Global Business Environment: Consumer Confidence and Business Email

This report provides an analysis of the global business environment, focusing on the consumer confidence index and the use of business email. The consumer confidence index, a statistical measure of consumer feelings regarding the future and existing economic conditions, is examined with data from November 2021, highlighting the impact of the pandemic and subsequent recovery on consumer sentiment. The report also delves into the retail sector's performance, including the fashion industry's challenges and potential growth areas. Additionally, the report includes a business email scenario, discussing factors to consider when starting a company, such as choosing the right structure, understanding competitive intensity, and complying with HMRC regulations. It emphasizes the importance of market knowledge, competitor analysis, and understanding the target audience for successful business operations. Desklib offers similar resources for students.

Global Business Environment

Table of Contents
Coursework A)...................................................................................................................1
Consumer confidence index......................................................................................1
Coursework B)...................................................................................................................3
Email..........................................................................................................................3
REFERENCES..................................................................................................................5

Coursework A)
Consumer confidence index
The Consumer confidence index basically involves all the statistical measures that
involve the feelings of the customer regarding the future and existing economic
conditions of the country. It basically depicts how confident the consumers are regarding
the overall state of the economy. The higher is the level of consumer index, the higher it
is considered as a good factor for the country. To measure the consumer confidence
index, different bodies conduct different type of studies. To measure the attitude of
consumers about the forward expectations of the general economic conditions and
financial position of the households in terms of the purchase of the household goods,
the GFK carries out the survey of consumer confidence. In November 2021, it was
analysed that the index was -14% that was higher as compared to October 2021. During
the pandemic, the consumer confidence index declined because of the deep economic
recession. Furthermore, after the pandemic there was a significant decline in the deep
economic recession. Moreover, post pandemic the countries started to grow which
resulted in increase in confidence of the customers (House of commons Library, 2021).
There was also an influence on the sentiments of the consumer due to fear of high
prices, high inflation and increase in cost of living. In the month of November, the
situations of the economy improved as compared to the past years. Moreover, the
customers are positively responding towards the personal finances.
In addition to that, there is also an increase in retail and virtual sales which
basically indicates the consumers are ready to purchase post pandemic scenario.
Moreover, there was reduction in family gatherings due to restrictions during lockdown
and pandemic. But the coming festivities can influence and enhance the sales of the
organisations (Mckinsey 2021). Moreover, the customers are known with the fact that in
the coming year it can be highly influenced through festivities. In November 2017, the
major purchase index was up by 7 points as compared to the past months. When it
comes to retail industry, the overall sale in the industry declined by 2.5% in the month of
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June and July 2021. Also, the sale of food stores increased in the year 2021 with start of
the football championship. With this the consumer are investing more in the retail
segment that resulted in significant increase in the consumer confidence. It indicates a
good sign for the retail sector of UK that involves companies such as Morrison’s,
Sainsbury, and Tesco. The retail sector has huge chances to grow soon. Fashion
industry of UK has recorded a massive decline approximately 20% in the y ear 2019 to
2020. Because of the covid scenario, the performance of the fashion brands was highly
affected due to decrease in the purchasing power of the customers. In the year 2020,
approximately 69% of the fashion companies of the UK were value destroyers.
Moreover, the customers are likely to avoid investing in fashionable brands and would
rather choose to invest in basic needs. In addition to that, fashion brands such as
Burberry, marks and Spencer and more could be highly affected due to the negative
approach of the customers. It also restricts the future growth opportunities of the fashion
industry.
The was a significant improvement in the financial condition of the UK in the past
year due to recovery of the economy. It also indicates that there was significant impact
of covid 19 on the overall consumer confidence index. In the present time the overall
confidence of the consumers increased in the economy that is a positive aspect for the
future growth. Moreover, there are certain industries that involves food, personal saving,
retail that involves potential of growth in the future.
In addition to this, the consumers are not likely to invest in the fashion and various
other luxury items as it will affect the overall growth potential of the respective
industries. The personal finance index was dropped to -7 which is much better as
compared to the November 2020. The forecast regarding the personal fiancé has also
increased with a significant increase in the number in the coming 12 months. Moreover,
the people are likely to invest in the mutual funds, fixed deposit and more which is
increasing opportunities for the finance and banking industries. All these improvements
are creating favourable conditions for the financial institutions as nowadays people are
having positive attitude towards savings. It will also create a favourable opportunity for
