Investment Analysis: Global Business Environment Sector Report

This report provides an analysis of the global business environment, identifying sectors expected to experience growth and those likely to struggle over the next 12 months. It highlights the increasing demand for safety equipment and telehealth services, as well as the continued growth of the online food delivery sector. Conversely, it notes potential challenges for IT services, advertising, PR, communications, and management consultancies. The report recommends that investors consider opportunities in telehealth, specifically Doctor Link. Furthermore, it includes an email providing advice on legal structures for a mobile phone business, suggesting a partnership model and using Porter's Five Forces to analyze competition, including industry rivalry, supplier power, buyer power, and the threat of new entrants and substitutes.

Global Business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Coursework 2 a)...............................................................................................................................1
Coursework 2b)......................................................................................................................3
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................8

INTRODUCTION
Global business environment is defined as a process in which different countries carry on
their business together (Kasemsap, 2018). It consists of all those external factors which are not
under the control of business. There are different types of components included under this such
as customer, competitor, supplier and various government agencies and many more. In this
report, will identify what are the different business sectors that have gain both prosperity and loss
over a period of next 12 months and different things that an investor should consider while
investing in these sectors while investing first time. Moreover an e-mail would draft which
would include all the pros and cons of different legal structure of business and models for
measuring competition in market (Hacioglu, 2019).
MAIN BODY
Coursework 2 a)
There are different business sectors that will grow in next twelve months are as follows:
 Safety equipment and supplies wholesaling in the UK- From the past several years that
it has been noticed that demand of workplace health and safety regulations has increased.
Companies of this sector produce goods which adhere to the occupational health to avoid
fines and also reduce the likelihood of bring lawsuits by injured employees. Therefore it
has been expected that CAGR of company would be 5.1% to reach at the revenue of 1.6
billion pound (Fastest Growing Industries in the UK by Revenue Growth (%) in 2021).
Company of given sector.
There are several companies of above sector in United Kingdom but best company is
ARCO limited. It is the UK's largest company which produce safety and service business
products. It has highly experiences and qualified safety partners.
 Telehealth services- This industry mainly deals with digital technologies to deliver
medial services to customers in market. During corona virus pandemic several patients do
not prefer to move outside for taking their medical treatment as they think that they will
get infected with this virus. Several people prefer medical treatment at their doorsteps
therefore in order to cope with this problem Telehealth services provide great solution to
people by this they would be able to get doctor consultation via phones or video
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conferencing. The estimated growth of this industry is expected to be 63.2% in next
twelve months.
Company of this sector
Doctor link is the best application that provide best online consultation to their patients. It
also enable services to reach at their customer doorsteps via GPS.
 Online food delivery sector- People nowadays do not prefer to move outside to have a
dinner with their family. They prefer to eat dinner at home by booking from various
online food delivery application. Therefore it has been that this sector will also have great
demand in future and it is also easy for restaurant owners to register themselves in these
applications. Revenue growth is also estimated to be 45.1% in next twelve months
(Fastest Growing Industries in the UK by Revenue Growth (%) in 2021).
Company of this sector
Uber eats is considered as a best company in online food delivery sector. It helps user to
connect with best restaurant around their locality. So many people prefer to use this application
while ordering their food online.
Different business sector that will struggle in next twelve months are as follows:
 IT services- There were over 16,000 business offering IT consulting services to clients in
the end of 2019. But during corona virus pandemic different firms have shifted their
working to work from home culture. This would lead to cancellation of several projects
taken by hospitality companies as they are struggling to survive in market. Also several
industries to whom IT services in delivered are still struggling to survive in market.
Therefore this sector will struggle to survive in market (Sectors That Will Struggle,2021).
Companies of given sector
Hyperlink info system is considered as a best company in IT services industry. It provide
world in class IT services to their clients. It offer services to various industries such as Retail and
e-commerce, healthcare and fitness and many more.
 Advertising, PR and communications- This is considered as another industry that will
going to struggle in next twelve months. There is one main reason which shows that this
industry will going to struggle is that so many of their clients which are related to retail
and hospitality are still struggling to survive in market due to corona virus and also they
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are expecting in future to survive like in this way. Therefore this sector will going to
struggle in market and will take long time to get back on proper track(Sectors That Will
Struggle,2021).
