Report on Macro-Environmental Factors Impacting Watches of Switzerland

This report analyzes the macro-environmental changes impacting Watches of Switzerland over the next 12-24 months, focusing on factors that need to be incorporated into long-term planning. It outlines the methodology used, including secondary data collection and PESTLE analysis, to identify the top three major macro-environmental issues: the shift towards online business, changes in demand and supply, and global economic growth. The report discusses critical points for the board of directors, emphasizing the importance of political stability, economic fluctuations, social needs, technological advancements, legal compliance, and environmental sustainability. It recommends monitoring political stability, offering innovative products to attract customers, and complying with sustainability acts to improve brand image. The analysis uses resources and evidence from books, journals, and online sources to support its findings.

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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
To set contextual background for why the report is required, to outline how the report
was constructed and what tools, models and evaluation were applied, to identify the top
3 major macro-environmental issues that will impact upon the organization, rank the
issues in terms of urgency, provide critical discussion points for the board of directors
and list the sources used to evidence the argument.
Urgency
Rank the key issues as:
Critical (major or significant organizational risk because of no action)
Urgent (compelling or requiring immediate action or attention)
Routine (action required within next 3-6 months)
Department Rec/Find No: Business Planning &
Intelligence
Division/District Global
STUDENT NAME
STUDENT I.D. Number
File Ref No: 1/3

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Background
The chosen firm for this report is Watches of Switzerland which is deal at global level and
the firm offer the products at high cost. UK is also consider the 5th largest market on the global
basis for Swiss luxury watch export but due to pandemic, the market is slower and this in turn
affect the exporting of a company in negative manner (Watches in Great Britain 2013-2020,
2020). It has been analyzed that there is £2.2 billion sales identified within retail sales and this
increases as shown in the below graph (Luxury watch market value worldwide 2018-2025, 2020).
Figure 1:Statista.com (2021).
Methodology
For the present study, only secondary data has been used in order to collect relevant
information. Also, official sites have been used in order to collect the details about the watches
for the current study.
Key issues
There has been a major down identified after Covid-19 which affect the sales of a company by
25%. Thus, different issues related to the same are as mentioned below:
a) Shift towards online business
b) Changes in demand and supply
c) Global economic growth
Global Macro-Environmental Factors Critical Discussion Point
By using Pestle analysis, the factors can be consider that helps to determine how it affect the
business environment:
Political: There is a need to have a government stability that helps to generate the best
outcomes. However, post- pandemic affects the entire trade in negative manner that affect the
business in negative manner. Also, the tax policies of a countries and competition regulation also
affect the business in negative manner (Phan, 2021). That is why, it is to be recommended to
monitor the political stability before making any decision.

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Economic: It is deal with the economic environment of a country that affect the entire
operations of Watches of Switzerland into negative manner. As company deal at global level,
that is why, there is a need to identify the fluctuation in demand because after pandemic
customer did not spend amount which in turn affect the business performance due to decrease in
demand. further, the economic growth rate of UK also decline during 2020 which affect the
customer’s demand. That is why, it is to be suggested to offer innovative products that helps to
attract range of customers towards it.
Social: By analyzing the demand of customers, company must implement the product
that helps to meet the social needs of a company. Also, it increases the performance by
enhancing the demand for watches.
Technological: With the changing era, there is increase in online shopping that
contribute to increase the growth of a firm. Similarly, Watches of Switzerland also start offering
online products with different discounts so that it creates a positive impact over the business
performance (Dalirazar and Sabzi, 2020). Therefore, by analyzing the need of customer and offer
product accordingly assist to generate the best outcomes.
Legal: The factor deals with the laws and when the company operate at different country,
it is necessary to ensure that all the necessary legislation like employment act, equal opportunity
act must be complied that helps to generate the best outcomes.
Environmental: Complying with sustainability act also assists to generate the best
outcomes. In that, there is a need to use material which does not cause any negative impact over
environment (Kordana and Słyś, 2020). This in turn recognized as a key factor that need to be
consider by Watches of Switzerland to improve the brand image.

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Resources & Evidence Used in the Completion of the Briefing Note (Reference List in
Harvard Format)
Books and Journals
Dalirazar, S. and Sabzi, Z., 2020. Strategic analysis of barriers and solutions to development of
sustainable buildings using PESTLE technique. International Journal of Construction
Management, pp.1-30.
Kordana, S. and Słyś, D., 2020. An analysis of important issues impacting the development of
stormwater management systems in Poland. Science of The Total Environment. 727.
p.138711.
Phan, S., 2021. The effect of PESTLE factors on development of e-commerce. International
Journal of Data and Network Science. 5(1). pp.37-42.
Online
Luxury watch market value worldwide 2018-2025. 2020. [online] Available at:
<https://www.statista.com/statistics/940452/luxury-watch-market-value-worldwide/>
Watches in Great Britain 2013-2020. 2020. [online] Available at: <
https://www.statista.com/statistics/302963/watches-user-expenditure-in-the-uk/>.

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