work remotely, suspend many employees for traveling, and sometimes provide work from home. Regularly check the temperature of the employees, monitoring their health of the employee. Even to ensure product availability in the market. The contribution made by the company and the support given to them is around one hundred million. They assess the grand opportunities with the help of the donations done to people during the covid 19 situation as many companies go on loss during this pandemic situation.
Rate of recovery and future growth prospect of the companies under FTSE 100 affected by a pandemic
The companies under the FTSE 100 which were effective during the covid 19 situation are now improving to take their position back in the market one of them is Coca-Cola HBC. They focus on and support the needs of the customers by providing them the coolers filling, and offering assistance with the market and shelves (Kiseleva et al. 2020). More than 1900 employees took part in MITs, assisting in 32,000 outlets. They also help the customers by providing a trade-back system. They kicked the global campaign regarding the Coca-Cola company which is called the “open like never before” which was done by the assisted technology regarding the traffic driving for customers by providing many ads to make the customers about the company and by providing a free coke to them. Across one million bottles have been given for free to customers over 8000 outlets according to the author (Ashmarina et al. 2020). They also provide leverage regarding the supply chain by providing and supporting the needs of medical and protective equipment. Due also introduces the 3D print for producing the face shield more bly. In Ireland, they had produced around 10,000 bottles, especially for authorities of health for use for the dispense of sanitizer. In Romania, they supported the testing in the laboratory regarding the COVID-19 situation (Itam, 2021). In Czech and Slovakia, vending machines offer all the protection to be taken during the pandemic that is masked in every shop, whether big or small. All these steps are taken to increase and improve all the opportunities and possibilities that are to be taken across the world which provides practical or theoretical knowledge for the growth of the company. The direct support of the customers also helps the company to improve and grow as quickly as possible after the pandemic that has occurred. They also provided all the logistics and infrastructure of transportation to the authorities by delivering all the basic needs (GOMEZ-TRUJILLO, 2020). The future of this company would be good as they are getting the support of the customers which makes them ber. The trading of Coca-Cola is around 7.5 percent which provides for a better option. As they are increasing their products across the world, they even introduce many items which can satisfy the needs of the customers. Buying the stock of other companies can bring more profit as it is growing day by day with the full support of consumers as per the portfolio based on the company. This leads to the flow of cash being more robust, which enhances the rise of the share value higher.
“Firm-level uncertainty and how it evolves after the COVID-19 shock” quoted by David E Altig
Firm-level uncertainty is the most common issue that most UK-based companies faced during the Covid 19 pandemic. Most of the time, businesses were not meeting their sales goals which were reading the productivity level of the organizations. Business operations were reducing their productivity level which can be regained after a certain period. According to David E Altig, firm uncertainty is the main cause of low profit margins. Other than that, many retrained businesses were shifting their business operations to increase their productivity level. The author discussed the subjective uncertainty that can be calculated by the standard deviation (Cepr, 2022). Furthermore, subjective uncertainty is the process that forecasts the company's overall growth and it can also increase the profitability factor for a particular company.
Therefore, subjective uncertainty measures the overall performance of the company and the overall loss of the company during the Covid 19 pandemic. Firm-level growth can be reduced after using uncertainty which is not mentioned in the book by the author. The average uncertainty was 3% before the pandemic. On the other hand, after the Covid 19 pandemic, it increased to 6.4% in May 2021 (Cepr, 2022). 3.4% average uncertainty has been increased over the period which is not normal for many companies and it can reduce the overall productivity growth of the companies. This is the main reason that most companies are trying to reduce their uncertainty level to increase their profit margin.
The FTSE 100 was suffering losses due to the covid 19 situation which led to the slow down supply of the product or even led to the shutdown position of the company. All the findings are based on the situation related to covid 19 and how the company overcame that situation. One of them is Coca-Cola Hbc which provides support for around 120 million packages during the year 2020. Firstly, during the covid, the company was going on a loss but with the help of the customers and employees, the company was in a stable mode which gave them motivation for growing and develop. The company also gives support to medical facilities, and food banks, and even provides many things across the world. It also took care of product safety by maintaining the hygiene of the product. As the result, they significantly donate primarily towards the red cross system.
