Business Environment and Interrelationship between Internal Departments: A Case Study of JD Sports

This report analyzes the business environment and interrelationship between internal departments of JD Sports. It includes a PESTLE and SWOT analysis, sub-sectors, and types of organizations. The report also examines the interrelationship between different internal departments and external factors affecting the company.

Business

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
Interrelationship between the different internal departments.................................................5
PESTLE analysis of JD sports...............................................................................................7
SWOT analysis of JD Sports..................................................................................................8
Interrelationship between external and internal factors.........................................................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11

INTRODUCTION
Business environment comprises all the factors which affect the company’s
operations. The present report will shed a light upon different businesses and factors that
affect business. Study will be based upon JD Sports who want to expand their distribution
channels in e-commerce. The report will describe the sub-sector and different types of
organization run into this. Further, it will present the interrelationship between the
departments along with its pros and cons. Lastly, it will determine the internal and external
environment using effective models to ascertain whether the business will be expand its
channel or not.

Business environment
Sub-sector and different types of organization
Public sector: This sector is controlled by the national and state government where
products and services are offered for the welfare of a society. Such businesses do
not work for money but they tries to meet the demand of a customers.
Market: Public sector is second highest market in the UK because as per the last
year statistic, it has been analysed that there were 5.5 million public sector where
helps to contribute 16.7% approx. in an unemployment (Beretta and Hellweg, 2019).
Growth: The growth rate of this sector is also increases that reflected companies are
transfer their ownership in order to sustain its CSR.
Example: British Petroleum (BP)
•Product and services: It deals with oil and gas, also offer range of services to their
customers without a motive of earning profit.
•Vision: To gain the best competitive environment and improve the financial
performance of a company.
•Mission: To offer best products and services without compromising the quality.
•Business objectives: To increase the financial performance of a company.
•Legal structure: It follows the unitary board structure where only one board is
compromising with other members.
Market: Private sector is highly occupied in UK and there is 5%of the total share in
UK economy where 2 million actively trading companies.
Growth: The growth rate of this sector is continuously increases such that people
invest into this market because it generate money that is essential for survival.
Example: JD Sport
Product and services: It offers all types of fashion products at different locations in
order to sustain the brand image at global level, The product includes sports fashion
like bat, shoes, t-shirts etc.
Vision: Its vision is to become one of the more trusted company in the world and
offers sustainable products that helps to improve the results (Rhéaume and Tremblay,
2020).
Mission: Its mission is to satisfy the need of customer by offering high quality of
products to customers.
Business objectives: Its main objective is to deliver the long term sustainable earning
growth in order to enhance the total shareholder returns (Herzig and et.al., 2021).
Legal structure: It is sole proprietorship because there are different companies who
are work under this and company products.
Stakeholders: There are many stakeholders who actually work with company like
customers, employees, BOD, investors, shareholders.
Private sector: The businesses operating within such
sector offer product for earning money. This in turn
helps to meet the demand of a customers and they
also make innovative products to satisfy the need and
wants of customers. In UK, this sector is highly
occupied and share good contribution to improve the
economy.

