Industry Analysis of Admiral Sportswear: Business and the Business Environment

This report provides an industry analysis of Admiral Sportswear, including its background, products and services, size and scope, vision, mission, and business objectives. It also discusses the organizational and legal structure, stakeholder analysis, and interrelation between different departments such as finance and marketing. The report concludes with a discussion on macro and micro environment factors that impact the business.

Pearson BTEC Higher National Diploma in
Business Management
Unit 1 Business and the Business
Environment
Portfolio of Industry Analysis
Factsheets (Part 1)
Environmental Business Audit
Presentation (Part 2)
Name:
ID:
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Table of Content
Part 1: Portfolio
1.0 An introduction to sub-sectors and the different types of
organisation in the industry, the market size and the growth of the
international business environment p
2.0 A factsheet for a selected sub-sector sports company p-p
2.1 Background details of the organisation p
2.2 The products and services it offers p
2.3 The size and scope of the organisation p
2.4 Vision, mission and business objectives p
2.5 The organisational and legal structure p
2.6 Stakeholders’ analysis p
3.0 An organisational functional structure flow chart p
4.0 How internal departments, for example - finance, marketing,
work together to meet business objectives p
5.0 Conclusions p
References p
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1.0 An introduction to sub-sectors and the different types of
organisation in the industry, the market size and the growth of
the international business environment
Private sector: Private sector organisation are those which are not run by any government
entities. These companies are part of economic system of country and is operated by
individual person and companies with goal of earning profit (Borodai 2017). This
organisation is concerned with increasing marketing share to earn more profit and also to
improve brand image. Example of private sector organisation is Admiral Sportswear.
Purpose: Purpose of private organisation is to increase their sales which helps them to earn
more profit from firm. Admiral Sportswear is providing good quality products to their
customers which helps them to attract more customers towards their brand.
Legal structure: Private sector organisation includes different types of legal structure based
on corporate business structure. It includes following business structure which are as follows:
 Partnership: Partnership refers to a formal agreement between two or more parties
which helps to manage and operate business and also share profit (Chawinga and
Chipeta, 2017). All partners are work for common goals of earning profit and are also
liable for sharing responsibilities, liabilities, profit and losses.
 Sole proprietorship: Sole proprietorship is one of business structure which is run by
a single owner and also pay income tax on profit earned by them. In this structure,
owner is responsible for taking business decision and also for success and failure of
business.
 Corporation: Corporation is an organisation which includes grow of people or
company to authorise single activity. These organisation includes different members
who perform business activities in order to earn profit for business.
Public sector: Public sector organisation are those organisations which is operated by government
and provide their services to people of that country (Davies and Rašković, 2017). This sector of
organisation is managed and operated by government and political parties. These organisations get
funds from different sources like tax, financial transfer and fees. Example of public sector
organisation is BBC.
Purpose: Purpose of public sector organisation is offer different products and service to
citizen of country for their well fare. BBC is public sector organisation which is providing
right information and news to their audience related to education, entertainment.
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Legal structure: There is a specific legal structure of public sector organisation which helps
them to carry out their operation smoothly without any disturbance. BBC is an organisation
which includes interference of central government in their legal structure.
 Local government: Organisation which is adopting local government structure needs
to adopt all rules and regulation developed by local authorities (Gabryelczyk and
Roztocki, 2018). In this types organisation, decision is made by local government
bodies.
 Central government: Business which is considering central government structure is
run and operated by management but ultimate decision and funds can be access by
central government. These organisations provide their services to all citizen of nation.
 State government: Companies which is adopted state government structure can be
considering all rules and regulation made by state government. This organisation is
providing their services to citizen of that states.
Voluntary organisation sector: Voluntary organisation sectors is one which includes
companies whose main goal is to work for social welfare and create social impact instead of
profit. These organisation is working to meet requirement of society as well as people.
Example of voluntary organisation is Oxfam.
Purpose: Voluntary organisation is focusing on resolving issues of society and community.
These organisation is providing products and service in order to meets needs of society.
These organisation is not working for earning profit and is also known as non-profit
organisation.
Legal structure: Legal structure of voluntary organisation includes systematic ways in
which this organisation is run and operated. Legal structure of voluntary organisation is
mentioned below:
 Charity: Voluntary organisation includes this types of business structure which
collect funds for working through charity (Kache and Seuring, 2017). In this
organisation, charity is done by individual on basis of their own will for social
welfare.