The company also provides fare share which is equivalent approx. to two million with healthy meals and with one million drinks to the people of vulnerable. Further a network of around 11,000 charities and groups of the community across the world especially in the UK. As well as the response during the covid 19 situation by delivering the meals more safely specifically to those who are facing hardship with financial loss, serious illness, and old people According to the author (Fan et al. 2022), many companies face many problems or difficulties during the covid 19 situation. The author analyses the main point regarding the company that is coca cola, about the financial and enterprise information provided. The research which is done by the author is based on the analysis of the strategies, and dynamics of industries which is calculated based on the chain based on the SWOT, genetic strategies, five forces of portals, and analysis based on the operation. The analysis was done on the financial statement by taking the revenue, common size, and goodwill of the financial statement. Also, by conducting the analysis based on the ratio, which gives profit by using liquidly, operational ability, and solvency. This helps to measure all the profit or items undertaken by the Coca-Cola industry during the pandemic and to put everything forward for advising. The author tells about how the investors invest in Coca-Cola company with the help of the financial statement as it shows whether the company is going into profit or not and would be good for investing or not. Much advice is given to the company for undertaking all the necessary steps to take its position in the market and the same rules are also taken by the FTSE 100. All the steps and with the guidelines of the author and with the full support of the customers and employees are improving. The company also provided free cokes to customers and helping during the COVID-19 situation made more customers give more support to the company. They all are working within the regulation or rule of the government. By maintaining all safety needs and sanitizing regulators provide help to others who are suffering from financial loss
100 companies come under the FTSE 100 index and most of the companies reduced their profitability factor during the Pandemic which also reduced the sustainability level of the organizations. The equity investors were pulling out their sticks which created a huge financial crisis in the capital market of the UK. Many FTSE 100 listed companies were unmotivated to run their business and they were continuously reducing their profit margin. Many companies left the capital market and most companies shut their business operations for a particular time frame (Ons, 2022). According to the current report, around 5000 companies from different sectors returned the money to the inventors because of the pandemic. Other than that, BA-owner IAG and Wizz Air are down 15%. SPRINT defines 6 points of the strategy Size, Project, Revamp, Integrate, Navigation, and Team Up. The RGM crisis needs strategic choices to make the company more relatable (Mckinsey, 2022).
Other than these sectors, the UK banks were also suffering from the Covid 19 pandemic. Shares of the big commercial banks in the UK like HSBC, NatWest, and Lloyds banks fell about 7% as inventors. The Bank of England’s interest rate was increased in December which had a direct impact on the UK economy. The Navigation program is the most common program that can increase the profitability factor after the COVID-19 pandemic (Cepr, 2022). SPRINT-based plans can increase the sustainability factor of the organizations and it can also reduce the uncertainty of the companies. Most companies choose to partner with other companies which can help them to increase profitability levels and it can also reduce the uncertainty from the organization. Therefore, retail companies can increase their marketing strategies and they need to increase their hygiene factors and marketing strategies that show the internal hygiene level of the company
Covid 19 pandemic affected UK-based companies and it also affected businesses and companies all over the world. FTSE 100 shares faced a record fall which has been received after the COVID-19 pandemic. It has also been noticed that many companies who have been listed on the LSE, have lost their money which has affected the overall economy of the UK. Their employees helped the government deal with the Covid 19 pandemic and government jobs increased during the pandemic. The equity market of the country increases the company’s overall performance and without the equity market, it can be very difficult to improve the economy of the country. Furthermore, millions of companies faced productivity issues during the COVID-19 pandemic. Many food delivery companies increased their profit margin during the COVID-19 pandemic. The 2007-2008 financial crisis was the most diverse period for the FTSE 100 index and the COVID-19 pandemic is the biggest financial loss after the financial crisis of 2007-2008. The FTSE 100 index fell 14.3% in the financial year 2020.
