BM461: Global Business Environment - Consumer Confidence and Ideas

This report examines the global business environment, focusing on consumer confidence as a key economic indicator and exploring new business ideas. It analyzes the impact of events like the COVID-19 pandemic on consumer spending and saving habits, highlighting shifts towards e-commerce and changes in the manufacturing and construction sectors. The report also evaluates a new business idea involving importing mobile phones, considering market structure, competitive forces, and potential challenges. The analysis utilizes Porter's Five Forces model to assess the competitive landscape and concludes with the importance of adapting to market dynamics for success in the global arena. Desklib provides access to this report, along with a wealth of other solved assignments and past papers, to support students in their academic endeavors.

BM461 GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Coursework 2a.............................................................................................................................3
Coursework 2b.............................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Global business environment refers to atmosphere of various independent countries where
the business enterprises sale good and service produce by the organisation to the potential
consumer (Hamilton and Webster,2018). It is essential for every business in order to strengthen
the economics of the world. The present report will provide the newspaper article on consumer
confidence. Along with that the study highlight discuss new business idea in email format.
MAIN BODY
Coursework 2a
Consumer confidence- the key economic indicators
Consumer confidence is the best indicator which reflect the aspects for the forthcoming
challenges and development. It includes the measurement of the consumer consumption and
saving of the individual (Otenko and Parkhomenko, 2019). In order to enhance the economic
value of the country in the future it is essential to boost the confidence of consumer to spend
money on product and services. Due to present situation of the world therefore the situation of
Covid-19 decrease the index of consumer confidence. As the people of the nation start
consuming essential product and services and become health conscious. The public started
spending on the e commerce business post Covid-19 in order to decrease the effect of virus. The
pandemic hit the market brutally but deliver profit to the online business unit. As per the current
situation e commerce business will lead the market in next 12 month. The people are now
depending on the technology and prefer to buy the thing from the online housing shopping
service. Along with that as per the index the manufacturing sector is increasing rapidly. So that
people are confidence enough to contribute in the economy by spending money in the
manufacturing sector. Earlier before this sector was decline by highest percentage as the people
shift toward the service sector but gradually this sector started increasing as the domestic demand
increasing. The production sector enhance their performance by delivering the better quality
worked and utilization of more skill workforce which deliver the satisfaction of the buyers. As
per the life cycle of the industry the manufacturing sector is on the growth stage where this
industry is growing and satisfying the consumers (Qiu,2020).
As per the GFK consumer confidence survey the household sector increasing in the united
kingdom. The economic policy provide support to the household sector after declining at the
time of pandemic which hit the market hard. Later on, this sector improve the financial position

since opening of the lockdown. The unemployment at the time of pandemic is the major region
of decline but now the government imposed less duties on the people. Most of the people willing
to work in the service sector weather it is profit or non-profit organisation as it contribute in
increasing the inflation rate of the nation. The scale of saving ration also increased in 2021 as
compare to the year 2021 (Hampson, et.al 2021.). If the condition is normalised in 2022 many
organisations have opportunity to expend the business and provide employability to the people
Because of then coronavirus the the demand and supply also increased in the market. Therefore,
when the demand is increase the supply also increases which lead to the job possibilities for the
people who have adequate knowledge and skills.
The construction sector is declining in united kingdom as after the pandemic the people are
becoming more interested in saving the money rather then expending money on unnecessary
good. The cost of material is also increased at the time of the pandemic so demand of the
construction is also decline in the marketplace. The people more focused on the repairing and the
maintenance work. nowadays the people are more interested in service sector and willing to
work on daily wages or the salary bases. The people utilizing the skills and knowledge in
another sector rather than constructional sector. The increase in the price delay the availability of
the constructional commodity. As per the the life cycle f the industry model this sector is on
decline stage because there is no growth and didn’t contributed in the economics of the nation or
generating productivity(Dementeva, 2018).
In short it can be concluded that economic is growing with the assistance of different
sectors available in the market. the economic of the various countries Shaked or fluctuated by the
covid pandemic. Post covid the economic started raising slowly and people are interested in
contributing in the economics of the world after all the ups and down in the marketplace.
Coursework 2b
Email message
Subject: the new business idea
In order to launch new business in the marketplace it is essential to make market research.
Along with it required certain plans of action in order to acquire the success in the marketplace
(Tipu, 2018). The new business idea is to import the mobile phone from Taiwan or China in
cheap price. Further the individual person plan to sell them to the rural investors in emerging
economics. The business person aim to increase the competition and grow their business. Or the

