BM461 Global Business Environment: Consumer Confidence and Startups

This report analyzes the global business environment, specifically focusing on the impact of UK consumer confidence data on various business sectors, as requested in the BM461 Global Business Environment module coursework. The report examines the impact of the COVID-19 pandemic on different sectors, identifying which ones are likely to prosper or struggle in the coming months, such as the pharmaceutical and hospitality industries. It also explores the pros and cons of different legal structures for a business start-up, including sole proprietorships, partnerships, and limited companies, and recommends the most suitable option. Furthermore, the report outlines methods for measuring market competitiveness, including Porter's Five Forces and market structure analysis. The analysis incorporates recent data and provides insights into market dynamics and strategic business decisions, offering valuable guidance for potential investors and entrepreneurs.

Global Business
Environment

Table of Contents
TASK 1............................................................................................................................................3
Examines the latest UK consumer confidence data ...................................................................3
The pros and cons of various legal structure and which will be best for them. ......................5
How they can measure the competitiveness of the market share. ..............................................6
REFERENCES................................................................................................................................9

TASK 1
Examines the latest UK consumer confidence data
“Impact of Pandemics on Business”
The articles will elaborate a sector which is impacted by covid as positively and
negatively both. Structure of UK has been faced a main problems which is due to pandemic
and long duration of lock down, after some time many people has move towards the new
industry with the EU groups. However the way of improving and growing the economy will be
varied for all types of business in all the departments in which all needs a bundle of different
planning and make in systematic.
Business administration justifies the composition of national economy activity, it is
commonly characterised into three category according to the stages which consist business
operations or the types of sources added to a natural components. Due to the pandemic all
industries get effected with declining ration in sales that leads in wind up of many businesses.
Varied kinds of business is still facing loss in business. Some industries has positively raised
because of pandemic and some of business has grown after recovery of covid effects. As
global places has many restriction because of covid just a lockdown many big multinational
company sales and profit scale has reduced such as FTSE performance has faced a huge
downfall in business. The marketing capability of buyers also decreased as many of people have
losted their jobs. Requirements of goods has been reduced in the market place which tends to
deduction in the sales and profits of business. According the behaviour of consumer analysis
the report has interpreted that demand has reduce by 15 % in 2021. the companies trends
survey outcomes with the analysis of low production around 23% to 32 % in 2021 December.
As per the chart industries which will have effect in coming 12 month along with that certain

will struggle in the market place. The sectors which will get impact in positive and negative
manner further details is listed in below -
Firms which will be impacted
Pharmaceutical industry : The medical sector has raised in great speed in covid as sales of
medicines has increases in a good amount also people have become more conscious about the
health so they started keeping precaution with them all the time such the sale of sanitizer and
mask has increased. After pandemic local and small medicals shops and stores has establish
online services and home delivery of medicines so that no one has to come to the store people
can order from their places as well as they also started some membership packages as
messaging services so that people can become a loyal customer also they provide them a
lifetime membership with some percentage of discount on their monthly medicines. It is also
analysed that many od students has decided to change their stream to medical so that they can
have their own business of pharmaceuticals. Some companies like Abbott laboratories, A&H
ltd. And many other. These are some countries which is link to the industries get the boom in
the business and it will be growing in coming years. Thus, covid has provided them positive
effect on this industry.
Sectors which will struggle
Hospitality industry : these industries are hugely impacted because of covid and many of
small scale hotels has winded up because of world wide lockdown these industry faces the huge
loss and break down in their business, these hotels and industries were closed for long term as
well as these hotels and restaurants have to face the loss because of lockdown and limitation of
people in events. The hotels have to cancel the bookings as because of the regulations and
rules that is passed by the governing bodies to save the people from disease. As per the
guidelines people were not allowed to go out from their places. If they have to go for a urgent
basis them they have to pass all the legal formalities. The industries like travelogue, green
kings, jury's inn and many other have to close the commercial enterprise for long duration. As
per the diagram the scale of the business is decreasing in quick speed due to the pandemic.
Life cycle model -

