1.

Background
The existence of COVID-19 caused left many businesses wrecked including
the watch industry. The global luxury watch market was valued at 23.623
billion USD in 2020. The market registered a CAGR of 3.25% during the
forecast period, 2021-2026. With the COVID19 affecting the Americas among
other nations in Asia and Europe, the major consumers of luxury watches,
and the market has experienced a fall in demand and slow growth due to
restrictions imposed and halting the movement of people. The Swiss watch
shipment for 2020 fell by 22% in value term while it experienced a decline of
33% voluminous (Luxury Watch Market - Growth, Trends, COVID-19 Impact,
and Forecasts (2021 - 2026), 2021).
2. Methodology
This reports is based on qualitative methodology literature. The report
engages business magazines, government reports, and corporate report.
3. Key issues
a. Geo political stability issues
b. Drop in exports and sales
c. Environmental Issues
4. Global Macro-Environmental Factors Critical Discussion Point

Global-macro environmental factors are external factors from the host or

home country that impact firms profitability and operation. For firms to survive
and strategically place themselves for lucrative business, they must cogitate
these factors. Such include politics, sociocultural prospects, economic factors,
technology, and environmental factors.
Political Factors
Government regulations and deregulations seem to impact Swiss watches
profoundly. The current Brexit by U.K. is likely to result to trade repercussions
due to induced tax in borders. Switzerland has good record of adhering to
international trade treaties which favour the organisation. The country has
political stability which has favoured the growth of Swiss watch company.
Economic Factors
Work force productivity has grown in some regions such as the U.S. by 30%
over the last three decades. The republican government of Switzerland has a
tax break culture which increased deficit and can lead to fiscal challenges in
the economy.
Sociocultural Perspective
The attitude towards watch wearing is diminishing following the emergence of
phones with watches and calendar. However, some communities prefer watch
wearing to men than to women. However, there are those people who hate
watches based on their weight, appearance, or seem boggling their wrists.
Technology Factors
The watch industry is at the verge of fading technology based on the
emerging technology that has included time in every gadget (Matsangou,
2015). The company should assess the level of internet penetration and use it
to develop their products.
Legal Factors
Judiciary independence in the matters of business and commerce depict
relations of business and government. Switzerland has open business
registration terms that do not expose conflict of interest between proprietary
technology and public interest.
Environmental Factors
Globally efforts are made for environmental conservation following the rising
carbon footage. Such efforts triggered the current Glasgow meeting that saw
global leaders convene for talks to curb the effect of climate change. Among
the discussed issue was the issue of pollution fuelled by the developed
nations. Developed nations were categorised as contributing to almost 80% of
pollution with the recipient nations feeling the profound impacts only
contributing 4% of carbon emissions (Bishop, 2021). This information
significantly impacts Swiss watches based on the material used to
manufacture watches, and disposal issues (Bishop, 2021). The subject of
sustainability portrays difficulties and even a taboo in the luxurious watch
industry. Swiss watches are made of metal which is a non-renewable product.
Metal extraction require high amounts of energy metal mining presents
challenges as it leaves enormous pits which portray danger during rainy
seasons. While mining can lead to water scarcity, the toxic substances cause
significant destruction to ecosystem. In addition, it exposes mercury to fresh
 water bodies leading a drop in fishes such as dolphins and impacting the
growth development of individuals worldwide.

5. Resources & Evidence Used in the Completion of the Briefing Note

(Reference List in Harvard Format)

Bishop, C. (2021) Sustainability in the Swiss Watch Industry: Part 1 – Mining

and Materials | Swisswatches Magazine, Swisswatches Magazine. Available
at: https://swisswatches-magazine.com/blog/sustainability-in-the-swiss-watch-
industry-part-1-mining-and-materials/ (Accessed: 15 November 2021).
Luxury Watch Market - Growth, Trends, COVID-19 Impact, and Forecasts
(2021 - 2026) (2021) GlobeNewswire News Room. Available at:
https://www.globenewswire.com/news-
release/2021/05/03/2221474/0/en/Luxury-Watch-Market-Growth-Trends-
COVID-19-Impact-and-Forecasts-2021-2026.html (Accessed: 15 November
2021).
Matsangou, E. (2015) Technology enhances the Swiss watch
industry, Europeanceo.com. Available at:
https://www.europeanceo.com/lifestyle/technology-enhances-the-swiss-
watch-industry/ (Accessed: 15 November 2021).