Global Business Environment: Impact of Macro-Environmental Factors on Watches of Switzerland

This study analyzes the impact of macro-environmental factors on Watches of Switzerland, a leading FTSE listed organization in the UK. The study discusses key problems and global macro-environmental forces affecting the company, including political, economic, social, technological, legal, and environmental factors. The study also highlights key issues such as inflation, supply and demand, and COVID-19.

BM461 GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
CONTEXTUAL BACKGROUND...........................................................................................................3
MAIN BODY.............................................................................................................................................3
Global macro-environmental factors critical discussion point.................................................................3
REFERENCES..........................................................................................................................................5
APPENDIX................................................................................................................................................6
Key issues................................................................................................................................................6

CONTEXTUAL BACKGROUND
Global business environment encompasses with several external factors that put direct or
indirect impact on a company or venture, whether it is negative or positive in term. This kind of
environment lead to increase and decrease organizational productivity and profitability as well as
performance level. The current assignment will be based on Watches of Switzerland, which falls
under the list of leading FTSE listed organizations in the United Kingdom. Firm is capable to
provide luxury watches to its customers according to their needs. The study will explain key
problems, and global macro environmental forces that put impact on chosen company.
MAIN BODY
Global macro-environmental factors critical discussion point
PESTLE analysis
Political factor-
Changes related to political factors such as political stability or instability, tax rate, trade
policies, etc. may put direct impact on any company (Castañeda-Ayarza and Godoi, 2021). In
case of watches of Switzerland, increasing tax rate affects negatively upon its venture, in term of
increasing work pressure on management to reform their trading tactics, which is not possible for
them to do so in short time duration.
Economic factor-
Fluctuation in the context of economic growth, currency exchange rate, inflation, income
and unemployment may affect current practices of any company whether it is public, private,
small or large. In the context of Watches of Switzerland, inflation may put negative impact in
form of decreasing demand for watches. It may also lead to decrease organization profitability
and productivity as well as revenue more than last few years.
Social factor-
Current market trend may put direct impact on chosen organization, as it may drive the
attention of management towards making current changes related to products. For example, in

the recent time people prefer to buy smart watches instead of leather or chain belt. It may affect
supply and demand activities of firm, which is not beneficial for its short term success.
Technology factor-
Technology advancement may put positive impact on Watches of Switzerland, as it may
drive the focus of brand marketer towards generating business and its goods awareness
worldwide, by using effective digital marketing channels. It may give them chance to gain the
attention of profitable customers and potential investors, who are capable to invest money in
progressive and productive brands like current one.
Legal factor-
Any type of change related to business and consumer’s safety and protection regulations
may affect negatively upon Watches of Switzerland. It may increase a lot of pressure of brand
and its stakeholders to restructure their all plans according to new terms and conditions that is
not easy to do so as it needed a lot of time and resources as well.
Environmental factor-
Customers and government concern related to sustainable environment may put positive
impact on company, as it may give it opportunity to grow with wide customer base, among
which individual buyer is loyal towards firm and refer others to buy the quality products from it,
which increase sales level, performance and revenue extent of chosen enterprise.

REFERENCES
Book and Journals
Castañeda-Ayarza, J.A. and Godoi, B.A., 2021. Macro-environmental influence on the
development of Brazilian fuel ethanol between 1975 and 2019. Renewable and Sustainable
Energy Reviews. 137. p.110457.
Longwe, B. and Sakyi, K.A., 2020. Reassessing the Core Product’s Relevance: Balancing
Heritage against Modern Needs. Educational Research (IJMCER). 2(5). pp.42-58.

APPENDIX
Key issues
1. Inflation
2. Supply and demand
3. COVID-19