Global Business Environment: Market Sector Analysis & Investment Tips

This report analyzes the global business environment, identifying struggling and prosperous sectors with specific examples like Costa Coffee and AstraZeneca. It explores the significance of consumer confidence and provides investment suggestions for amateur investors, emphasizing diversified portfolios and specialized trading courses. The report also includes an email discussing legal and market structures for a mobile phone business startup, recommending a sole proprietorship structure and analyzing the competitive landscape using Porter's Five Forces model. It touches upon HMRC import duties and underscores the importance of informed decision-making based on comprehensive market and legal analysis. This assignment, contributed by a student, is available on Desklib, a platform offering study tools and solved assignments for students.

Global Business

Table of Contents
MAIN BODY...................................................................................................................................3
1. Presenting article on the struggling and prosperous business sectors and suggesting an
amateur investor.....................................................................................................................3
2. Presenting an e-mail in the form of formal business communication consists different
market structure,legal structure and recommendation for business ......................................5
REFERENCES ...............................................................................................................................8

MAIN BODY
1. Presenting article on the struggling and prosperous business sectors and suggesting an amateur
investor

This article contains meaning and significance of consumer confidence and sectors of business
which are facing problems in conducting their operations and smooth running organisations. It
also focuses on suggesting an amateur investor about investing and applying several theories to
hold good position in the market. Consumer confidence refers to the optimistic attitude of
people residing in a specific nation (Doyduk, 2018). It is calculated by various organisations.
Data of consumer confidence aids in knowing the standard of living, increasing purchasing
power and consumption power of citizens. When economy grows,consumer confidence also
expands whereas declining economy contracts consumer confidence. Several external users
such as financial institutions, banks and government uses the information about consumer
confidence to take long term as well as short term decisions. For instance, producers boost
manufacturing level while observing positive confidence level and vice versa.
At the time of global pandemic, Covid-19 there are several business sectors which
impacted badly in terms of profitability and management. Hospitality sector renders variety of
services such as lodging, tourism, pubs, bars and restaurants. In last few months, operational
and financial disturbances is seen in the hospitality sector. Debts of business are accumulated
and organisations failed to address the same (Kesari, Atulkar and Pandey, 2021). Payment to
suppliers and creditors also lagged because firms experience a negative cash flows. Enterprises
face difficulty in managing the operations as employees are working from their home which
leads to mismanagement. Situation of lockdown imposes ban on travelling through which
people fear to move outside and reduces the consumption of service industry. Costa coffee,
deals in largest chain of restaurants in UK. It is acquired by co- cola and sold out its major share
of assets to it from the former owner Whitebread because it was facing declining sales and low
profitability. Due to temporary shutdown, it has to lay off its employees because they were not
able to pay their respective salaries and shortage of work was also experienced by this firm. It
was deciding to extend its operations in Poland and china as well but expansion was not a cake
walk at the time of global health crisis (Lund-Thomsen, Hansen and Lindgreen, 2019). They
require funds for AI system through which extension can be done but acquisition of funds
require sound planning which is lacking due to pandemic. There were several modifications in
the organisational structure which are complex to manage because employees physical presence
is required to complete the tasks of an enterprise. Costa Coffee experiences difficulties in

paying the liabilities of tax to the government. Tax is a mandatory payment which are required
to paid but piling of debts fails to manage the sound financial system of an organisation.
Global pandemic carries some pros with it also which can be seen in the pharmaceutical
and clinical industries. It is the industry which fosters its turnover at a very fast pace in the
times of this widespread disease. Pharmaceutical industry provides medicine,drugs and vaccines
for distinct disease (Reisenwitz and Fowler, 2019) . The global disease boosts the sales of
medicines to cure the problem of cold, fever and lack of vitamins. Production of clinical drugs
enhances the GDP of the country while everything except pharmaceutical industry was
declining and resulted in decreasing employment level of an economy. In context of
Astrazeneca , deals in pharmaceutical products and biotechnology. It is headquartered in
England. This outbreak is a challenger to every person on this planet either doctors or general
public because it was quiet typical task to find the cure of this disease. However, Astrazeneca
found success to fight against this deadly disease. By using its knowledge in the field of
science, it developed Vaccine to prevent the virus and used its specialisation in respiratory and
immunology. It also delivers the corporate social responsibility to society by supplying vaccine
at no gain to various countries. This multinational organisation operated on global level acquire
large market share and it share prices also rises up at the situation of health crisis around the
world.
An amateur investor is the one who trades in market of securities but not having
specialisation in the same. Financial times stock exchange performance can be improved by
creating a portfolio of securities in which risk is diversified and having low risk. At the initial
stage of trading one should opt for specialised trading courses and get fully aware regarding
investment and its returns. At the beginning stage, it should start with ploughing money in the
mutual funds which are less risky and good returns.
2. Presenting an e-mail in the form of formal business communication consists different market
structure,legal structure and recommendation for business
From-

