Global Business: Analyzing UK Consumer Confidence & New Venture Plan

This report provides a comprehensive analysis of the global business environment, with a specific focus on UK consumer confidence and the feasibility of a new venture involving importing cheap mobile phones. It examines the positive trends in UK consumer confidence despite inflation, highlighting sectors like online food delivery and retail that show strong growth potential, while also noting challenges in industries like aviation. The report identifies potential investment opportunities in companies like Deliveroo, Tesco, Unilever, Reckitt Benckiser, and Lloyds Banking Group. Furthermore, it offers guidance on starting a mobile phone import business, including supplier considerations, HMRC duty implications, and competitive strategies within an oligopolistic market. The report also discusses suitable legal structures, recommending a partnership to leverage funds and skills while mitigating risks. Ultimately, the report emphasizes the influence of economic factors and consumer behavior on business decisions and provides actionable insights for investors and entrepreneurs.

Global business
environment

Table of Contents
Introduction- ..................................................................................................................................3
Main Body.......................................................................................................................................3
Coursework 2a)................................................................................................................................3
Coursework 2b)................................................................................................................................6
Conclusion.......................................................................................................................................7
References .......................................................................................................................................8

Introduction-
The global business environment refers to the business environment in different
sovereign countries that influence the decision making of organisations. It comply several factors
that a particular economy organisation can faced . These forces derives the business environment
as well as decide the business operations. In this given assessment two coursework will be
analysed. In coursework (2a) consumer confidence data of UK will be examine, through which
an overall aspect will be given over range of firms of several sectors. This will help into provide
a guidance to amateur investor to invest in emerging firms. In coursework 2(b) a research will
be practice that will provide an overview to start an own business in importing cheap mobiles
from manufacturing countries and sell them in emerging economy (Frederick, and Bhat, 2021).
Main Body
Coursework 2a)
According to Valentina Romei, (2021). UK consumer confidence is stepping towards the
positive attributes. Consumers starts spending that shows a positive signs for businesses. In-spite
to the fact inflation has hiked in UK economy but it not affect the customer enthusiasm towards
spending. GFK's consumer index edging upward recovered by 3 points from -17 to -14. Hence,
the demands for products is increasing steadily which is a good sign for suppliers in the
performing market (Jones, and Cano, 2020). Moreover, the FTSE also showing a up move in its
figure on yearly basis that shows an positive scenario in future industry structure. UK industries
are scaling such as clothing, hospitality, safety equipment and wholesaling industries are
growing and participating in UK GDP (Hampson, and et. al., 2021).
Online food delivery platforms revenue has increased in past years and it is projected
to increase rapidly in future. Consumers with short run of time completely relying on these
sector because it is completely quick, safe and deliver high quality of food. Moreover major
numbers of outlets and restaurants collaborated with such online company due to wider
consumer base. Growing demand of food outlets have been reported which directly influence the
mentioned sector. Therefore the compounding growth is excepted for future operations of
mentioned industry.
The aviation industry is struggled a lot due to such pandemic situation. Whole sector
faced heavy losses due to complete shutdown on operations. Companies sales declined rapidly.

Due to big losses it is excepted that the industry will struggle for the next couple of years. The
casual lock downs as well as downturn of international economy also affected the tourism .
Which directly affected their revenue generation. Therefore the mentioned sector cannot be cope
up and will struggle for the next 12 months (Jones, 2021).
Since UK market has seen the major downfall in pandemic and now companies are
recovering from pandemic affect which shows a positive sign for deploying investment in UK
economy. There are several companies which is performing well and can be an good option for
investment. Below are the list of companies that could provide decent CAGR on investment for
long-term.
Food sector
 Deliveroo plc- 241.5 GBX
Overview 2018 2019 2020
Gross margin 15.85 20.64 26.97
Return on assets - -83.94 -43.39
Asset turnover - 2.04 2.28
Debt to asset ratio - 0.55 0.06
Since food sector is boosting in UK rapidly. Customers invest major chunk of their
income on food and restaurants. Online food sector is excepted to reach new high in upcoming
times. After the pandemic public of UK again shifted to their busy schedule of work. Major
population is relying on food delivery apps. Therefore it is a best time for enthusiast as well as
newbie investors to invest in emerging food sector. Hence, Deliveroo plc has the major market
share in online delivering to customers. According to above data company shares are in
undervalue condition that is a good sign to grab for future valuation.
Retail sector
 Tesco- 280.10 GBX
Overview 2018 2019 2020
Valuation ratio(PE) 16.32 22.86 19.45
Return on assets 2.24 1.38 1.46

Asset turnover 1.12 1.09 1.18
Debt to asset ratio 0.31 0.33 0.34
According to customer confidence index consumers are heavily spending on goods that
boasting the retail sector operations again in the market. In addition to this TESCO is the biggest
retail giant in UK with highest market share. Company is expanding for its future ventures. It is
trusted as well as secured for investment. The above states are in favour and several technicals
like EMA and SMA showing good sign for buying the stock.
 Unilever- 3879 GBX
Overview 2018 2019 2020
Valuation ratio(PE) 13.27 23.07 23.2
Return on assets 15.11 9.12 8.59
Asset turnover 0.82 0.84 0.88
Debt to asset ratio 0.43 0.43 0.4
Another giant company which manufactures several products. It performs its operations
globally that made him one of the largest company in world. Company return on assets showing
a downward fluctuation but its due to pandemic. Overall financial is showing credibility that is a
green signal for investment. Hence new investor can invest in a SIP form.
Health and household personal care
 Reckitt Benckiser group Plc- 6185 GBX
Overview 2018 2019 2020
Valuation ratio(PE) 19.64 25.23 39.18
Return on assets 5.7 -7.98 3.58
Asset turnover 0.33 0.37 0.44
Debt to asset ratio 0.32 0.38 0.34