 Trust: It is another organisation structure in which trustee of company is contributing
their funds and resources for effective functioning of business. Trustee is a person
who is providing funds to an organisation in order to carry out their task and
activities.
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2.0 A factsheet for a selected sub-sector sports company
2.1 Background details of the organisation
Admiral Sportswear is UK based sportswear brand which is focusing on association of football. It was
introduced by Cook and Hurst in the year 1914. It is providing sport wear to cricket, athletics and
cycling. It is originally created for purpose of undergarment brand in the wear 1914 but later on this
organisation is switching to different sports wear to athletes. There are various team which is
sponsored by Leeds United, England National team, Manchester United and other teams. It is one of
organisation which is providing their products and service in around 45 countries. It also also looking
for purpose of developing network of licensees across different territories as well as market sector. It
encourages different interest parties in order to provide present licensing opportunities. It is one of
recognised brand UK and is a sporting icon of UK.
2.2 The products and services it offers
Product and service offered by Admiral Sportswear is different sport wear to different cricket,
athletics and cycling. It is one of organisation which is ensuring customers will have sportswear
which is providing comfortable wear to customers. This organisation is concerned with needs,
requirement and wants of customers and develop products as per requirement of their customers.
2.3 The size and scope of the organisation
Admiral Sportswear is one of large organisation which is providing their products and
service. It has sponsorship of different team which are playing at national and international
level. It is working in market in order to provide satisfaction to needs and wants of consumer
and also provide growth and success to company. It is adopting different technologies for
production of their products which improve quality of their products and service and also
enhance satisfaction of customers.
2.4 Vision, mission and business objectives
Vision: Vision of Admiral Sportswear is to provide to be most recognised sportswear brand in
world with providing satisfaction to needs and wants of their consumer.
Mission: Mission of Admiral sportswear is to provide comfortable sportswear to their customer in
order to enhance their experience and also provide solution to problems faced by customers related to
sports.
Business objectives: Business objectives of Admiral Sportswear is to provide sportswear
to customers which in turn provide solution to problem faced by companies. It is one of
organisation which has various business opportunity in sports industry.
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2.5 The organisational and legal structure
Admiral Sportswear is one of organisation which is adopting functional organisation
structure as it has different functions in their organisation. There are different division related
to purchase, marketing, finance, human resource and information and technology. Adoption
of this organisation structure provide various benefits to Admiral Sportswear as provide
freedom to different division and also allow them to develop different strategies for different
department. Private sector organisation can adopt sole proprietorship, partnership,
corporation.
2.6 Stakeholders’ analysis
Level of interest
Level of power High Low
High Investors and owners Government and
communities
Low Employees Customers
Stakeholder analysis can be described as a framework which assist in identification of people
that have interest and power in specific power and project in order to manage operation.
There are different types of stakeholders in Admiral Sportswear like government, employees,
customers, investor and many more. Stakeholder analysis of company consist following
which are mentioned below:
High power and high interest: it is category which includes investors and owner as they
have huge power as well as interest in productivity, profit and efficiency is organisation.
Investor and owner of Admiral Sportswear is making different decision for purpose of
improving performance and productivity of company for attainment of business objectives.
High power, Low interest: Government and community members fall in this category as in
context of Admiral Sportswear, government has high power to create impact over business
but does not have much interest in company.
Low power and high interest: Employees fall in this categories as they have low power in
order to management of company but has high interest in decision of company as it create
impact over their work.
Low power and low interest: Customers are another important stakeholder who has low
interest and low power in context of company.
3.0 An organisational functional structure flow chart
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4.0 How internal departments, for example - finance, marketing,
work together to meet business objectives
There is interrelation between different function of organisation as maim aim of these
function and unit is to attain goals and objectives of company on timely basis (Maksimov,
Wang and Luo, 2017). There are different department working in Admiral Sportswear which
helps them to attain their goals. These functions include marketing, human resource,
production, finance, information technology and others. Interrelation of these function with
structure of company helps them to attain their business goals.
