Business and Business Environment: Analysis of JD Sports and Interrelation of Organizational Functions

This report analyzes the business environment and organizational functions of JD Sports, a sport item selling business, and provides insights into different forms of organizations, market size, and growth of the international business environment. It also discusses the interrelation of organizational functions and critical impact analysis for a range of business structures.

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
PART A...........................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Introduction to sub sectors and different forms of organizations in the industry, market size,
and growth of the international business environment-...............................................................3
2. Factsheet for a selected sub sector organization-.....................................................................4
4. Conclusion based on critical impact analysis for range of business structures and
interrelationship between internal departments to fulfil business objectives-.............................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

PART A
INTRODUCTION
Business refers to the course of actions which is intended to sell out something for some
consideration. With the progress of time, the business has taken different shapes due to
prevalence of business environment. The report is intended to discuss range of those business
environmental factors which bring differences to the organizational practises (Ganushchak-
Efimenko, Shcherbak and Nifatova, 2018). Then a fact sheet is also supposed to be presented for
JD sports which is engaged in sport items making business. The report will be discussing
different internal department of the organization and their role in making it fostered. So some
fully-fledged insights would be extended in order to bring better understanding to the entity.
MAIN BODY
1. Introduction to sub sectors and different forms of organizations in the industry, market size,
and growth of the international business environment-
There is wide constellation of such organizational types which are operating there in the
market. Some key types are as which are working in the sport industry-
Public organization= The organizations where governments keeps more than 51% shares, is
known as public organization. In short the owners of such entities are public. In UK the
Company act 2006 is empowering such entities for being stabilised. Such organization keeps
their different existence (Strutynska, et. al. 2019)
Private organization= The formulation of such organization is also being done by company act
2006. But in this case ownership is held by private stakeholders rather than state or government.
Along with ownership such organizations are having some restrictions imposed by the law.
Voluntary organization= These types of organizations are being operated for non-profit making
aims. Mainly runs by some charity groups or philanthropists. These are also known as NGOs,
Non-profit making organization etc. Legally they are having their existence and are governed by
some laws.
In the Sports industry of UK there are enormous number of organizations are working. The size
of economy is around 13.8 billion GBP as per the data of the year 2020. The growth of this

sector is also quite explicit and being hiked with the rate of around 19.2% as per the data of year
2020. The international market is also growing with rapid rate (Kobicheva, and Safonova, 2020)
The international market of sports products is also growing with rapid rate. People are
more likely to invest more in their sport related fashion. It is somehow making a way forward for
such organizations who are string to hike their market diaspora. As a report suggested that the
sport equipment market is estimated to be around 150 billion USD by the year 2023 so the
organization may expect better scenario for its future. whereas the total or overall sport market is
having value of around 388.3 billion USD by the year 2020.
2. Factsheet for a selected sub sector organization-
2.1 Background
JD sports is engaged in sport business in the United Kingdom. The organization is operating its
business with its great prevalence. The headquarter is there in Bury, UK with annual revenue of
around 616.73 crores GBP in the year 2021. The organization came into existence in the year
1981 for serving the clients looking for sports items. At present around 37000 employees are
engaged in different operations (Golubetskaya and Kurlov, 2021)
2.2 Products and service it offers
It is offering range of items such as sports accessories, sport items, fashion items pertaining to
sports, sneakers etc. The organization is rendering great services to its clients by offering
them highly qualitative products and services so can fulfil their requirements. There are
some subsidiaries such as Blacks, Bodytone, Aktiesport etc. which are strengthening it to
serve its customers.
2.3 Size and scope
The organization is having its great size. As form the data of year 2021 it has generated revenues
of around 616.7. The scope of this entity is also quite wider it is running its business in many
nations with more than 3400 stores. The entity is also registered in London stock exchange
which shows its great scope.
2.4 Vision, mission and business objectives
Vision of JD sports it to inspire its customers to have global mind-set when it comes to their
sport related fashions. At the same time, it strives to widen its market diaspora so can serve
more customers with higher satisfaction. The mission is to develop great excellence in the

