Business and the Business Environment in Sports Industry

This report analyses the business environment of sports industry, including industry analysis, internal and external business environment, PESTLE analysis, and SWOT analysis. The report discusses different types of organisations, their functions, and interrelationships between them. It also identifies positive and negative impacts of external factors and influences on the sports retail market.

Business and The Business
Environment in sport industry

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
TASK 1 INDUSTRY ANALYSIS..................................................................................................1
Introduction to sub-sectors and the different types of organisation in the industry, the market
size and the growth of the international business environment...................................................1
Explanation of each of the chosen organisations.........................................................................2
Various business functions in one organisation and create an organisational chart to explore
the interrelationships between the different functions.................................................................4
An analysis of the chosen organisations, using a flowchart to show how internal departments
along with their advantages and disadvantages...........................................................................5
Conclusion...................................................................................................................................6
TASK 2 INTERNAL AND EXTERNAL BUSINESS ENVIRONMENT.....................................6
PESTLE analysis to identify positive and negative impacts of external factors and influences
on the sports retail market............................................................................................................6
PESTLE Analysis........................................................................................................................6
SWOT analysis to explore and explain the organisations’ internal strengths and weaknesses...8
SWOT analysis............................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is undertaken as the various elements such as social, political and so on
which aids to develop the effectual atmosphere. Additionally, it is the amalgamation of
numerous circumstances which maximises into various forms of business and increases the
profitability of business. The aim of this report is to analysis the business environment of sports
industry. For this report, the chosen company is Sports First is one of the leading and nationwide
network of thriving sports outlets. They mainly sell the best brands at reasonable costs.
Moreover, it is independently owned as well as operated through locals who are involved in
rendering its expertise advice, facilities and competitive pricing all over the huge brands in sport.
The topics which are going to be discussed in this report are different kinds of organisation,
description of selected firms, organisational chart and interrelations among different functions.
Additionally, PESTLE analysis along with its strengths and weaknesses and SWOT analysis is
explained. Apart from this, critical analysis of both the external and internal factors is also
performed in this report.
MAIN BODY
TASK 1 INDUSTRY ANALYSIS
Introduction to sub-sectors and the different types of organisation in the industry, the market size
and the growth of the international business environment.
As this has been analysed that the success of organisations is depends on competencies and
experiences by targeted marketplace. Additionally, there are different forms of organisations
within sports industry which are classified depending upon their goals, nature and intent.
Basically, there are three kinds of organisation that are explained below:
Private sector organisation
It plays important role into system of country’s economy. Moreover, this is basically performed
by organisations as well as individuals with clear goals of growing anticipated profits. One of the
best example for this kind of organisation is Sports First is one of the leading and nationwide
network of thriving sports outlets. They mainly sell the best brands at reasonable costs.
Moreover, it is independently owned as well as operated through locals who are involved in
rendering its expertise advice, facilities and competitive pricing all over the huge brands in sport.
Public sector organisation
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It is undertaken as that organisation that is governed by government in order to provide the items
or services for the benefits of communities. Such as Sport England, this is a non departmental
public body within the department for culture, media and sports. Their role is to develop the
foundations of community sport system through performing with national sport governing bodies
as well as other funded partners. Its headquarters is in London, UK.
Voluntary sector organisation
This is undertaken as that organisation which generally receives funds from groups, individuals
and states to act for people advantages rather than shareholders. Moreover, their key aim is to
form social impact without focusing upon profits. Such as Sporting Goods Industry Association
(SGIA) that represents the wholesales, manufacturers and distributors of sporting items within
United Kingdom. This has been developed over 100of years ago, they brings together the power
of sports brand for advantage of sector. Moreover, it is a non profit organisation and are able to
champion the causes that subject much to them in assisting its sports business thrive.
Explanation of each of the chosen organisations.
Private sector organisation
Background details of the organisation
Sports First is one of the leading and nationwide network of thriving sports outlets. They mainly
sell the best brands at reasonable costs. Moreover, it is independently owned as well as operated
through locals who are involved in rendering its expertise advice, facilities and competitive
pricing all over the huge brands in sport.
Public sector organisation
Background details of the organisation
Sport England, this is a non departmental public body within the department for culture, media
and sports. Their role is to develop the foundations of community sport system through
performing with national sport governing bodies as well as other funded partners. Its
headquarters is in London, UK.
Products and services
The products and services provided by the respective organisation is to assists individuals as well
as societies across the countries and obtain the spots habits for life. Moreover, they also funded
project is up as well as running & having affirmative impacts upon individuals all over the
region. Mainly they offers sports updates, funding and other solutions.
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Size and scope of the organisation
Vision, mission and business objectives
Vision
Its vision is to be the champion the life changing affects of being active, as well as assures al all
over the nation that may benefit from this.
Mission
Its mission is to tackle the in depth inequalities as well as unlock the benefits of sports and
physical activity for all.
Business objectives
Respective organisation key objectives is to assures the positive planning for sports, allowing the
appropriate facilities into effective areas depending upon the robust and upgraded evaluation of
requirements for whole sports level as well as all sectors of community.
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Sporting Goods Industry Association (SGIA) that represents the wholesales, manufacturers and
distributors of sporting items within United Kingdom. This has been developed over 100 of years
ago, they brings together the power of sports brand for advantage of sector. Moreover, it is a non
profit organisation and are able to champion the causes that subject much to them in assisting its
sports business thrive.
Various business functions in one organisation and create an organisational chart to explore the
interrelationships between the different functions.
The firms based on the several functions of business such as human resource, finance,
marketing, research & development, operation and so on. Additionally, in context of Sport first,
they also has various business functions which are described below:
 Marketing: this is considered as the role that aids firm to determine as well as source
potentially successful items for market areas in which they perform and thereafter
promote them through differentiating them from similar items. Within business such as
Sport first, the main function of marketing to bring the values to consumers, to whom the
business seeks in identifying, satisfying and retaining.
 Human resource: This business function plays crucial role within organisation as it is
helpful in identifying, screening, hiring and training job applicants, as well as managing
staff benefits sessions. Moreover, it intent in assisting an entity deliver their corporate
strategy and gaols through effectually managing individuals and performance.
 Finance: This is vital business function within organisation as Sports First is concerned
with planning and control of monetary resources. Within particular business, it includes
the obtaining and using of funds essential for effectual operations.
In entity, there are several business function which based on its business structure. Essentially,
they aids them to set up a network of interrelation which classified in various units. Some of
them are described below:
Marketing and human resource department: Within Sports First, both marketing as well
as human resource department plays crucial role. While, marketing conducts to promotes the
business products or services and develop opportunities of sale by identifying the needs of
market. Human resource performs to train, staff retention and so on for rendering competent
workforce. In respective firm, both conducts collaboratively as hr hire talent workers who can
capable to enhance opportunities of market sustainability.
4

