BM461 Global Business Environment: Analyzing UK Consumer Confidence

This report examines the global business environment, focusing on the UK's consumer confidence data following the COVID-19 pandemic. It identifies emerging and struggling business sectors in the UK, providing insights for potential investments. The report also discusses the pros and cons of different legal structures for businesses, including sole proprietorships, partnerships, and companies, and evaluates how to measure market competitiveness using Porter's Five Forces framework, specifically focusing on competition rivalry and the threat of new entrants. The analysis aims to provide a comprehensive understanding of the current business landscape and strategic considerations for organizations operating in the UK.

Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
2 A examines the latest UK consumer confidence data, ............................................................3
2 B The pros and cons of different legal structures and which would be best for them?...........4
How they could measure the competitiveness of the market structure? ....................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
The term global business environment may be defined as an environment of the different
countries which impact positively or negatively on the different creativities of the firm in a very
immense manner. The most common factors which comprises in the global business
environment is geographical, social, cultural and many more. This is also known as international
business environment which contribute in developing the economic conditions of the country in
a very effective manner in terms of developing the employment opportunities, infrastructure and
many more. This report is going to cover the latest consumer confidence data in respect to the
UK industries which have been affected by the COVID 19. This report also cover the
advantages and disadvantage of the different legal structure.
TASK
2 A examines the latest UK consumer confidence data,
The economy of the United Kingdom has been deeply troubled and formed because of the
pandemic Covid 19 just after the Britain has tapped into new bond of business with the European
Union. Moreover to this, the way to better as well as growth of the economy will be assorted for
all the business organisations in all the sectors in which each will need a set of various strategic
providence and built in agility.
In the various sector any organisation that has an edge over the cost is commonly well
established to grow locally with the cost of other various companies will also rise. Companies
that are actually ready and capable to adapt immediately to the possible situations need to stand
to gain. The overall more refined organisations rates are possibly to increase by lower than of
their rivals that creates an umbrella of rates in which to gain the success in their market place
such as the agriculture sector which is always on the boom as it is one of the essential need of the
humans.
There are two types of the additional opportunities at the sectorial level in which first is
import imitation with the European Union imports it is more expensive for the various
companies operating in the United Kingdom, where as some local suppliers might be able to
provide consumers as well as more businesses to the companies in the various sectors.
Emerging sector

 Hospitality sector - The UK hospitality industry had far recovered to pre - pandemic
issues in terms of the tax breaks that are increasing globally. On the other hand, utility
cost were expected to be high as with 60 to 85 per cent at the time of next contracts that
are renewed time to time with the gap of six months. As the products that are available by
hospitality sector will get to be increase by 8 to 10 per cent. The rise in the number of the
vacancies is reflected as maximising amount of candidates who are starting new job roles. Retail sector – The United Kingdom's retail sector is one of an advanced sector that
promotes 300,000 separate businesses. It deals with over 3.5 million individuals who are
representing over 9 per cent job roles and offers consumer quality of products and
facilities, satisfying the requirements of their customers. As it is expected to be worth
£440 billion cost of the sales in the retail sector.
 Pharmaceutical sector – During the period of current pandemic situation of COVID –
19, the United Kingdom's pharmaceutical sector has presented effectively and maintained
innovation at that time that are highly required. The United Kingdom's pharmaceutical
sector have long running track record of providing powerful innovation that
overpoweringly overcome the pandemic situation in an effective and efficient manner.
Struggling sector
 Real Estate sector - In this sector of the real estate, it had faced high difficulty in terms
of the demonetisation, real Estate regulation Act and goods and services tax that push the
sector into weaker divisions. If there will any hope of recovery for the real Estate sector,
it were maintained back by the second wave of the pandemic situation of the COVID –
19. Real Estate consultant presented their issues that they faced during lock down and
COVID – 19 restriction that are attempted by the government.
 Finance sector – The COVID – 19 crisis will maintained the pre – crisis issues of the
traditional banking managerial sections. It also involves the turnover pressure and low
term of profitability in terms of the low levels of the interest rates and higher term of the
levels of the capital with effective norms. It also maximise the role of the competition
with new digitalised structure in the field of the market place.

