BM461 Global Business Environment: Sectors to Prosper and Struggle, Legal Structures and Competitiveness

This report examines the impact of the global environment on business operations, identifies sectors that will prosper and struggle in the next 12 months, explains different legal structures with their advantages and disadvantages, and measures competitiveness in the market structure. The report concludes that the IT and E-commerce sectors will prosper, while the financial sector will struggle. Sole proprietorship is recommended as the best legal structure for businesses. Factors such as entry barriers, perfect competition, monopoly, and oligopoly can be used to measure competitiveness.

BM461 Global
Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK .....................................................................................................................................3
Part 1.......................................................................................................................................3
Identify which business sectors will prosper in next 12 months and which will struggle ? ......3
part 2 ...............................................................................................................................................5
Explain the different legal structures with their advantages and disadvantages?.......................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The global environment is defined as international interactions of the business
organisations over which it has no control. The term business environment is referred to as the
sum total collection of all internal and external factors such as employees, customers demands
and expectations clients , suppliers, government interventions, innovation and technology social
tends, market trend, economic changes etc. these factors can affect the operations and functions
of the busin3ess enterprises. This also helps in identifying the business opportunities by
identifying the useful resources available for the company(Khajeheian, Friedrichsen and
Mödinger, 2018). This report will include the examination if the sectors which will be
prosperous and the sectors which will struggle in the next 12 months.
TASK
Part 1
Identify which business sectors will prosper in next 12 months and which will struggle ?
As it is been observed that there is a huge impact of the coronavirus and the pandemic on
the various business organisations. The pandemic had hit the hard in the lives of the people. The
individual and as well as the economy has badly impacted in this situation. The most important
there are businesses which affected the most after the coronavirus. There were some businesses
which were totally shut down and as well as there were businesses which have taken boom in
these years. Here is the discussion on the sectors which will prosper in next 12 months and those
which will struggle(Ilin and et.al., 2018).
Sectors which will prosper
E-commerce and online auctions- The E-commerce platforms which means the online websites
or the online services provided by the various organisations sell their products through online
portals. This sector has been emerging from last five years. But after the pandemic this has been
at the boom and in next 12 months this sector seems to be the most prosper one. The people are
afraid of coming out of their houses which has taken the online shopping at the most

convenience. This is the most fastest growing sector in United Kingdom. The use of the internet
services has been increased and also considered as the most suitable services by the individuals.
The various examples of such companies are Amazon, eBay, Asos. These are the firms in which
people are looking to invest because they are at the boom. From the data and the report it is
assumed that these companies have made the higher profit and will be more beneficial for the
people investing is such companies(Boone Kurtz, and Berston, 2019).
IT sector- The IT sector is related to the the applications ans the digital technologies systems.
This is the fast growing and dynamic sector in the economy. This sector is to considered as the
prosper in the next 12 months. As now also the It sector is evolving and reaching to the next
level because of the pandemic it has a positive impact on this type of industry. The pandemic has
shifted the companies to shift towards the online platforms which is the work from home
facilities. This has made the increase in the use of the technologies such as zoom meetings. This
has created a positive change in the sector. The use of the digital technologies will be increasing
in future which will prosper the IT sector. It also has becoming the most important aspect for the
various organisations to develop themselves in the adoption of the technologies for the fast
growing. Some examples of such Companies are Hyperlink infoSystem, DCSL Guide Smiths,
HData systems etc.
Sectors which will struggle
Financial sector- This sector of the economy is made up of the companies and institutions
which provide financial services to commercial and retail customers. This sector comprises of
the broad range of the industries such as banks, investment companies, real estate companies,
insurance companies etc. this sector is considered to be the most affected in the next 12 months
or the coming years. The financial sector will have struggle in growing in the coming years
because the people are not able to repay their loans due to the pandemic many people have lost
their jobs which have impacted in the financial condition of each and every individual. This
financial crisis have lead to the impact in a negative way. The banks who have provided the
loans are facing to get the money back and this is lacking behind the various institutions.
Example of such sector are HSBC, Barclays etc(Bag,,and et.al., 2020).

part 2
Explain the different legal structures with their advantages and disadvantages?
The legal structures are the key determinant of the activities that the business
organisation can undertake such as raising capital. There are different types of legal structures
wh9ich are explained below;
Sole proprietorship- It is most most common and simplest business structure which
involves one individual who is responsible for the day to day activities and operations of the
business enterprise. The income and the expenses of the organisation is included in the tax return
of the owner. In this type of business there is no requirement to file separate income tax forms
from the owner.
Advantages
 All of the profits is kept by the owner.
 The start up cost are low in the sole proprietorship.
 The owner of the organisation is the only boss of the company.
 It is easy to change the legal structure in future if the circumstances change in the
business(Wial, 2018).
Disadvantages
 There is unlimited liability for the debts as there is no distinction between private and
busin4ss assists.
 There is huge responsibility of the owner to handle day top day activities and operations
of the business.
 The capacity to raise capital is limited in this type of the structure.
Partnership- This business organisation includes two or more of the people which agree
on sharing the loss and profits of the firm. The partners are involved in sharing risk, benefits,
cost and the responsibilities of the business. It is the unincorporated entity as the partners
engaged in it are self employed. All are personally liable for the debts and losses of the business
which is undertaken and unlimited liability arises in case of loss or debt. The partners are also
responsible for the misconduct or negligence of the firm(Abdullah, 2019).
 The people have an advantage of dividing the task and it becomes easier to manage the
work in this type of business.
 The business is able to raise more capital.