Finance and marketing: In Sports First, finance business function plays vital role within
firm as it is helpful in planning and control of monetary resources. It includes the obtaining and
using of funds essential for effectual operations. Whereas, marketing function is to identify
present trends of marketing and requirements of customers in order to develop the anticipated
items. Within respective organisation, finance business function is to render own assistance to
them in performing the market research effectually to enhance the firm’s development
opportunities.
An analysis of the chosen organisations, using a flowchart to show how internal departments
along with their advantages and disadvantages.
Sport firsts store would always be the initial with friendly services, appropriate ranges as well as
competitive costs, so be the first in. All their outlets is locally performed and owned, performing
the top brands &equipments which is needed locally. Additionally, this is a division of Frontline
retail group that is not for commercial profit and only exists to benefits their members.
All this department are interrelated with one another and having both advantages and
disadvantages which are provided below:
Marketing and human resource department
Advantage:
This collaboratively as hr hires talent workers who can capable to enhance opportunities
of market sustainability.
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Disadvantage:
The key disadvantage of this is that both plays crucial role but there is the possibilities of
hiring the ineffective marketing talent into marketing professionals.
Finance and marketing
Advantage:
This is helpful in obtaining and using of funds essential for effectual operations and this
render own assistance to them in performing the market research effectually to enhance the
firm’s development opportunities.
Disadvantage:
The main disadvantage of this is that finance department cannot able to estimate
appropriate funds for marketing which directly or indirectly create conflicts and taking
ineffective decisions for organisations.
Advantages  Disadvantages
 This is helpful for Sports First as it fill
the requirement of marketing
department by getting money from
finance department.
 Functional interrelationships are the
connection as well as interactions
among people of two different
functions.
 The advantages of such a relationship
at Sports First are that it strengthens
relationship, communication and
cooperation between functional
departments for sharing information
related to business requirements that
escalates speedily workings and
achieving desired outcomes which
fortify structure of company.
 There many be conflicts amnong
department due to different perception
and knowledge.
 Interrelations among the functions
results in sharing confidential
information in informal manner that
further can be misused by any
personnel resulting in competition
between functions that is its major
disadvantage.
 When such a situation arises then it
negatively impacts on business
structure and opted structure (Shenkar,
Luo and Chi, 2014).
6

