Analyzing Global Macro Factors Impacting Watches of Switzerland

This report examines the global business environment impacting Watches of Switzerland, a British retailer of Swiss watches. It identifies key issues such as weak demand despite export growth, high competition from smartwatches, and fluctuating political uncertainty, particularly due to Brexit. The analysis focuses on global macro environmental factors, including supply and demand, inflation, exchange rates, demographics, and environmental considerations. The report highlights how Brexit has led to increased inflation and political instability, affecting the company's exports and overall financial position. The Coronavirus pandemic has further exacerbated these challenges by disrupting supply chains and decreasing market share. While acknowledging these adverse effects, the report also notes potential positive impacts, such as opportunities for expansion in politically and economically stable regions and cost reduction strategies through strategic production locations. Desklib offers students access to similar reports and solved assignments for further study.

GLOBAL BUSINESS
ENVIRONEMNT

Table of Contents
BACKGROUND.........................................................................................................................2
METHODOLOGY......................................................................................................................3
KEY ISSUES...............................................................................................................................3
GLOBAL MACRO ENVIRONMENTAL FACTORS...............................................................3
REFERENCES................................................................................................................................1

BACKGROUND
Watches of Switzerland is British retailer of Swiss watches. It was founded in 1924. Its
headquarters are situated in UK. It has over 16 stores that are located in UK. It is a company that
has been listed on the London Stock Exchange and FTSE.
The report shows the key issues faced by the company and the global macro factors
affecting the company.
METHODOLOGY
The present research has been done using the secondary research method. Where data for
the research has been procured through the data which already exist. With the use of secondary
research it increases the overall effectiveness of the research.

KEY ISSUES
The key issues that are faced by the Watches of Switzerland company are
1. Exports are growing but the demand for watches is still weak:
2. High competition faced by the smart watches:.
3. Fluctuating political uncertainty:
GLOBAL MACRO ENVIRONMENTAL FACTORS
There are various global macro environmental factors that has affected the watch
industry adversely (Kern, 2017). Factors like supply and demand, inflation, exchange
rates, demographics factors, environmental factors majorly influence the watch business
worldwide. With the situation prevailing in the market due to the Brexit has led to rise in
the inflation which has resulted in recession, that means higher unemployment that
results in decrease in the demand of luxury watches as people will want to fulfil their
standard need first. With the decision of UK to leave the European Union has led to
political uncertainty. The Brexit has affected the company as with the restriction on free
movement of goods and people. It has led to increase in the exports but not in demand for
the watches as it has made the economy unstable and rise in inflation has lower the
demands for watches. Also, with the spreading of Coronavirus it has led to decline in the
world economy that there has been reduction in the supply and demand chain of the
watch industry. Also, it has affected the share market of the company (Suhariyanto,
2021). That is the share price of the company has been decreased as the profits of the
company are being decreased. It has affected the financial position of the company. And
all these factors have affected the performance of the company as with the decline in the
demand for its watches it has affected the productivity of the company affecting the
growth of the company.
However it can be critically analysed that there are various global factors that
affect the watch industry in a positive way also (Getz, 2017). That is economies which
are politically and economically stable will help the company in increasing its business
overseas and will result in higher sales of the company. Also, it will increase the market
share of the company globally that will have a positive impact on the share price of the
company. It will also be able to provide its shareholders with higher dividend as they will
earn higher profits. Also, it will be able to increase its revenue by reducing its cost of

production that is by establishing production units in countries which have low inflation
rate and higher employment rate so that labour can be available at cheaper rate will help
in reducing the cost of production thus, increasing the volume of profits and leading the
company towards success.

REFERENCES
Books and journals
Suhariyanto, J., Nurwulandari, A. and Adnyana, M., 2021. Analysis of Factors Affecting
Consumer Behavior to Watch Kick Andy Program at Grand Studio Metro TV Kedoya,
West Jakarta. ENDLESS: International Journal of Future Studies. 4(2). pp.43-56.
Getz, K.A. and Campo, R.A., 2017. Trial watch: trends in clinical trial design
complexity. Nature Reviews Drug Discovery. 16(5). pp.307-308.
Kern, G.A., 2017. Engineering the Intangible: Strategic Success Factors in the Luxury Watch
Industry. In Evolving Business Models (pp. 153-180). Springer, Cham.
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