BM461 Global Business Environment: Analyzing UK Market & Business

This report examines the UK's global business environment, focusing on consumer confidence data and its implications for various business sectors. It identifies emerging sectors like pharmaceuticals and online retail, as well as struggling sectors like real estate and tourism, in the context of the recent pandemic and Brexit. The report also provides guidance for amateur investors, suggesting firms to consider based on market analysis. Furthermore, it discusses legal structures for a start-up importing mobile phones and accessories, recommending a partnership to share responsibilities. The competitiveness of the market structure is analyzed using Porter's Five Forces, offering strategies for achieving a competitive edge. Desklib offers a wealth of resources, including past papers and solved assignments, to aid students in their academic pursuits.

Global business
environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
A examines the latest UK consumer confidence data :...............................................................3
TASK 2......................................................................................................................................5
The pros and cons of different legal structures and recommending which would be best for
them :...........................................................................................................................................5
How they could measure the competitiveness of the market structure :.....................................6
CONCLUSION ...............................................................................................................................6
REFERENCES:...............................................................................................................................7
Books and Journals:....................................................................................................................7

INTRODUCTION
MAIN BODY
TASK 1
A examines the latest UK consumer confidence data :
The recent pandemic Covid 19 has made deep effect on business environment of mostly
all the countries of the world, especially UK. The market was close for closed for a long period
of time to avoid physically connections. This has stopped the income of all the daily wage
workers and effected the income of mostly all people of different business sectors. Employment
rate has also hugely fallen due to this. The export and import form different other countries was
also banned to help in decreasing cases of the related virus. Recently, the UK has also divided its
union from the European union, this was known as Brexit (exit of Britain from European union).
This has decreased the market of the business organisations of UK by becoming liable to pay
taxes when importing or exporting goods from other countries in the Europe (Nantembelele and
Gopal, 2018).
To establish a business firm in UK, it is important to consider the above mentioned
factors for smooth and effective development of it. The competition in local market in UK has
been proved to be the most effective one to avoid the different types of taxes, but has a great
amount of competition too. To have an competitive edge a company should be able to adapt with
the changing market trends and possible situations that can stand again , and thus be flexible.
Agriculture sector is an example as being an essential need of the people, the sector has less
chances to be prone to loss even in the harsh situations such as Covid 19 and can hold a good
amount of market in the native place (Takino, 2020). Some of the business sectors that has more
chances to be prosper in current situation and can be said the emerging sectors with some
business sectors that are more prone to struggle in the UK market are mentioned in following
points :
Emerging sectors :
 Pharmaceutical sector / health sector – Due to the recent pandemic which has caused a
heap of loss of lives, people are becoming concerned towards their health. The need of
strong immunity power is a concern of the market. This has given abundance chances of

prosperity to this business sector for strong growth (Saura, Palos-Sanchez, and Correia,
2019). Business firms that can provide various types of products that enhance the
immunity can fill the demands of people and cover a large market. The hospitality facility
was also in a high demand but proved to be low available to people and leaded to
increase in the prices. This has shown a growth opportunity in the related sector.
 Online retail sector – The consumers of UK are moulding towards buying their needed
commodities though the means that avoid physical contact and also saves the time of
people because of ordering through buying products or services from even cell phones by
sitting at their homes. This also provides the consumers with huge amount of choice that
are hard to find in any particular physical store with the availability of diversified product
line and companies on the online platform. Though the avoidance of getting in contact
with a store and many people, this has also promoted the element of physical distancing
to obviate spreading of some type of diseases that can lead to bad health condition due to
getting in contact.
 Gaming sector – In the previous time, gaming was just considered as just a satisfaction
proving and time wasting activity. But in the evolving world and preference of people for
staying at home it became a high demanded facility in United Kingdom. It has also
provided income source for gamers through various related activities such as – streaming
online and selling of gaming related packages.
Struggling sector :
 Real estate sector – The buying of real estate properties need high amount of
investments of money. The pandemic has made the market weak and with less
availability of funds by decrement in the income of people (Ooi, and Richardson, 2019).
The consumers are more concerned towards buying commodities that are essential and of
basic needs to maintain their positions of families in any related situation to pandemic.
This overall rise the possibilities to struggle in the related sector.
 Travel and tourism sector – This sector has faced a immense crisis in the recent times
due to the banning of travelling through lock down and people's own health
consciousness. The consumers of the market are also centred towards making spendings
in the essential commodities rather than exploring and travelling that only provide the
feeling of joy to people. It also have a peak competition because of less efforts needed

