Business and Business Environment, SWOT and PESTLE Analysis of Sports Direct Retail Industry

This report provides an analysis of different types of business organizations, interrelationship between different departments of Morrison's company, SWOT and PESTLE analysis of UK based sports retail industry, and critical analysis of external and internal factors affecting the business objectives.

Business and Business
environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
MORRISON’S COMPANY FACTSHEET...............................................................................4
INTERRELATIONSHIP BETWEEN DIFFERENT DEPARTMENTS OF MORRISON’S
COMPANY.................................................................................................................................5
IMPACT ANALYSIS OF BUSINESS STRUCTURE IN MORRISON’S COMPANY...........6
CONCLUSION................................................................................................................................6
INTRODUCTION...........................................................................................................................6
MAIN BODY...................................................................................................................................6
SWOT analysis for SPORTS DIRECT retail industry...............................................................7
PESTLE analysis for SPORTS DIRECT retail industry.............................................................7
Critical analysis of external and internal factors affecting the business objectives of SPORTS
DIRECT retail company.............................................................................................................9
The external and internal factors plays an important role in the pricing, development and
selling of the products by SPORTS DIRECT company in various parts of the world...............9
CONCLUSION................................................................................................................................9

INTRODUCTION
There are different types of organizations that operates in the business world with different
objectives to meet with the demands of the consumers. These organizations are public, private
and voluntary in nature dealing with issues of people and providing them with the products of
daily use and other services to support heath care. This report will illustrate the different types of
business organizations their type, scope and size along with their motive and legal structure.
Further the report will highlight the interrelationship between different departments of the
Morrison company in fulfilling the objectives of the company.
MAIN BODY
Different types and purposes of organisations such as public, private and voluntary sectors and
legal structures.
There are different types of organisations that operates in the business world to meet with the
demands of the consumers by providing them with the goods and services.
Public sector- these organisations are owned and operated by government of the company and
deals with providing services to the citizens. There main purpose is to render the best services to
the citizens with proper utilization of available resources and helps in increasing the productivity
of the country. Their source of finance is managed mainly from the taxes and their major
objective is profit based (Moldavanova and Goerdel, 2018). Examples are public transportation
and government schools. the legal structure of public sector follows a hierarchical structure
including government, state, employees along with federal government including the President
following the judicial and legislative branch.
Voluntary sectors- these organisation main purpose is to solve different issues which include
health related issues of women, importance of girl education through which they focus on
creating social impact rather than prioritizing money as their profits (Lough and Tiessen, 2018).
These organisations include charity committees and NGOs who helps in supporting different
groups in the society by solving their problems. The legal structure of charities includes board of
directors.
Private sector- these organisations are operated and owned by individuals and companies and
main focus to make higher profits with earning money which results in the rise in national
economy of the country. There are different entities that forms the private sector which includes
trade unions, large corporations and many other small sized businesses. The legal structure of
private sector includes sole proprietors and partnerships. This sector includes various private
companies such as Morrison’s company.

MORRISON’S COMPANY FACTSHEET
Morrison is a private listed company now but earlier it was public dealing with the food
products starting its business in 1899 with selling of egg and butter stall by adopting the title of
the largest food chain of supermarkets in UK. In 1961 Sir Ken Morrison opens the first
supermarket selling meat, vegetables and other food products. With the further growth of the
company in the market paved way for the company to go public in the 1967. In the year 2004 the
MORRISONS company acquires takeover of Safe way which led to the expansion of company
further by opening 494 supermarkets in different parts of UK. In the year 2021 the company
turned into private owned by Clayton, Dubilier and Rice. The company deals in providing
various food products such as eggs, meat, clothing and books. The size of the Morrison company
is very large including 110,000 employees which helps in serving 11 million customers each
weak (Hughes, Roe and Hocknell, 2021). This has led to increase in the scope of the company to
further expand its boundaries by providing healthy and fresh food to the customers with less
content of salt and sugar to reduce the calorie of the products. The company aims at selling the
safe food products along with low price tags to make it easily affordable by all people. The
company prioritize on becoming more competitive by cutting down the prices of grocery items
so that more customers are attracted in buying the fresh fruits and vegetables. To improve the
supplier services, the company focused on improving on the quality of the meal and made it
easily available to the customers through online orders which helped in building strong
relationship between the suppliers and the consumers. To serve better the Morrison has also
opened convenience stores so that the food easily available to the people and will lead to scaling
for the growth.
The company focuses to increase the profits rates by increasing online orders for food
and cutting down the cost of supplier chain by dropping the option of home deliveries due to
shortage of drivers. The improvement in online services has led to growth by 48%. During the
pandemic the online orders were and home delivery were greatly affected due to the shortage of
labour. To expand its business further the Morrisons have integrated the local communities by
providing them job opportunities and supporting them with food services and making extra
efforts in making the food available for every local people (Upadhyay, Kumar and Akter, 2021).
To become more efficient and successful in competing with the competitors the Morrisons
company is utilizing the digital technology to provide the services to the customers more easily
and emphasizing in customer shopping trips with the help Scan and Go app. The use of
technology has made it easy to communicate with the customers and the employees within the
organisation.
There different types of business structures which includes sole proprietorship, limited and
general partnership.
Morrisons is a private company dealing in retailer industry by selling of fresh grocery and food
products.
The organizational structure of Morrisons is of hierarchical type including the general manager
followed by the assistant manager under which the different departments of grocery, poultry and
customer services followed by the security department. This structural organisation make it easy
to communicate within the different departments. To rebuild the business of the Morrisons
company it had laid out a new and simpler organisational structure to safeguard the interests of
employees and bring improvement for its customers which will reshape the company's finance