Market: The sector did not have a wide market in UK because it only
contribute to £18.2 billion to the UK economy and that is why, there are
currently 166592 organizations registered in 2018 and thousands of people
working in this.
Growth: The growth rate of voluntary sector is not as high as other two
sectors and that is why, it contribute little to the growth of an economy of
UK.
Example: Red Cross
Product and services: It offer emergency services to the people and
provide food whenever required like during emergency etc.
Vision: To prevent and alleviate human who are suffering from an
emergency.
Mission: To become one of the biggest company who can offer the best
products and services to their customers.
Business objectives: its main purpose is to protect the life and health of the
people in order to ensure respect for human being.
Legal structure: Its legal structure is sole proprietorship where business is
handled by one person (Valdes, 2021).
Stakeholders: The key stakeholders are customers, employees and
government .
Organization chart
JD Sports uses pyramid organization structure where company
has a top level where company follows the descending level of an
organization in order to meet the defined aim of a company. This is also
known as hierarchical organization structure where company delegate the
roles and responsibility to each individual and they also report to their
respective managers in order to generate best effective outcomes
(Bertacchini, Dalle Nogare and Scuderi, 2018). The benefits of using this
method is proper flow of communication and assist to meet the defined
aim of a company. However, on the critically note, it has been analysed
that there will be poor flexibility and barrier of communication that assists
to improve the results.
Interrelationship between the different internal departments
There are different organization function and the
interrelationship between the functions are as mentioned
below:
Human resource and Marketing: There is a close
relationship between the functions because HR department
work with all internal department where they hire best
people and build the brand where marketing can deliver the
brand message to employees so that effective results can be
generated.
Voluntary sector: It is the third sector which is not well known
by others and it is refers to the organization whose primary
purpose is to create a social need rather than generating a
profit. Therefore, in the context of Sports industry, it is made
up of inclusive and exclusive clubs which are not work for
profit earning (Airee and et.al., 2020).

Marketing and finance: These are closely related with each other
because promoting the brand message in market assist company to
invest enough money so that effective results can be generated
(Berezney, 2019). Through this, quoted company’s marketing
department needs to be closely work with finance department that
helps to generate effective results. This in turn assist to create positive
impact upon business performance.
Research and development with marketing: There is a close
relationship shared between both department because marketing
manager determine the views of people and explain the same to R&D
so that they can offer the same products in order to satisfy the need of
customers (Meoli and Günzel, 2020). This in turn assists to generate
effective results and working with each other help company to attain
the defined aim.
Finance with operation department: There is a close relationship with such departments because finance department provide information that is
necessary for business to continued with operations of a business. Whereas, operation department oversees the execution of daily task so that business
can run in smooth manner. This in turn assists to generate the effective results to meet the defined aim in near future.

TASK 2
PESTLE analysis of JD sports
Political: This factor is deal with political stability of the country and that is why, it
helps for generating better growth and opportunities which is necessary for the company for
understanding the political stability and then provides further options for growth of JD sports.
Thus, increases in rate of tax may affect the overall performance of an organization and to
overcoming the same, there are need for analyzing the same and offer product at low rate to
increase the overall performance of the sports company.
Economic: This is deal with economic stability of a company whereas inflation rate
of a country also affected the performance of a in adverse manner (Christodoulou and
Cullinane, 2019). Also, due to pandemic companies already losses its brand reputation and
decreases financial performance. So, to remain in competition, there is a need to generate
effective results in order to improve the business performance because people are avoiding
buying much sports equipment in order to avoiding to play outside.
Social: This factor with perception of people & society which might affected the
results of an organization in negative manner. Through, people changed their, so JD sports
should also adopt the same and started offering the same to meet the demand of customers.
That is why, it helps to increases the overall performance of the sportsman and remains in the
competition as well. Moreover, it is the important factors because the sports product is
different from another country and it is the culture issue where people have different choices.
There are some factors that are related to education level of consumers and their lifestyle.
Technological: In the modern era, majority of the businesses are uses advance
technology in order to smoothen the business operations and this in turn helps to create
positive impact (CİHAN, 2020). Moreover, in sports organization there are rapidly change in
the sports equipment so it charges more money to spent. Similarly, the quoted firm needs to
offer online services that helps to create a positive impact and attract range of people towards
it. That is why, it helps to generate effective results for a company as well.
Legal: This factor deals with laws and regulations and while operates business at
different location, there is a need to comply with all the laws for its smooth functioning.
Thus, if JD sports wants to operating in different location, then there is a need to affected

