Watchers of Switzerland: Assessing Macro-Environmental Challenges

This report examines the macro-environmental factors impacting Watchers of Switzerland, a British retailer of Swiss watches, as it considers international expansion. It identifies key issues such as economic recession, lack of disposable income, and the effects of the pandemic. The analysis covers political factors like Brexit, technological factors such as the rise of e-commerce, and social factors influenced by the Covid-19 pandemic. Furthermore, the report discusses the impact of inflation and GDP on the business, highlighting the challenges posed by increased costs, reduced customer purchasing power, and economic recession. The report references academic sources to support its analysis of these critical macro-environmental elements.

Coursework 1 Briefing Note

TABLE OF CONTENTS
BACKGROUND.............................................................................................................................3
KEY ISSUES...................................................................................................................................3
Global Macro-Environmental Factors Critical Discussion Point....................................................3
REFERENCES................................................................................................................................5

BACKGROUND
Watchers of Switzerland is a British retailer of different types of Swiss watches, it has
more than 16 stores in the UK but is considering expansion in the international business. The
international expansion for this business will result in facing some key issues which will affect
the business of the organization in the international business (Pourmohammadi and et,al., 2020).
The macro environmental factors are the factors which are external for the business environment
and the changes them affects the such business operations. Analysation of some factors of the
Marco environment will help in the identification of the key issues which the business will face
in the upcoming future.
KEY ISSUES
 Economic Recession
 Lack of disposal income
 Pandemic affects
Global Macro-Environmental Factors Critical Discussion Point
Some external factors which has affected the macro environmental of Watches of
Switzerland are,
Political Factors:
In UK the political factor has brought up many changes which has affected the economy.
The introduction of Brexit which brought up major changes international trading and as a result
has brought recession in the economy of the organization.
Technological Factors:
The introduction of new technology since the pandemic has brought up many changes in
the business of the international businesses. The influence of the E-commerce the business has
been successful in connecting with some many different customers of the global economy.
Increase in the online business limits the business range of the business organization which
affects the pricing strategy for the business (Yellen, 2017).
Social Factors:
Due to the Rise in the Covid-19 pandemic the preferences of the society has changed a
lot. As the products of this organization is a luxuries item there are high chances of it facing

downfall in its sales as the customer lack disposable income due to the pandemic and economic
recession.
Inflation:
It is the rate of the increase of prices over a certain time period in an economy. Inflation
is a macro environmental factor as per which the cost of all the commodities increases in the
economy. This business is getting effected due to the inflation because the rise in the cost of all
the products have resulted in the increase it the total cost of production of the business. This has
also affected the customer purchasing power which for the business of watches is very important
as it is a luxurious product (Jalles, 2017). Due to the inflation there is a surge in the demand for
the products and services which also creates increase in prices and the customers are forced to
pay for the products and services.
GDP:
Gross domestic product is the standard which is used for the measurement of the value of
the total goods which is added in economy. The total GDP of the UK economy has fallen in the
last few years which has affected the performance of the business of Watches of Switzerland in
the economy. This fall in the GDP has affected the performance of the business due to decrease
in the buying capacity of the customers in the organization. Low GDP results in the economic
rescissions and is said to be very influential to the business profit.

REFERENCES
Books and Journals
Jalles, J.T., 2017. Inflation forecasts’ performance in Latin America. Review of development
finance. 7(2). pp.157-168.
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.
Yellen, J.L., 2017. Inflation, uncertainty, and monetary policy. Business Economics. 52(4).
pp.194-207.