structure by providing more job opportunities to the affected employees which will help in
proper growth of the company.
INTERRELATIONSHIP BETWEEN DIFFERENT DEPARTMENTS OF MORRISON’S
COMPANY
To meet with objective of delivering fresh and healthy food to the consumers the
MORRISONS company has various internal departments has a proper strategic management to
continue the business competitively in the market. For abiding by the business strategies the
Morrisons has strong board of executives and HR department to timely change the policies
within the company according to the market trend and makes use of various training programmes
to enhance the working efficiency of the workers to increase production rate. To meet with the
increasing demands of the consumer the company has a well managed finance structure to keep
the prices low and serve the best quality food (Tseng and et.al., 2022). The finance department
helps the marketing department by providing funds for production of large amount of goods and
sets a minimum pricing structure which helps the production department to price the products at
lower rates and attract more customers. The advertising department and promotional activities
helps the marketing department to increase the products' sale by using innovative ideas of
advertising the products. The MORRISON’S faced a cut in the employees number due to very
high confidence when it merged with SAFEWAY due to which it lost many employees which
affected the supplier rate of the company and this makes it very difficult to compete with its
competitors in the market (Claxton and Kent, 2020). This also results in less investment by the
shareholders of the Morrisons company which could be a great disadvantage for the company.
After merging with SAFEWAY the company made very few profits.
ORGANISATIONAL CHART

IMPACT ANALYSIS OF BUSINESS STRUCTURE IN MORRISON’S COMPANY
The company made huge profits before its merge with SAFEWAY where it lost many
employees due to the overconfidence of chief executive. This led to affect the supplier chain and
resulted in the selling and production rate of the company which led to low interest of
shareholders to invest in the company. With new strategies and development plans Morrisons
was able to capture the large market by retaining employees with proper training and guidance
which boosted the supply of products (Jones and Comfort, 2020). The idea of home delivery and
online stores made it very beneficial for the company to improve supplier services and build
strong bond with the customers. The good quality of products attracted more customers for the
company.
CONCLUSION
from the above report it can be concluded the role of different internal departments play in
fulfilling the overall objective of business organisations. There different types of organisations
such as public, private and voluntary sectors which have different aims and strategies to earn
profits in the market.
PART 2
INTRODUCTION
In business world there are different types of business platforms on which the
organizations use various ways and deals with different types of goods to deal with the demands
and needs of the customers. Retail industry deals with goods and services of customers choices
which is provided to them with the help of companies. These products are used by the customers
either for their own personal use or for their families. The sports retail industry deals with
providing sports wear and sports equipments of various categories. The following report will do
the SWOT and PESTLE analysis of UK based sports retail industry along with critical
analysation of both external and internal factors affecting the business objectives.
MAIN BODY
With the improvement in the living standards of people there is an utmost need of young
and elder generation to stay physically and mentally fit while performing various sports activities
and taking part in number of sports events that are being held both nationally and internationally.
Sports Direct is a UK based sports retail industry and it is one of the largest sports retail industry
dealing with wide range of sports wear along with providing fashion and fitness which fits with
the leisure lifestyles of people and many lifestyle facias with many brands.

