BM461 Global Business Environment: Analyzing Consumer Confidence

This report examines the global business environment, focusing on UK consumer confidence data and its impact on various business sectors following the Covid-19 pandemic. It identifies both emerging sectors like hospitality and retail, and struggling sectors such as real estate and finance. The report discusses the pros and cons of different legal structures for businesses, including sole proprietorships, partnerships, and companies, highlighting the importance of choosing the right structure based on liability and complexity. Furthermore, it explores how to measure market competitiveness using Porter's Five Forces, specifically focusing on competition rivalry and the threat of new entrants. The analysis provides insights for potential investors and businesses navigating the current economic climate. Desklib provides past papers and solved assignments for students.

Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
A examines the latest UK consumer confidence data, ..............................................................3
The pros and cons of different legal structures and which would be best for them?..................4
How they could measure the competitiveness of the market structure? ....................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global business environment refers to the industrial aspects of the several nations that
affects the operations of the firm positively and negatively in an effectual way. The most usual
elements that consist in the global business environment are social, cultural , geographical and
various other factors. It also refers to the international business environment that supports in
development of the economic situation of the nation in the effectual way in context of evolution
in the employment opportunities, success, infrastructure and several others. The following report
is based on the latest data of consumer confidence in regards to the industry of the UK that have
been impacted by the pandemic Covid 19 and in addition to it, it will cover about the pros and
cons of the many legal structures.
TASK
A examines the latest UK consumer confidence data,
The economy of the UK has been declining majorly as due to the rise in the pandemic Covid 19,
just later, country is bound into the new policies of the business with the European Union. In
addition to it, method of improvement and growth of the country's economy will be different for
every business firm in all the industries in which all the businesses will require many several
strategic management and built in celerity.
In the several industry any firm which can have an edge over the cost is usually well
placed in order to grow domestically with the different cost and other several firms of the same
industry will also rise. Firms which are ready and able to concentrate on possible circumstances
which requires to stand to grow(Acuña, Echeverría and Pinto-Gutiérrez, 2020) . The rates of the
goods of the several industries are potentially decreasing lower than of their competitors which
makes a competition in the rates in order to get the more consumer base which leads to the
success in the market area in accordance to the agriculture sector that is commonly on the rise as
because agriculture products are the routine necessity of the people.
There are two kinds of the opportunities at the industrial position in which first is
imitation of import with the European Union, it is costly for the several firm functioning in the
country, in which few domestic suppliers who are capable to give customers as well as more
firms in the industry in the several sectors.

Emerging sector
 Hospitality Sector- The hospitality sector of the UK has now recovering from the impact
of the pandemic situation in references of the increase in the gaining taxes globally. Apart
from this , cost of utility were assumed to be more high for like around 60 to 80% within
the period of the next contracts which are renewed consistently in regular intervals of the
6 months(Mogaki, 2021). As the services or facilities which are there in the hospitality
industry will be maximised by 8 to 12%. The increment in the job vacancy can represent
as increasing demand in the sector.
 Retail Sector- Retail sector in the country is one of top emerging industry as it operates
in the essential needs of the consumers and also promotes many different businesses. It
works with around 3 million people taking over of jobs and gives consumers the quality
of goods which leads to the satisfaction of the consumers.
Struggling sector
 Real Estate Sector- Real Estate sector is facing more issues as because of the covid 19
pandemic as people are unemployed and businesses of the several people affected
negatively which can lead to the bad impact on this sector as well(Costa Dias and et. al.,
2020).
 Finance Sector- The covid 19 pandemic has enhanced more difficulty in the traditional
banking services. It also includes the pressure of low term profitability and turnover in
case of low interest rates with high capital in effectual policies.
The pros and cons of different legal structures and which would be best for them?
Legal structure includes three kinds of the firms which involves sole trader, company and
partnership as well. Pros and cons of these structures are mentioned below:
 Sole Proprietorship- It is also known as the sole trader and it refers to the business entitu
which is incorporated and have only one owner that is accountable of paying all of its
personal taxes as well as of firms and is also gainer for all the profits earned(Berkey,
2021) . The perks of this structure is that it is function by the single owner and it is easier
as the particular individual who is the only decision maker of the firm and it does not
require any kind of the idea and opinions of different people. Whereas, unlimited liability
is of the major disadvantage in it which can lead to the unlimited loss.