.
TASK 2 INTERNAL AND EXTERNAL BUSINESS ENVIRONMENT
PESTLE analysis to identify positive and negative impacts of external factors and influences on
the sports retail market.
PESTLE analysis is regarded as the techniques that is connected with scanning of external
factors which have their direct impacts on the practices of business. Additionally, this analysis
incorporates economical, political, technological and others. In addition to this, it aids entities in
determining the external factors for obtaining much competitive benefits. Sports First is one of
the leading and nationwide network of thriving sports outlets. So, the analysis of PESTLE
performed below:
PESTLE ANALYSIS OF Sport First
PESTLE Analysis
 Political factors- Political elements The progressions in strategy influence the Sports
First as it has a spectacular procedures for improvement which are mean quite a bit to this
endeavor.
 Economical factors: The monetary elements will influence Sports First and the various
other gigantic brands. Purchasers might choose to change the items they ought to get
from the association and more affordable items in the event that this in some way figured
out how to occur or even in much the same way as a pleasant level of significant worth
gets easier to convey.
 Social factors-The associations centers around the prosperity mindfulness suggests that
an always expanding number of individuals are moving towards better lifestyles. The
clients will feel somewhat unsure and they are drawn to the items which would make
Sports First outstandingly happy.
 Technological factor: Sports First has the opportunity to use significant information
based estimations in light of imaginative advances and considering them to further
develop zeroing in on and creation, and enhance pay.
 Legal factor: The lawful elements of the association are the legitimate variables which
impact Sports First, and they are the issue that ought to be engaged on the grounds that it
will build the presentation of the association.
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 Environmental factors: Sports First is one of the main and cross country organization of
flourishing games outlets, certainly, harming the environment. They discharge a ton of
airborne tainting like most modern offices, yet Sports First creation networks
occasionally go in much the same way as clearly dirtying streams. Sports First shows
assurance of a change in their current practices, with a strong assurance to end up being
more 'eco'.
PESTLE ANAYSIS OF SGIA
 Political factors: To enter and start one more business in another country the most
compelling thing is to get assent from the public power. This organization could change
in future, which could provoke differentiation of evaluation between the association and
the new government. Various components are furthermore included like work guidelines
portrayed by government, military defeat receptiveness, rule of cost, etc.
 Economical Factors: The premium for a thing in a country depends on various
components like extension, banking techniques, credit charges, etc. Different
concentrations for monetary factors that ought to be considered are preparing in the
country, current period of business cycle, establishment quality, joblessness rate, etc.
These components help the association with understanding the spending illustration of
the client and in like manner fitting assessing and course of action of the thing ought to
be conceivable.
 Social Factors: In solicitation to exhibit a thing the association needs to look for changed
social factors like, gender extent, preparing level, culture, attitude toward prosperity and
environment, interest in sports, etc. This will help the association with grasping the goal
market and also, displaying message will be expected to show up at the right thing to the
right client.
 Technological Factors: From gathering until giving the thing, SGIA needs to separate the
mechanical components included. This ought to be conceivable by understanding how
new advancement can help the association in growing the efficiency and purchaser
unwaveringness, and how much impact it will make on the association reserves.
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 Ecological Factors: Since SGIA is a distributer, distributer retailer it requirements to
research regular components in the whole of its market. Factors like environment,
tainting, natural change, awareness of waste organization, etc. With the assessment of
these factors, associations can moreover send messages to the clients about natural
change and make them careful about their environmental agreeable things.
 Legal factors: Various countries have different guidelines. To make due in different
business areas the association needs to fathom and separate different authentic factors
like work guideline, work guideline, copyrights, etc. This large number of examinations
will help the association with continuing with work with for all intents and purposes no
legitimate block.
SWOT analysis to explore and explain the organisations’ internal strengths and weaknesses.
SWOT ANALYSIS OF Sports first
SWOT analysis
This analysis help in evaluating strengths, weaknesses, opportunities, and threats that a
firm possess and it is explained below with reference to dove in a systematic manner below-
Strengths Weaknesses
The plan of the items that Sports first sells is
exceptional and furthermore it doesn't utilize
big names to support its items which makes the
finished result less expensive for the shopper
which helps it in expanding its deals.
Sports first predominantly packs in making a
shopper base in different regions which brings
about decrease in share which influences its
deals and benefit over the long haul.
Opportunities Threats
There is a chance for Sports first to catch a
bigger offer by focussing on results of men
since there is an expanded interest for these
products.
The section and exit in the market
isn'trestriscted in which Sports initially works
it goes about as a danger as there is expanded
contest.
Swot analysis
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Strengths
Like most enormous organizations, Nike has various qualities. Obviously, the main
qualities are Nike's strong image and low item cost.
Solid Core Brand
The Nike brand itself is one of the most grounded — if not the most grounded — names
in the entire dynamic game industry. Across a huge region of the planet, Nike is one of the
essential associations that ring a bell when they think hip, vivacious footwear. All around, this
