Business and Business Environment (Sports Company) - Desklib

This report analyzes the macro and micro business environment of Mitre, a UK-based sports company, using PESTLE and SWOT analysis. It also highlights the interrelationship between internal and external factors and their impact on the decision-making process.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
 PART 2
 introduction
 PESTLE analysis
 Positive and negative impact
 SWOT analysis
 Interrelationship of internal factors with the external factors
 Critical reflection of key finding and how they influence the decision-making process
 CONCLUSION
 REFERENCES

Introduction
 • Positive and negative effect of macro business environment with the help of
pestle analysis will be elaborated.
 • Further, SWOT analysis will be conducted to highlight the internal strengths
and weakness of the chosen organization.
 • Interrelationship between macro and micro environment factors will be
elaborated in detail.
 • At how these factors impact the decision-making process will be depicted.

PESTLE analysis
 A business organization is influenced by the macro environment of
the business.
 Macro environment has significant influence on the business, yet
they are beyond the control of the business.
 Let's analyze 6 important factors such as political, economical,
social, technological legal and environmental of macro environment
which affects the business of Mitre.
 Political factors:
 Mitre has its supply chain internationally which requires it to follow
the taxation system of each country of operation.

Continues
Economic factors:
 • UK is facing high rates of inflation and unemployment which has resulted in
high cost of labors and raw material for the production of sports equipment. It affects
increases cost of end products.
 • Mitre is constantly trying keep the end product at competitive process in the
market yet factors like these are increasing the cost of products.
Social factors:
 • in the modern era sports is not just limited to the curriculum in schools and
university rather it has become a thing of necessity and habit for individuals.
 • Also, sports are directly connected with the health of the people.

Continues
Technological factors:
 Market is flooded with the technological
advancement and adapting. This requires a lot of
efforts and cost on part of the business.
 Such advancement facilitates various aspects such
as online sales, atomization of business process
etc. mitre has adapted various technological
advancements to make the business extremely
efficient.

Continues
Environmental factors:
 Mitre is trying to build a strong brand image in the UK and globally.
 Going green and keeping environmental friendly practices has been the goal of the company.
 It has been adapting various aspects like reducing carbon emission, minimizing production waste, recycling
packing etc. although it has given an edge, it incurs a lot of cost to do the same.
Legal factors:
 mitre has been working since a very long time in the sports industry and over the years it has built a robust
structure in the organization where abiding and complying with the legal policies has been taken care of.
 Yet there are many bodies which requires due compliance from the company. Non-compliance puts some
serious implication on the business of the company.

Positive and negative impact
 • Different macro environment factors has
different influence and impact on the business of
mitre.
 • Political factors have currently negative
impact on the business as there is rise in prices of
the final products due to the trade barriers.
 • It acts unfavorably for the business as
mitre has not been able to thrive on the competitive
edge of the serving goods at competitive prices.
Further economic factors are also acting in negative

SWOT analysis
 SWOT stands for strengths, weakness, opportunity and
threats. The below mentioned table will analyse each aspect
in detail.
strengths
 Mitre has started in 1817 which makes it well experienced
organization having served for more than a century.
 Organization has built a great brand name which gives it
an edge over others in UK market.
 It has a wide product offering which includes sports
equipment of football and other sports.

Continues
Weaknesses
 High cost of maintenance is one of the major weaknesses of Mitre which is making the business
consider various cost-cutting approaches.
 Comparatively, reduced financial results from last 5 years has impacted the business negatively.
As it is getting high revenues yet the debt ratio is very high for the company.
 Company's management regarding various challenging situations has been very typical and
rigid which needs to be improved in order to make the business thrive.
 Poor labour conditions in foreign markets has affected the quality and working conditions of the
factory and manufacturing outlets

Continues
Opportunities
 Although mitre already has presence in the foreign
market, there are still many unexplored international
markets which are very profitable and offering
business opportunity.
 Expanding the product portfolio which can bring
inclusivity and a large customer base for the Mitre can
be the finest opportunities of all for the business.

Continues
Threats
 Heavy presence of counterfeit products in the market is constantly hammering the business
and reachability to the customers and tarnishing the image of the business by fooling customers
with identical products yet poor quality ones.
 High competition in the market, as sports industry is highly competitive and there are so
many brands which offers the same category of products.
 Trade tensions between some countries of operation is creating pressure on business to think
effectively about carrying out the business in foreign land as times have become uncertain
because of economic relationships with the foreign market.

Interrelationship of internal factors with
the external factors
 Internal factors of the organizations are highly influenced
by the external factors as external factors are not under
the control of the business and a business derives its
strengths from what is going on in the market.
 Let's say if economic factors are favourable and
employment rates are high and inflation rates low then
business is going to earn a large amount of profits as cost
of labour and raw material will be low and business will
be able to sell its products at the lowest prices.

Critical reflection of key finding and how
they influence the decision-making process
 Decision-making process of the organization tends to get high influenced by the various
factors such as external and internal.
 There have been various key findings such as the vital aspects of the business in its
external environment and how the external factors which are not in the control of the
business still they influence the business and its decisions.
 Further, the interrelationship between various internal aspects of the business ahas been
identified

Conclusion
 At last macro and micro environment has been analysed using SWOT and pestle
analysis along with this, interrelationship with among these factors has been depicted.
 Business environment is highly influenced by these factors. And there is a significant
dependency in working of these two environments.
 Report has also shown the interrelationship among the in internal and external business
environment along with the key findings and their impact on the decision-making.
 The organization chosen for the study is Mitre which is a UK based sports company
indulged in manufacturing of equipments

References
 Arnott, I., 2022. Sports Management Industry: A Movement of Change in Embedding
Employability. In Employability and Skills Development in the Sports, Events, and Hospitality
Industry (pp. 47-69). IGI Global.
 Gu, Y., The Impact and Restriction of Socio-economic Downturn on the Development of Sports
Industry.
 Jin, X., Wei, S. and Zhang, C., 2021. Research on the reform prospect of blockchain applied to
sports industry. Frontiers in Sport Research. 3(3).
 Keshkar, S. and et.al.,2021. The effects of Coronavirus pandemic on the sports industry: An
update. Annals of Applied Sport Science. 9(1). pp.0-0.