Global Business Environment Impact on Watches of Switzerland

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 (Pei and et.al,., 2020). 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 (Hu and et.al.,