Watches of Switzerland in the Global Business Environment: A Report

This report provides an analysis of the global business environment impacting Watches of Switzerland, a British retailer of luxury watches. It identifies key issues such as inflation, global economic growth (GDP), currency exchange rates, supply and demand elasticity, and firm performance benchmarking. A PESTEL analysis is conducted, examining political, economic, social, technological, environmental, and legal factors that affect the company's operations. The report highlights the importance of adapting to technological advancements, reducing carbon footprint, and complying with legal norms. It also references strategic planning practices and the role of state-owned enterprises in the global business scenario. Desklib provides this document and many other solved assignments to help students with their studies.

Global Business
Environment

Table of Contents
CONTEXTUAL BACKGROUND............................................................................................3
KEY ISSUES LIST....................................................................................................................3
PESTEL ANALYSIS OF WATCHES OF SWITZERLAND...................................................4
REFERENCES...........................................................................................................................5

CONTEXTUAL BACKGROUND
Watches of Switzerland company offers men’s and women’s watches with servicing,
restoration, reproofing, battery change and other services too. It is a British retailer public
limited company which serves customers in United Kingdom and was founded in 1924. It’s
headquarter is in Braunstone England. It is listed on the London stock exchange. It is a multi-
channel that offers classic watches, fashion and jewellery in a partnership with OMEGA,
Rolex, Heuer, Piguet and Audemars .It has stores all over the United Kingdom.
KEY ISSUES LIST
 Inflation –It negatively affects the purchasing power of a currency because it lowers
the opportunities of employment and cost of borrowing.
 Global economic growth (GDP)-it is the annual aggregate production of all goods and
services in a country.It is the total market value of all the finalised products and
services for a particular period of time .The main issue with GDP is that it doesnot
include the economic well-being of the country for example
murders,deforestation,strip mining and terrorism.
 Major currency exchange rates-Currency exchange rate is very important in global
economy as it affects the overall price of country's export and import,merchandise
trade,economic growth and capital flows.A company can avoid the risk by quoting
price in U.S dollars because the burden will be shifted on the end buyer .
 Supply and Demand Elasticity of demand-These two shows the relationship between
price and the number of units demanded or supplied. It is affected by different factors
like time period ,price levels and nature of goods.
 Share price ,dividend performance, Price earnings ratio, market capitalization, cash on
hand and reserves – Any company with major debt issues is at a higher risk if its stock
is over-valued or their investors are expecting high growth rate in future the main
issue is that P/E ratio overlooks assets and liabilities (Reid and Lee, 2018).
 Firm performance benchmarking-plays an essential role in development
process,gaining a new perspective,setting new goals ,improving performance and
productivity. Performance benchmarking consumes a lot of time and budget. So,its
better to add experienced employees rather than benchmarking.

PESTEL ANALYSIS OF WATCHES OF SWITZERLAND
This analysis will helps in making correct decision by looking at different factors which are
explained below-
 Political factor-There are different factors which affect the operations of Watches of
Switzerland as the products are sold globally but its manufacturing is mainly done is
Switzerland so, the policies which are being followed here, matters a lot. Policies of
that particular country is very important for its smooth operations. Economical factor- higher unemployment will affects the income in the economy
which will directly affect the performance of Watches of Switzerland. Social factor-It is also important to look after the economic system of that particular
country which means the country where the main operations are being done should
have a growing GDP so that Watches of Switzerland also grows at a better rate. Technological factor -The technology is ever evolving in luxury watches like earlier
it used to be an analogue phase but now it has shifted to digital ones. It shows each
and every thing like date ,directions,heartbeat,steps and so on. Company also find new
ways to retain existing customers and attract new ones. The advancement in
technology improved the quality,operations and services. Therefore, technology plays
a vital role in organisation. (Xie and Redding, 2018). Environmental factor-The best thing a company do is to reduce its carbon footprint
in this environmentally endangered era. Therefore ,Watches of Switzerland has to
upgrade in opting the new technology which will less impact the environment.
 Legal factor-being a bigger brand,it has to follow legal norms related to
taxes,labour,environment and many more which bends the company towards the legal
formalities, it leads to increases expenses and pressure in its daily operations.

REFERENCES
Books and Journals
Reid, D. and Lee, K. H., 2018. Strategic planning practices in Hong Kong: a cultural
dimension. In Global Business (pp. 238-258). Routledge.
Xie, E. and Redding, K. S., 2018. State-owned enterprises in the contemporary global
business scenario: Introduction. International Journal of Public Sector Management.