BM461

Global Business Environment

Coursework 2

2a) Newspaper article on consumer confidence

2b) E-mail message regarding a business start-up

Module leader: Dr Hong Bo

Student Name –

Student ID –
Table of Contents
Introduction......................................................................................................................................3

Coursework 2a) - Newspaper article...............................................................................................4

Potential business sector based on Consumer Confidence..........................................................4

Coursework 2b) E-mail message.....................................................................................................5

1. Pros and cons of different legal structures and identifying the best-fitted one.......................5

2. Measuring competitiveness of the market structure................................................................6

Conclusion.......................................................................................................................................7

References........................................................................................................................................8
 Introduction
A detailed evaluation of consumer confidence is conducted in this research depending on the
business world. This will offer some statistical data, consumer confidence, and industry analysis.
The supply-demand relationship will weed out the UK economy's strongest ideas. It will
examine the legal frameworks and analyse the market to come up with a solid idea based on
current perception.
 Coursework 2a) - Newspaper article
Potential business sector based on Consumer Confidence
The UK's economy is being strengthened by Other than apparel, home appliances and
a strong level of consumer confidence in a kitchen appliances, there is a lot of particular
variety of sectors. It is estimated that three retailing in the industry that is making
of the most rapidly growing sectors in this remarkable strides. Currently, the industry is
nation are the retail, automotive, and tourist growing at a pace of more than 40%
industries together. (Panzone, et al, 2021).

Since 2010, the UK's economy has been Product Life Cycle
bolstered by the expansion of all sectors.
When a new brand is being introduced, retail
Despite the Covid-19 pandemic scenario,
companies put in a lot of effort, which
84.8 per cent of individuals in a study had
comes at a high expense. Due to the high
faith in the country's enterprises and
level of competition, this is the case.
industries, according to a press release
(Ehgartner, 2020). Introduction: In the introduction stage the
organisations in the retail sector strives a lot
However, the retail sector, which is
with the huge cost of brand introduction.
properly-suited with technology access
This occurs due to the high competitiveness
without the pandemic's limits, is the most
(Cassell, et al, 2021).
effective.
Growth: The retail sector's expansion
Industrial Structure
pushes the organization to move at full
As of 2021, the UK retail industry will
speed to improve its position. This enables
generate over 7.8 billion pounds in weekly
individuals to engage more often with the
earnings, making it one of the fastest-
organizations.
growing industries in the country. "Tesco,"
"Marks & Spencer," "Dyson," "Sainsbury's," Maturity: At the maturity stage, the retail

and many more companies are involved in business concentrates on the client retention

the business. program, which generates the highest

revenues for the organizations. This
increases the profitability of the whole
industry.
Decline: At this point, organizations begin
to fail in markets where innovation may
provide the greatest returns for the industry.
This is common when new trends develop
(Akram, et al, 2021).
Supply and Demand Factor
There are several supply variables in the
retail business since the manufacturing
industry distributes the majority of its
products to consumers through the retail
industry.
There are several brands and product
suppliers available in the retail industry to
meet the changing needs of the market.
There is a state of equilibrium between the
elements that cause the sector to function
optimally in the economy (Ehgartner, 2020).
FTSE Performance
For example, the retail business has
performed well on the FTSE because the
sector is more concentrated on wealth
maximization and profits maximizing, so
that the stock value may be boosted with the
earnings per share (EPS). In the UK, there is
a great deal of consumer trust, and the
economy is getting more well-equipped as a
result. Among the fastest-growing
businesses in the country are retailing,
automobiles, and tourism (Jin, et al, 2020).
The company's yearly growth rate is 45 per
cent, and the company's P/E value is 26.8x
with a 5.5 percent drop rate (Dolega, et al,
2021).
Consumer Spending
People in the United Kingdom depend
largely on the retail industry to have most of
their everyday necessities. The retail
industry receives a large amount of income
from customers, resulting in a huge flow of
money into the economy of the United
Kingdom.
Investments in the industry have risen as a
result of this development, which is helping
to better equip the sector (Panzone, et al,
2021).
 Coursework 2b) E-mail message
Date- 19-12-2021

Recipient (To) - Mr. C (******@ gmail.com)

Subject- Information needed to establish a new company

Mail Body

Even though companies were severely harmed by the Covid-19 outbreak, the retail sector is
thriving. During the Covid-19 epidemic, you may utilize the following choices to start a retail
shop:

1. Pros and cons of different legal structures and identifying the best-fitted one
Sole-proprietorship: These are businesses with a single owner and no complicated legal
processes, in which the proprietor is solely responsible for all earnings, losses, and risks. This is
an excellent business structure, but the main disadvantages are the boundless responsibility and
enormous pressure (Pantano, et al, 2020).