day to day operation it is important to determine the business structure which give idea how
much money suppose to pay in tax and what are the ability to raise the fund for the business. The
individual person can convince the angle investors to invest money in the organisation also go
for the sole proprietorship as it is easiest way to form and control the business.
The individual person is the only responsible person for manging the business in effective
and efficient manner. In short the business operator considered the business as the own assets
hand also have limited liability in the marketplace. In this legal structure the business will have
less risk similarly it will be hard to manage all the business individually because the sole
proprietor cannot sell the stock of the company. Furthermore, the banks will be hesitant to offer
money to the only owner of the business without any sort of security. beside this owner need to
determine the market structure before introducing the business plan in the market. It will give
assistance in identifying the competition in the market and also provide complete detail of the
consumer preferences too ( (Bougie, and Sekaran, 2019).
This business ideas lies into oligopoly market structure as the small numbers of large
companies sell similar phones in then market. if the owner import the commodity from the China
in cheaper price it will decrease the market of other competitive companies because the people
willing to buy same product in cheap price as well as enjoy same to same experience (Yuan, et.al
2020.). As per the market research no consumer willing to pay extra money for the product that
they can acquire in cheap price. In this modern era the people believe in exported product they
considered the exported product as the unique and willing to socialised among the various
peoples. It will increase the demand of the product as well as attract the potential consumer so
the company can lead the market. in oligopoly market it is not easy to survive but not hard to
mange if the owner have unique idea and proper facilities to satisfy the consumer the company
can develop special position in the market. to lead the market the organisation member should
deliver the loyalty programme for the forthcoming performance. Before importing the product
from different country, it is essential to analysis the rate of import duty in the country due to that
the company will specifies that the organisation can grab the profit or loss. This will help in
examining the expenses of the company and elaborate the capital required for ordering the
phones from the China market (Pellegrino, 2019). In order to accomplish the personal as well as
professional goal need to evaluate the competitive strength and will be the position of the
business enterprise. For that the individual person can utilized the portals five force model which

provide information related to productivity and profitability (Išoraitė, 2018). The model is
consist of the element which are bifurcated into five parts which are mentioned as :
1. Supplier power: for providing the services and commodity to the people it is important to
examine that the supplier has potentials to deliver the product as well as who can provide
the product at cheap price on regular bases.
2. Buyer power: before introduce ng the business work on the willingness of the consumer.
The consumer is willing to buy the product from the company and at what cost the buyer
prefer to pay for the particular cell phone.
3. Competitive rivalry: the numbers of competitors available in the market that will lead
competition to the organisation.
4. Threats of substitution: it involves the alternatives of the product available I the
marketplace
5. Threats of ne entry :the most essential element the individuals need to analysis what will
be the barriers for the companies growth for example government policy.
Hence this how the business will become successful and individual can introduce the business
idea.
Thanks, and regard
CONCLUSION
From the above report it will be concluded that any domestic or international business
required lots of efforts in order to lead the market. in context to contribute in the economics of
the world everyone need to increase the confidence to buy the product. The above report
highlighted the consumer confidence that are increasing and decreasing in the market.
furthermore, the study reflect on the new business idea of introducing the exported product from
the China and elaborate how the individual accomplish the goal.

REFERENCES
Books and journals
Bougie, R. and Sekaran, U., 2019. Research methods for business: A skill building approach.
John Wiley & Sons.
Dementeva, I., 2018. Consumer Sentiments of the Population as an Indicator of Socio-Economic
Changes. Journal of Sociology: Bulletin of Yerevan University, 9(1 (25)).
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hampson, et.al 2021. Consumer confidence and conspicuous consumption: A conservation of
resources perspective. International Journal of Consumer Studies.
Išoraitė, M., 2018. The competitive advantages theoretical aspects. Ecoforum Journal, 7(1).
Otenko, I. and Parkhomenko, N., 2019. Strategies of business systems development in global
environment. Scientific Annals of Economics and Business, 66(2), pp.153-166.
Pellegrino, B., 2019. Product differentiation, oligopoly, and resource allocation (No. ppe860).
Job Market Papers..
Qiu, Y., 2020. Forecasting the Consumer Confidence Index with tree-based MIDAS
regressions. Economic Modelling, 91, pp.247-256.
Tipu, S.A.A., 2018. Business plan competitions in developed and emerging economies: What do
we still need to know?. Journal of entrepreneurship in emerging economies.
Yuan, et.al 2020. Business strategy and corporate social responsibility. Journal of Business
Ethics, 162(2), pp.359-377
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