Business Strategy: Macro Environmental Analysis, Internal Capabilities, Competitive Analysis

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1 ................................................................................................................................................3
SECTION 1 Macro Environmental Analysis ......................................................................................3
1. Examine the strategic positioning of enterprise by assessing their mission statement & long
term goals ........................................................................................................................................3
SECTION 2: CAPABILITY.................................................................................................................5
1. Determine the internal capabilities by using McKinsey’s framework ........................................5
2. Discuss the strategic capabilities of JD Sports by applying TOWS Matrix ...............................6
SECTION 3: Competitive Analysis......................................................................................................7
1. Use porter five force model & analyse the competitive positioning of JD Sports......................7
2.Evaluate the potential & current strategic positioning in relevance with enterprise....................8
SECTION 4: Strategic Plan .................................................................................................................9
1. Present a strategic plan in relevance with chosen firm ...............................................................9
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11
Books & Journal:...........................................................................................................................11

INTRODUCTION
In organisation, every business is able to survive for longer period of time only when it has
a positive business environment. Employee and firm progress as well as performance level depends
upon culture & environment of corporate. BE is defined as external factors which affect the entity
productivity, functions & operation at wider level. JD Sports which is the leading retailer company,
headquartered in UK. It deals with number of brands such as Fila, Nike, Adidas, Vans, DC shoes
USA etc. It has various shops in UK and also provides sports equipment’s to the customers. This
report includes macro environment analysis, examining internal capability by applying McKinney’s
7 S framework, competitive analysis by using porter five force model & evaluation of entity
strategic positioning and strategic plan.
TASK 1
SECTION 1 Macro Environmental Analysis
1. Examine the strategic positioning of enterprise by assessing their mission statement & long term
goals
In market, competition is rising at rapid level and numerous new businesses and companies
are entering into the business sector. It has deep impact on existing organisation and affects their
profitability and growth. So, to overcome with such situations strategies are implemented by firm
and mission statements as well as long term goals are being focused. So, strategies are defined as
action plan in such way so that long term goals are achieved appropriately. Context of strategy is
discussed below-
Mission- It refers to a short written statement in which organisation reason for carrying out
business activities are specified. JD Sports main mission is to provide variety of products and to
become UK‘s emerging fashion retailers (Akter, 2016).
Vision- It refers to accomplishing and analysing the future goals, explore more opportunities
and change the business structure. So, JD sports main vision is to be the global leader in
international market.
Objectives- These refers to what goal that a particular firm wish to achieve. Objective of
chosen entity is to gain profitability and to acquire more customers in market (Peng, 2017).
Role of strategy-

Competitive advantage- By implementing strategy in the entities, firm gain competitive
advantage in market & able to overcome with difficult situations and threats. In context to JD
Sports, they face their competitors such as Decathlon, Hibbett , Big 5 sporting goods etc. in proper
manner. For example-
Value proposition- It is statement in which entity uses to influence end users decision that
their product is effective than the other brands. In relation with JD Sports, employees are skilled
with sales skills and are able to convince prospect into customers.
2. Analyse the current macro environment of JD Sports
It is essential for the firm to determine the factors which slow down the growth of business.
Analysing the current business environment which has affected the functions and operations of
entities at wider level due to emerging COVID 19 (Chaouk, 2020). It is disease or say virus which
is spreading and has a deep impact on market & business. This has affected the environment of JD
Sports at broader scale. To identify the external factors, PESTEL is a framework which is being
used by marketers to track as well as monitor the uncertain situations and is discussed below-
PESTEL Analysis
It is tool adopted by corporates to analyse the factors or elements which has a deep impact
on overall growth and development. JD Sports can use this technique by conducting market
research in proper manner. This tool has various components & has been described below-
Political factors- The first component of analysis is political factor in which trade, labour
law, corruption etc. are involved. In this, governmental activities also affect the business. In context
to JD Sports, labour law has affected the firm operations due to the emerging virus COVID 19 also
known as corona virus. Employee and staff members have refused to do the work and business
environment of entity has been disrupted.
Economic factors- These are those in which tax, inflation & deflation rates, governmental
activities etc. take place. Risk associated with such factors is high and it took time to recover that
risk. In relation with selected firm, tax rates are rising because of lockdown in the country and it
might lead to high cost of production in the enterprise. So, preventive measures are to be adopted by
the corporation in order to face the critical situation.
Social factors- Further comes the social factors which include cost of living, behaviour, and
attitude of people, region & culture. This is necessary for entities to consider so that resources are
used in organisation in appropriate manner. JD Sports, mostly target those people who are into
sports and games. Current environment in business has reduced the scale and scope of both
customers as well as business. For example- JD Sports should focus and target people between 12-