Partnership: This is a legal structure that is based on more than one owner associated with an
agreement between them to form and maintain a company. This leads to better information
sharing, profit, and responsibility, with the downsides of disputes and instability (Ehgartner,
2020).

Limited Liability Company: This is a company in which the owners share limited
responsibility. It is a hybrid of a partnership and a corporation. LLCs may be created including
one or more people, but the major disadvantage is significant tax complexity (Cassell, et al,
2021).

Corporation: Corporation is a complicated corporate organization with a large number of

owners divided into shareholders and directors, with the process and owners acting separately.
The primary advantages are large capital and simple access to funds, while the disadvantages
include strict formalities and double taxes (Akram, et al, 2021).
 2. Measuring competitiveness of the market structure
The threat of New Entrants: In the retail industry, where the company must be more strategic,
there is a significantly higher threat of new competitors. Because of their many inventive
techniques, new entrants pose a potential threat (Jin, et al, 2020).

Power of Buyers: In the UK market for retailers, buyers have a variety of alternatives with
extremely low switching costs. Customer retention plans must be highly crucial for the company
(Jin, et al, 2020).

Power of Suppliers: Due to the abundance of providers with diverse facilities, competitive
lower prices, and cheap switching costs, the suppliers and vendors have lower power. In this
regard, the company must be casual (Akram, et al, 2021).

The threat of Substitutes: In the retail sector, the organizations have no difficulty with this and
there is no risk of substitutes.

Industrial Rivalry: The retail industry is very competitive, and businesses must be careful of
extreme risks when it comes to pricing, production, and advertising techniques and strategies.
These organizations should put more emphasis on strategy development (Dolega, et al, 2021).

Market Structure

There are four types of markets including perfect competition, monopolistic competition,
oligopoly, and monopoly where the retail market is divided into these four groups. Retail based
in the United Kingdom may be characterized as a market with perfect competition UK retail
market Customers in both urban and rural locations are being targeted by merchants to ensure
that fundamental home needs may be met. Customers have a wide range of choices in the retail
industry, with a wide selection of stores to choose from (Panzone, et al, 2021).

HMRC Import Duties

Retailing enterprises must import or put foreign items in the nation with a 20% VAT on the
import. Importing new items is helping the sector grow. Import tariffs are also paid by the
customers. There has been an increase in the number of firms focusing on low-cost items with
additional features or facilities that are required by customers. Customers will appreciate the
added convenience. Businesses need to focus further on importing low-cost items that can
improve the market with increased technological use (Pantano, et al, 2020).

Thanks

You’re Friend,

Mr D (******@gmail.com)
 Conclusion
The idea of consumer confidence and the industry as a whole has been clarified by this. This
paper also explains why it is important to have a company that is relevant and suitable for the
UK market. Overall, the British business model is explained. It is difficult for retail companies to
get off the ground because of the high costs of the brand launch. This is due to the
aggressiveness in the market.
 References
Akram, U., Fulop, D. U., Tudor, T. D., and Topor, D. I., 2021, Impact of Digitalization on
Customers’ Well-Being in the Pandemic Period: Challenges and Opportunities for the Retail
Industry

Cassell, C., Watson, K., Ford, J., and Kele, J., 2021, "Understanding inclusion in the retail
industry: incorporating the majority perspective", Personnel Review

Dolega, L., Reynolds, J., Singleton, A., and Pavlis, M., 2021, Beyond retail: New ways of
classifying UK shopping and consumption spaces

Ehgartner, U., 2020, The discursive framework of sustainability in UK food policy: the
marginalised environmental dimension, Journal of Environmental Policy & Planning, Vol. 22,
Issue 4, pp. 473-485

Jin, B. E., and Shin, D. C., 2020, Changing the game to compete: Innovations in the fashion
retail industry from the disruptive business model, Vol. 63, Issue 3, pp. 301-311

Pantano, E. , Pizzi, G., and Rogers, A., 2020, Who is interested in retail education? The
(mis)match between the leading universities’ offerings and job demand in UK. International
Journal of Retail and Distribution Management

Pantano, E., Pizzi, G., and Rogers, A., 2021, "Who is interested in retail education? The
(mis)match between the leading universities’ offerings and job demand in the UK", International
Journal of Retail & Distribution Management, Vol. 49, Issue 3, pp. 317-340.

Panzone, L. A., Larcom, S., and She, P.-W., 2021, Estimating the impact of the first COVID-19
lockdown on UK food retailers and the restaurant sector, Global Food Security, Vol. 28

Zhan, Y., Han, R., Tse, M., Ali, M. H., and Hu, J., 2021, A social media analytic framework for
improving operations and service management: A study of the retail pharmacy industry