SWOT analysis for SPORTS DIRECT retail industry
SWOT analysis for SPORTS DIRECT will measure the strength and weaknesses of the industry
along with the position of industry in the market with its competitors.
STRENGHT : the SPORTS DIRECT is considered as the number one sports retailer of UK with
almost 470 stores (Wallis and et.al., 2020). The company has high profits in turnover which
helps to give extra bonuses to the staff and the management system which help s in retaining the
staff with proper growth and development of the company. The online facilities provided by the
company to its customers for 24/7 plays an important role in meeting with all the demands of the
customers on time so the company earns higher profits with proper service facilities which keeps
the customers attracted. Along with this the company has also extended its service to the
customers by home delivery of the products. There are large number of various famous brands
such as Nike, Adidas and Reebok with which the company has its ties thus providing a platform
for the customers to choose from number of brands.
WEAKNESSES: The sport's market of UK is expected to grow by almost 20.9% in coming
years which puts more competition and new tasks for the SPORTS DIRECT company.
Improvement I the lifestyle of people have increased their interests in sports wear to remain
physically fit and with this trend there are many other famous sports retail industry such as JD
Sports which increases the competition for the company and can have result in low market
revenue for the company by losing the number of customers. There is weak bond between the
company and its customers as the company operates under low profits which imposes the doubts
regarding the future profits of the SPORTS DIRECT.
OPPORTUNITIES: With the impact of COVID 19 the Euro Zone of the country is facing
economic recession which provides great opportunity for the company to expand its boundaries
in Eastern and Wester Europe which will increase in the profits of the company by attracting
more customers.
THREATS: The rising cost of the raw materials needed for the sports products is leading to
increase threats for the company as it operates on low margin profits and can put a hindrance in
the growth and market share of the company. Change in the tax policies within the country can
effect the finance structure of the company. With the rise in competition between the sports
retailers there is an adoption of new digital technology. Which can create many technical
problems for the company due to less effective work by the employees in operating the new
technology software's.
PESTLE analysis for SPORTS DIRECT retail industry
PESTLE analysis gives an idea about the factors affecting the SPORTS DIRECT company.
Theses factors consists of various political, economical and other legal factors which plays a
major role in the functioning of the company and affects the customer market of the company in
the regions it is operating.
POLITICAL FACTOR: with the diversification of the business of the SPORTS DIRECT
company in different regions of the world with almost 900 stores worldwide and around 600
operating in UK (Havran, Szabó and Máté, 2021). There are many taxation and laws that are

implemented by various countries such as change in the trade policies and tax policies can affect
the company's growth rate by these new laws. It can result in the high prices of the products due
to high tax rates on the imports and export of the goods and raw materials which directly
increases the prices of the products thus cutting the number of the customer for the company.
The new trade laws imposed by other countries post COVID has affected the company's finance
structure by imposition of various new tax rules in the USA. With the introduction of BREXIT
the SPORTS DIRECT company's goods and consumers both are affected with the high prices of
the products and increase in the taxation of raw materials has affected the consumers perspective
(Orazulike, 2018).
ECONOMIC FACTOR: With the economy recession of the country post COVID has led to
unemployment for many people in the country which has led to drop in the interest of the people
and stakeholders to invest in the company's shares. With the passage of time and improvement in
the economic structure of the country has made it easy for the country to capture more market in
various other countries. This has led to the expansion of the company's boundaries further by
opening new stores in Australia and other Baltic nations with sharing almost 51% in Austria's
SPORTS EYBEL which will lead to great profit for the company and the business will reach
new heights in the market (Fine, A., 2020).
SOCILA FACTOR: The post COVID 19 situations has made people more health conscious and
directed their interest in the sports leisure and fitness activities. There is an increased in the
demand of the population for more sports equipments thus increasing the portfolio for the
SPORTS DIRECT company to diversify its products range. Many entrepreneurs interest is
increasing in the sports wear which is speeding up the growth of SPORTS DIRECT company
and the company's share in the EAB with share of 51% will helps the company in positive
investment by meeting with the changing demands of the consumers.
TECHNOLOGICAL FACTOR: With the advancement in the technology the competition is
increasing among the sports retailer companies in the world. To cope us with the competitors the
SPORTA DIRECT company has made significant investments in technology by partnering with
UXG for two years which will enhance the digital services of the company for its customers
across UK. This step of company will have a positive impact on the portfolio of the company
with providing an approachable retail environment for its customers.
LEGAL FACTORS: Being diversified in its portfolio and operating in different regions the
SPORTS DIRECT have major responsibility to protect the data and information regarding the
policies and future plans of the company from the fraud ism. The company needs to provide full
safety and job security to its employees by seeking employee protection rights. The company has
been in highlight to operate its store during the peak of he COVID which sets a bad reputation

