BM461 Global Business Environment: Consumer Confidence and Market

This report provides an analysis of the global business environment, focusing on consumer confidence and market trends. It examines the importance of consumer confidence as a strategic economic indicator and its impact on various organizational sectors. The report identifies companies and sectors expected to grow or struggle in the next 12 months, considering factors such as consumer spending habits, supply and demand, and the impact of the pandemic. It also includes an email discussing the feasibility of starting a mobile phone business, analyzing legal structures like partnerships and limited liability companies, and considering market competitiveness through Porter's Five Forces model. The analysis suggests that a limited liability company structure in a perfect competition market would be most suitable, emphasizing the importance of VAT, custom duties, and excise duties in pricing strategies. Desklib offers this and many other solved assignments to aid students.

BM461 GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
COURSEWORK 2A........................................................................................................................3
News paper article.......................................................................................................................3
COURSEWORK 2B........................................................................................................................5
Email message to friend..............................................................................................................5
REFERENCES................................................................................................................................9

COURSEWORK 2A
News paper article
Consumer confidence and their importance
It is one of those strategic economic indicators that
contributed to measure the extent in the context of
consumer optimization that they may have
regarding entire state of a country economy. It is
quite essential in term of measuring how
confidence individual person feel about their
income stability.
Companies that will grow over the next 12
months and why?
In the next 12 months, certain industries will
prosper such as manufacturing, e-commerce and
retail. It will happen because of consumer spending
habit, and demand & supply factors as people
prefer to purchase products and visit food and
beverage organizations more than last few years.
As retail organization it may grow continually
because people demand a lot of products and
expect to purchase from well-known brand like
chose one. It may put positive impact on
supermarket and aid to gain desire outcomes. While
running and managing business operations into e-
commerce sector, Amazon may also take pleasure
of excellent venture growth and success. It may
gain competitive advantages in bulk in form of
increasing profitability because in today's era,
people prefer to shop online via different types of
shopping platforms and sites. It may enable firm to
gain consumers attention and retain potential target
market forever that is not easy for any company to
do so. It may contribute to generate more revenue
than the other brands and from last few years.
Organizational sectors that will struggle further
and why?
IT services, marketing and lucrative sectors will
struggle over next 12 months in the world of
business, because of varied or specific reason such
as pandemic. It can be said that the end of 2019,
there are more than 160000 ventures offering IT
services, as consultancy and software development
contribution in important distress. Lack of
supervision and cutting costs may create varied
challenges form them to survive. ItechArt Group is
the best example of IT service organization. It is
one of those top IT brands that provide quality
technological products to consumers. Marketing is
another sector that will face challenges within the

Under manufacturing sector, Scott & Charters, will
grow rapidly as individual customer prefer to wear
trending clothes in term of following a trend that
population follow. This factor may drive
organization attention toward manufacturing
clothes according to customers needs and
expectations as well as requirements based on
varied occasions. Along with this more companies
while running their business will grow at same time
period. For instance, TESCO is one of the leading
retail organizations that will progress and succeed
in term of increasing profitability (Forecast for
retail sales growth worldwide from 2018 to 2022,
2021). Over next 12 months, firm may take
pleasure of increase supply and demand of quality
products, especially vegan food items that in the
recent time and further duration individuals prefer
to purchase.
next 12 months. For example, due to pandemic
major companies are shutting down their ventures
as it may put negative impact on current industry. It
may lead to decrease its effectiveness and
operational efficiency, which is not acceptable by
the organizations that are operating under this
sector.
Momentum is the best example of marketing
companies that try to communicate and interact
with customers, for purpose of sharing information
about a company or product as well as service (The
UK’s 30 Best Marketing Agencies, 2021). It may
face issue due to pandemic. Management
consultancies seen as lucrative sector, which will
face challenges to survive in the world of business
because of COVID-19, as they are unable to predict
which idea may aid to grow a firm as each
company breaks due to similar factor. KPMG is a
management consulting organization that is
operating in the United Kingdom and deal to grow
rapidly as well as successfully. Pandemic may put
negative impact on its venture success and growth,
which lead to create more issues that is essential for
management to overcome in effective and strategic

manner.
Suggestions-
It is important for an amateur investor to take
varied things into consideration before investing
money in specific project or business. For example,
they can take action to make comparison based on
date from FTSE performance. It will give them
proper direction about next or further actions that in
turn provide major advantages. Supply & demand
factors is one of the best concept or strategic
framework, that provide a critical analysis of
corporate world and allow investor to invest their
money in profitable industry or sector. With this
concept, they can take information about high
extent supply and demand of products.
COURSEWORK 2B
Email message to friend
33 Park Lane
London, United Kingdom
Date: 27 December 2021
Dear ABC,
Hope you are good and doing well. As per the discussion over the phone I am writing
this letter to inform you that our idea to start up a new business in mobile phone is great one as in
the current digital era this has become the basic necessity for households that wants to gather
information in the quickest and easiest manner. Moreover, it has also known that young
generation of any country is often eager to purchase things that is tech efficient. Thus, this would
be great opportunity to cover large market area especially in times like pandemic where access to

