Examining UK Consumer Confidence and Business Sectors for Growth and Struggle

This article examines the latest UK consumer confidence data and which business sectors will prosper or struggle in the next 12 months. It also discusses different legal structures for businesses and methods to measure competitiveness of market structure. The subject is BM461 Global Business Environment and the content includes a table of contents, two sections, and references.

BM461 GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
2A)...................................................................................................................................................2
Examining the latest UK consumer confidence data and which business sectors will prosper
over the next 12 months and which will struggle........................................................................2
2B)....................................................................................................................................................4
REFERENCES................................................................................................................................7

2A)
Examining the latest UK consumer confidence data and which business sectors will prosper over
the next 12 months and which will struggle.
Consumer confidence is defined as economic indicators that effectively and appropriately
measure the extent of optimism that customers have in the context of overall state of a nation's
economy and their own financial status or situations (Lehrer, Xie and Zeng, 2021). It is one of
the best sources of economic informations and considered as private consumption constitutes
about two third of all economic activities in most nations. According to the current United
Kingdom consumer confidence, more than 8.6 percent of respondents had moderate or high
confidence their ventures would survive a lot in the next three months due to pandemic (Business
and Consumer Confidence, 2021). They may indicate that economic level of this nation or in the
whole world is falling down because of similar factor, which is not suitable for the growth and
success of a country. Consumer confidence index appropriately measures varied of customers
attitudes such as forward expectations of common economic situation as people are facing issues
to survive and maintain living standard, which lead to decrease in the recent time due to COVID-
19 (United Kingdom Consumer Confidence, 2021). Furthermore, it has been determined that CCI
of the nation suppose 97.4 % in the September in 2020, which after decline from 100.59 percent
at the beginning of the year, to 96.6 % by the May month that indicating a slight recovery in
chosen economic indicator. The UK consumer confidence index show 3 points to -14 in the end
of 2021 from 8 months low considering of -17 in the earlier time. The index also reflect for the
first period in four months in term of signalling a high turn-up in the nation's consumer mood
beyond holiday season.
The economic growth level due to pandemic fall down which is not suitable for
individual person as they deal to major challenges in term of food shortage, managing household
budget, fulfilling family needs, and getting a better job. As majority of candidates losses their
only income sources as many firms are shutting down their businesses that has been affected by
COVID-19.
Furthermore, with the help of chose economic indicator it may determine that there are
different types of sectors & companies are surviving and facing major challenges to run their
ventures in the specific sector or market. For example, small ventures and companies will
survive to run and manage their businesses growth in the market, because they may do not have

appropriate resources that allow gaining benefits in bulk in term of aim achievement. Due to
pandemic, regulatory frameworks and governmental policies change that also bring more issues
for small businesses in term of paying high tax duties and charges while taking initiatives to
conduct import or export activities.
There are many companies and industries accessible which will grow over the next 12
months such as manufacturing, food & beverage, retailing, e-commerce, medical and others.
Despite lock-down, individual person still continue their products buying and selling activities
via using online platforms, which enable them to deliver any product direct to consumer door,
along with following social distance rules that is beneficial for everyone to do not forget that. For
example, TESCO, ASDA, Sainsbury and other supermarkets will grow rapidly in next 12
months. Furthermore, medical industry also progress excellently and will continue in the future
as people approach to experience holder for purpose of improving their health and overcome
medical issue which driven their attention to purchase medicine.
Food & Beverage industry will prosper over the next 12 and more months or years,
during pandemic because people ordered food online from those restaurants who are following
government covid guidelines (Chowdhury and et.,al., 2020). For instance, Rovi, restaurant moor
Hall, The Fat Duck, etc. may take pleasure of increasing profits margin, productivity and
generating revenue more than last few years. In can be said that in sectors from health care to
education to manufacturing to finance, pandemic and extended work from home forced
organizations to utilize technologies to rebuild almost every faced of their businesses operations
(Maximizing data driven business growth: GfK launches AI-supported intelligence platform
“gfknewron, 2021). Manufacturing companies will succeed in the future and grow excellently
that is quite amazing for economic growth as well. The strategic plan and approaches utilization
will also help them to gain desire outcomes in the future.
2B)
To....
Cc...
Bcc...
Subject- Regarding suggestions about the best legal structure and methods to measure
competitiveness of market structure