 The decision making becomes the easier and there is more innovative ideas created from
the different mindsets(Zhu, and Liu, 2021).
Disadvantages
 There is unlimited liability where each partner is liable for the risk and the liability
created by an individual.
 The maximum number of members which can be included in the partnership firm is 20.
 There can be chances of the conflicts between the partner dues to the different opinions.
Limited company- It is the privately managed company which is owned by shareholders
and is run by the directors associated with it. It is the separate legal body which has its legal
obligations and rights of its own. This simply means that the company is mainly responsible for
every activity which is done by it and the finances of it is separate from personal affairs of the
owners. The profit that are generated by company is retained and is released after the payment
of corporation tax. After the payment, the profits are distributed to the shareholders by way of
dividends. It may be limited by guarantee or by the shares(Héroux and Fortin, 2018).
Advantages
 The company can have an advantage of having multiple owners which makes possible to
raise additional capital.
 The professional status of this structure will add valuable creditability to the business.
Disadvantages
 This type of structure is required to pay an incorporation fee to the corporation house.
 The company name are asserted to some restrictions(Krasnov and et.al., 2017).
From the above discussion on the various legal structure it is recommended that the best
suitable structure for the business will be sole proprietorship because of its advantages . As there
will be no interruption and the owner can make decisions on its own . Also the owner will be the
only boss of the business which will have flexibility in the business organisation.
How they could measure the competitiveness of the market structure?
There are various factors to measure the competitiveness in the market structure. As there
is the huge competition in every business the company need to face competition. The factors

which can be determined are the entry of barriers, the business can measure the competitive by
measuring the entry of the businesses in the sector or the industry. There are various other
methods such as perfect competition, monopoly oligopoly which determines the structure of the
business organisations. The factors related to such can help in measuring the
competition(Cockburn, 2018).
CONCLUSION
From the above report it is concluded that there is impact of the environment on the operations of
the business organisations. As there is a huge impact of the Covid-19 in the lives of an individual
and across the economy world wide. Due to this the business organisation have faced challenges
and some of the organisation have been benefited. The IT , E- commerce sector have been at
boom after the pandemic and in the next 12 months this sector will be prosper. As there is the
huge demand of the technologies and the world is changing and forming into the digitalisation.
Whereas there is the financial sector which will struggle in the next 12 months as people are not
able to repay the loans because they have lost their jobs in the pandemic. This sector will be the
most affected and will have struggle in growing. There are different legal structures such as sole
proprietorship, partnership and limited company.

REFERENCES
Books and Journals
Abdullah, M., 2019. Waqf and trust: the nature, structures and socio-economic impacts. Journal
of Islamic Accounting and Business Research.
Bag, S.,and et.al., 2020. Procurement 4.0 and its implications on business process performance
in a circular economy. Resources, conservation and recycling, 152, p.104502.
Boone, L.E., Kurtz, D.L. and Berston, S., 2019. Contemporary business. John Wiley & Sons.
Cockburn, P.J., 2018. How Property Structures Dependence. In The Politics of Dependence (pp.
159-191). Palgrave Macmillan, Cham.
Héroux, S. and Fortin, A., 2018. The moderating role of IT-business alignment in the
relationship between IT governance, IT competence, and innovation. Information
Systems Management, 35(2), pp.98-123.
Ilin, I., and et.al., 2018, December. Business requirements to the IT architecture: a case of a
healthcare organization. In Energy Management of Municipal Transportation Facilities
and Transport (pp. 287-294). Springer, Cham.
Khajeheian, D., Friedrichsen, M. and Mödinger, W., 2018. An introduction to competitiveness in
fast changing business environment. In Competitiveness in emerging markets (pp. 3-11).
Springer, Cham.
Krasnov, S.V., and et.al., 2017, September. Methodical forming business competencies for
private label. In 2017 6th International Conference on Reliability, Infocom
Technologies and Optimization (Trends and Future Directions)(ICRITO) (pp. 553-558).
IEEE.
Wial, H., 2018. 21. New Bargaining Structures for New Forms of Business Organization.
In Restoring the promise of American labor law (pp. 303-313). Cornell University
Press.
Zhu, X. and Liu, K., 2021. A systematic review and future directions of the sharing economy:
business models, operational insights and environment-based utilities. Journal of
Cleaner Production, 290, p.125209.