Global Business Environment Analysis: Watches of Switzerland BM461

This report provides an analysis of the global business environment impacting Watches of Switzerland, a leading FTSE-listed organization specializing in luxury watches. It employs PESTLE analysis to evaluate the political, economic, social, technological, legal, and environmental factors influencin...Read More

BM461 GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
CONTEXTUAL BACKGROUND ....................................................................................................................3
MAIN BODY..................................................................................................................................................3
Global macro-environmental factors critical discussion point.................................................................3
REFERENCES ................................................................................................................................................5
APPENDIX ....................................................................................................................................................6
Key issues ................................................................................................................................................6

CONTEXTUAL BACKGROUND
Global business environment encompasses with several external factors that put direct or
indirect impact on a company or venture, whether it is negative or positive in term. This kind of
environment lead to increase and decrease organizational productivity and profitability as well as
performance level. The current assignment will be based on Watches of Switzerland, which falls
under the list of leading FTSE listed organizations in the United Kingdom. Firm is capable to
provide luxury watches to its customers according to their needs. The study will explain key
problems, and global macro environmental forces that put impact on chosen company.
MAIN BODY
Global macro-environmental factors critical discussion point
PESTLE analysis
Political factor-
Changes related to political factors such as political stability or instability, tax rate, trade
policies, etc. may put direct impact on any company (Castañeda-Ayarza and Godoi, 2021). In
case of watches of Switzerland, increasing tax rate affects negatively upon its venture, in term of
increasing work pressure on management to reform their trading tactics, which is not possible for
them to do so in short time duration.
Economic factor-
Fluctuation in the context of economic growth, currency exchange rate, inflation, income
and unemployment may affect current practices of any company whether it is public, private,
small or large. In the context of Watches of Switzerland, inflation may put negative impact in
form of decreasing demand for watches (Pei and et.al,., 2020). It may also lead to decrease
organization profitability and productivity as well as revenue more than last few years.
Social factor-
Current market trend may put direct impact on chosen organization, as it may drive the
attention of management towards making current changes related to products. For example, in
the recent time people prefer to buy smart watches instead of leather or chain belt (Hu and et.al.,

2021). It may affect supply and demand activities of firm, which is not beneficial for its short
term success.
Technology factor-
Technology advancement may put positive impact on Watches of Switzerland, as it may
drive the focus of brand marketer towards generating business and its goods awareness
worldwide, by using effective digital marketing channels (Pourmohammadi and et.al, 2020). It
may give them chance to gain the attention of profitable customers and potential investors, who
are capable to invest money in progressive and productive brands like current one.
Legal factor-
Any type of change related to business and consumer’s safety and protection regulations
may affect negatively upon Watches of Switzerland (Hummel, 2020). It may increase a lot of
pressure of brand and its stakeholders to restructure their all plans according to new terms and
conditions that is not easy to do so as it needed a lot of time and resources as well.
Environmental factor-
Customers and government concern related to sustainable environment may put positive
impact on company, as it may give it opportunity to grow with wide customer base, among
which individual buyer is loyal towards firm and refer others to buy the quality products from it,
which increase sales level, performance and revenue extent of chosen enterprise (Nasri,
Collazzo and Welsh, 2020).

REFERENCES
Book and Journals
Castañeda-Ayarza, J.A. and Godoi, B.A., 2021. Macro-environmental influence on the
development of Brazilian fuel ethanol between 1975 and 2019. Renewable and
Sustainable Energy Reviews. 137. p.110457.
Hu, M. and et.al,., 2021. Constructing and selecting optimal sustainable sanitation system based
on expanded structured decision-making for global sanitation and resources
crisis. Journal of Cleaner Production. 318. p.128598.
Hummel, F., 2020. Marc Helmold, Brian Terry and Florian Hummel. Successful International
Negotiations. p.173.
Longwe, B. and Sakyi, K.A., 2020. Reassessing the Core Product’s Relevance: Balancing
Heritage against Modern Needs. Educational Research (IJMCER). 2(5). pp.42-58.
Nasri, B.M., Collazzo, P.G. and Welsh, D.H., 2020. Home-grown middle eastern franchises:
prospects for the future. International Entrepreneurship and Management Journal.
pp.1-15.
Pei, L. and et.al,., 2020. Geographic variations and potential macro-environmental exposure of
hypertension: from the China hypertension survey. Journal of hypertension. 38(5).
pp.829-838.
Pourmohammadi, K. and et.al, 2020. A comprehensive environmental scanning and strategic
analysis of Iranian Public Hospitals: a prospective approach. BMC research notes.
13(1). pp.1-7.

APPENDIX
Key issues
1. Inflation
2. Supply and demand
3. COVID-19