To xxxx,
I have been thinking about your import cheap mobile phones, business ideas from
Taiwan or china and sell them to rural investors in emerging economies, which is quite good.
To make it more effective and successful, it is quite essential for you to look out the different
legal structures, because it enables to select the best one.
There are different types of legal structures accessible in the world of business that has
been utilized by varied companies whether they are public or private, large or small. These are:
Sole proprietorship-
Pros-
This legal structure is quite easy to establish as it may do not have any particular registration
need and proprietors legal image is utilized by the venture. It may provide user benefit to take
pleasure of increasing profitability and productivity along, instead of sharing with other, who
may do not work harder than they did. It can be said that no other venture more than the current
one entitles the founder as sole beneficiary of shares, sales and profits.
Cons-
Sole proprietorship may do not provide user chance to expand operations and ventures in a big
manner, which may put negative impact on their further success and growth, especially during
competitive environment. As each organization try to give tough competition to other, for
purpose of gaining all the benefits.
Partnership-
Advantages-
The best benefit of this legal structure is that it encompasses lack of formality as compared with
managing a limited firm. The account procedure is usually simpler for partnership more than for
limited organizations.
Disadvantages-
On the other hand, it may put negative impact on current practices of user in term of do not
providing in dependency that they may gain by using sole proprietorship.
Limited Liability-
Benefits-
When a person or company use this structure they may take benefit of less requirement of
minimum contribution or capital. It only needs 2 partners while there it no restrictions on

maximum number of shareholders.
Drawbacks-
Limited Liability may do not have specific concept of equity like a firm. Hence, HNI, private
equity funds and angel investors cannot invest in an LLP as key shareholders.
Corporation-
Pros-
It is fact that with corporation as legal structure, owners of the companies are only liable for
specific amount of money that they may have invested through purchasing shares.
Cons-
Beside advantages, it may encompass some drawbacks such as complex procedure. As user
may face challenges setting up a corporation, it may take heavy paperwork.
Suggestion-
From above discussion, it has been identified that partnership is the best legal structure that they
will use to convert their business idea into practical manner. They would take approach to build
a partnership relation with local firm or venture in chosen country where they take action and
think to enter, for purpose of offering mobile phones in cheaper rate to organizations.
Ways to measure the competitiveness of market structure-
It is important to an entrepreneur to determine the competitiveness of a sector where they want
to enter and plan for similar reason, which enable them to determine the competitiveness as
effectiveness of market structure. In order to continue the process they may take initiative to
consider the best and most effective strategic framework such as Porter's five forces model. The
extent of each factor may provide a firm chance to measure the effectiveness of market
structure.
Bargaining power of suppliers-
The extent of this force is low, because number of suppliers are accessible in the business
world, which may give a firm power to measure competitiveness and gain competitive benefits.
Bargaining power of customers-
The bargaining power of target market is low, because there were not alternative option of
mobile phones accessible in the corporate world that customers may chose to utilize and take
pleasure from that.
Threat of new entrance-

The extent of this factor is low, due to high investment that a company need to invest in huge
level, while entering into market for purpose of selling mobile phones in cheap rate.
Threat of substitute products and services-
The threat of this force is low, because of less alternative options such as product or services
accessibility, which may do not give them chance to switch.
Competitive rivalry between companies-
The degree of this factor is high because each organization in the corporate world try to give
tough competition to their rivals to gain benefits in bulk.
I hope my suggestions will benefits to you.
Thanks and Regard

REFERENCES
Book and Journals
Chowdhury, M. T. and et.,al., 2020. A case study on strategies to deal with the impacts of
COVID-19 pandemic in the food and beverage industry. Operations Management
Research. pp.1-13.
Kim, H. J., Lee, B. K. and Sohn, S. Y., 2020. Comparing spatial patterns of sole proprietorship
and corporate payday lenders in Seoul, Korea. The Annals of Regional Science. 64(1).
pp.215-236.
Lehrer, S., Xie, T. and Zeng, T., 2021. Does High-Frequency Social Media Data Improve
Forecasts of Low-Frequency Consumer Confidence Measures?. Journal of Financial
Econometrics. 19(5). pp.910-933.
Online
Business and Consumer Confidence. 2021. [Online]. Available Through:
<https://commonslibrary.parliament.uk/research-briefings/sn02817/>
Maximizing data driven business growth: GfK launches AI-supported intelligence platform
“gfknewron. 2021. [Online]. Available Through:
<https://www.gfk.com/press/gfknewron-launch-september-2021>
United Kingdom Consumer Confidence. 2021. [Online]. Available Through
: <https://tradingeconomics.com/united-kingdom/consumer-confidence>