with effective laws and legislation like Equality Act, Unemployment Act etc. There are
different laws that are adopted in UK in order to regulate the sports with rules so that no one
harm for it.
Environment: There are different resources used by the sports organization in order
to make the tools for the sports and that is why government has decided for using the
resources with the sustainability (Duerkop and Huth, 2017). It also affected the environment
so it has necessary to adopt the technologies which are not harm the resources. Global
environment issues are seen that harm the aquatic animals.
SWOT analysis of JD Sports
SWOT analysis is used to determine he internal environment factors that helps to
examine the micro environment factors which are as mentioned below:
Strength: It has a brand value internationally and that is why, company has string
global presence in a market. Further, it has a faithful suppliers that also assist to offer the
products at different locations. Company also have a strong supply chain that helps to reach
wide range of people at global market (SWOT analysis of JD Sports, 2021). This in turn
assists to market explorations where range of products are offered at global level without
compromising the quality of a product. Moreover, it has a brand image at global level
because there are many products which are offered by the company at global level without
affecting the brand image. That is why, the company has a string customer satisfaction level
that contribute to increase the overall performance and assist to generate better outcomes as
well.
Weaknesses: There is no proper finance structure of a company and that is why, it
affect the results in adverse manner (Vlados, 2019). The company also did not have strong
organization structure and that is why, the financial performance of a company is not
effective. In addition to this, it still uses old technology that affect the overall performance of
a company and create negative impact upon business. JD Sports also did not have strong HR
performance and that is why, employees of a company are not managed effectively.

Opportunities: It can establish into new market due to having strong supply chain so
that company can meet the defined aim and sustain the brand image as well. Further, focusing
upon environment also assist them to attract range of people because customers of JD Sports
are also focused upon environment safety measure, so it will be consider a good opportunity
for a business. In addition to this, there is a need to identify the youth trend and then offer the
product accordingly so that it generate the positive outcomes. Complying with advance
technology like robots and offering online products to the company also create an opportunity
to improve the results and generate effective outcomes as well. This in turn contribute to
financial performance and sustain the brand image at global level.
Threats: The seasonal demand of the product consider as a threat for a company and
that is why, company’s performance is affected. Due to changing laws and regulation,
company’s operations affected (Elavarasan and et.al., 2020). Also, quoted business is deal at
different locations and that is why, there is a need to offer product at global level by adhering
the laws. Moreover, fluctuation in the raw material cost also create an issue for the company
because there is no other options rather than accept the flaws. That is why, it affect the
business performance and create negative impact over the business as well.
Interrelationship between external and internal factors
There is a close relation between internal and external factor such that it assist the
company to manage both factors and improve the business performance. Such that the
strength of JD Sports is to have a faithful suppliers and that is why, it helps to deal with
political factors because it assist the company to generate the effective results and create
positive impact (Vardopoulos and et.al., 2021). On the other side, the biggest weaknesses of
the company is using old technology and this is further deal with technological factors. So,
company have to develop ways in order to generate the better outcome and smoothen the
business operations as well. This in turn reflected that there is a close interrelationship
between the external and internal factors that helps to gain the competitive advantage.
In addition to this, the seasonal demand of the company’s product also lead to
consider it a weakness of a firm that affect the business performance. That is why, it can be
stated that there is a need to improve the same because it affect the results in adverse manner
(Casañ, Alier and Llorens, 2021). Along with this, it can be stated that quoted business have a
wrong company culture that affect the business performance and employees of a company are
also not happy and this in turn linked with external factors where customers do not visit store

that lead to decrease the sales of a company. Overall, it can be stated that there is a need to
focus upon the weakness and threat of a company because it affect the results in adverse
manner.
CONCLUSION
By summing up above, it has been concluded that there are three main types of sub-
sector which includes public, private and voluntary. There are many organizations works
under this that helps to generate effective outcomes. Moreover, JD Sports follows pyramid
structure that helps to face complex situation. Further, study concluded the interrelationship
between different departments in order to determine the business objectives. Also, through
PESTLE analysis, it can be concluded that JD Sports should consider all the macro
environment factor that affect business performance. Lastly to determine the internal
environment, SWOT analysis has been used and the interrelationship exhibits that both
factors assists company to meet the defined objectives.

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