One of the fastest growing industry of UK which contribute high percentage in highlighting its
economy. The above mentioned company is cherry pick for any investor because it is the leading
firm in the industry. Its share is not fluctuate at high percentage which is a good sign for
investment steady growth. Company valuation and revenue generation is increasing by high
percentage.
Banking sector
 Lloyds banking group- 46.48 GBX
Overview 2018 2019 2020
Valuation ratio(PE) 9.34 17.96 29.87
Return on assets 0.5 0.3 0.1
Asset turnover 0.03 0.06 0.04
Debt to asset ratio 0.19 0.19 0.18
banking sectors are the main source in uplifting the economy so on in UK. Interest rate are
increased in UK banking sector in recent time due to inflation. That means banking sector will
grind decent money. Hence, according to the scenario Lloyds bank have the capability. Its ROI
and valuation shows an safer side to deploy the capital in company share.
Coursework 2b)
From: MCG
TO: BCG
Subject: guidance to opt best practice for new venture.
It is a great initiative to start an own business. The digital technology is boosting very rapidly
and have the great potential for the businesses to grow through completion of demand. Hence
the idea of importing cheap mobiles phone can help you in generate revenue. In light to the fact
there are several legal as well as business entity that can impact on business. Such as in
importing of mobiles phone from china and Taiwan shows complete dependability on supplier.
Hence, they can manipulate prices easily. To counter the problem substitutes of supplier is must
to survive the business. Another factor that should be consider in operating the business could
be the implication of HMRC duty charges. It will levied on every lot that will ultimately

influence the product price. Hence an adaptive supply chain management approach should be
needed that focused into adaptive solutions to concur the effects through its operations(Moldes,
2020).
According to my analysis the market in which your company is planning to operate in market
have the oligopoly nature. Thus it is an great advantage to configure best optimum practice that
can succours into acquired number of consumer. Therefore, to eliminate other competitor the
phones should be unique, feature loaded as well as price should be lower than other competitor
to establish strong image (Vanlaer, Bielen, and Marneffe, 2020).
To perform the above mentioned operations in business a favourable legal structure is needed
that will decide the overall future scenario related to business operations regard to risk
management as well as profit distribution. i.e., sole proprietorship- the advantage of acquiring
the mentioned entity is individual receives all the profit, the decision regarding to business
operation is completely at your choice. On other hand there are some disadvantages such as
liability is unlimited. In future any big losses can risk your personnel assets. Raising Funds are
limited in such practice.
Next legal structure is partnership, it can be form by two more persons in your business. If you
were planning to go for this practice in your business than make sure to consult with legal
advice. It will help you out in designing of legal agreement between partners. The advantages
are; it is easy to establish with the legal protection that eliminates fear of partners breaching as
well as taxation on profit taxed only once. Hence there are some disadvantages to like divide in
decisions making, other partner action can affect the whole business as well as lack of detail
agreement can arise legal problems in business.
In my opinion partnership structure will be suitable for performing the business because it will
gives you an advantage of funds that can be used in establishing business successfully. Further,
the liability will also split according to decided deed that ultimately reduce your risk factor. The
complimentary skills of other partners will enhance the business practice and can adopt several
beneficial entities in business that can boost revenue (Xing, and Zhu, 2021).

Conclusion
From the above coursework it can be said that business environment has several
dependency on economy factors. The decisions of firms were influenced by external forces such
as consumer behaviour. In above assessment it is clearly stated that consumer confidence in UK
has improves that shows an positive sign for economy as well as sectors growth. In next
assessment comprehensive guidance were provided with several filtration area that can impact
business operations. At last suitable legal structure were advised on behalf of comparison with
others structure.

References
Books and Journals
Frederick, D.P. and Bhat, G., 2021. Review on Customer Perception Towards Online Food
Delivery Services.
Hampson, D.P., Ma, S., Wang, Y. and Han, M.S., 2021. Consumer confidence and conspicuous
consumption: A conservation of resources perspective. International Journal of
Consumer Studies.
Jones, A. and Cano, M.C., 2020. Post-Brexit compliance forces MNEs to consider UK
exit. International Tax Review.
Jones, A., 2021. Double duties force MNEs to abandon UK warehousing for
Europe. International Tax Review.
Moldes, O., 2020. The “Why” of Spending Matters: the Role of Extrinsic and Intrinsic Goals on
Consumer Spending Choices and Hedonic Value Estimations. ACR North American
Advances.
Vanlaer, W., Bielen, S. and Marneffe, W., 2020. Consumer confidence and household saving
behaviors: A cross-country empirical analysis. Social Indicators Research, 147(2),
pp.677-721.
Xing, W. and Zhu, L., 2021. A functional approach to reassessing the legal status and
navigational rights of ships and ship-shaped structures. Transport Policy, 106, pp.120-
130.
ONLINE
UK consumer confidence improves despite surging inflation. [Online] available at.
<https://www.ft.com/content/0f1ce5f8-194a-46c4-b933-645e2424d63b>