Report on Global Business Environment: Consumer Confidence & Strategy

This report provides an analysis of the global business environment, with a specific focus on UK consumer confidence data and its implications for various business sectors. It examines the impact of the pandemic on consumer behavior and identifies sectors likely to thrive or struggle in the coming years. The report also suggests investment opportunities in companies like Tesco, NHS, HSBC, Just Eat, and Unilever. Furthermore, it includes a letter discussing a potential business venture involving importing cheap products from China and selling them in emerging economies, evaluating different business structures such as sole proprietorship, partnership, and limited liability company. The analysis incorporates Porter's five forces and market structure considerations, particularly the oligopolistic market, to assess competitiveness and potential profitability. This assignment solution is available on Desklib, a platform offering a wealth of study resources including past papers and solved assignments to support students' academic needs.

Global Business Environment.

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................3
Coursework 2A...........................................................................................................................3
Coursework 2B...........................................................................................................................5
REFERENCES................................................................................................................................7

MAIN BODY.
Coursework 2A.
UK'S CONSUMER CONFIDENCE DATA
Consumer confidence is form of economic indicator that helps in identifying the total
consumption, saving and future developments of various households. Also, Gfk consumer
confidence data helps in measuring consumer attitudes so that better decisions could be made
by the business firms. Moreover, such type of data is very helpful in predicting the future
inflations and economic conditions so that business confidence could be developed for selling
certain goods in the market. Furthermore, according to the certain reports it has been seen that
UK confidence has taken the worse turn in the history during the first half of 2021 due to the
pandemic. Thus, with the downfall of the economy during the pandemic most of the consumers
are not ready to make certain purchases in any of the business sectors. Moreover, when people
are confident only when there is stability in the incomes that influences the spending of the
business. Also, the consumer confidence reports are based on different sectors of the economy
that are operating on either small or large level. Also, according to business impacts of the
coronavirus survey 82.6% respondents feel that some business would be able to survive in the
next three months. Hence, through such confidence reports it allows the firms to develop
innovative products in the market so that large revenues could be generated by attracting
potential customers.
Furthermore, sectors that are able to grow in coming years is healthcare, retail, banking,
food services etc. Also, these sectors will be able to grow in the coming years is due to fact that
demand could not get completely over and people will be ready to take services even when
prices are little higher in the market. However, some sectors that are likely to struggle in the
next coming years are clothing, tourism, entertainment and much more due to limited demand
in the market by the consumers. Furthermore, the demand in these sectors is low because these
do not come under the essential goods' category that are required on daily basis. Hence, people
are ready to avail services only when there are excessive need that is required to be fulfilled on
time. Moreover, demand in these sectors was earlier stable but due to the hit of pandemic it has
been worse as people do not have enough money to spend on other services.

Also, the range of firms that will be beneficial for the purpose of investment would be
Tesco Plc in retail sector as it is growing multinational retail company that is delivering
thousands of goods to its customers in times of pandemic through online app. Another one that
is good for investment is NHS healthcare company in England that is best in providing
successful healthcare services to large number of people over the years. Also, HSBC holding
Plc in banking sector is the best multinational investment bank that is running successfully
having large number of resources and customers. Furthermore, Just Eat in the food service
sector is the best online British delivery app that supplies food in the easiest and fast manner.
Also, Unilever in manufacturing sector is another best option in where the investor could invest
to get bests returns to the future.
Hence, from the amateur investor point of view it is very important that they should
take bottom up or top down analysis so that certain factors such as return on investment,
inflation rate, risk, investment period etc. could be analysed in most efficient manner. Also, it is
known that making rapid investment decision without considering the long term objectives will
only lead to losses and increase the risk of investment. Thus, bests investment decisions are
those that includes safety, income and capital growth in systematic manner so that current
circumstances and needs of the individual is understood in proper manner. Also, according to
certain business reports it is seen that persons that are able to invest wisely have the ability to
start up their own business especially during the times of pandemic where inflation rate is
higher and high level of unemployment could be seen in the country. Thus, it is required that
investor considers all the aspects and knowledge of the business while investing into new areas'
so that returns could be gained in well-defined manner.
References:
https://commonslibrary.parliament.uk/research-briefings/sn02817/