for the company and has resulted in the shortage of the employees due its failed attempt in
following the safety rules for its employees and the guidelines of WHO (Crick and Crick, 2020).
ENVIRONMENTAL FACTOR: With operating in various regions of UK the SPORTS
DIRECT needs to pay much attention to the environment sustainability by taking measures to
reuse and recycle the unused stock of sports wear and reduce the use of harmful chemicals to
keep the environment safe (Oláh and et.al., 2018). The company is trying to maintain
environmental sustainability by using paper bags in most of its stores to reduce the use of plastics
to minimize the carbon foot print in the environment. Many stores of the company has launched
smart meters. This initiative by the company has increased the interests of its consumers as they
are more interested in investing their money in the company which looks forward to maintaining
the environmental sustainability.
Critical analysis of external and internal factors affecting the business objectives of SPORTS
DIRECT retail company
The external and internal factors plays an important role in the pricing, development and selling
of the products by SPORTS DIRECT company in various parts of the world.
The political factor plays an important role in the expanding of the business. With changes made
in trade and tax policies by different governments can directly affect the pricing and market
strategy of the SPORTS DIRECT company by increasing in the prices of the products which
changes the perspective of the customers. To overcome this problem the company should do
proper research of the trade and tax policies before expanding its business in any new region so
that it doesn't have to face any loss in its investments. The changing marketing strategy due to
change in the economic factors such as unemployment and low income of people could directly
impact the business strategies of the SPORTS DIRECT company and before entering any new
market the company should do research to test the stability and the progress of the people. To
increase the business the company should expand its boundaries in Eastern and Wester zone of
EUROPE where there is stability in the economy (Lin, 2018). To compete with the stiff
competitors such as JD sports the SPORTS DIRECT should involve more innovative technology
used to increase the product rates and number of customers in the market. The customers service
can be improved by more involvement of online services and improving the quality of the
products. To strengthen the relationship with the employees the company should increase the
wages of the employees and given more opportunities to the to implement their ideas which will
to retention of the employees in the company. Since the company makes higher profits in
revenue it should focus on improving its infrastructure and should seek to ensure the safety of its
employees which will bring improvement in the customer services and the product quality by the
skilled workers within the company.
CONCLUSION
From the above report it can be concluded that retail industry plays an important part in the
business world by providing the goods and services to the consumers according their needs. The
sports retail plays an important role in meeting with demands of leisure activities by keeping
them physically and mentally.

REFERENCES
Books and journals
Claxton, S. and Kent, A., 2020. The management of sustainable fashion design strategies: An
analysis of the designer’s role. Journal of Cleaner Production. 268. p.122112.
Crick, J.M. and Crick, D., 2020. Coopetition and COVID-19: Collaborative business-to-business
marketing strategies in a pandemic crisis. Industrial Marketing Management. 88.
pp.206-213.
Fine, A., 2020. Assimilating to Art-Religion: Jewish Secularity and Edgar Zilsel’s Geniereligion
(1918). Yale Journal of Music & Religion. 6(2). p.2.
Havran, Z., Szabó, Á. and Máté, T., 2021. Sport and development in Hungary and the Central
and Eastern European region. Sport and Development in Emerging Nations. p.58.
Hughes, A., Roe, E. and Hocknell, S., 2021. Food supply chains and the antimicrobial resistance
challenge: on the framing, accomplishments and limitations of corporate
responsibility. Environment and Planning A: Economy and Space. 53(6). pp.1373-1390.
Jones, P. and Comfort, D., 2020. A commentary on the United Kingdom's leading food retailers'
resilience plans in the face of climate change. Journal of Public Affairs. 20(2). p.e2047.
Lin, T.C., 2018. Incorporating social activism. BUL Rev. 98. p.1535.
Lough, B.J. and Tiessen, R., 2018. How do international volunteering characteristics influence
outcomes? Perspectives from partner organizations. Voluntas: International Journal of
Voluntary and Nonprofit Organizations. 29(1). pp.104-118.
Moldavanova, A. and Goerdel, H.T., 2018. Understanding the puzzle of organizational
sustainability: Toward a conceptual framework of organizational social connectedness
and sustainability. Public Management Review. 20(1). pp.55-81.
Oláh and et.al., 2018. Achieving sustainable e-commerce in environmental, social and economic
dimensions by taking possible trade-offs. Sustainability. 11(1). p.89.
Orazulike, U., 2018. Post-Brexit threats to work safety and health standards and good working
conditions in the UK. Psychosociological Issues in Human Resource Management. 6(1).
pp.63-95.
Tseng and et.al., 2022. Assessing the sustainable food system in Thailand under uncertainties:
Governance, distribution and storage drive technological innovation. Journal of
Industrial and Production Engineering, 39(1). pp.1-18.
Upadhyay, A., Kumar, A. and Akter, S., 2021. An analysis of UK retailers’ initiatives towards
circular economy transition and policy-driven directions. Clean Technologies and
Environmental Policy. pp.1-9.
Wallis and et.al., 2020. ‘Just want to surf, make boards and party’: how do we identify lifestyle
entrepreneurs within the lifestyle sports industry?. International Entrepreneurship and
Management Journal. 16(3). pp.917-934.
ONLINE REFERNCE

Organisational chart, 2022[Online].Accessed through<https://www.edrawsoft.com/why-use-
orgchart.html>