information anytime and anywhere is necessary for all people that are located in different regions
of the world. Further, to gather mobile phone from market like China and selling in emerging
economy like India would be little difficult due to the certain restrictions that are made in the
trade (Ronit, 2018). Moreover, I have analysed that there are different forms of legal structure
that would be helpful for this project to make our business success. Some forms are like
partnership that is made of two more owners where profits, losses, taxes and much more are
decided mutually. Also, such forms requires less paperwork and requirements than the other
business structure and are much easier to start (Advantages and disadvantages of a partnership
business, 2021) Further, decision-making is also very fast in such forms and funds could be
raised in much easier manner than in case of single ownership firms. However, it is seen that
even though it seems to be the best structure but it also has demerits like partners have unlimited
liability and in case where any kind of losses are incurred than all the partners have to bear
equally (Peracek, Noskova and Mucha, 2017). Moreover, in case of any kind of differences there
are more chances of conflicts among the partners and thus it might lead to losses and inability to
take strategic decisions. Thus, disagreement would not only harm the mobile business but also
damage the personal relationship between the individuals.
On the other hand the other form of business structure that I found would be suitable for
business like mobile industry would be limited liability company that would ensure that
liability of the owners is protected to limit of amount that has been invested in the business. For
opting such type of structure some legal requirements need to be fulfilled however only fewer
requirements is required (Limited Liability Company: Advantages & Disadvantages, 2021).
Further, the best advantage of such business is that there are no restrictions in the total number of
members that could be part of the business and hence more members means more fund for the
business that is the good thing in times like Covid -19. Also, all the members of this structure
have the flexibility in structuring the company. However, this is quite expensive method than
other legal structures such as partnership and thus it requires more members for its successful
operations of in the routine tasks. Moreover, ownership in this form could not be transferred
easily from one partner to another in emergency cases which is major demerit for the business.
Also, this type of limited liability corporation have the limited life and would not be applicable
when there are lot of long term goals and planning. Thus, the one in my suggestion that would be
suitable would be limited liability as the company would play on much safer side in terms of

liability that will be shared by each individual in the group and thus would create less stress free
work environment among the members and will generate better business ideas.
Further, I my opinion selling the Chinese mobiles would work best in the perfect
competition market structure so that even though having large number of small companies in the
target market selling similar products firms are able to freely enter or exist the market anytime.
Thus, this would provide an additional advantage to our business in terms when work is not
operating in better manner and fewer revenues are generated than there is option to leave the
market whenever required (Micieta and et.al., 2020). Further, for operating the business in new
markets it is important that VAT, custom duties, excise duties etc. are calculated in right manner
so that correct prices could be set for the mobile devices including the profit margin that need to
be achieved. Lastly, I have analysed that competitiveness of the market structure would be
identified through porter five forces model that helped to determine the industry weakness and
strengths in the target market. Also, as per we have decided to sell goods in country like India it
is very important that competition of such sector in that market is identified. Further, power of
supplier and customers along with possibility of similar entrants into this industry would also be
identified in systematic manner. Thus, through careful analysis and research business would be
profitable through systematic decisions.
Write me soon and tell me about any further recommendations if any.
Best wishes
XYZ

REFERENCES
Books and Journals.
Amponsah, C. T. and Ahmed, G., 2017. New global dimensions of business
excellence. International Journal of Business Excellence. 13(1). pp.60-78.
Głodowska, A., 2017. Business Environment and Economic Growth in the European Union
Countries: What Can Be Explained for the Convergence?. Entrepreneurial Business and
Economics Review. 5(4). pp.189-204.
Hans, V. B., 2018. Business environment–conceptual framework and polices. International
Educational Scientific Research Journal. 4(3). pp.67-74.
Hill, C. and et.al., 2017. Global business today: Asia-Pacific perspective. McGraw-Hill
Education.
Khajeheian, D., Friedrichsen, M. and Mödinger, W., 2018. An introduction to competitiveness in
fast changing business environment. In Competitiveness in emerging markets (pp. 3-11).
Springer, Cham.
Micieta, B. and et.al., 2020. Business model canvas in global enterprises. In SHS Web of
Conferences (Vol. 74, p. 02010). EDP Sciences.
Peracek, T., Noskova, M. and Mucha, B., 2017. Selected issues of Slovak business
environment. Economic and Social Development: Book of Proceedings. pp.254-259.
Ronit, K., 2018. Global business associations. Routledge.
Wood, D. J. and Logsdon, J. M., 2017. Theorising business citizenship. In Perspectives on
corporate citizenship (pp. 83-103). Routledge.
Zheng, J. G., 2017. Data visualization in business intelligence. In Global Business
Intelligence (pp. 67-81). Routledge.
Online
Advantages and disadvantages of a partnership business. 2021. [Online]. Available
through:<https://www.informdirect.co.uk/business-management/partnership-business-
advantages-and-disadvantages>.
Business and Consumer Confidence: Key Economic Indicators. 2021. [Online]. Available
Through: <https://commonslibrary.parliament.uk/research-briefings/sn02817/>
Forecast for retail sales growth worldwide from 2018 to 2022. 2021. [Online]. Available
Through: <https://www.statista.com/statistics/232347/forecast-of-global-retail-sales-
growth/>
Limited Liability Company: Advantages & Disadvantages. 2021. [Online].Available
through:<https://greaterknoxville.score.org/news/limited-liability-company-advantages-
disadvantages>.
The UK’s 30 Best Marketing Agencies. 2021. [Online]. Available Through:
<https://gripped.io/digital-marketing-strategy/top-marketing-agencies-uk/>