2 B The pros and cons of different legal structures and which would be best for them?
Legal structure consist of three types of organisations that includes sole proprietorship.
Partnership firm and company. Pros and cons of these structures are described below:
 Sole Proprietorship – It also refers to the sole trader and it is a business entity that is
incorporated which consist of only single owner who is liable of paying its personal
income tax and revenues earned from the business organisation. The advantage of this
type of structure is that is operated by the single person and it is convenient as the
specific person will be the only decision maker of the organisation and it does not need
any type of the idea or opinion from others. Whereas, unlimited liability is one of the
drawback in this. As, if on the occurrence of any kind of loss, owner is liable to pay those
any how (Poberezhna, 2019).
 Partnership Firm – It is any type of organisation in which a legal agreement and formal
among two or more people is done that are ready to be the co owners, divides their
responsibilities for operating their business and also shares the loss and profit. In order to
compare to the sole trader, functioning in partnership can assist in companionship as well
as mutual support. Whereas, disadvantage of the company is that is an organisation faced
the losses then the partners are liable to pay them by their personal assets as partnership
also have unlimited liability.
 Company – A company is a legal entity which is having a different entity from its
owners. A company can be made by any person or group of individuals which does not
often includes profit as well as revenue making. The main advantage of it is the owners
of the corporation are only accountable or liable for the sum of the amount that they
already have invested in the company by buying of the shares so it can be known as that
company has the limited liability. Whereas, setting up of the company is very difficult
method. It requires lots of legal paper work in order to set up a company. The owners
requires to have lots of various permissions as well as from the several legal authorities.
How they could measure the competitiveness of the market structure?
Market structure refers to the how several businesses sector that are categorised and
distinguished that is actually based on their level as well as the degree of the rivalry for the
products and services. It is belongs to the various aspects that involves the nature and behaviour

that results in organisations working in a particular market area (AYALEW, and XIANZHI,
2017).
In order to reduce the competitiveness of the company, management can utilise the
Porter's 5 forces framework in accordance get an edge over the various competitors of the firm.
So in order to do that one of the factor of this framework like competition rivalry and threat of
new entrants can be evaluated which is described below:
 Competition Rivalry – It refers to the threat to the organisation that is given by the
several competitors as they are also offering the same goods and the services. It assists in
evaluating on how possibly for new rivals in order to work in competitive market area.
Management of the respective company can measure their competitiveness with the help
of this factor as it is very high in this product segment as there are various of firms that
are offering the mobile phones in the same market area but with the utilisation of the
perfect competition structure there can be barriers in the entry and exit of the companies
so this can be the reason for their entry in that particular market (Usunier, 2018)\.
 Threat of new entrants – This factor analyses on how big the competition of the
organisation is in the market area. It believes that the number of current rivals and what
each one can perform. Competition in the market is known to be high if there are low
number of organisations offering the similar products or services at the time when the
sector is enhancing and when the customers can conveniently switch from one brand or
another in search of lower price in order to satisfy their needs and wants. As this is a very
common product which the company is offering so the threat of new entrants is measures
to be high because it requires low investment and with the utilisation of the perfect
competition there are no barriers in the entry and exit also so anyone can enter into this
market segment offering similar products.
CONCLUSION
From the above article it has been concluded that global business environment plays a
very important role not only in developing the economic conditions of the country but also help
in expanding the business in the different countries. After the arisen of COVID 19 the business
industries of UK has been affected in a very bad manner. This report concluded the following

sector like emerging and struggling sector has been been affected by the pandemic and
appropriate legal structure for the business at this situation. After word this report concluded the
porter's five model which help the company in analysing the competitive environment.
REFERENCES
Books and Journals
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
Brenkert, G.G., 2019. Mind the gap! The challenges and limits of (Global) business ethics.
Journal of Business Ethics, 155(4), pp.917-930.
Usunier, J.C., 2018. Intercultural Business Negotiations: Deal-making Or Relationship
Building?. Routledge.
Chygryn, O., Lyulyov, O., Pimonenko, T. and Myronenko, N., 2021. Key indicators of green
competitiveness: the EU and Ukraine’s performance. In E3S Web of Conferences (Vol.
307). EDP Sciences.
AYALEW, M.M. and XIANZHI, Z., 2017. COMPETITIVENESS CONDITION, MARKET
POWER AND DRIVERS OF COMPETITION OF BANKS IN ETHIOPIA. CLEAR
International Journal of Research in Commerce & Management, 8(12).
Poberezhna, Z.M., 2019. The business model of airline company as an instrument to ensure its
competitiveness in the market of aviation services. Business Inform, (7), pp.190-197.