Marketing and finance: Marketing is a process which is undertake by an
organisation in order to engage with target audience and also helps to build strong
relationship for capturing values (Metaxas, Chatzoglou and Koulouriotis, 2019). This
functions helps Admiral Sportswear to increasing awareness for products and company and
create influence on customers to buy products of company. Marketing includes different
promotional activities including advertisement, social media marketing, digital marketing,
personal selling and many more. Finance is a function which deals with utilisation of funds in
an organisation effectively. This functions deals is concerned with allocation of capital in a
an organisation. Finance department allocate funds for different activities to be carry out in
business and also prepared budget of company. Marketing activities in order to operates
require funds for which they are depended on finance department.
Finance and human resource: Human resource functions deals with problems of
employees and also ensure smooth payroll of employees. This department ensure
organisation has availability of employees in order to carry out their operation. In order to
provide salary to employees on time, this department require funds. Budget for salary of
employees is decided by finance department and to provide salary, human resource
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departments is to be depended on finance department in an organisation of Admiral
Sportswear.
5.0 Conclusions
From above mentioned project report, it can be concluded that business environment includes
different components which create impact on operation of company. There are two types of
factors which create impact on business including micro environment factors and macro
environment factors. There are different types of business including public sector, private
sector and voluntary organisation. Private sector organisation is those which is operated for
purpose of earning profit whereas public sector organisation is those which is operated by
government for welfare of community. Voluntary organisation is those which is operated for
purpose of development of society and community. These organisation is of different size and
scope. These organisation has different function which is linked with each other’s. For
instance, production and marketing functions are interlinked and finance and human resource
functions are interlinked. Macro environment factors are those which create impact on
performance of business. In order to identify micro environment, business can conduct
SWOT analysis which helps them to identify strength, weakness, opportunity and threat.
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References
Books and Journals
Amankwah-Amoah, J. and Adomako, S., 2019. Big data analytics and business failures in
data-Rich environments: An organizing framework. Computers in Industry, 105,
pp.204-212.
Borodai, V.A., 2017. Innovative technology-a strategic approach to corporate business travel.
In International conference on modern researches in science and technology (pp.
207-212).
Chawinga, W.D. and Chipeta, G.T., 2017. A synergy of knowledge management and
competitive intelligence: A key for competitive advantage in small and medium
business enterprises. Business Information Review, 34(1), pp.25-36.
Davies, H. and Rašković, M., 2017. Understanding a changing China: key issues for
business. Routledge.
Gabryelczyk, R. and Roztocki, N., 2018. Business process management success framework
for transition economies. Information Systems Management, 35(3), pp.234-253.
Kache, F. and Seuring, S., 2017. Challenges and opportunities of digital information at the
intersection of Big Data Analytics and supply chain management. International
journal of operations & production management.
Kasemsap, K., 2018. Advocating electronic business and electronic commerce in the global
marketplace. In Mobile Commerce: Concepts, Methodologies, Tools, and
Applications (pp. 1139-1162). IGI Global.
Keivanpour, S., Ait Kadi, D. and Mascle, C., 2017. End-of-life aircraft treatment in the
context of sustainable development, lean management, and global business.
International Journal of Sustainable Transportation, 11(5), pp.357-380.
Larjovuori, R.L., Bordi, L. and Heikkilä-Tammi, K., 2018, October. Leadership in the digital
business transformation. In Proceedings of the 22nd international academic
mindtrek conference (pp. 212-221).
Linder, M. and Williander, M., 2017. Circular business model innovation: inherent
uncertainties. Business strategy and the environment, 26(2), pp.182-196.
Maksimov, V., Wang, S.L. and Luo, Y., 2017. Reducing poverty in the least developed
countries: The role of small and medium enterprises. Journal of World Business,
52(2), pp.244-257.
Metaxas, I.N., Chatzoglou, P.D. and Koulouriotis, D.E., 2019. Proposing a new modus
operandi for sustainable business excellence: the case of Greek hospitality industry.
Total Quality Management & Business Excellence, 30(5-6), pp.499-524.
Nadanyiova, M. and Das, S., 2020. Millennials as a target segment of socially responsible
communication within the business strategy. Littera Scripta, 13(1), pp.119-134.
Nielsen, S., 2018. Reflections on the applicability of business analytics for management
accounting–and future perspectives for the accountant. Journal of Accounting &
Organizational Change.
