Executive brief

Executive Brief Name Institution Instructor Course Date Executive Brief Target Market Economic State Before Ethicon makes any financial decision in a new market, it is critical to understand the target market. Even though there are various markets, the target country is the UK. The UK has a complex economic landscape resulting from fiscal policies, labor market conditions, and inflation. The key economic indicators show the country's economic health and the potential challenges the organization would face if it expanded. One of the indicators that I used in assessing the target market is consumer spending. Consumer spending is weak because the country has inflation and limited discretionary funds (Breinlich et al., 2021). Inflation and economic uncertainty within the country have negatively affected the consumers' confidence, which reduced the overall demand for goods and services The other indicator I used was wage growth. The UK failed to keep pace with inflation, a challenge that has reduced customers' purchasing power and caused stagnant economic activity. The other indicator that I used was interest rates. The UK interest rates are too high, prompting the government to control them since they are reducing borrowing capacity and business investment. The business cycle shows that the target country is recovering slowly despite experiencing economic downturns. For instance, the UK is experiencing supply chain disruptions, inflationary pressures, and slow labor improvements, negatively affecting its growth. Most companies usually face challenges such as high operational costs, regulatory complexities, and decreased consumer purchasing power that have affected their impact on market entry strategies. However, despite these challenges, the company should still invest in the market since it offers essential goods and services for business expansion. Since the current economic conditions can threaten the company's success, the company needs to structure a strategy that will work carefully. Companies should also invest in automating their systems to address the persisting labor shortages. Companies should also prioritize localized production and sourcing strategies. This process could help them to shield themselves from the effects of global supply chain disruptions. Even though borrowing costs and ...