Business and the Business Environment: A Case Study of Admiral Sportswear

This presentation analyzes the internal and external factors affecting Admiral Sportswear, a leading UK brand in the sports retail market. It includes a PESTLE analysis to determine the impact of external factors, a SWOT analysis to explore the organization's internal strengths and weaknesses, and a critical analysis of both. The presentation concludes with recommendations for better performance in the business environment.

PART 2

INTRODUCTION
• Business environment is all about total of all things external
to the company and industries which can impact the overall
functioning and operation of the business.
• Manager of the firm needs to study about the External and
internal business environment and factors which can impact
the operations and functions of business.
• The presentation is based on Admiral Sportswear which is
one of the largest brands in the UK, mostly focused on
association football.

Pestle analysis to determine the impact of
external factor on sports retail market
• Political factors
• These factors play a vital role in determining the factors that can influences company's long-term
profitability in a certain country.
• Changing government regulation is one of the biggest factors which influence business functions.
The politicians and government of UK work in collaboration to devise policies and procedures, the
sportswear retail industry has to obey them.
• A slight change in tax policies, sales taxes, tariffs and other policies can impact company

Cont..
• Social factors
• As people are becoming concern about things they purchase, the social
trends develop the shopping habits of people just because of influencing
power of society.
• The attitude of people may change just because of social factors like
income level, education level, attitude and habits and gender.
• For example- if people are more educated than their choices and
preferences would be different from other people. In such a case, those
people would buy goods of certain multinational brands and luxurious
products with their logo on it.

Cont..
• Legal factors
• Any retail store operates within the legal environment of a country therefore, it is necessary to
follow labour laws, tax laws, consumer protection and other regulations to run business smoothly
without any issues.
• Whenever, a company think about expanding its business at global level then they have to follow
rules and regulation to run business smoothly however it is quite challenging for them as it become
a bit complicated.
• The reason behind focusing on legal factors is that every country has different rules, tariff laws,
trade and copyrights.

‘Traffic light chart’

A SWOT analysis to explore the organisation’s
internal strengths and weaknesses as a company
Strengths
• By identifying strengths of the company, the manager is able
to make sure that it helps in maintaining it in future and don't
ever lose the chances of achieving competitive advantages.
• Admiral sportswear is recognized British football,
sportswear and cricket brand.
• The company offers quality products to its customers as per
their requirements. The firm use technology and focus on
constant evolution based on either new opportunity as well
as insight to attract customers.

Cont..
• Weaknesses-
• New entrants in the market is one of the biggest weakness and challenge faced by company. The firm
has not been able to handle this issue present by the new entry in this sportswear retail segment.
• Due to this the firm has also lost small market share in the niche market which has impacted its
business performance.
• Another weakness is lack of research and development.
• The firm is unable to invest in R&D thus they are not able to compete with the leading new players in
the market who are using R&D in a systematic manner.
• In terms of innovation, the company is looking forward to bring out some goods based on tested
features in the segment.

Cont..
• Threats
• Intense competition is one of the biggest threats for company in the retail sportswear industry.
• This has impacted profitability of the firm and also on overall sales.
• The reason behind that is new players are using new technology and innovative ideas to attract
customers.
• This could be a serious threat to the firm in medium to long term future.
• Another threat which has been identified in this company is changing consumer buying behaviour.

Critical analysis of both the external and internal
factors
• As discussed, internal factors of the company are strengths and weaknesses while on the other side
external factors includes opportunities and threats.
• From the pestle analysis, the company has identified external factors which can impact the business
performance in both negative and positive manner.
• It has been critically evaluated that social factor as external force can influence admiral sportswear in
positive manner. This helps in attracting new customer and gain their attention easily.
• However, it also impacts in negative manner because of ever-changing social trends the people are
moving towards those companies who are providing them quality products at affordable price.

RECOMMENDATIONS
• Admiral Sportswear can analyse the market demand and
supply effectively with the help of advanced technological
tools which are helpful for the company to grow.
• The use of AI and Data Analysis is useful for the business to
grow and achieve better consistency while performing in the
business environment.
• Effective changes can be made in the decision-making process
of the business which can enhance their overall performance
with the help of different aspects which are considered as
necessary for the business to grow.

Cont..
• Admiral Sportswear must provide their workforce with a better environment to focus on
creativity and innovation which can be beneficial for them to build and distribute better
products and services.
• This can be useful for enhancing the satisfaction levels of the customers and meeting their
demands which has a positive influence on the organizational success.
• With the help of this change, the organization may achieve better opportunities and grow in
the competitive business environment significantly.
• This has a better impact on the motivation levels of the employees to contribute with their full
potential towards the organizational success.

CONCLUSION
• It has been concluded from the above report that the business has been able to identify different
internal and external factors which have a significant influence on their business environment.
• These aspects have been evaluated by the business with the help of advanced tools such as SWOT
and PESTLE analysis which is used to understand these factors effectively.
• It has been crucial for the management of the company to develop better strategies with the help
of their environmental analysis.
• These strategies provide them with a better understanding of the different aspects which are crucial
for the engagement of the different tasks which have a positive influence on their performance.

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