Global Business Environment: Consumer Confidence Data Analysis

This report analyzes the impact of consumer confidence on the global business environment, focusing on the service and travel industries. It examines the effects of events like the COVID-19 pandemic and the emergence of variants such as Omicron on these sectors. The report also provides insights into market competitiveness and offers advice on starting a new business venture, including understanding legal structures like sole proprietorships and general partnerships. Furthermore, it evaluates market competitiveness factors such as new entrants, supplier power, consumer negotiation, the threat of substitutes, and competitive rivalry, providing a comprehensive overview for potential investors and business owners. Desklib provides access to similar solved assignments for students.

Global Business Environment

TABLE OF CONTENTS
Part A..........................................................................................................................................3
Article..........................................................................................................................................3
Part B..........................................................................................................................................6
Email writing...............................................................................................................................6
REFERENCES................................................................................................................................9

Part A
Article
Consumer Confidence Data (United Kingdom)
The consumer confidence data is the economic standard which determines the feeling of
consumers about overall state of the economy and their personal financial position. The
information on business and consumer confidence data basically identifies by the official
statistical data which point out the changes and modification of the economy cycle. According to
the consumer confidence data, the most of the companies impacted by the corona virus and
affected their growth and development. In the research I had identified that service industries
have affected mostly at the time of corona virus disease. The service industries include retail
sector, public sector and finance sector (Farber, Zwietering, and et.al., 2021). But with the decease
of spreading the covid19, the service industrial areas overcome its harmfulness and accounted
80% of the total UK GDP and also provided 82% of employment in the month of April to June
2021.
According to this, there was a rise up between the month of September and October and
increases 0.4% in the index services and comparing to previous three months it has gain 1.1% in
the service output. According to the purchasing managers index, the service industry of UK PMI
was 53.6 in December, 2021 which has gone down from November where it is 58.5. This
situation and values has its lowest performance since the month of February and reflects the
lower and decrease of consumer demands and now a greater uncertainty will be happened due to
the omicron virus a variant of covid19.

Figure 1:Conumer Confidence Data related to service industry
Looking at the production and manufacturing industries it includes the mining, electricity and
gas extractions activities. In the October month of 2021, the manufacturing output was 0.1%
lower than the September month and remained below at the level of 2.5% at the month of
February 2020. In the comparison of October and July of 2021 there is a decrease by 0.1% from
the July month. Moving forward, the production output has increased by 2.7% of the October
month compared to the previous year from October 2020 (Wang, Han, and Beynon-Davies, 2019).
Accordingly, the PMI of manufacturing industries of the UK was slightly down in December
2021 by 59.9 comparing to previous month November who have 58.1. Even the domination of
the supply chain has displayed to be easy and survey respondents tells that lack of staff people
remained an obstacle from which the exportation sales has drooped and decreased and provided
difficulties.
The travel industries have of the UK has increased in randomly in last few years due to
the development and growth of the sharing economy such as Airbnb. In the Covid19 situation,
the travel and tourism has been restricted by the UK government which created a concern for the
travel accommodations. In this industry, the consumer data has raised a concern about the
negative impact of the industry and associated rapid effectiveness in the short-term lettings. With
the development and decrease of the pandemic, the industry has to deal with many challenges
which majorly includes the health and safety measures of the consumers and also a taxation

compliance with health and safety guidelines. According to the PMI, the UK has affected largely
during the covid19 circumstances.
Figure 2: Consumer Confidence data related to travel industry
(Source: US Travel Association, 2020)
The proportion of the travel industries raised at 85% in the month of October 2020 as according
to the consumer statistics data there is an increase of restrictions on the month of November. In
the three months to June 2020, the employment scale has been decreased by 2.15% comparing to
the month of 2019. According to these different sectors, it has been researched and analysed that
an amateur investor can invest their shares in the service industry at most probably (Gupta,
Modgil, and Gunasekaran, 2020)
. As it has been researched that service industry has affected by the corona virus mostly at
the month of July 2020 of three months but they had increased and rises their stability in the
market at the 80% increase in the GDP level of the United Kingdom.