Coursework 2B.
14 Park Lane,
London, United Kingdom.
12345678
Dear ABC,
I hope you are doing well. This mail is in regard to our previous conversation where we
have thought about business of importing cheap products from China and sell them in emerging
economies so that business could grow on better terms (Morstyn, Teytelboym and McCulloch,
2018). Hence, with my research skills I have gathered data that with the current situation of
pandemic where most of the people have left the jobs and there is less amount of money in the
economy, this business would be good option to earn revenues. Also, in current generation where
most of the people are aiming to become tech efficient it is important that variety of mobile
phones are made available in rural areas where people could access information relating to Covid
or any other easily with the use of internet. Moreover, this business would be reliable in terms
that cost of the mobile phones would be lower that will attract more of potential customers (Yu,
2020). Furthermore, I have analysed that there are various types of business structures that could
be adopted such as Sole proprietorship where the business is completely owned by the single
person and there is no distinction between business entity and the owner. Also, such form is
easy to establish and operate as all the decision-making is in hands of single person. However,
there is unlimited liability on the proprietor that might impact on the running of the business in
smooth manner. Also, the individual might find difficulty in obtaining funds from various
sources due to limited time and resources. Another one that I have analysed is Partnership that
is association of two or more people that are sharing profits and losses equally (The Advantages
and Disadvantages of a Partnership, 2022). It is beneficial as by using this form individual
would have minimum legal formalities in making certain changes. Thus, the partners could make
decisions based on the external environment. Moreover, division of the work is done on better
manner that helps in efficient management. Although, this is good structure but it has certain
demerits such as there is high level of uncertainty that might cause difficulties in long term
planning of the firm. Also, in partnership firms decision-making is slower as approval from each
partner is required. Furthermore, other best structure I have analysed is limited liability

company that helps the owners in protecting from unlimited liability and debt. For opting such
type of structure some legal requirements need to be fulfilled however only fewer requirements
is required 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 (Kozak and Larsen, 2018).
However, certain demerits of such form is that it is very expensive method as more amount of
resources is required to operate the business. Further, such type of structure have limited life and
would not work for those organizations that have larger goals developed for the business.
Moreover, in my opinion while starting this mobile business the best competitiveness of
market structure could be identified through Porter five forces that helps in identifying the
strength and weakness of the target market. It basically consists of five components such as
competition in industry, potential of new entrants, power of suppliers, power of customers and
threat of substitute (Clayton, 2019.). Thus, by identifying each factors better operation of
business could be conducted in long run. Also, in my suggestion it is very important that before
starting up the business various VAT, custom duty, excise duty need to be closely analysed so
that better prices could be set for the mobiles in the target market. Furthermore, I have
researched that better revenues could be generated for the firm only when the market structure is
closely analysed. Also, there are four types of market structures such as perfect competition,
monopolistic, oligopoly and monopoly (Zhang, Hu and Ji, 2020). The one that we would operate
is oligopolistic market where there are lot of industries and large firms facing intense
competition. Thus, in my thinking our planning for the business would be proved successful
through in depth analysis and research.
Please write me soon and tell me about future suggestion if any.
Best wishes
XYZ

REFERENCES
Books and Journals.
Clayton, E., 2019. Implementing a Market-Oriented Economy. In From Leninism to
Freedom (pp. 85-98). Routledge.
Kozak, M. L. and Larsen, J. C., 2018. Economic incentives for antibacterial drug development:
alternative market structures to promote innovation. In Antimicrobial Resistance in the
21st Century (pp. 721-753). Springer, Cham.
Morstyn, T., Teytelboym, A. and McCulloch, M. D., 2018. Designing decentralized markets for
distribution system flexibility. IEEE Transactions on Power Systems. 34(3). pp.2128-
2139.
Yu, W. H., 2020. Chapter Three. Comparing Labor Market Structures and Workplace Dynamics.
In Gendered Trajectories (pp. 45-69). Stanford University Press.
Zhang, D., Hu, M. and Ji, Q., 2020. Financial markets under the global pandemic of COVID-
19. Finance Research Letters. 36. p.101528.
Online:
The Advantages and Disadvantages of a Partnership. 2022. [Online]. Available
through:<https://www.americanexpress.com/en-us/business/trends-and-insights/articles/what-
are-the-advantages-and-disadvantages-of-a-partnership/>.