retail sector. The organizational objective is to go for growth and wants to develop a great
expertise in the market. As the entity is striving for planning for growth which reflects that it
desires to have bigger market share by expansion or impartation of some lucrative policies.
2.5 Legal structure
JP sports came into existence in the year 1981 and it has been incorporated under the company
act. At present it is legally a public organization having company label. The entity is being
regulated under company act 2006.
There are range of legal lines which are to be abided by it being a company. It is following
different rules and regulations. Since the organization is getting operated in multiple nations
so having obligation to comply with them.
2.6 Stakeholders
Stakeholders refer to the participants which share their interest with the organizational
performance. JD sports is operating its business in many nations with its 3400 stores so having
widely prevailing stakeholders. For instance- Government, employees, people engaged with
sports, management, and top most group of decision making are some key stakeholders. The
fund providers are also salient stakeholders. employees may be taken as the foremost
stakeholders since the growing market also tosses the notion that the entity will be offering more
jobs and will pacify the unemployed (Ratten, V., 2020)
3. Interrelation of organization functions
Marketing and sales department work together in business and the role of marketing is to
attract consumer as well a to develop inters in the products. The marketing will ensure that sales
of company increase and customer needs can be meet. There has been interrelation of
marketing functions and other organizational functions as marketing is one of the most important
part of the company and other departments are connected with it. It can be stated that
marketing fictional unit need support by other operational departments of organization so that
it can perform it task easily. Along with this, if company wants to implement the strategy of
marketing plan it will be required finance department, human resource, sales and production in
order to make tactic successful. If marketing team of JD sports wants to offer discount on

percha of the product such as Buy 1 get one free scheme, then head of marketing has to
communicate with finance and production department firstly so to identify if company have
appropriate budget. Moreover, if marketing functions are different and separate from other
entities of business but every department is linked together so to increase the printability of the
company (Taylor and Goodall, 2019). The main objective of marketing department is to increase
the profitability through increasing the sales of the organization. Along with this, finance
department provides right amount of budget to the marketing so that it can implement the
promotional strategy. Production department needs to maintain smooth functioning with
logistics department in order to maintain demand and supply of services. The role of HR is to
make policies that are rested with market trends, target customer and sales. Thus, it can be
stated that all functional unit of the company is interrelated with each other and contribute in
growth of company.
Advantage and disadvantage
Furthermore, the advantage of inter relation is building trust among employees and
smooth flow of communication. Workers have advantage of working together for most of the
hours a day together so they have an opportunity to get along together. It help in creating and
engaging work force and satisfy their needs which motivates them to work together (Fauziah,
and Supriyanti, 2021). In addition to this, effective communication will help in building healthy
relation with their peer which can increase productivity of business by promoting healthy
culture. One of the advantage is each deportment can educate each other regarding their working
process and this helps in understanding things properly. It al helps in increasing managerial
efficiency as workers perform the same work on repeat until they are efficient and it increase
profits. Moreover, it helps company to perform work according to the function and avoiding
duplication of work. However, disadvantages of interrelation is as task is managed by various
functional manager still customer may not get the right status of the product and services
(Ohiomah, Benyoucef and Andreev, 2020). In addition to this, there might be conflicts between
functional manager which may affect the development of products and services. Although
conflict may disturbed the relation of the members of the company and create chaos within. It
can be stated that interrelation between the organizations function may have negative and
positive impact on the structure of company because there are various departments which
depends on each other.

4. Conclusion based on critical impact analysis for range of business structures and
interrelationship between internal departments to fulfil business objectives-
There are multiple structures the business may have, it totally lies in their jurisdiction, aim,
objective, mission to determine the business structure. If discusses some key structures then sole
proprietorship, company, limited liability company, partnership are some significant structures.
Which are prevailing in the market.
The biggest issue with sole proprietorship is about limitation of management skills and
funds which keeps it limited. Whereas partnership is also having issue of funds and sometimes
clash of interest. These limitations give birth to company structure which also got changed with
the progress of time.
If an organization is striving to make its business bigger and working with great
efficiency on wider scale, then the only form which is the most suitable one is company
formation. It not only gives ability to hike funds but may go for limitless expansion in the present
market scenario. So it would be a fair judgement or position to take that the company form is the
best fit for organization to hike its business outcomes.
The position cannot be denied that there will be some internal departments which get
operated to accomplish organizational goals. For instance- Human resource department,
manufacturing department, administrative department, marketing department, finance
department etc. These are somehow very much supportive and are responsible for the
performance of an entity.
PART B : Enclosed in PPT
CONCLUSION
Form the report above it can be twigged that business environment is one of the most
affluent aspect when it comes to performance of an organization. For this aim, the report has
evaluated different such aspects with respect to JD sports which is engaged in sport item selling
business and planning form growth. To ace the aim, a factsheet was prepared citing scope,
objective, background information etc. at the end of this report a critical analysis between
different business structure was also articulated.

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