and enjoyable profit margins (Panda and Rath, 2018). The sector includes – hotels,
guides, travelling consultants, convenience vehicle providers / drivers and many more.
TASK 2
The initial idea is to import cheap mobile phones and accessories from China or Taiwan and
selling it to rural investors in emerging economies. The legal structure that the person can adopt
and the ways to measure the competitiveness in the market are mentioned in the following :
The pros and cons of different legal structures and recommending which would be best for
them :
 Sole Proprietorship – This type of legal structure is made with the motive of
incorporating by a single individual that is its owner. This owner is liable of paying all
the losses that is incurred in the business entity through even selling his own personal
assets and is also responsible for enjoying all the profits made with its own consent
(Singhania and Saini 2018). The advantage of this structure is that the owner has full
control over all the operations and does not need consent of others, this help in decreasing
the conflicts in authorities. Whereas, the unlimited liability is its disadvantage that can
lead to a broke person in cases of high losses.
 Partnership – In this, the organisation is formed with a partnership of two or more
individuals (less than 50). The liabilities and profits are distributed in these partner
equally or according to the agreement. The agreement in this is known as partnership
deed. Its advantage is that in it have mutual support between the partner and losses are
divided. Whereas, the disadvantages is that the management process can consists of
conflicts between the partner due to different perspective.
 Company - The business entity in this legal structure is made with the involvance of an
individual or a group of individuals which have separate identity from the company. The
taxes are given separately, once for the company's profits and then from the income of the
owner or owners. Its advantage is that the owners are not liable for all the losses beard by
the company. And its disadvantage is its difficulty of setting up p the firm which requires
a lot of paper work and various permissions needed from several government authorities
(Dinçer, Yüksel and Adalı, 2019).
The recommenced legal structure is partnership to share the responsibilities due to complexity of
business form.

How they could measure the competitiveness of the market structure :
Market structure is termed as the manner that maintain several management sections that
are classified and managed as per to the levels and the degree of the competitiors for the goods
and the facilities. It is belongs to the several aspects that include the nature and the behaviour
that have positive outcome in the management that are performing in a certain field of the market
area. To promote the strong presence of the company, it can use porter's five forces. This hjelp
also help to achieve competitive edge form other related business organisation in market, the
company can follow below mentioned factors :
 Competition rivalry – This factor tells about the elements that a company can use
against its competitive organisation dealing in the same product or service line. In the
related case, there are various firms that deal in mobile phones. To compete successfully
with them, it can use a organisation sell different or cheap product that are different from
its competition and according to the market demands.
 Threat of new entrants – This factor tells about the threat to an organisation from the
possibility of other new competitors that can establish their organisation and give cit
competition (Moşteanu, Faccia and Cavaliere, 2020). The suppliers of the mobile related
accessories are cheap in the China market. But due to the risk of buying these and finding
the market in which the company can sell the related products, the threat of new entrant
according ot this business plan is low.
CONCLUSION

REFERENCES:
Books and Journals:
Nantembelele, F.A. and Gopal, S., 2018. Assessing the challenges to e‐commerce adoption in
Tanzania. Global Business and Organizational Excellence. 37(3). pp.43-50.
Takino, M., 2020. Power in international business communication and linguistic competence:
Analyzing the experiences of nonnative business people who use English as a business lingua
franca (BELF). International Journal of Business Communication. 57(4). pp.517-544.
Saura, J.R., Palos-Sanchez, P.R. and Correia, M.B., 2019. Digital marketing strategies based on
the e-business model: Literature review and future directions. Organizational transformation and
managing innovation in the fourth industrial revolution, pp.86-103.
Ooi, S.M. and Richardson, C., 2019. The internationalisation of service-sector SMEs in an
emerging market: Insights from business training and consultancy firms in Malaysia. Review of
International Business and Strategy.
Panda, S. and Rath, S.K., 2018. Modelling the relationship between information technology
infrastructure and organizational agility: A study in the context of India. Global Business
Review. 19(2). pp.424-438.
Singhania, M. and Saini, N., 2018. Determinants of FPI in developed and developing
countries. Global Business Review. 19(1). pp.187-213.
Dinçer, H., Yüksel, S. and Adalı, Z., 2019. Economic effects in Islamic stock development of the
European countries: Policy recommendations for ethical behaviors. In Handbook of research on
managerial thinking in global business economics(pp. 58-78). IGI Global.
Moşteanu, N.R., Faccia, A. and Cavaliere, L.P.L., 2020, August. Digitalization and green
economy-changes of business perspectives. In Proceedings of the 2020 4th International
Conference on Cloud and Big Data Computing(pp. 108-112).