The share market collapsed during the initial stage of the pandemic, but after some time, most of the investors understood the process which helped them to manage LSE. The deep recession period ended after December 2020 and it was a big 9-month recession period that most of the companies faced (Mckinsey, 2022). The average productivity level decreased by 5%, which is reducing the sustainability rate of the companies. Many small startup companies shut down their business operations which affects the UK economy. Other than that, FTSE 100 listed companies reduced their business operations which was the main reason for the low profitability factors of the companies. Furthermore, big multinational companies shifted their company online and it helped them to attract customers which is the main reason they survived the pandemic situation (BBC, 2022).
Cash flows were reducing and it was the main reason that the GDP rate of the UK decreased in the financial year 2020. Most companies choose to partner with other companies which can help them to increase profitability levels and it can also reduce the uncertainty of the organization. On the other hand, Commoner business increased their profit level and their salary revenues also increased after some time (Cepr, 2022). Moreover, the volatility of the stock market was also falling apart and it is not ideal for companies during the Covid-19 pandemic. The public sector Government jobs were increasing during that period and around 74000 new employees were hired by the UK government which maintains the employment. On the contrary, many UK people lost their jobs because of the Covid 19
The present report analyses the situation faced and its consequences by the FTSE market in the UK during COVID-19. The research shows how the position of “The FTSE market” is unstable during the pandemic and how the application of different theories and models helps the market attain stability again and have fruitful results in the future. COVID-19 has a vast effect on the UK's stock market; therefore, suggested theories and models provide a better concept for the markets to mitigate the problems they face. Covid-19 results in the reduction of employment, profits as well as dividends (Whiterose, 2019). According to the Brexit barometer, the performance was the best since 2016, but it was falling by 14.3% by the year 2020. The performance of the blue-chip FTSE was lower than the present situation therefore the company was facing issues during the Pandemic. Some of the European indices lagged in London, the oil prices also increased by 50% during 2021 which increases production and demand for the product. Covid also led to a decrease in the price of gold, which was affecting the assets due to their rates. Proper data analysis has been done to analyze the impact of covid 19 on the FTSE 100. It can be seen that different approaches and strategies are provided to understand the present as well as the future situation
The performance of the markets or different companies based on different research is discussed above. To overcome the situation, better strategies and models can be suggested to bring the market position back to its previous form. The report shows how the research philosophy helps to specify the study methods by the researchers as the situation occurred, taken as a phenomenon once in 100 years (Brzezi?ska, 2020)The“theory of realism” in Research Philosophy is very helpful for the explanation of the real reason for the adoption of the method.
The two types of research approach inductive and deductive, both methods are both considered in the present situation. Both the bottom-up approach and the top-down approach can show the impact of covid 19 very easily (Woiceshynet al. 2018). The outcome of the companies changed in the post-COVID period, as the companies were facing issues of productivity.
The revenue generation level was low, profits were negative and many more problems were there in the market. Based on the data available research and critical analysis have been done. The data on the market situation before the pandemic will help to understand the situation and provide suggestions to mitigate the issues as well as the improvement of the business. The method of “Efficient Market Hypothesis” can determine the weak points of the FTSE 100 UK and the investors are taking action against the issues of the market according to different types of theories. As compared to the US, there was a rapid fall in FTSE 100. This shows the cash flow was unstable. Therefore, the investors in the UK market will try to improve and manage their methods of investment to obtain good results from the best return rate of the investment. The company was suffering from loss hence there was a huge risk in the investment level by the stakeholders or the shareholders of the company. The application of “Modern Portfolio Theory” will help in the analysis of the investment risk of different individuals. After the pandemic situation, this theory can help investors in the FTSE market to reduce the risk and diversification of their portfolios (researchgate, 2020). The UK FTSE 100 price index dropped by 3.5% from 6.7% in the year 2020 during the pandemic situation. The clear view of the investment in the different business sectors in the UK is analyzed with the help of “Modern Portfolio Theory (MPT)” which can help in the generation of a fair means for rates of return.
