Macro-Environmental Changes in Global Economy for Long-Term Planning

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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.
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?
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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1. Background
It is the report which aims store identify the macro environment factors that provided an impact
on organisations. This can be possible with the help of performing a PESTEL analysis. This
model is used for identifying the top 3 major macro-environmental issues that will provided an
impact on the organisation. This report also included the ranking of issues in terms of urgency
so that companies will be able to take the right action. Every day the business environment gets
dynamic in nature and included many important factors which provide a negative impact on the
company.
2. Methodology
For analysing the macro environmental factors, pestle analysis methodology is used so that all
the external factors are analysed. There will be a discussion of the recent changes and the
luxury watch market and form performances and it is necessary to analyse why these changes
occurred.
3. Select 3 Key issues
a. Advancement in technology
b. Impact of COVID-19
c. Changing the perception of customers due to excess use of cell phones
4. Global Macro-Environmental Factors Critical Discussion Point
It is identified in the market watch industry that they are facing many important environmental
factors which provided a direct or indirect impact on the organisation. It is analysed that there
are some external factors found with the help of the PESTEL analysis model which includes
advancement in technology, the impact of the pandemic situation and changing the perception
of customers (Sharma and et.al., 2020). These are the three main issues identified. The first
issue which is advancement in technology is included in the technological factor. Every day it is
identified that the technology is continuously increasing and it is updating each and every week.
It becomes very important for an organisation to adopt the advancement in technology because
it increases the competition in the watch industry. If an organisation wants to survive in the
market then it becomes very important for them to adopt the advancement in technologies.
They should focus on adopting and updating the technology which they use in the watches. In
the case of a pandemic situation, it is identified that the demand for luxury watches is
decreasing because people or not ready to spend on these unnecessary things. They are
saving their money so that they are able to tackle the issue which is continuously increasing due
to the pandemic situation. The third issue is found that there is a continuous changing the
perception and preferences of customers. One of the important reasons is that now people are
using mobile phones which reduces the demand for watches. It is really provided and negative
impact on the watch industry because there are many people who have changed their
perception that why they require watches if they have cell phones (Maillat and et.al., 2019). This
perception is really very negative for the organisation because it results in a reduction in sales.
Every day the use of cell phones is continuously increasing which results in increasing problems
for organisations. They are not able to run their business successfully. It becomes very
important for the watch industry that they should focus on analysing these key issues and find
the solution if they want to survive in the market.
5. Resources & Evidence Used in the Completion of the Briefing Note (Reference List in
Harvard Format)
Maillat, D., and et.al., 2019. Comparative analysis of the structural development of milieux: the
watch industry in the Swiss and French Jura Arc. In The Dynamics of Innovative Regions (pp.
109-138). Routledge.