Assessment of Macro Environment and Internal Strengths for JD Sports

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Assessment of macro environment........................................................................................1
TASK 2............................................................................................................................................4
P2 Analysis of internal strength and capabilities of organisation...............................................4
TASK 3............................................................................................................................................5
P3 Assessment of industry attractiveness...................................................................................5
TASK 4............................................................................................................................................6
P4 Application of Ansoff matrix to formulate strategy..............................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business strategy is a term implies the building of comprehensive plan of action intended
for attainment of growth and sustainable competitive advantage. JD sports is British fashion
retail firm. It offer fashion accessories with sports category. In this assignment a new business
strategy has been devised for JD sports. The report covers the assessment of macro environment
affecting the company. The report also includes the analysis of strength and capabilities of JD
Sports. The report applies porter's five forces to determine the industry attractiveness. The report
devises a strategic plan for JD sports (Akter, and et. al., 2016).
TASK 1
P1 Assessment of macro environment
JD Sports is one of the most imperative and effective organisations when it comes to the
sports-fashion retail sector within the United Kingdom. Moreover, the firm deals in a diverse
range of sports and fashion related offerings which it distributes all over the company. However,
it is imperative that its macro environment is analysed in ways which are discussed below:
Analysis of Strategic Position
It is imperative to analyse the strategic position of the organisation is analysed which
determine the current industrial hold which the company has access to. Therefore, for this
purpose, below are the firm’s mission statement and long-term goals
 Mission Statement: The firm’s mission statement is developing an industry which leads
in retail business with the best of digital and physical combination of retail providing the
firm with compelling position. It denotes that the firm has entered the market with
exclusivity in its products and adaptability towards future which is a very strong position.
 Long-Term Goals: The firm’s long term goals are to elevate its market position through
higher investment in its digital and physical retail portfolios. Moreover, it also wishes to
strengthen its supplier relationships globally. Therefore, analysing the same provides a
firm with a very strong position globally due to its diverse and high end approach
towards business elevation.
PESTLE Analysis
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It is a model which determine the impact of external factors on the growth and
sustainability of an organisation. The PESTLE analysis of UK with reference to JD sports are
given below:-
Political Factors: UK has a steady politically environment and government intervention
in the business world is not very disrupting. However Brexit has created some uncertainties for
the businesses but country is recovering. Political landscape of the country is not creating any
barrier for the JD Sports company (Higgins, Omer and Phillips, 2015).
Economic Factors: UK has a mixed economy due to which country bear benefits and
limitations of both capitalistic and socialistic economy. UK is 5th largest growing economy in the
world. Purchasing power of local individuals is very high (Economy of United Kingdom UK).
Inflation rate of the country is moderate which ease the accomplishment of financial goal of any
entity. Economy of UK is good for JD sports growth.
Social Factors: Multicultural consumer base exist in the country. Population of the
nation is becoming older still there is a wide scope for growth in sports industry. Literacy rate in
UK is very high. People give priority to education. Obesity in the country increased in recent
years. However people of the country are inclining towards healthy lifestyle. This is great
opportunity for the JD sports in order to excel in the sports industry.
Technological Factors: Internet penetration is the revolutionary phenomenon in the
country. More than 94% of the population have access to internet. Introduction of automation
increase the speed of work but also decrease its cost. However automation is harming the
employment structure of the country. Technological advancement in the country is at boom.
Company can seek the advantages of advance technological development in the country.
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