extremely impressive focus brand is maybe of Nike's most prominent strength, and you can bet
that helps them with gathering together billions in additional pay reliably
Various Brand Portfolio
Albeit the Nike brand itself is significant solid areas for unimaginably, association has an
alternate brand portfolio past that. Most extraordinarily, this brand portfolio consolidates
Converse as well as numerous other Nike-driven sub-brands like Nike Shox, Nike Blazers, and
Nike Tiempo. This suggests that Nike has its foundations particularly spread across the footwear
business, allowing it to atmospheric conditions changes in tendency without any problem.
Low Product Cost
As countless Nike's things are created in developing South East Asian countries, for
instance, Indonesia and Thailand, Nike has exceptionally low work costs. Moreover, Nike also
includes respectably prudent materials for by far most of its shoes. Together, these two factors —
work cost and material cost — grant Nike to create its footwear at exceptionally low expenses.
Weakness:
As they had expect, Nike truly does for sure have a few shortcomings. It's reliant upon the US
market, its makers, and the footwear business.
Reliance on US Market
In 2018, over 40% of Nike's pay came from the US market. As you can imagine, this shows a
gigantic dependence on the US market as an element of Nike's strategy. Accepting American
obligation or real techniques were to change, in any way affecting Nike's ability to sell on the US
market, that would essentially hurt the athletic clothing beast's advantages.
Rethought Manufacturing
Despite the negligible cost related with gathering things abroad, there are to be certain
impediments to doing thusly. For one's motivations, creating abroad requires you either to set up
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committed collecting working in your picked country or to re-proper your work to existing
makers. Nike has chosen to do the last choice, and that infers that their things aren't top quality
always.
Footwear Focus
Regardless of the way that Nike is tolerably widened inside the footwear business itself, Nike has
not separated itself much across various endeavors. Yet the footwear business is possible diving
in for the long stretch, Nike could contemplate extending their points of view.
Opportunities
Nike has a developing business sector in all detects, because of better buyers and more well off
nations. This presents a couple of new open doors.
Developing Market
There are only a consistently expanding number of people in this world, and an
impressive parcel of them (especially in made countries) are ending up being step by step more
powerful. Together, these two components compound to make a persistently creating footwear
market. At whatever point played precisely, Nike should have the choice to get an enormous
piece of the issue of this creating business area, allowing the association to foster its advantages
moreover.
Developing Markets
As nations across the world become richer and richer, residents in non-industrial nations have
more discretionary cashflow. In regions, for example, South East Asia, developing expendable
earnings present a chance for new business sectors in which to sell items. Assuming Nike can
showcase themselves in these developing business sectors, they could develop their compass and
lessen reliance on the US market.
Capable Manufacturer
In various Western countries, there is a creating example of knowing where things have
come from and how the environment and workers have been managed. This presents another
opportunity for Nike. In case they can check themselves as a proficient creator of dynamic
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clothing stock, they could have the choice to grow their market entrance among even more
ethically and earth mindful clients.
Threats
For dangers, Nike needs to check all bearings: charge, market rivalry, and item falsifying out.
TAX Clampdowns
Similarly as other gigantic associations, Nike has its obligation strategies improved down to the
dollar. This has for quite a while allowed Nike to make an effort not to pay a ton of obligation,
even on its billion dollar benefits. Regardless, there is creating banter about how much breathing
space colossal affiliations are made do concerning trouble matters, and their chance to pay low
proportions of cost may one day come to a close by. This would bear the expense of Nike
basically more humble net advantages.
Rivalry
Nike is battling in the irately forceful dynamic wear market, with other huge names like
Adidas, PUMA, and Reebok arranged to hop on any new entryways. In that limit, Nike needs to
continue mindfully to promise it isn't displaced by one of these, or — somewhat less
conclusively — doesn't pass up reasonable pay
CONCLUSION
As per the above report, it has been concluded that business environmental plays vital role
within organisation as it is the amalgamation of numerous circumstances which maximises into
various forms of business and increases the profitability of business.Additionally, there are
different forms of organisations within sports industry which are classified depending upon their
goals, nature and intentprivate sector organisation, it plays important role into system of
country’s economy. moreover, this is basically performed by organisations as well as individuals
with clear goals of growing anticipated profits. public sector organisation, it is undertaken as that
organisation that is governed by government in order to provide the items or services for the
benefits of communities. voluntary sector organisation, this is undertaken as that organisation
which generally receives funds from groups, individuals and states to act for people advantages
rather than shareholders. moreover, their key aim is to form social impact without focusing upon
profits. In addition to this, In entity, there are several business function which based on its
business structure. Essentially, they aids them to set up a network of interrelation which
12

classified in various units such as marketing finance, hr etc. Apart from this, pestle analysis is
also performed as it is the techniques that is connected with scanning of external factors which
have their direct impacts on the practices of business. Additionally, this analysis incorporates
economical, political, technological and others. In addition to this, it aids entities in determining
the external factors for obtaining much competitive benefits.
13

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