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Table of Content
Part 2: Presentation
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This presentation includes identification of positive and negative impact of macro
environment on business operation. It also conducts internal and external analysis of specific
organisation for identification of strength and weakness. Moreover, it consists strength and
weakness of interrelation with external macro factors.
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Political factor: Political factors those which includes interferences of government in
business. This factors includes factors like Brexit, political, instability, changing policies of
government and many more (Nadanyiova and Das, 2020).
 Positive impact of political factors: Due to covid-19 situation, various organisation
is facing difficulty in market which can create impact on their profitability. In order to
overcome of those loss, government is providing support to business in UK.
 Negative impact of political factors: With these changes, business like Admiral
Sportswear has facing various problems in UK.
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Economic factor: It is important for an organisation like Admiral Sportswear to understand
various economic factors like inflation rate, labour market condition, exchange rate and
interest rate which helps them to identify economic environment of country.
Positive impact of economic factors: These skilled employees create opportunity for
Admiral Sportswear as they can get competitive advantage in market and can expand their
business (Nielsen, 2018).
Negative impact of economic factors: With this situation, consumer purchasing power is
also affected. All these situation is also created impact on profit of business of Admiral
Sportswear.
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Social factor: As company is providing their products and service on online platform which
helps them to easily reach to their customers.
Understanding of social factors create opportunity for business as it helps them to develop
effective marketing strategy for company which helps them to get success in specific country.
 Positive impact of social factors: People of UK is increasingly using social media
platform which also create opportunity for Admiral Sportswear as they are using
social media marketing which helps business to influence their customers.
 Negative impact of social factors: This choice create threat for business of Admiral
Sportswear as various business are providing same products like company.
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Technological factor: These technological factors increase cost of company in initial stages
and provide cost benefit to company for long term (Peršič, Markič and Peršič, 2018).
 Positive impact of technological factors: As company is using digital marketing in
order to sell their products to global level. They are using digital assets management
which helps them to manage digital asset of organisation. Admiral Sportswear is
using technology for marketing which increase awareness of their products. This
organisation is also using technology for payment and offering different choices to
their customers like debit card, credit card, Paytm, google pay and many other
options.
 Negative impact of technological factors: Admiral Sportswear has also invested in
various security which helps them to protect their system and personal information of
company and its customer from hackers or third party access (Schaltegger, Burritt and
Petersen, 2017). In order to identify new technologies for business, company needs to
invest huge among on research and development.
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Environmental factor: It is duty of Admiral Sportswear to understand their corporate social
responsibility and also protect environment from carbon emission. Understanding of these
factors are important for Admiral Sportswear as it create opportunity for company which helps
them to create good image in minds of their customers.
 Positive impact of environment factors: In order to overcome these problems,
different companies are contributing with to reduce this emission and Admiral
Sportswear is also contributing for reducing carbon emission as analysing impact of
product.
 Negative impact of environment factors: It can be due to this company is getting
negative response from environment protection groups, media and customers.
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Legal factors: These factors are important to study as it helps them to understand regulatory
environment of market which helps them to careful evaluation.
 Positive impact of Legal factors: There are various consumer protection laws in UK
which is to be considered by Admiral Sportswear that create factors create
opportunity for business as due to regulation company is follow all these rules which
create impact on image of company.
 Negative impact of legal factors: There are different laws and regulation in different
country and as a multinational organisation, Admiral Sportswear needs to considered
rules and regulation of all countries in which they are operating their business.
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It is important for an enterprise to analyse internal capability which helps them in decision making.
Micro and macro environment factors create impact on performance of Admiral Sportswear
(Slagmulder and Devoldere,2018). In order to make effective decision, managers of Admiral
Sportswear can conduct VRIO and SWOT analysis which are as follows:
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External macro environment is those which are present outside business and create negative
impact on operation of business. There are various external macro factors which are
interrelated with strength and weakness. These factors in context of Admiral Sportswear are as
follows:
Political Factors:
Strength: It also provides opportunity for company to increase their profitability.
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Strength: This provide opportunity for business of Admiral Sportswear which helps them to
get advantage in competitive market.
Weakness: With increase competition in market, company is not able to increase prices of
their products due to which profitability of company is decreasing.
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Strength: This allow company to increase their customer base.
Weakness: It also creates threat on company related to consumer data.
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Strength: Company is following all rules related to health and safety in their organisation
which create positive environment in their organisation and increase satisfaction of their
employees.
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