Watches of Switzerland: Macro-Environmental Analysis & Planning

This report analyzes the macro-environmental factors impacting Watches of Switzerland, focusing on economic, technological, and social aspects. It identifies key issues such as the challenge of e-commerce, political uncertainty, and weak demand. The report highlights how economic factors like inflation and GDP, technological advancements, and social trends influence the company's strategic planning. It also references resources and evidence used in the analysis, including books, journals, and online references. The report serves as a briefing note for the CEO and board members to inform discussions and decision-making regarding the company's long-term planning in the face of global economic changes. Desklib provides access to similar reports and study tools for students.

Page 1 of 6
Briefing Note
Globalization & Strategic Planning Directorate
Requested by Brian Duffy, CEO Date requested: 12/11/21 Action required by: TBC
Action required Other attachments for consideration
For approval With correspondence Chief Executive’s
authorisation
Authority to publicise
For meeting For Information letter of advice
BRIEFING NOTE FOR INFORMATION
This briefing note is written to provide information for discussion and use at subsequent meetings by the
management team on the subject matter outlined below.
Covid-19 has presented unique challenges to the Watches of Switzerland company. In order to plan for the
recovery of the global economy the CEO, Brian Duffy, has requested this briefing note for use at the next
board meeting to discuss actions with fellow board members.
Version August 2011
SUBJECT: What macro-environmental changes in the global economy can the
organization expect to face over the next 12-24 months that it needs to factor into long-
term planning?
Proposal
The report is created to analysis the economic and other external environmental factors
that are affecting the business of Watches of Switzerland. This report will shed light on
key issue, background and macro-economic factors of the company.
Department Rec/Find No: Business
Planning &
Intelligence
Division/District Global
STUDENT NAME
STUDENT I.D. Number
File Ref No: 1/3

Page 2 of 6
Urgency
Rank of the key issues as:
a. Critical (The challenge of E-commerce)
b. Urgent (Weak Demand)
c. Routine (Political Uncertainty)
2. Background
Watches of Switzerland is a retail company listed on London Stock Exchange and is a part of
the FTSE 250 Index. Total revenue generated by the company in the financial year f 2020
was £905.1m (INVESTORS, 2021). The watches of Switzerland group has took various steps
towards technology recently that include real-time online booking system and launched
luxury watch virtual boutique. Sale of the company could be rise up to £1.1bn in this year
and adjusted earning may be between £104m and £107m (Eley, 2021).
Source: Watches of Switzerland

Page 3 of 6
Source: Watches of Switzrland
3. Methodology
Secondary research methods are used to gather the information.
4. Key issues
a. The challenge of E-commerce
b. Political Uncertainty
c. Weak Demand
5. Global Macro-Environmental Factors Critical Discussion Point
Following are the macro environmental factors that are affecting the business in various
ways:
Economic Factor: It refers to the external factors that include inflation, GDP, currency exchange
rates and other factors related to the economy of the country. Watches Of Switzerland have been
impacted largely due to the economic factors. Economy of European countries has been affected
largely due to the Brexit. The economic growth of United Kingdom was estimated at 1.6 % for
2018, it was lower than the 2.3% average for countries located in Eurozone (Kenel, 2018).
Inflation can impact the demand of the watches as continuously increase in the price lead to the
decrease in the customer loyalty. The condition of financial market is also a factor to determine
how company will rise its capital and at what price. Gross domestic also plays an important in
the economic factor as the low GDP of the country leads to the decrease in the demand. Supply
and Demand keep the market constant the balance between both is very necessary in order to
make growth sustainably. Both opportunity and the threats can be derived form the economic
factors. Opportunities for Watches of Switzerland are economy of the country is raising again
after the COVID_19 impact so company can increase the customer interaction with innovative
product launch. Continuously increasing inflation rate can be a great threats to the company.

Page 4 of 6
Technological Factor: It refers to the effect the growth of the organisation by changes in
the technologies (Perera, 2017). Company need to adopt the technologies in order to keep up
in the market. Watches of Switzerland has implied various technologies such as emerge in
digital market launch and introduced enhanced e learning and development initiatives.
Technological factor of the company has always provided opportunity to the business. Online
shopping lead to the growth in the business and customer engagement also increased with the
help of social media. Technologies in the Watches are being developed. Rolex has
announced that it will enter the smart watch race. Technology helps the company to spread
the innovation within seconds. It is very helpful to create the trend among the people.
Social Factors: It refers to the change in customer behaviours, trends and lifestyles that
affect the business. Watches of Switzerland has been impacted by the social factors as today
trends have been changed people are more likely to buy the smart watches. However, the
society with luxury consumption will always welcome the innovation by the Watches by the
Switzerland (Tur-Porcar, Roig-Tierno and Llorca Mestre, 2018). Modern societies are more
interested in brands like Rolex. Company is providing various innovative products to keep
the engagement of the customers such as Classic Fusion WOSG exclusive watch.
6. Resources & Evidence Used in the Completion of the Briefing Note
Books and journals
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Kenel, A., 2018. Risks and opportunities for the Swiss watch industry (Doctoral dissertation,
Haute école de gestion de Genève).
Tur-Porcar, A., Roig-Tierno, N. and Llorca Mestre, A., 2018. Factors affecting entrepreneurship
and business sustainability. Sustainability. 10(2). p.452.
Online references
Eley, J., 2021. Watches of Switzerland warns travel hit to sales will endure. [Online]. Available
through <https://www.ft.com/content/757ec967-385e-416e-bcfa-1ba53040b37a>
INVESTORS, 2021. [Online]. Available through <https://www.thewosgroupplc.com/investors/>
A, B., 2018. [Online]. Available through <>

Page 5 of 6
Recommendation
None to be made at this stage.
APPROVED/NOT APPROVED NOTED
(Student Name)
Senior Manager
Business Planning & Intelligence
/ /
Executive Director comments
(Leave blank)
Author
(STUDENT NAME)
Senior Manager
Business Planning &
Intelligence

Page 6 of 6
General information to the briefing note
SUBMIT YOUR COMPLETED MODEL(S) HERE IN THIS BOX. Note this should not exceed 1 full page.