The theory of “loss aversion theory” will help to analyze the form of efficiency “Financial Times Stock Exchange 100” in different market sectors. The elements of the theory will help to find the relevant models to recognize the factors in the investor's mind and also provide the strategic opinion for the FTSE 100 in the UK market (mbrjournal, 2021). With the downfall of the markets, there was a drastic growth in the e-commerce market or the online market by 60%. These also affect the GDP of the UK market as well. The volatility in the UK stock market has increased as the profit margin for the equity in the market changes due to the GDP effect. The FTSE 100 was facing the second largest global crash according to history.
Linking with objective 1: The ways of survival with a minimum profit level and market capture in the post-period
The main objective of the present research is to find the impact of Covid-19 on the FTSE 100 in the UK market. The objective has been fulfilled in the literature review section of the research. The opportunities have been detected and evaluated that can help increase the revenue and the profit. The analysis was done on the given data gathered by the process of inductive and deductive theory. The analysis of the data for the percent research is based on the Inductive theory with the help of which we can easily analyze the scope of the study. The process provides knowledge as well as information regarding the work on an actual basis which leads to positive results in less time according to the data obtained.
Linking with objective 2: The demand creation process even in the presence of covid situation and other important points like the market capturing process concerning the demand procedure
The approach is future-oriented and helps in the prediction of future-oriented goals and their achievement in the future market of the UK. This objective has been fulfilled in the Literature review chapter. All sections of the economy have been affected severely due to the pandemic and other lockdown policy policies imposed by the local government. The research is mainly focusing on the future stability of FTSE markets. Therefore, the application of the “theory of realism” theory can give a better outcome of the impact in the present searches (Singhet al. 2021) The analysis shows that the company was improving by raising the index to 21.5%, the result of the research can be seen that the impact of Covid-19 was not on the entire world. Many sectors were at profits in a large proportion which can give a positive impact on the business fields after the pandemic situation of Covid 19. This shows that investment can be done by the investors in the different companies in the FTSE 100 market in the UK. Therefore it can be concluded that better approaches and strategies can opt for better analysis and improvement of performance.“Modern Portfolio Theory” helps in the selection of better options by understanding the risk factors as well (mbr journal, 2021) The sectors like health care, food providers, and personal household items are in a beneficial position in the market, hence improving the company's position with the help of increasing investors.
Linking with objective 3: The reevaluation of new prices in the market for better market reach and opportunity consideration
The companies listed under FTSE 100 have put an immeasurable effort into increasing their sales margin during the pandemic by maintaining good relationships with customers as well as maintaining contacts with the help of “Modern Portfolio Theory (MPT)”. The pressure of the market was reduced by providing a chain of supply directly to the retail and also delivering to houses to maintain the sales margin. Therefore the research shows the improvement of the companies under FTSE 100in the UK is visible after getting affected during the pandemic situation to retain their position. They focus on the needs of the customers which results in vast improvement in the market. The strategies help the company to regain the trust and support of the customers by providing an immersible service during the pandemic, therefore the companies in the UK market were successful in making their steps towards improvement in the market.
FTSE 100 in the UK market comes under the 100 highest companies on the UK stock exchange. Over the past months, the index of the companies rises with the support of rising banking sectors, mining, medical as well as share prices. The method of “Efficient Market Hypothesis” in the market of FTSE 100 UK, is recommended for getting a better hypothesis of the investments. The main motive of the theory is to control the downward-moving efficiency curve of the company during the period of Covid 19. The investors can understand the investment process as well as the amount according to the current situation. The “Modern Portfolio Theory (MPT)” is recommended to the market as the theory will help to analyse the risk factors of the investments under the company policy. The portfolio diversification can be reduced in the FTSE market if the MPT theory is applied by the investors.the different business sectors have different investment facilities therefore the theory will give a clear view of the investment risk of different investments as well as their rates of return. The different types of problems in the market can be analyzed with the help of “The prospect theory”. Efficiency according to the sector of “Financial Times Stock Exchange 100” Can be analyzed with the help of “loss aversion theory” which helps in the element recognition for the investors. The impact of covid has lowered the profit margin of the FTSE 100 in the UK market due to a lack of investment but after applying the different methodologies is can be seen that the company tends towards improvements in the coming years as some of the sectors earned a good level of profit by applying proper business plans and strategies (ieee, 2018). It is recommended that investors can invest in the share of the companies of the UK market as the scope of improvement is rising the companies up in the competitive market. Reduction in the cost has helped many businesses enlisted under the FTSE 100 to survive in the post-covid era. Producing goods in bulk helped many companies to cut down the production cost which in turn helped in recovering the stock of the company. Streamline management cost is controlled bythe better performing companies which must be followed by the other companies a s well in order to remove all unnecessary expenses in the system.
