Global Business Environment: Critical Discussion of Macro-Environmental Factors

This study discusses the key issues and critical discussion of global macro-environmental factors that impact Watches of Switzerland, a top watch brand in the UK. It includes a PESTLE analysis and identifies the advantages and disadvantages of each factor.

GLOBAL ENVIROMENT

Table of Contents.
CONCLUSION................................................................................................................................3
INTRODUCTION...........................................................................................................................4
METHODOLOGY..........................................................................................................................4
KEY ISSUES...................................................................................................................................4
GLOBAL MACRO-ENVIRONMENTAL FACTORS CRITICAL DISCUSSION.......................4
REFERENCES................................................................................................................................1

CONCLUSION
On the basis of above discussion, it has been identified that organization and its
management has overcome the negative impact of external factors in effective manner, which is
important for them to do so. Furthermore, it has been determined that they have developed
effective strategies and modified current plans according to new action that management have
taken to deal with each force.

INTRODUCTION
Global environment encompasses set of external and internal forces that put direct impact
on a company and venture as well. It drives the attention of several companies toward growth
and unpredicted success. The current assignment will be based on Watches of Switzerland,
which falls under the category of top watch brands in the UK. The study will explain key
problems, and global macro environmental forces critical discussion.
METHODOLOGY.
In order to conduct this research, qualitative approach is utilized through which essential
documents are considered and reviewed by researcher to assess an appraisal theme.
Cash flow concept is considered to determine the net amount of cash of Watches of
Switzerland and also to identify cash equivalents being transferred into & out of its venture.
KEY ISSUES
1. Pandemic.
 The disadvantage of this element is that it may lead to decrease sales of company.
2. Economic growth.
 It may put positive impact on firm success in term of increasing organizational
profitability.
3. Regulations and business law.
 The disadvantage of this force it that it may put a lot of pressure on management
when the current regulations related to business may change.
GLOBAL MACRO-ENVIRONMENTAL FACTORS CRITICAL
DISCUSSION
For purpose of conducting external business environment analysis, it is important to
select specific effective strategic tools or models (Amankwah-Amoah, 2020). Here, in the
context of Watches of Switzerland, PESTLE analysis may use, which enable management to
determine the key factors that may put direct impact on their organizational productivity and
current practices.
Political factor-
Any change related to several political forces like political stability, rules, trade policy
and tax rate may affect directly to a company whether it is established or developing. Political

stability in case of Watches of Switzerland may put positive impact on business progress.
Economic factor-
Fluctuation related to any economic factor such as inflation, GDP, economic growth, etc.
may put direct affect on firms whether it related to public or private sector. For example,
Watches of Switzerland may deal with key challenge just because of poor economic growth as
individual person is unable to buy any expensive products like classy watches due to pandemic.
They may lose their job because of this force, and unable to buy any costly item, which may lead
to decrease organizational growth and success.
Social factor-
Changes related to market trend, consumer behaviour, etc. may put impact on current
practices of organizations. In case of Watches of Switzerland, fluctuation regarding market trend
Illustration 1: PESTLE Analysis
Source: (Pestle Analysis: A Mechanism for Analysis of Businesses, 2020)

may put negative impact on company growth (Capuder and et.al., 2020). For example, in the
recent time, people prefer to utilize smart watches instead of belt and chain watch, which may
give them chance to identify heart beat, measure current plus rate, and give opportunity to
connect with smart phones.
Technology factor-
Technology advancement may put positive impact on chose company in term of
increasing its profitability and productivity as well as performance level (Cuong and Hung,
2020). Furthermore, it may support to enhance customer satisfaction, which is not that easy to
increase for any organization, whether it is public or private. It may lead to enhance marketing
strategies effectiveness in term of driving the attention of marketer toward using the best and
most advanced digital marketing channels.
Environmental factor-
Customers and government concern regarding environment sustainability may put
positive impact on Watches of Switzerland, in term of building its excellent brand image and
gaining the attention of key consumers toward purchasing its classy watches in bulk.
Organization may conduct CSR practices in varied terms (Bekhet and Lojuntin, 2020). For
example, it may contribute to make environment sustainable by using recyclable resources,
which is quite easy to re utilize and reform in effective manner that is important to do for any
company.
Legal factor-
Changes related to this factor may put direct impact on Watches of Switzerland current
plans and activities negatively. For example, modification related to employment acts may affect
the way firm treat its employees, offer facilities, etc (Dejuan-Bitria and Mora-Sanguinetti,
2021). It may drive their attention toward making current as well as further changes that increase
work pressure on each candidate, which is not good for their mental & physical well-being. It
may lead to increase workload situation.
Factors Advantages Disadvantages
Political factor It may provide benefits to
company in term of driving
attention expand its venture
successfully.
While political instability may
put negative impact on firm in
term of creating barriers in the
context of business growth.

Economic factor The main advantage of this
force is growth of firm which
it may provide.
While it may affect pricing
tactics of firm negatively.
Social factor It may help to increase
organizational sells.
On the other hand, this factor
encompasses disadvantages in
term of putting pressure on
company to consider trends
and make possible changes.
Technology factor It benefits in form of
enhancing productivity.
On the other site, it consumes
a lot of time and efforts.
Legal factor The best thing about legal
force is that it help to make
company productive.
While, the main drawback of
this factor is efforts that it may
require to comply with laws
and regulations.
Environment factor It may make company
sustainable.
Time consuming.

REFERENCES
Books and journals
Amankwah-Amoah, J., 2020. Note: Mayday, Mayday, Mayday! Responding to environmental
shocks: Insights on global airlines’ responses to COVID-19. Transportation Research
Part E: Logistics and Transportation Review. 143. p.102098.
Bekhet, H.A. and Lojuntin, S.A., 2020. Does Government Expenditure Contribute to Malaysia
Environmental Sustainability? A Dynamic Analysis. Global Business & Management
Research. 12(4).
Dejuan-Bitria, D. and Mora-Sanguinetti, J.S., 2021. Which legal procedure affects business
investment most, and which companies are most sensitive? Evidence from
microdata. Economic Modelling. 94. pp.201-220.
Capuder, T. and et.al., 2020. Review of challenges and assessment of electric vehicles
integration policy goals: Integrated risk analysis approach. International Journal of
Electrical Power & Energy Systems. 119. p.105894.
Cuong, N.M. and Hung, P.V., 2020. An analysis of available solutions for commercial vessels to
comply with IMO strategy on low sulphur. Journal of International Maritime Safety,
Environmental Affairs, and Shipping. 4(2). pp.40-47.
Maggi, F. and et.al., 2020. The global environmental hazard of glyphosate use. Science of the
Total Environment. 717. p.137167.
Online
Pestle Analysis: A Mechanism for Analysis of Businesses. 2020. [Online]. Available Through:
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