Global Business Environment Macro-Environmental Changes Analysis

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Briefing Note
Globalization & Strategic Planning Directorate
Requested by Brian Duffy, CEO Date requested: 12/11/21 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
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 report is created to analysis the economic and other external environmental factors
that are affecting the business of Watches of Switzerland. This report will shed light on
key issue, background and macro-economic factors of the company.
Urgency
Rank of the key issues as:
a. Critical (The challenge of E-commerce)
b. Urgent (Weak Demand)
c. Routine (Political Uncertainty)
2. Background
Watches of Switzerland is a retail company listed on London Stock Exchange and is a part of
the FTSE 250 Index. Total revenue generated by the company in the financial year f 2020
was £905.1m (INVESTORS, 2021). The watches of Switzerland group has took various steps
towards technology recently that include real-time online booking system and launched
luxury watch virtual boutique. Sale of the company could be rise up to £1.1bn in this year
and adjusted earning may be between £104m and £107m (Eley, 2021).
Source: Watches of Switzerland

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Source: Watches of Switzrland
3. Methodology
Secondary research methods are used to gather the information.
4. Key issues
a. The challenge of E-commerce
b. Political Uncertainty
c. Weak Demand
5. Global Macro-Environmental Factors Critical Discussion Point
Following are the macro environmental factors that are affecting the business in various
ways:
Economic Factor: It refers to the external factors that include inflation, GDP, currency exchange
rates and other factors related to the economy of the country. Watches Of Switzerland have been
impacted largely due to the economic factors. Economy of European countries has been affected
largely due to the Brexit. The economic growth of United Kingdom was estimated at 1.6 % for
2018, it was lower than the 2.3% average for countries located in Eurozone (Kenel, 2018).
Inflation can impact the demand of the watches as continuously increase in the price lead to the
decrease in the customer loyalty. The condition of financial market is also a factor to determine
how company will rise its capital and at what price. Gross domestic also plays an important in
the economic factor as the low GDP of the country leads to the decrease in the demand. Supply
and Demand keep the market constant the balance between both is very necessary in order to
make growth sustainably. Both opportunity and the threats can be derived form the economic
factors. Opportunities for Watches of Switzerland are economy of the country is raising again
after the COVID_19 impact so company can increase the customer interaction with innovative
product launch. Continuously increasing inflation rate can be a great threats to the company.