The reduction of the share price and the cost of the companies under FTSE 100 can help after the effect of the covid. |
|
Measurable |
This can be measured with the help of the streamline management cost. This helps manage the financial performance of the companies that have a good outcome. |
Attainable |
This can be attained with the help of the various methods like “Efficient Market Hypothesis” that can monitor the downward moving progress. The other method that can be used is the “Modern Portfolio Theory” that helps in the detection and evaluation of the risk factors in the investments. The use of the method of “The prospect theory”can help identify several kinds of issues and uncertainties in the market. |
Relevant |
This can help with the overall analysis and the evaluation of the FTSE 100 condition during the pandemic. This can also help with the detection of the situation and impact of the market. |
Time-based |
The time taken that can help achieve the goals are 4 months. In this timeframe the objectives and the goals can be completed. |
Table 5.1: SMART goals
The analysis of the present project is done on the data analyzed on different assumptions by the researcher, but some limitations are there regarding the project analysis. The data and information regarding the UK market system are there as the resources provided for the analysis are limited. The researcher can't obtain the details of 100 companies altogether for the analysis hence it cannot be said that the analysis has been done taking all the markets in the UK. The provided data does not meet the requirement of the research on the core matters of the market system. Therefore, it is very much difficult to understand why the issues are occurring inside the company. The details of the previous year are not very clear regarding the rates and price analysis system in the data provided hence making the study process a difficult one. The techniques of data collection are one of the factors as everybody is not accustomed to all types of techniques so the work cannot be flexible for every individual. The collected data may not be sufficient for the analysis of the project, as a shortage of information can mislead the researcher to irrelevant sources (Come Collaboration, 2020) The analysis has been done based on secondary data which are available under the London Stock Exchange available on the official website with the help of which the interaction between the social platform can be done but the data are also combined with the other studies Another issue regarding the project can be Timeas itis also a major factor as the deadline is set in every work which results according to the data available for a certain period (academia, 2020). All the information gathered cannot be true as analysed therefore the limitation can be the reality of the information gathered by the researchers as well. All the details are not true as per the case the research cannot be done relevantly.
The current position, as well as the position of FTSE 100 in the UK market in the future, can be analyzed with the present research of the project. The analysis is done to find the estimated support of the market and its value to find the future durability of the companies. It can be seen that during the pandemic phases sectors like medical, e-commerce, and household products are gaining a high-profit percentage whereas some of the sectors like oil sectors, travelling firms, airlines, as well as banking sectors, were running from huge losses. The research topic of the company has a future scope when the quantitative aspect can be considered. The data can be analyzed with the help of quantitative data analysis that can provide accurate and correct results. The accurate results can help with the proper objectivity for the topic. The method can also help with ignoring the biases in the research and can provide precise findings. The share prices of the different companies were reduced and the company was facing losses during that time. The investors are not interested in investing in those particular sectors as the company was going through a drastic situation. However,now the earnings are increased as per the oil and gas industry, the revenue generation is also [preferable if it rises by 1.8% during 2021, therefore the growth of 1.2% can be assumed every year. The growth in the years 2020, 2021, and 2022 in the sector of gas and oil can be forecasted according to the analysis done. The estimation of 41% growth can be assumed for the upcoming years by lowering the earning level to 16%. The government is providing great support for the financial development of the markets in the UK. many strategies have started for the shifting of the economic levels. The “post-crisis of recovery” is recommended to the market as the theory will help to analyze the risk factors of the investments under the company policy. This all will help to mitigate the problems of the market and its situation.
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