 Partnership Firm- In this kind of the firm in which a legal understanding among two or
more individual which is made that are ready to be the co partners, separates, divides
their duties for functioning their company and also shares the profit and loss. In
accordance in the comparison to the sole trader, operations in the partnership can help in
delegation of work as well as mutual bond (Perry, McNabola and Harries, 2018).
Additionally, disadvantage of it is that if a firm is facing a loss then the partners are
accountable to pay all the losses with their personal assets as partnership also have
unlimited liability.
 Company- A company is the legal organisation that is having a several entity from the
owners. A firm can be formed by any individual or group of people that does not involves
income and also profit making. The main perk of it is the owner of it are only liable for
the invested amount which they are already there by buying of the shares, so in
accordance to it, the company has the limited liability. Whereas, formation of the
company is very complex and it needs lots of legal documentation and needs various of
permission of licence in accordance to form a firm.
How they could measure the competitiveness of the market structure?
Market structure means to how various businesses industries which are imposing and
classified that is commonly based on their degree of the competition for the goods and services
that are being sold in the market. It consist of the several features which includes the behaviour
and nature that gives outcomes in business functioning in a specific market area.
In accordance to minimise the competitiveness of the firm, management can use the
Porter's 5 forces method in order to get the edge over the several rivals of the company. So, in
accordance to do that one of the element of this model like competition rivalry and the threat of
new entrants can be examined that is mentioned below:
 Competition Rivalry- It means to the threat to the firm which is provided by the various
rivals as they are also selling the similar products and services in the market area. It
supports in analysing the potential competition in accordance to operate in competitive
market area (Ferras‐Hernandez and Nylund, 2019). Company can examine their rivalry
with the support of this element as it is very much high in this product segment as there
are several of companies which are providing the same product in the same market
segment but with the support of the appropriate rivalry structure there can be several

hurdles in the start up of the firm so because of this company can enter in such market
area.
 Threat of new entrants- This element evaluates on how large the rivalry of the firm in
the market segment. It is known that the number of existing competitors and what can the
rival do to impact the working of the firm (Pavel and Blagoeva, 2018). Competition is
considered to be more high if there are more firms offering similar merchandise at the
time when the industry is increasing and the consumers easily shifting towards another
brand.
CONCLUSION
From the above report it is concluded which is global business environment that has an
essential role in evolution of the economic situation of the country but also assist in scaling the
business in many nations. After the rise of Covid 19 pandemic the business sectors of the country
UK has been affected in a worst way. It has also concluded that the respective industries are
struggling or emerging in upcoming year that has been affected due to the rise of the pandemic
and proper legal structure for the firm in these circumstances. In addition to it, porter's five force
model is used in order to analyse the competitive environment.

REFERENCES
Books and Journals
Acuña, G., Echeverría, C. and Pinto-Gutiérrez, C., 2020. Consumer confidence and
consumption: Empirical evidence from Chile. International Review of Applied
Economics, 34(1), pp.75-93.
Mogaki, M., 2021. State traditions, policy networks, and governance: Emerging network
neutrality co-regulation in Japan and the UK.
Costa Dias, M and et. al., 2020. The challenges for labour market policy during the Covid‐19
pandemic. Fiscal Studies, 41(2), pp.371-382.
Berkey, B., 2021. Rawlsian Institutionalism and Business Ethics: Does It Matter Whether
Corporations Are Part of the Basic Structure of Society?. Business Ethics
Quarterly, 31(2), pp.179-209.
Perry, S., McNabola, A. and Harries, R., 2018. Community business in England: Learning from
the Power to Change Research Institute 2016–17.
Ferras‐Hernandez, X. and Nylund, P.A., 2019. Clusters as innovation engines: The accelerating
strengths of proximity. European Management Review, 16(1), pp.37-53.
Pavel, C.C. and Blagoeva, D.T., 2018. Competitive landscape of the EU’s insulation materials
industry for energy-efficient buildings. Publications Office of the European Union:
Luxembourg.