Analyzing UK's Global Business Environment: Sector Growth & Legalities

This report explores the global business environment with a specific focus on the United Kingdom, examining sectors expected to prosper or struggle in the coming year, particularly in light of the COVID-19 pandemic. It identifies emerging sectors like healthcare support, online stock markets, and online food delivery services, while highlighting the downturn in sectors such as airlines. The report also delves into the pros and cons of various legal business structures, including sole proprietorships, partnerships, private limited companies, and public limited companies, ultimately recommending a sole proprietorship for the given case study. Furthermore, it discusses methods for measuring market competitiveness, considering factors like entry barriers and different market forms. The report concludes by emphasizing the importance of understanding both the global business environment and market structures for successful business operations.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY .................................................................................................................................2
Identify which business sectors will prosper over the next 12 months and which will
struggle ? ....................................................................................................................................2
The pros and cons of different legal structures and which would be best for them?..................4
Measurement of competitiveness of market. .............................................................................5
CONCLUSION................................................................................................................................6
REFERENCES:...............................................................................................................................6

INTRODUCTION
The environment in several territorial divisions having endogenous factors with respect to
environment of its own territory, influencing decision making on capabilities and resources to be
used. In simple terms, how easily customers can get Puma or Nike shoes or availabilty of things
which are not available in ones country for example availability of PPE kit(Cellini, Lambertini
and Ottaviano, 2020). The following report will discuss the two major concerns. First being with
respect to the various sectors prevailing in UK, and their expected downfall and prosperity. The
other question which this report will cover is what are the pros and cons which one can face
while choosing different legal structure and how one can measure the competitiveness of
prevailing markets.
MAIN BODY
Identify which business sectors will prosper over the next 12 months and which will
struggle ?
United kingdom in year 2020, in order to minimize the spread of coronavirus declared a
lock down for whole of the country. But the effects of such action made a fatal change in the
economy and specially the complete loss for some prevailing sectors. However, there are some
business sectors which emerged even in the period of lock down. Let' s discuss both the aspects
in detail for more and depth understanding.
Major emerging sectors in UK-
It is very much required for new job seekers or the ones who wish to shift towards a new sector
to know the fact that which options will prevails at its high in the future, in order to have a more
secured life.
Healthcare support: The impact of COVID-19, gave a reality check to the nation that
how much one lacks at the adequate medical and healthcare availabilities. It resulted in the boom
of demand for the number of professions like, health care assistants and health advisors. Also it
resulted in the rise of demand of Health services, which is delivering the medical services at door
while using digital technology for example Secro, which made a shoot in profits by $225m.
Online stock Markets: The online market has increase the number of its users with a
great speed. Also the receipts of markets are expected to make a rise by fifteen percent in the

next coming five years(Cherunilam, 2021). The pandemic has made a great impact on online
markets as its encourages more customers to engage in investing while having returns. For
example, Unilever PLC, which is expected to make increase in profits as mainly it deals with
consumer goods, the demand of which has been increased more after pandemic.
Online food and groceries delivering: In last two year, after the outbreak of pandemic,
people have made a sudden shifts towards the online delivering services. Also the complete
shutdown of restaurants and stores compelled their owners to take certain steps, which is to go
digital, rather than by mere sitting keeping their hand on their lap. Also the fear of spread of
virus through gatherings and work from home policies have bucked up the people to go totally
digital. Deliveroo, Uber eats and Just eats are the three major players of this sector.
Sectors facing downfall in UK-
The pandemic has in some or other way has affected all the sectors but there lies some which are
said to be the most affected and has almost faced a complete shutdown of the same.
Airlines sector: The aviation sector was the first to gave an alarm to the authorities and
asked for the funding, as nation after nation was declaring the complete restrain on people from
travelling from one country to another which resulted in the huge loss for this sector. Along with
airlines there lies a whole transport industry which cried for help after the arisen of COVID-19.
For example, British Airways, which met with a huge loss of $7.4bn