Company of given sector
Mediacom is considered best company n this sector. It provide global media agency
services to their clients. The CEO of given company is Nick Lawson.
 Management consultancies- One of the best lucrative and profitable industry which is
considered in market is management consulting industry. But during corona virus, this
sector in highly negatively impacted because several shops were closed down which
cause delay in payment. Still corona cases are rising in market therefore this industry will
still struggle to survive in market (Sectors That Will Struggle,2021).
Company of respective sector.
Deloitte is considered as a best management consulting firm in market. It is also
considered as a top in Big 4. This company was founded on 1845 in London. The CEO of
company given company is Punit Renjen.
Analysis on which sector an investor should invest.
After discussing all of above sector, an investor should invest their money in Doctor link
aapplication which is a company of Telehealth services company. This sector will have huge
growth in market of approx 63.2%. Due to huge demand online medical services this sector will
definitely get boom in market. Therefore an investor should invest their money in this sector.
Coursework 2b)
Sender's address: xxx
TO:xxx
CC:xxx
BCC:xxx
Subject: advice and guidance regarding opening of mobile business.
Dear friend
Opening of a business of mobile selling while importing from Taiwan or China and
selling to rural investors is a profitable business venture. There are different legal structure
which a businessman can follow while doing their business such as:
 Sole proprietorship- It is considered as one of the easiest form of business legal
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structure. In this form of business, an individual is an owner of an firm. Whole
organisation is manage or control by only one single person (Basic legal structures for
business organizations,1970). There are different advantages or disadvantages of sole
proprietorship are as follows:
Advantages:
1. Affordable and simple- This form of business structure is highly affordable and easy to
establish. There are less legal formalities required for doing business in such business
structure (Sole Proprietorship Advantages and Disadvantages,2021).
2. No distribution of profit- In this form of business structure there is no need to
distribute or divide profit among other members of an organisation.
Disadvantages:
1. Difficult to raise capital- It is very difficult or tough to raise capital from market under
this form of business structure. Several investors or financial institution hesitate to
invest in such a business which is small or operate by one single individual.
2. No protection of liability- In this business structure whole expenses are done by one
single person. In case if somehow that person get unable to pay off their debts ot
expenses then there is no one to pay expenses on that person behalf. Hence it can be said
that in this business liabilities are not protected (Sole Proprietorship Advantages and
Disadvantages,2021).
 Partnership- It is form of business legal structure in which two or more than two
person come together and establish business (Basic legal structures for business
organizations,1970). In this form of business, an organisation is not just manage by one
single person but by different persons known as partners. There are different advantages
and disadvantages of partnership are as follows:
Advantages:
1. Easier formation- This form of business structure is easy to form. There are no such
legal formalities are require. Only an agreement between partners in require via signing
an agreement known as partnership deed (Advantages and Disadvantages of Partnership
Business,2021).
2. Division of work- In this type of business structure, there is proper division of work
among each and every partner of an organisation. This led to reduce burden among
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members of an organisation and increase efficiency of work.
Disadvantages:
1. Blocking of capital- If due to any personal reason partner wants to withdraw their
capital from a firm then they need consent of all other partners. Therefore this would
create a problem if partners would not get agree upon. Hence due to this factor several
investors scare to invest their money in partnership firm.
2. Difficulty in decision making- In a partnership every person come from different back
ground and culture as a result every person have different thinking and attitude. Due to
this reason it is difficult for all partners to get agree upon same decision. Hence this
would create problem for making decision in an organisation and lead to rise in conflict
among partners (Advantages and Disadvantages of Partnership Business,2021).
After looking above two different legal structure of business it is advisable that a person should
go for partnership form of business because as this business is all about importing of cheap
mobile phones from Taiwan or China and selling them to rural investors in this a businessman
have to pay lot of charges while importing phones from China such import charges, customer
duty, stamp duty and many more. Moreover lot of capital will also require for setting up of
premises. Therefore all these cost cannot be incur by one single person that is why it is highly
advisable to go for partnership form of business (Zámborský, 2020).
Having competition in every business is necessary therefore it is very necessary for identifying
competition before opening of business. Here is porter's five forces model use for identifying
completion in business (Silvius, 2018).
 Industry rivalry- It denotes the level of competition in any industry. In an industry or
market segment where rivalry among competitors in high then companies do aggressive
level of marketing under that segment. For this they cut down their prices and launch
high level of marketing campaign. In the terms of given business scenario, Chinese
mobiles operates in a highly competitive market, the demand for Chinese phones are
huge in market. Therefore every businessman wants to do their business in this filed.
