BM461 - PESTLE Analysis of Watches of Switzerland's Global Environment

This report provides a PESTLE analysis of Watches of Switzerland, a British retailer of Swiss watches, to understand the impact of global environmental factors on its business. The analysis covers political factors like tax policies and trade restrictions, social factors including lifestyle changes and consumer behavior, and technological factors such as innovation and digital marketing. The report concludes that understanding and adapting to these external factors is crucial for Watches of Switzerland to achieve its objectives and goals, emphasizing the importance of sustainable development in response to environmental factors. Desklib offers a range of solved assignments and past papers to support students in their studies.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body ..................................................................................................................................1
CONCLUSION ...............................................................................................................................2
REFERENCES...........................................................................................................................3

INTRODUCTION
Global business environment is defined as the environment in different countries can
influence the business organisation and its various activities. It is very important the the
company to understand the internal and external factors that can impact the organisations in its
productivity. Watches of Switzerland is a British retailer of Swiss watches and has 16 stores in
United Kingdom. It is headquartered in Braunstone , England which is listed in London stock
exchange and is constituent of the FTSE(Öngöre, Ö., 2020). This report include the pestle
analysis in context of watches of Switzerland.
Main Body
PESTLE analysis
It is a tool used by the business organisations to keep a track on the external factors
which might influence in the decision making of the busine4ss organisation and its day-to-day
activities. It helps the company to analyse these factors and then it can use in the range of
different scenarios. Here is the pestle analysis of watches of Switzerland is given below(Obisi,
C., Samuel, R. and Ilesanmi, A., 2020). Political- These factors include tax policy, trade restrictions, tariffs etc. It determines the
extent to which a government may influence the company or an in industry. As watches
of Switzerland maintain the high quality and is manufactured in Switzerland itself it is
very important to know the policies of government there itself for the smooth functioning
of the company.
ADVANTAGES
 This factor helps the industry in regulating its prices for the products.
 The trade restriction which are applied increase the profit margins for the company.
DISADVANTAGES
 The government interventions disturbs the business operations.
 It also can lead to increase in taxes which might affect in the profits of the
organisation(Ariyoshi, K., Tanimoto, M. and Yamada, Y., 2020). Social- This includes the cultural aspects which can influence the business organisation.
Such factors include change in lifestyle, behaviour, health consciousness, This help the
marketers to identify the customers preferences according to the change in the lifestyle
1

and environment. Watches of Switzerland should target its customers by analysing the
status of the people, their attitude and behaviour which will help the company to grab
large number of customers.
ADVANTAGES
 This factor can influence the purchase of the customers towards the luxury products.
 The social factor will help the organisation to market its product. The customers are
easily influenced by the peers which will impact the company in generating revenue.
DISADVANTAGES
 The bad publicity of the product can lead to the loss for the business organisation. The customers change in lifestyle might cost high due to the demand of the customer
which is according to the new technology. Technological- This means the innovation and development in the technologies. Such
factors include artificial intelligence, digital marketing etc. As the technology is evolving
so it is very important for the watches of Switzerland to meet the technologies at the right
time to retain the old customers and attract new customers by developing its
product(Guizellini, F.C. and et. al., 2021).
ADVANTAGES
 The company will able to grab new customers by adopting the new technologies
 It also can create the brand value by providing the best services and the digital
products.
DISADVANTAGES
 This factor can lead to high cost for the company because of the brand value.
 The more development in the economy will impact the business if it is not abler to adopt
such technologies due to high investment(Hampden-Turner, C., Trompenaars, F. and
Hampden-Turner, C., 2020).
CONCLUSION
From the above report it is concluded that there are several factors which can influence
the business organisation. It is very important for the company to consider the external factors
and use the tool PESTLE analysis so that the Watches of Switzerland is aware about the factors
and can precautions in order to meets its objectives and goals. The external factors impact the
2

operation of the business and the company need to adopt the sustainable development in case of
environment factor.
REFERENCES
Books and Journals
3

Ariyoshi, K., Tanimoto, M. and Yamada, Y., 2020. Impact of particle size of lithium manganese
oxide on charge transfer resistance and contact resistance evaluated by electrochemical
impedance analysis. Electrochimica Acta. 364. p.137292.
Guizellini, F.C. and et. al., 2021. Thermal, morphostructural and spectrometric characterization
of an antibacterial kaolinite-based filter modified with silver for water
treatment. Journal of Thermal Analysis and Calorimetry. 143(1). pp.47-60.
Hampden-Turner, C., Trompenaars, F. and Hampden-Turner, C., 2020. Riding the waves of
culture: Understanding diversity in global business. Hachette UK.
Obisi, C., Samuel, R. and Ilesanmi, A., 2020. Influence of workforce planning on organizational
performance in the manufacturing industry of Lagos, Nigeria. Global Business
Review. 21(2). pp.404-417.
Öngöre, Ö., 2020. Evaluating emotional labor: A new approach. Global Business and
Organizational Excellence. 39(4). pp.35-44.
4