Pestle Analysis of Watches of Switzerland in Global Business Environment

This report provides a Pestle Analysis of Watches of Switzerland in the global business environment. It includes political, economic, social, technological, legal, and environmental factors affecting the company's performance. The report concludes that economic factors can negatively impact the brand image, and other factors can determine or provide opportunities for improvement.

Global Business
Environment

Table of Contents
Introduction......................................................................................................................................1
References ......................................................................................................................................3

Introduction
The global business environment can be explain as the environment in different countries.
Industries are greatly affected by the global environment, it is the broad concept includes
politics, technology, culture,and economics etc. some of the factors have direct effect on business
(Baporikar, 2021). The report is based on the firm watches of Switzerland. It was founded in
1924, deals in luxury watches. It has 16 stores in UK and headquarter is also in UK. Further it
will include the pestle analysis in relation to company.
Main Body
The analysis of external factor which gives impact on organisational performance is known as
pestle analysis. It verify the factors that gives bad position to business and helps in improving the
actions which is performed in venture. All the factors are describe below.
Political factor - it play a important role in performing a business activity or investing
decisions these factors effects the price of conducting business also including long term
sustainability(Adapa, 2018). In relation to watches of Switzerland, local government of UK are
highly influence in the policy making and implementation, the company is not facing any kind of
civil unrest or any internal wars in country. The governance bodies is responsible for all the
rules and modulate under WTO norms. There is uniformity between both the policy making and
follow up of company.
Economical factor - This factor states the country and part have a direct effect on the possible
quality of a given market. These factors include the GDP, growth rate and inflation rate. In
context of watches of Switzerland, The inflation rate can effect the business of watch products.
As inflation rate increases the cost of the product increases which may lead to reduction in brand
loyalty.
social factor - The factors such as demography trends, power structure in society etc. these
have high impact on country economy and also on consumer mindset(Aithal and Aithal, 2018).
In context of Swatch the company should examine both the power structure in society and how
it impact the demands.
Technological factor - The factors that implies the technical changes or models across
industries it involves use of machines, consumer behaviour, and artificial intelligence. In terms
of Swatch, the company should determine areas where technology can empower supply chain
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partners. It can assist them to bring in more clearness and make supply chain more flexible(Mitra
and Mishra, 2019).
Environment factor - these factors are rapidly earning tractions not only for consumers but also
for policy makers. In relation to Swatch, as the different region have different rules this would
help the company in making varied decision like location, product development etc.
legal factor – These factors govern conditions to expand the business in new segments. If legal
system is not good Swatches can face various challenges from consumer petitions to stakeholder
from authorities(Kocaarslan, Kiskan and Yagci, 2017).
Thus, the three critical issues are as
 Health and safety laws
 Recycle polices
 Mobile phones and internet penetration
Conclusion
From the above report it is concluded that the study of pestle analysis assist in understanding the
external factors and threats that can effect the business performance. The company economic
factor can give a loss to the brand image. The other factor are the determiner or gives a chance
of improvement.
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References
Adapa, S., 2018. Indian smart cities and cleaner production initiatives–Integrated framework and
recommendations. Journal of cleaner production, 172, pp.3351-3366.
Aithal, P.S. and Aithal, S., 2018. Factor & Elemental Analysis of Nanotechnology as
GreenTechnology using ABCD Framework. International Journal of Management,
Technology, and Social Sciences (IJMTS), 3(2), pp.57-72.
Baporikar, N., 2021. Influence of Business Competitiveness on SMEs Performance. In Research
Anthology on Small Business Strategies for Success and Survival (pp. 1054-1075). IGI
Global.
Kocaarslan, A., Kiskan, B. and Yagci, Y., 2017. Ammonium salt catalyzed ring-opening
polymerization of 1, 3-benzoxazines. Polymer, 122, pp.340-346.
Mitra, M. and Mishra, S., 2019. A comparative analysis of different extraction solvent systems
on the extractability of eicosapentaenoic acid from the marine eustigmatophyte
Nannochloropsis oceanica. Algal research, 38, p.101387.
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