It is the theory which shows the individual process via the levels of a system life cycle. In
addition, values in the goods and services is a shared aim among all industries whether public
or private for having profit. According to the economic analysis and transition into operative
usage cost is decided by measuring a factors into a goods and services and other operative cost
which is used in producing goods.
The pros and cons of various legal structure and which will be best for them.
From :
To :
Subject : Discussion regarding the new start up of mobile phones .
Legal structure consist of three kinds of business organisation just as sole trade, partnership and
company. All of these companies have its own benefits and disadvantages which are listed I
below :
Sole trade – It is the kind of business which is managed by one person and has a
leads amount of employees in company. The tax return of the director consist the income and
expenses of business organisation. Director is not needed to file individual income tax.
Pros :
 All the decisions link to the business organisation are taken by an individual person.
 Less amount is required to start a business.
 The director of the sole trade have possibility to change the legal structure in future
according to the situation.
Cons
 The propritor of business have unlimited liability.
 In this kind of legal structure, the ability of growing capital is limited.
 Director of sole trade have to manage all the regular activities which grow the
possibility of errors.
Partnership - It states the kind of business in which two or more people invest a capital
to start a business activity and sharing profit and loss on a decided ratio. Risk, investment,
cost and responsibility of business are also seprated among the partners. All the partners are
personally responsible to pay all the liability and losses.

Pros
 It is simple to manage the operations of concern due to the division of work.
 This company have possibility for growing more capital.
 Because of the involvement of some mindset, different innovative thoughts take place in
the company.
Cons
 Unlimited liability of partners is the huge negative point of partnership legal structure.
 There is a limit of partners in the concern business.
 Because of the varied in the ideas of members, some of fights might arise at workplace.
Limited company - It is stated which privately owned and managed company which
is being conducted by the owners by the directors associated with it. Company is refer as
business having seprate legal entity and rights of its own . Companies generate capital by
serving shares to the equity holder. The company is needed to pay the corporation tax on the
pofit earlier reatining and realeasing it. After paying the business tax the profir is distributed
as dividend to the people.
Pros
 The main benefits of company is that it is easy to grow additional capital due to the
presence of various owners.
 Addition of valuable creditability to this business have been found due to the
professional status.
Cons
 It is essential for this legal system to pay an incorporation fee to the company house.
 The name of company are asserted to some limitations.
It is suggested to start the business of sole business as it needs less amount if capital to start the
business. The whole profit generated by the business have been taken by the director. As well
as the director can change its legal structure if they get any good chance in future.
How they can measure the competitiveness of the market share.
It has been analysed that every business have to face high variety in the market place.
Different factors have been found used by the company in the market place. Porters five forces
is the model which is used by business to analyse the competitors.
1. Competition rivalry – it is the first factor that is accessible of figure of competitors in

the market along with the material a institution. It has been found that the high barriers
of challengers serving similar business and occupation outcome of a concern
arrangement.
2. Threat of new entry – It has been found that the market control power of business
impacted by the force of new entry into the markets. The existence of high barriers in an
industry to enter is good for the presented business.
3. Power of supplier - it is impacted by the number of providers of key inputs of a goods
and services, how specific these inputs are, and how much it will cost a company to
move to other providers.
4. Power of buyers – it is impacted by how many buyers and users a company has, how
significant each user customer is and how much it will cost a company to find a new
users or markets for its results.
5. Threat of substitute - This is the last factor of five focuses on substitute. These goods
and services that can be used in place of company goods or services of threats.
Market structure :
It is the degree of issues has been a matter of involvement for analysis for a long term.
Oligopoly is one of main kind of structure which plays important role in serve to majority of
users.
HMRC import duty -
The owner of business will not have to pay anything to the provide. Goods will be charged
custom duty on all goods sent from other side of the country.

REFERENCES
Books and Journals
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The factors" business environment" and" industry focus" in sustainable development of
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Morrison, J., 2020. The Global business environment: towards sustainability?. Bloomsbury
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Nicolaou, C., 2021. Development of business through the internet and social media: The
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practices. In Handbook of research on IoT, digital transformation, and the future of
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Varshney, D. and Varshney, N.K., 2020. Workforce agility and its links to emotional intelligence
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