Global Business Environment Analysis of Watches of Switzerland

This report analyses the global business environment of Watches of Switzerland, a British retailer in Swiss watches, using PESTLE framework and identifies key issues and macro-environmental factors affecting the company's operations.

BM461 Global
Business Environment
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background.............................................................................................................................3
Methodology...........................................................................................................................3
Key issues list.........................................................................................................................3
Global Macro-Environmental Factors....................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES:...............................................................................................................................6
2

INTRODUCTION
In today's global environment, it is identifying that everyday the competition and
dynamic behaviour of market are increasing which create complexities for the organisations
(Castañeda-Ayarza and Godoi, 2021). This report has an aims to analyse global business
environment so that organisations are able to reduce the impact of uncertainties. In this context,
Watches of Switzerland is undertaken which is the British retailer in Swiss watches. It is listed in
FTSE 250 index which are doing business very well. This report will be discussing key issues
list and global macro-environmental factors.
MAIN BODY
Background
Every day the global environment is becoming complex and dynamic in nature. It
increases the complexities for organisation. It is found in global environment that even large
organisations are unable to handle the situations. They also need to analyse the situation first
then they are able to take steps. It is necessary for an organisation that they should analyse the
global environment in order to reduce the negative impact of uncertainties. There are many
external factors found in the global environment which increases the problems for organisation.
It is found that after globalisation, all companies are now free to enter in the global market. Due
to this, competition is increasing which increases the challenges for organisation.
Methodology
In order to analyse the external factors, secondary sources are used from various articles,
newspapers, journals, etc. Company is using PESTLE framework as a method in order to analyse
the impact on external environment.
Key issues list
It is identified that there are three important issues are found that gives an impact on the
business operations. Three key issues are mentioned below:
 Impact of COVID-19
 Recession period
 Sustainability
3

Global Macro-Environmental Factors
It is very important for Watches of Switzerland to understand the impact of macro
environmental factors on global economy as they will be facing problems. It is crucial for
organisation that to consider global macro-environmental factors in their long term planning
(Khilji and Pierre, 2021). But of that purpose, it should be identify. This can be done with the
assistance of PESTEL analysis model which consists of 6 important macro environmental factors
that are mentioned below:
 Political Factors: It is identified that UK is falling into the category of world's most
powerful countries in terms of political stability. That's why Watches of Switzerland has
less threat in this factor as their government are always stable which results in less
fluctuations of policies.
 Economical Factors: In this factor, it is found that the economic contrition of UK is
declining due to the impact of COVID-19. It is found that this is not only for present time
but it gives an impact for long term period (Barinova, 2017). This is the reason that
Watches of Switzerland should consider this factor in the long term planning. In addition
to this, it is also found that there is a fluctuation found in supply and demand. Due to the
impact of pandemic, the purchasing power of individual is declining and it is giving a
great impact in the equation of supply and demand.
 Social Factors: It is found that customers' tastes and preference is changing ever day that
shows that dynamic behaviour is increasing which is necessary to understand by Watches
of Switzerland in order to satisfy their customers.
 Technological Factors: Every day the technology is updating which creates problem for
Watches of Switzerland as they have a pressure to innovate their technology in their
watches.
 Legal Factors: It is also found that legal factors also impact on organisational operations
as they have to be perform on the basis of necessary laws and rules such as employment
law, etc.
 Ecological Factors: Sustainability is also becoming very important in present time as the
ecological system get disturb due to human made activities. This is very important for
Watches of Switzerland to consider sustainability in their long term planning.
4

CONCLUSION
It can be concluded from the above discussion that company needs to analyse macro-
environmental factors so that they can make further planning. It is analyse that it will gives a
great impact on their success and growth. That's why it is crucial top consider all factors in long
term planning.
5

REFERENCES:
Books and Journals
Barinova, S., 2017. Influence of macro-environmental climatic factors on distribution and
productivity of freshwater algae. Int J Environ Sci Nat Res, 4(1), pp.1-5.
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.
Khilji, S.E. and Pierre, R., 2021. Global Macro Talent Management: An Interdisciplinary
Approach. In The Routledge Companion to Talent Management (pp. 94-108).
Routledge.
6