On another side, the travel industries will suffer the difficulties overall 12 months due to the new
variant of the corona virus disease Omicron. It has been analysed that travel and tourism
industries previously affected at wide ranges and mostly at the time of vacation months of
October three months of 2021 (Chen, and Tabari, 2017). Now, with this growing world the
omicron virus can also put the impact on the travel industries most probably and will provide a
decrease of the outcomes and productivity level which also affects the economic level of the
United Kingdom.
Part B
Email writing
From: ABC
CC:
Bcc:
Subject: Advise for starting a new business venture.
Dear XYZ,
Thank you for choosing me to give you an advice for your new business venture. I got
your email yesterday and I am glad that you wanted me to suggest and detail you about the
business structures. Your idea is to import the cheap mobile phones from the China and Taiwan
market and sell them to the rural people and investors in great and effective too but I wanted you
to understand the legal structure of the business and the competiveness in the market.
Understanding the legal structure will help you to launch a new business and can be able to grow
it at successful position. There are mainly two types of different legal structure of a business and
it is important to understand it first.
The structure includes sole proprietorship and general partnership. In the sole
proprietorship, an individual is the own boss and able to make any decision by own without
asking and including anyone in the process. In this kind of structure, an individual has an
advantage of taking its profit amount by own but on other side in business environment it can be
difficult to them in paying the higher tax and also in obtaining the funds for providing the better
services. Secondly, in the general partnership an individual does the business in a partnership
with the another person or organization in which the all the business requirements and results

have to be parted equally. In previous research also, it has been studied that this partnership
structure provides the better result if people utilize this strategy in the correct manner.
This business structure has its benefits as an individual will not have to feel burden for
the financial system and also have to pay the less tax forms and on negative side, an individual is
not having right to take any decision by its own and also have to split the profits equally.
According to me, I would suggest you to adopt general partnership in the business as it is very
effective in the past experiences and many of them in present. This partnership structure is
basically based on the trust and loyalty towards each other also benefited as whatever so the
result and profit will come from the business it will be equally shared and all the partners are
equally responsible for the important duties. It is important to understand and get the knowledge
about the legal structure before launching any business occupation. Along with this, I also want
you to understand and evaluate the market competitiveness from which you can be able to
improve your services and can obtain the effective results.
Regard to this concept, there can be most probably five conditions in the market which
includes new entrants of particular organization, power of suppliers, negotiation of consumers,
threat of being substitute and competitive company. Competition takes place in the market in
these situations where a new product or new business is launched who will definitely have its
own unique ideas and strategies. Secondly, most of the time it happens that a particular company
who is providing a service or product which is differentiated from the other any goods, then they
have a power to keep the prices high accordingly and on another side, consumers have the power
to negotiate the prices if the company product is available at any another organization. Along
with this, it also includes a risk of being substituted as when a company provides the same
product with better quality at lower ranges then obviously consumer will adopt the lower range
service which will be beneficial for the.
At last situation, the competitive industry is the biggest threat and risk for any kind of
business. Similar business creates a competitiveness in the market which can affect the particular
organization in the define manner. Understanding all these situations and market structures will
help you to be aware of such conditions and can overcome these situations easily. I believe that
this information will help you people to design and plan your business venture and will secure
you from the market inflation. At last, I would like to thanks again for considering me to suggest
you on the new launch of business venture.

Thanks & Regards
ABC

REFERENCES
Books and Journals
Farber, J.M., Zwietering, M., and et.al., 2021. Alternative approaches to the risk management of Listeria
monocytogenes in low risk foods. Food Control, 123. p.107601.
Wang, Y., Han, J.H. and Beynon-Davies, P., 2019. Understanding blockchain technology for future supply
chains: a systematic literature review and research agenda. Supply Chain Management: An
International Journal.
Gupta, S., Modgil, S. and Gunasekaran, A., 2020. Big data in lean six sigma: a review and further
research directions. International Journal of Production Research.58(3), pp.947-969.
Chen, W. and Tabari, S., 2017. A study of negative customer online reviews and managerial responses
on social media—case study of the Marriott Hotel Group in Beijing. Journal of Marketing and
Consumer Research.41, pp.53-64.
US travel association, 2020. [Online]. Available Through < https://www.ustravel.org/news/research-
round-consumer-confidence-continues-set-new-records-it-may-be-short-lived>