Watches of Switzerland: Macro-Environmental Challenges & Planning

This briefing note analyzes the macro-environmental changes impacting Watches of Switzerland over the next 12-24 months, focusing on factors for long-term planning. It outlines the methodology used, including tools, models, and evaluation techniques. The report identifies inflation, GDP, and supply and demand as the top three major macro-environmental issues, ranking them by urgency. It provides critical discussion points for the board of directors, highlighting the potential impact of these factors on the company's profitability, market share, and overall growth in the competitive luxury watch market. The analysis considers political, economic, and social dimensions, emphasizing the need for strategic awareness and responsiveness to maintain a competitive edge. Resources and evidence used are cited to support the arguments presented.

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
Department Rec/Find No: Business Planning &
Intelligence
Division/District Global
STUDENT NAME
STUDENT I.D. Number
File Ref No: 1/3

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)

1. BACK GROUND
Global business environment encompasses key factors that directly impact on success
and growth of companies. The current assignment will be based on Watches of Switzerland,
which falls under the category of FTSE listed companies. It operates under Luxury Watch
market, where several changes emerged in the recent time. Technology change is the biggest
factor that drive the attention of chosen organization towards success and excellent progress. It
contributes to grow any venture rapidly and productively. The study will explain key challenges
and critical discussion based on international macro environmental forces, which selected firm
directors take into their considerations.
2. Key issues
Challenges Rank to each issue
Inflation Critical
GDP Urgent
Supply and demand Routine
3. Critical discussion point based on global macro environmental factors
From above discussion it has been deter mind that there are several global business
environment issues on the factors report negative impact on chosen company that operate in
luxury watch market.
Political –
Inflation is one of those three critical factors that may put a direct impact on watches of
Switzerland profitability and productivity as well as market share (Kleinhans and LaTour, 2021).
It may lead to decrease number of customers purchasing and profit margin of brand. This factor
may affect negatively upon company success and growth in competitive business environment,
where different organizations are operating and effort to be competitive for longer.
Economic factor-
In today’s era global economic growth level may decrease as people are unable to find
out and work as an employee in a many companies COVID-19 may lead to decrease
employment ratio and increase the same beyond expectation. Without having job people are

unable to buy expensive and expensive products they attempt to fulfil their needs by using local
items which may put negative impact on their health but important to utilize. When economic
growth is rapidly increasing it may put positive impact on progress of company as well in terms
of increasing profit margin in generating revenue even better than last few months or years.
Social-
The supply and demand is also included in a factors of global business environment that
may put negative impact on watches of Switzerland because due to unemployment people are
unable to make a demand of stylish trendy and latest watches. They prefer to buy local watch or
use mobile phones to see the timing. Decreasing number of demand, may lead to decrease
amount of supply of products that are chosen company methods to provide to its target market
according to their needs requirements and expectations.
It is quite important for the directors of organization to be aware of going forward
because they have to consider each factor on the issue in prescribed manner which may give
them idea about how to perform and respond to each. Without considering this and other factors
it is not possible for the directors or a management to grow business and lead in the market
because the analysis of global business environment may give them a chance to become a
competitive brand which is not that easy for any company to do so.
4. Resources & Evidence Used in the Completion of the Briefing Note
Aw, E.C.X and et.al., 2021. Go loud or go home? How power distance belief influences the
effect of brand prominence on luxury goods purchase intention. Journal of Retailing and
Consumer Services. 58. p.102288.
Kleinhans, J. and LaTour, K.A., 2021. Underpricing Luxury: When a Lower Price Results in
Higher Reputation. Cornell Hospitality Quarterly. p.19389655211042874.

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Senior Manager
Business Planning
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