Study of UK IT Sector

BUSINESS ECONOMICS

EXECUTIVE SUMMARY
In the present research study detailed analysis of UK IT sector is done and it is identified
that it is growing at fast rate in the nation. There are number of new services that are added in the
mentioned sector in past years and these are forming base for companies to earn good amount of
profit in the business. In the future time period also there is huge earning opportunity for the
firms in the industry and IT sector will grow at fast rate.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
ANALYSIS OF GLOBAL ECONOMY AND UK ECONOMY...................................................4
INDUSTRY ANALYSIS................................................................................................................5
INVESTMENT PORTFOLIO.........................................................................................................7
Turnover.......................................................................................................................................7
Profitability..................................................................................................................................8
Earnings before interest, taxation, depreciation and amortization...............................................8
Ratio analysis...............................................................................................................................9
Net profit margin..........................................................................................................................9
Return on shareholders ‘fund and capital employed..................................................................10
Liquidity and gearing ratios.......................................................................................................11
Non-Financial analysis...............................................................................................................12
SWOT analysis..........................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

ANALYSIS OF GLOBAL ECONOMY AND UK ECONOMY
There is a larger amount of impact of the economy on decision-making strategies of the
organization. Total Mobile is a company functioning in UK, which provides mobility solutions
to its employees. It has to choose its business functions based on the prevailing conditions
outside the organization. These are the common macroeconomic environment factors, which
help in assessing the global environment, and then UK includes the following:
 Political factors: Change in the policies of the government refers to political factors of
any country. The economy has witnessed constant fluctuations in its activities and hence
the company need to make changes in the product portfolio accordingly. Companies that
are operating in European Union have to opt for the directives that have been laid down
by EU. The areas of political framework have huge impact on the member states of EU.
Total mobile is required to consider the ongoing government policies of the state not only
in which functioning but whose influence can directly affect the business of the
organization. The government in UK is fairly active and stable which makes it an
effective choice for conducting business (Zalata and Roberts, 2016). Economic factors: The global economy is currently fluctuating which is thereby
impacting the demand and supply of the products. Change in life style increases or
decreases the demand and hence bring considerate amount of changes in price offered by
the company as well. Any change in the economic factors in primary countries such as,
UK and China demand change in the policies of the organization of UK as well. An
increasing phase of globalization is also seen in various countries which has direct
indication towards removal of the trade barrier. The typical economic indicators that can
reflect the position of UK are, inflation, market competition and competitive intelligence.
GDP of country is 5th highest in the world and has increased foreign direct investment as
well which reflects better conditions of UK. However, the growth of the country has
decreased since 2008 and 2009 global recession (Laufs and Schwens, 2014). Social factors: A change in the social structure has also been noticed at the global level.
These factors are, change in taste, buying patterns, lifestyle of the population. It has direct
influence of age, gender, etc. It is important for the organization to understand the critical