the banking companies which involves HSBC, standard chartered bank, Barclays and
more.
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Coursework B)
Email
To [e-mail]
CC: [e-mail]
Dear Anura,
The structure selected has its own pros and cons which are in terms of taxation, raising
capital and continuity (Hooper, A. and Holtbrügge, D., 2020). The chosen structure has its own
legal ramifications on the company’s owner regarding personal asset protection. In
terms of sole proprietorship there are various pros such as easy and least expensive
plus it provides the freedom to take all decisions and control over all company
operations, but it might involve some cons such as unlimited liability, limitation in raising
funds, and no separate legal status. In case of partnership, it is easy to establish and
involves complementary skills but there might be chance of dispute and decision making
is the main concern. In case of corporation there is limited liability and it’s easier to raise
the capital through sale of stocks, but it involves cons such as double taxes, more
administrative duties, and payment of corporate taxes. In case of selling cheap mobile
to other countries the best suited form will be partnership as it will involve sharing of
capital because mobile and such devices involve large capital and it tough for a single
person to work in an international market alone.
Due to Covid pandemic there has been a major impact on people’s earning and the
various sources through which they can rely on to be financial independent.
The idea to import cheap mobile phones from Taiwan or countries such as China and
selling them to other rural investors sounds great but there are few things which need to
keep in mind (Dhananjaya, 2019). While starting a new company, the first step always
involves choosing the right company structure and whether the company structure
would be suitable for the company as there are various structures which are available to
the new company owners which involves operating and partnership to form a
corporation, but each company structure has its own tax and legal ramifications. The
company objective plays an important role in determining the best structure to choose
from. There are various company structures such as partnerships, sole proprietorships,
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corporations, and other limited liability companies (Chhaparia and Jha, 2018).
To measure and track the competitive intensity of a mart it is very important to
have sufficient information about the decision making of policy makers and
competition authorities which can help in understanding the various possible actions
such as impose restrictions on firm behaviour, removing barriers and competitors’
strategy. Scenario, the competition authorities measure competition in mainly three
reasons which involves application of laws in market affected by potential abuse of
dominance and the second is assess whether pro-competitive intervention is
needed to enforce and third is assess ex-post effectiveness of competition policy of
an authority. To run a company, it is important to evaluate the bargaining power of
buyers and sellers to carry out company operations (GFK, 2021).
In addition to that it is important to have a proper knowledge and deep
understanding of all the competitors and their company strategies before starting
your company plans. Afterwards it is important that a proper knowledge of market
and its structure need to be taken into consideration and understanding the
market structure of other country and its customers to carry out the objectives.
Because of selling cheap products from one country to another there is an
important factor which is HMRC which is known as Majesty’s Revenue and
Customs which is basically a tax authority of the U.K government, which is
basically involved in collection of taxes, enforcing taxes, customs laws, paying
child benefits and enforcing the payment of minimum wages by employers. While
carrying out company operation in other countries it’s important that your
company fulfil its HMRC import duties and regularly pay its custom taxes to be
safeguarded from government interference. In addition to that it is important to
have a deep knowledge of rural investors to whom the mobile phones are been
sold. Moreover, it is important to analyse the company market and to start the
company there should be a proper planning which involves ideas and innovations
in reference to the best choice available. With this there should be a deeper
knowledge of mobile phones and understanding of the market are of both china
and Taiwan and where availability of cheaper phones which can be useful in
carrying out company operations to sell them to the investors (Office for national
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statistics, 2021). All these criteria need to be taken into consideration to buy and
sell cheap mobile phones to rural investors for them to achieve their company
objectives and grow their company operations.
REFERENCES
GFK, 2021. UK Consumer Confidence creeps up in November despite high inflation
[Online] Available through:< https://www.gfk.com/en-gb/press/UK-Consumer-
Confidence-creeps-up-in-November-despite-soaring-inflation/.
House of commons Library, 2021. Business and consumer confidence: key economic
indicators. [Online] Available through:< https://commonslibrary.parliament.uk/research-
briefings/sn02817/>
Mckinsey 2021. State of Fashion 2022: An Uneven recovery and new frontiers. [Online]
Available through:< https://www.mckinsey.com/industries/retail/our-insights/state-of-
fashion/>
Office for national statistics, 2021. Retail industry. [Online] Available through:<
https://www.ons.gov.uk/businessindustryandtrade/retailindustry/>
Hooper, A. and Holtbrügge, D., 2020. Blockchain technology in international business: changing
the agenda for global governance. Review of International Business and Strategy.
Dhananjaya, K., 2019. Corporate distress and non-performing assets in India. Global Business
Review, p.0972150918812553.
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Chhaparia, P. and Jha, M., 2018. Corporate Social Responsibility in India: The Legal Evolution
of CSR Policy. Amity Global Business Review, 13(1).
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