Business Environmental Analysis

Business Environmental Analysis

 Study will include SWOT analyses of Sport direct.
 It will describe relationship between internal and external factors.
Introduction

Factor Explanation of
impact
Positive/ negative
Political factor Political element impact
on business
performance and
profitability. Instable
government enhance
risk and may reduce
sales of the company in
the country.
P: Political stability
helps in enhancing
trade and exports
Positive trade regulation
helps in smooth
functioning of entity
and raising profit.
N: instable government
creates issue in survival
of Sports Direct
Increasing tax rates
reduces profit of entity.
P4 Impact of macro environmental factors

Economic factor Inflation rate, interest,
exchange, employment
rate impact on the
organisation.
P- High employment rate
helps in improving income
sources for consumers,
that positive affect
spending power of
customers. This impacts
positive on Sports Direct
Positive economic
situation and high value of
current helps in increasing
demand of consumers.
N- if inflation is high then
it will negatively affect
buying power of
population that ultimately
decreases sales of entity.
Cont..