To-
Subject- Discussing ideas for commencing a business of mobile phones.
Hello,
I hope you are doing good. I have received your email regarding beginning a new start-
up of cell phone. I am fascinated to hear your brilliant ideas about this start up. In today's era,
nothing is possible without technology. I am quiet impressed that you have chosen a right
product and correct place for your product. I am looking forward to see final design for your
project.
Legal structure is the form of ownership structure an enterprise carries to conduct its
operations in effective manner. There are three types of structure which are sole proprietorship,
partnership and limited company. Sole proprietorship is a form of business in which all the
activities are carried out by a single person (Suresh and Biswas, 2020). All the profits, losses,
assets and liabilities are owned by one person. It enjoys the advantage of having simple
organisational structure and reduces complexities of various chain of command. All the gains
are taken by a single owner which results in higher profits. Besides, it consists some limitations
such as liability is unlimited and entrepreneur even has to sell personal assets also.
Another form of structure is Partnership, it is run by minimum two persons and various
activities and proportion of profit is shared equally or in the decided format. It has several
merits like every partner have their unique skills and creative ideas which brings new
innovation in the business. Financial and operational burden can be distributed among various
persons. There are many demerits of the same such as there are chances of conflict between
partners because of different goals and objectives. Decision making power is not prompt, it has
to consider the perspectives of each partner working in a firm.
It is recommended that sole proprietorship form of legal structure should be obtained by
the new start up. Obtaining sole ownership helps to make decisions without conflicts which
may arise due to difference in attitude, opinions and ideas. Importing mobile phones to remote
areas require a sequenced research about which area to be targeted so conducting research and
development requires accuracy in data which can be gained by a single person
accurately(Xuhua and et.al., 2019) . At the time od global health crises it is full of risk to invest
in complex organisational structure. Therefore, Sole proprietorship requires less capital and
simple organisational structure reduces ambiguity of task to be performed.

On the basis of several factors such as numbers of firms in an industry, number of
competitors, barriers to entry and exit and pricing policies. Perfect competition is a form of
market which deals in producing homogeneous goods, takes the prices from industry and there
are no restrictions on entry and exit of the firms. Monopoly form of market produces unique
products which means that there are no substitutes available for the particular product but entry
and exit is not easy in this structure. It decides it prices by its own.
Monopolistic market involves huge cost in advertising because products are close substitutes of
each other whereas oligopoly form consist differentiated and unique products such as industries
of cement and steel.
For understanding the business environment framework there are some models which
helps to gain knowledge of the same. Porter's five force model include Competition in the
industry that signifies there are large number of competitors who are manufacturing mobile
phones. Hence, it can observed that there is high competition in this industry. An organisation
is also affected by the level of new entrants in the industry. There is scope of entering various
entrants but it is working in rural areas which makes it distinct from other firms (woo Park, S.,
2018.). Threat of new entrants is Low in the start up of importing mobile phones. In the
industry of technology, threat of substitutes is High because there are various firms which are
manufacturing mobiles with variety of features at low prices. There are many suppliers which
are providing raw material at low cost. Therefore, an enterprise bargaining power is also high
and it will enjoy economies of scale as well. Customer bargaining level depends on the number
of homogeneous products available, cell phones have variety of option so bargaining power is
also high in this factor.
Hmrc import duty refers to the authority which levy and collect tax in the UK. It is a
type of custom duty which has to be paid for exporting goods outside the country. If value of
good is
135 then there is no tax but if it crosses this limit and till 630 there is a tax of 2.5% and above
this slab it depends on the nature of product.
By analysing each legal and market structure with its advantages and disadvantages,it
becomes easier to take several decisions regarding commencing a start up of manufacturing
mobile phone.

REFERENCES
Books and Journals
Doyduk, H.B.B., 2018. Business Ethics, Marketing Ethics, Consumer Ethics, Sustainable
Consumption and Corporate Social Responsibility in Turkey. In Marketing Management
in Turkey. Emerald Publishing Limited.
Jensen, T., Hedman, J. and Henningsson, S., 2019. How TradeLens Delivers Business Value
With Blockchain Technology. MIS Quarterly Executive.18(4).
Kesari, B., Atulkar, S. and Pandey, S., 2021. Consumer purchasing behaviour towards eco-
environment residential photovoltaic solar lighting systems. Global Business
Review. 22(1). pp.236-254.
Lund-Thomsen, P., Hansen, M.W. and Lindgreen, A., 2019. Business and development studies:
Issues and perspectives (pp. 3-14). Routledge.
Reisenwitz, T.H. and Fowler, J.G., 2019. Information sources and the tourism decision-making
process: an examination of generation X and Generation Y consumers. Global Business
Review. 20(6). pp.1372-1392.
Suresh, A.S. and Biswas, A., 2020. A study of factors of internet addiction and its impact on
online compulsive buying behaviour: Indian millennial perspective. Global business
review. 21(6). pp.1448-1465.
woo Park, S., 2018. The effect of relationship quality between senior customers and service
providers on Word-of-Mouth in the service industry. Global Business and Finance
Review. 23. pp.36-45.
Xuhua, H and et.al., 2019. Effects of business-to-business e-commerce adoption on competitive
advantage of small and medium-sized manufacturing enterprises. Economics &
sociology. 12(1). pp.80-366.