Global Business Environment: Macro-Environmental Changes & Long-Term Planning

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Briefing Note
Globalization & Strategic Planning Directorate
Requested by Brian Duffy, CEO Date requested: Action required by: TBC
Action required Other attachments for consideration
For approval With correspondence Chief Executive’s
authorisation
Authority to publicise
For meeting For Information letter of advice
BRIEFING NOTE FOR INFORMATION
This briefing note is written to provide information for discussion and use at subsequent meetings by the
management team on the subject matter outlined below.
Covid-19 has presented unique challenges to the Watches of Switzerland company. In order to plan for the
recovery of the global economy the CEO, Brian Duffy, has requested this briefing note for use at the next
board meeting to discuss actions with fellow board members.
Version August 2011
SUBJECT: What macro-environmental changes in the global economy can the
organization expect to face over the next 12-24 months that it needs to factor into long-
term planning?
Proposal
To set contextual background for why the report is required, to outline how the report
was constructed and what tools, models and evaluation were applied, to identify the top
3 major macro-environmental issues that will impact upon the organization, rank the
issues in terms of urgency, provide critical discussion points for the board of directors
and list the sources used to evidence the argument.
Urgency
Rank the key issues as:
Critical (major or significant organizational risk because of no action)
Urgent (compelling or requiring immediate action or attention)
Routine (action required within next 3-6 months)
1. Background
Department Rec/Find No: Business Planning &
Intelligence
Division/District Global
STUDENT NAME
STUDENT I.D. Number
File Ref No: 1/3

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The luxury watch market has been valued at USD 23.623 billion in 2020 with a
CAGR of 2.35%. Due to Covid-19 pandemic, the watch market has seen a slow growth
because of many restrictions that were imposed on movements. People were reluctant
to spend heavy amounts on luxurious watches because of decreased earnings during
Covid-19. Using Accessories in order to improve one’s personality is a very common
fashion trend which is used by many people. Companies are purposely using various
marketing tactics which has led to increases in consumers’ expectations from watches,
especially luxurious ones.
Watches of Switzerland is British company retailer of Swiss watches which is
listed on London stock exchange with a constituent of FTSE 250 index. It has given
strong performance and even decided to repay £3.3m of support money it received
during lockdown time.
2. Key issues
a. The purchasing power of people has decreased due to Covi-19 pandemic.
b. Company should consider the waste management because now-a-days people
are more concerned about environment and wants to protect it any cost.
c. Company should try to have online presence because in today’s time people are
preferring to buy from online websites instead of visiting brick & mortar shops.
3. Global Macro-Environmental Factors Critical Discussion Point
The major macro-environmental factors are discussed below:
 Inflation: Basically, inflation means rise in prices, that is, the cost of goods and
services rises which makes it difficult for consumers to purchase it and consume
it. After covid-19, inflation has risen and it is for real. The cost of products has