From XYZ
To ABC
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Subject Pros and cons of different legal structures and which would be best suitable
Business is an activity of buying or selling of goods or services. It can be done either
individually or in collaboration with others. In order to start a new business it very much
required to understand the available options which one can opt for and have a legal structure
which the government of country permits. Some of the major forms of business structure along
with their features are as follows-
 Sole proprietorship: Here it is considered as one of the simplest form in which one
can start business. In this owner enjoys all the powers to control and manage the affairs
of the business. Also it does not compel any sort of requirement of proper registration.
Some of the advantages of sole proprietorship are, one can keep all the profits, can
have maximum privacy, operation and establishment of business is much easier as
compared to other options. Disadvantages are, one needs to bear all the debts and
liabilities alone, which can become difficult and sometimes impossible to take
holidays, all the business related day to day responsibilities are to be fulfilled by owner
itself(Geras’kin and Chkhartishvili, 2017).
 Partnership- in this, two or more people joins together to start a business on a
common basis. Here liabilities of said partners are unlimited in nature and also there
exists no such mandatory clause to register the partnership firm. In this partnership
deed is the sole document which specifies all the minute details including the share of
capital invested and the profits to be earned. Some advantages of partnership are,
availability of more share capital, establishment and operation of business is quiet
simple task, people having high calibre can be joined as partners. Disadvantages can
be, liabilities of all the partners are of unlimited nature, there can arise the conflict ion
among the partners which can further lead to loss of business.

 Private limited company- In this the liability of its members are limited to the amount
of shares one held. Generally it is a type of company which is held for small businesses
and shares cannot be publicly traded. Advantages of this can be, both company and its
owners enjoys the status of separate legal entity, there exists no such requirement of
minimum capital to start a business, owners of the business enjoys the benefit of
limited liability. Disadvantages are, the number required shareholders should not be
more than 50 in number, also other major drawback can be that the prospectus can not
be issued to general public.
 Public limited company- it is the form of company which is not private and requires at
least seven people having minimum paid up capital in order to get the company
incorporated. Some of the advantages of public limited company are, continuous
growth of business, enough capital can be raised with the help of issuance of shares and
the said funds can easily be transferred to more potential investors, the other major
benefit which the public limited company enjoys is of the access of additional fundings
other than the share capital. Disadvantages are, in comparison to private Ltd. Co. the
higher expenditure on formation of company is required which is around 12 US dollar.
Other drawback is, the company needs to comply with more legal regulations hence it
is required to have a mandatory transparent dealings in the company(Indounas, 2018)
Seeing the given case study, the more appropriate form of business which will benefit is of the
sole proprietorship. Also as clearly stated that one wants to be ones boss, so in this form of
business owner can have all the control in his hands and can operate the business in a way
wants.
Measurement of competitiveness of market.
The competitiveness of said market can be determined with respect to various factors
affecting it. Every business is required to face the competition as there lies a huge one.
Some of the factors which can be ascertained with respect to the given case scenario
are of entry of barriers, where the business can forecast the competition which lies in
the market while seeing the barriers to enter into market(Masanja, 2018). There lies
different types of market forms which are Monopoly market, perfect competition
market, Oligopoly market, etc. which while relying on other factors can help in

analysing the competition in market for new business.
Thanking you
yours sincerely
ABC
CONCLUSION
From above report it is concluded that global business environment is mainly the
availability of goods and services at place other than where it is originated. In order to start a
new business, it is very much required to do the scrutiny of the different market structures in
order to have the smooth functioning of the business. Moreover, there lies the various forms of
business such as sole proprietorship , partnership, etc. After examining the various form of
businesses with respect to the given case study it has been concluded that the best option which
is available is of the sole proprietorship to start a new import business of cheap mobile phones.
Also the report concludes that the growth of business also depends on the various available
market structures.

REFERENCES:
Cellini, R., Lambertini, L. and Ottaviano, G.I., 2020. Strategic inattention, delegation and
endogenous market structure. European Economic Review. 121. p.103324.
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Dungan, A., 2017. Sole Proprietorship Returns, Tax Year 2015. Statistics of Income. SOI
Bulletin. 37(2). pp.2-28.
Geras’kin, M.I. and Chkhartishvili, A.G., 2017. Analysis of game-theoretic models of an
oligopoly market under constrains on the capacity and competitiveness of
agents. Automation and Remote Control. 78(11). pp.2025-2038.
Indounas, K., 2018. Market structure and pricing objectives in the services sector. Journal of
Services Marketing.
Masanja, N.M., 2018. Introduction to business research. NMM Printers.