Hence a businessman must plan some suitable strategy to remain and grow in this
business sector (China Mobile Limited Porter Five Forces Analysis, 2021).
 Power of supplier- In a particular market segment, power of supplier in high when
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there are few supplier of given product in market and power of supplier in low when
there are lot of supplier of given product in market. In the terms of given business
scenario, the power of supplier in low because there are different supplier in market who
are ready to supply parts of mobile phones. Hence if one supplier will increase the price
of product then businessman will shift to another supplier. Therefore it shows that
power of supplier in low in market (Abdullah and Mansor, 2018).
 Buyer power- The power of buyer is high in particular market segment when there are
lot of firm deals with same product and power of buyer in low when there are just only
few firm dealing with same product in market. In given bushiness scenario, there are so
much demand from customer regarding Chinese phones there in order to fulfil those
demands every firm in market deals with Chinese mobile phones. Due to which
customer have differer choice to visit another firms if one firm will increase their
product price. Hence this shows that the power of buyer is huge in market (Fraedrich,
Althawadi and Bagherzadeh, 2018).
 Threat of substitution- This refers to a situation when one product get replace by
another product in market. In the terms of given business scenario, there are lot of
services in market such as dropbox and google drive which customer can use instead of
purchasing storage hardware drives. Therefore in order to deal with this given
businessman can do market research do understand what customer actually want and
make changes in their product accordingly (China Mobile Limited Porter Five Forces
Analysis, 2021).
 Threat of new entry- This is considered as situation of entering new firms in existing
market. In the terms of respective business scenario, there is huge threat of new firms to
get enter into market therefore in order to cope up with this situation given businessman
can build up their economies of scale to lower down its fixes cost per unit.
CONCLUSION
On the basis of above report it has been concluded that global business environment play
a vital role in overall business functionality. It helps to identify all those external factors that
impact the performance of company in long term. In this report it has been discussed various
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business sectors that will prosper or struggle in period of next twelve months and companies in
which an amateur investor can invest their money. Moreover an e-mail have also been draft to
friend covered several topics such as different legal structure of business and porter's five forces
model in identify competition in environment.
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REFRENCES
Books and journals
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Hacioglu, U. ed., 2019. Digital Business Strategies in Blockchain Ecosystems: Transformational
Design and Future of Global Business. Springer Nature.
Zámborský, P., 2020. A blueprint for succeeding despite uncertain global markets. Journal of
Business Strategy.
Silvius, G., 2018. Integrating sustainability into project risk management. In Global Business
Expansion: Concepts, Methodologies, Tools, and Applications (pp. 330-352). IGI
Global.
Abdullah, Y.A. and Mansor, M.N.B., 2018. The moderating effect of business environment on
the relationship between entrepreneurial skills and small business performance in
Iraq. International Journal of Entrepreneurship, 22(4), pp.1-11.
Fraedrich, J., Althawadi, O. and Bagherzadeh, R., 2018. A comparative analysis of the UN
declaration, global business compact, and religious morals in determining global values
for business and their application to Islamic marketing. Journal of Islamic Marketing.
Basic legal structures for business organizations,1970.[online]. Available
at:<https://www.indiainfoline.com/article/news-sector-others/basic-legal-structures-for-business-
organizations-113111501302_1.html>
Sole Proprietorship Advantages and Disadvantages,2021.[online]. Available
at:<https://www.ownr.co/blog/sole-proprietorship-advantages-disadvantages/>
Advantages and Disadvantages of Partnership Business,2021.[online]. Available
at:<https://www.aplustopper.com/advantages-and-disadvantages-of-partnership/>
China Mobile Limited Porter Five Forces Analysis, 2021.[online]. Available
at:<http://fernfortuniversity.com/term-papers/porter5/analysis/3421-china-mobile-limited.php>
Fastest Growing Industries in the UK by Revenue Growth (%) in 2021, 2021.[online]. Available
at:<https://www.ibisworld.com/united-kingdom/industry-trends/fastest-growing-industries/>
Sectors That Will Struggle,2021. [online]. Available
at:<https://www.redflagalert.com/articles/risk/coronavirus-five-sectors-that-will-struggle>
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