Impact of Macro Environment on JD Sports

Business strategy
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Table of Contents
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................4
LO1..................................................................................................................................................4
P1 Macro environment which impacts on business organization................................................4
LO2..................................................................................................................................................6
P2 Internal environment and capabilities of an organization......................................................6
LO3..................................................................................................................................................8
P3 Uses of porter’s fires force model..........................................................................................8
LO4..................................................................................................................................................9
P4 Application of a range of theories, concepts and modals.......................................................9
CONCLUSION..............................................................................................................................10
REFERENCE................................................................................................................................11
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INTRODUCTION
Business strategy refer as planning which is important for success and attaining the business
goals. If a person is running their activities by using technology and skills then it should have
proper strategy which can be uses to run and increase the performance in competitive
environment (Kitsios and Kamariotou, 2019). This report is based on JD Sports Company which
was founded in 1981 providing different items of best quality which help to improve. This report
cover impact and influence on macro environment, internal environment, application of outcome
by using porter’s five forces model and models in relation to strategic directions.
LO1
P1 Macro environment which impacts on business organization.
About introduction – JD Sports is a retailing organisation that is selling kind of products
and services in competitive environment. The manager of such organisation is playing a vital
role as it make planning, organising, directing and controlling the activities which help to
increase the business profitability.
Mission: To attracts the number of customers by providing variety of products and
services with better quality.
Vision: To be UK’s best sports retailer company in UK.
Objectives:
To attracts the customers by providing range of products and services.
To capture market share up to 40% in competitive world.
To gain the profits more by offering kids, men , women products.
Macro environment – This is the condition which exist as a whole in economy rather
than particular region and sector. It involves GDP, inflation rate and fiscal policy in relation to a
country. JD Sports is analysing the macro environment as it is running business in UK that helps
to run a business effectively.
PESTLE Analysis: This is a framework which uses by organisation to analysis the external
environment. This involves some factors which are uncontrollable and have impacted on
business. The PESTLE analysis with positive and negative impacts on JD Sports are as defined:
Political factor: This factor states tax rates, fiscal policy, GDP rate, governmental stability,
political system etc. which has impacted on business. In UK, after Brexit the political system
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become stable and government is also stable that has support JD Sports to run its business
effectively and attracts the customers. This factor has impacted on chosen organisation positive
as it can operate its business in UK successfully (Pedersen, Gwozdz and Hvass, 2018).
Economical factor: This factor states inflation rate, interest rate, unemployment rate,
exchange rate and economic growth rate that arises while running a business. In UK,
unemployment rate is lower than other country and high economic growth rate which increases
buying power of customers. This factor also have impacted on JD Sports as they buy products
and services which they wants as they are able to spend the money due to having employment
opportunity.
Social factor: The culture of society, needs and wants, demographic and skills level of
people, attitude and health that can attracts the customers. As marketer of JD Sports understand
the share beliefs and attitudes of people, also understand how sustain in competitive market.
Therefore, products and services of better quality and range are provided by chosen organisation
that impacts on business good and help to increase the number of customers (Rivera and
Clement, 2019).
Technology factor: for business organisation it is important that to introduce from new
technology and innovation that can attracts customers easily and run business. JD Sports is
focusing on new technology and products according to new trend which is demand of customers.
This has affected JD Sports positively as it all booking, cancelling and deliver process of
products become easy. Moreover, it helps to save time and cost so all activities can be form
effectively.
Legal factor: This is related to rules and regulations, are important for business to run and
increase the brand image. This factor might impacts negatively as management are not following
equal opportunity and health & safety regulation which creates conflicts between employees and
they can make decision to leave. Therefore to overcoming this negative impacts there is need to
provide equal opportunity and motivate employees (Rivera and Clement, 2019).
Environmental factor: This factor is related to weather, climate change, laws, recycling,
endangered spices, waste management etc. are important to follow. JD Sports is operating
business in UK and other areas without following waste management that is creating problem for
business. Moreover, change in climate has impacted on such organisation negatively as low sale
and profitability of company.
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