WoS: Global Economy, Macro-Environmental Changes & Planning

This briefing note, requested by the CEO of Watches of Switzerland, examines the macro-environmental changes in the global economy expected over the next 12-24 months and their impact on the organization's long-term planning. It identifies key issues such as economic recession, low purchasing power, and the pandemic, ranking them in terms of urgency. The report utilizes PESTLE analysis to assess political, technological, social, and economic factors, including inflation and GDP, providing critical discussion points for the board of directors. It emphasizes the need to consider these factors in decision-making to ensure productivity and sustainability. The analysis draws upon various resources, including books and journals, to evidence the argument and provide a comprehensive overview of the challenges and opportunities facing the organization.

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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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1. Background
Global business environment is associated with all external factor operating
in international market which impact on organization practices. Luxury watches trend in
current market has inclined as lifestyle of people has changed as compared to previous.
The global market of luxury watches is growing at CAGR of 2.8%. there are several
changes in this sector due to emergence of several different kinds of features such as
measuring calories, heart beat, etc. Along with higher sustainability & durability. The
current report is based on FTSE listed firm Watches of Switzerland. Present case study
will give emphasis on describing key issues along with ranking. Global
environmental market with help of PESTLE analysis will be emphasized by present
study.
2. Key issues
a) Economic recession
b) Low purchasing power of buyers
c) Pandemic
3. Global Macro-Environmental Factors Critical Discussion Point
PESTLE analysis
Political
There are number of aspects that comprises political stability, tax, tariff, etc rate
that affect both positively & negatively on firm performance (Lea, 2021). The
organization operating in watch industry can get majorly affected from the global
political factors. Its impact can be measured by bench marking technique so that
maximum level of knowledge can be derived through this. It may negatively influence
operational practices of business.
Technological
It is one of the major aspect that need to be taken into consideration while
analyzing factor affecting any particular industry (Esmaeili, 2021). In addition to this,
there is requirement to pay attention on technological factor as in developing features
in Luxury watch sector plays crucial role. Watches of Switzerland need to highlight this
factor to increase productivity & sustainability.
Social
This involves attitude, belief, taste& preferences of customers that has major impact
demand & supply factor (Perera, 2017). Market factor highly get affected from the
social & cultural factor so Watches of Switzerland should include it in decision making
process.
Inflation factor
Inflation is one of the economic factor that has adverse impact on smooth functioning
of country. It becomes essential for the specified organization operating in this particular
industry to pay attention on its. It is one of the major economic factor that directly has
impact on purchasing power of people. Inflation tend to p result in decline in mobility of
funds in market that has influence smooth operational practices (Shatskaya,
Komaristaya and Kafian, 2017). In turn, it results in eliminating purchasing decision
regarding luxury goods that are not part of necessary segment of people. It leads to
result in economic recession of country that has major effect on organizational growth &
development.

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GDP as factor
It is one of the global factor that is required to be highlight while measuring
organizational performance bench marking. GDP factor affect progress of each industry
has influence on all organization operating in this industry (Larsen, 2018). The GDP of
UK is in inclining trend which is positively affecting the particular industry but Pandemic
is major aspect that is affecting free trade and company’s continuing processing
(Tkachev, Kiseleva and Fedyanina, 2021). There is higher requirement to make sure
that GDP play essential role increasing & decreasing productivity of firm. It provides
global insights that whether firm should to be expand operational practices or not.
4. Resources & Evidence Used in the Completion of the Briefing Note
(Reference List in Harvard Format
Books and Journals
Esmaeili, B., 2021. Study of the Relationship Between Inflation and Economic Growth
and Government Spending Using the Soft Transition Regression (STR)
Approach. Quarterly Journal of Economic Growth and Development Research.
Larsen, H., 2018. Brexit and the EU as an international actor. In The Routledge
handbook of the politics of Brexit (pp. 223-232). Routledge.
Lea, R., 2021. The economic background to next week’s MPC meeting: fall in January’s
GDP less-thanexpected. Arbuthnot Banking Group, 15.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Shatskaya, E., Komaristaya, E. and Kafian, K., 2017. The study of the hungarian car
refinish market on the basis of pestle analysis. SCOPE ACADEMIC HOUSE
B&M PUBLISHING, p.54.
Tkachev, V.N., Kiseleva, E.V. and Fedyanina, O.V., 2021. Financial Sector Growth,
Consolidation, and New Technologies Make It a Powerful Actor in Tackling
Global Environmental Challenges. Industry 4.0, pp.375-388.

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