Business Strategy: Macro Environment Analysis, Capability, and Competitive Analysis

Business Strategy
Task 1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Section 1: Macro environment analysis...........................................................................................3
Mission statement & Long term goals....................................................................................3
Current macro environment of JD Sports...............................................................................3
Section 2: Capability........................................................................................................................5
Assessment of internal stability by use of McKinsey 7S framework.....................................5
Evaluation of strategic capabilities by use of TOWS matrix.................................................8
Section 3: Competitive analysis.......................................................................................................9
Porters five force analysis......................................................................................................9
Ansoff matrix and PORTERS Generic strategies................................................................11
Section 4: Strategic plan................................................................................................................12
Strategic management plan...................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategies are one of the very important aspects that can help in achieving of high
growth and profitability to an organisation in a limited period of time. With the growing amount
of competition organisations have to focus more on gaining a strategic advantage and
competition nature so that they can survive in the market. Present report is based on JD Sports
that are one of the leading sportswear brands of UK (Bohari, Hin. and Fuad, 2017). It is a retail
company based in England and is listed on the London stock exchange. There are 32,215
employees that are part of this organisation. They are having a strategic objectives of
achievement of larger markets hare and expand themselves to new areas where they are presently
not having any presence for this there is use of some of models and frameworks for planning of
various strategies & tactics to achieve such objectives. Use of models such as PESTLE, Porters
five force, porter’s generic strategy, for formation of a business plan so that further objectives
can be achieved objectives.
TASK 1
Section 1: Macro environment analysis
Mission statement & Long term goals
 Mission: The mission statement of JD Sports is “To be UKs one of the best sports fashion
retailer”
 Long term goals: The long term goal of JD Sports is that they want to offer quality of
products and services to customers. This is so because through it they able to attract as
well as retain customers for the long time duration which help in growing business
successfully.
Current macro environment of JD Sports
PESTLE analysis is a tool that is used for purpose of assessment of different factors that are part
of the external business environment and are impacting the functioning of a organisation
both in a positive and negative manner (Drnevich, . and Croson, 2013).
Political Factor: It consists of the factors relate to political stability of the country in which a
organisation is functioning.

Positive impact: There have been increase in the political stability and it has lead to increase
in the growth of retail industry of UK that is leading to a positive impact on JD sports.
Negative Impact: There have been increased in pricing regulations and wage legislations as
thee has to be minimum wages that have to be paid to employees. It has lead to increase in
cost of JD Sports.
Economic Factor: This is a factor that consists of issues such as exchange rate, deflation rate,
unemployment rate that has impact on functioning of JD Sports as discussed below:
Positive impact: With the increase in rate of inflation there has been reduction in cost of
products and increase in purchasing power of people that has lead to enhancing of sales for JD
sports (Groverand Kohli, 2013).
Negative Impact: There has been a negative impact on JD Sports as there has been impact on
the efficiency if financial markets and it is leading ti raise capital ratio in the local markets.
Social Factor: It is a factor that is related with social behaviour of people such as lifestyles
changes, trends of society etc.
Positive impact: In case of JD Sports manager is having focus on quality products as they has
been complete shift in the way people are willing to perceive value of products. Moreover
respective company offer products according to requirement of customers which seems as
positive aspect because it provides opportunity for business extension.
Negative impact: The need, demand and other social factors change regularly which help
impact on company’s business because they need to develop as well as re change their
product’s design. Sometime demand change in very short time due to which company’s
already manufactured products get wasted that seems as negative aspects.
Technological Factor: Technology is changing very fast and JD Sports can utilise the
technology to increase their present market share (Huang, 2019).
Positive impact: By adopting new technology respective company able to improve their
manufacturing process as well as it also help in adopting new technology related to change.
Negative impact: There is a requirement to make high amount of investment and it leads to
bearing equivalent amount of risk by JD Sports.
Environmental Factor: there are many environmental factors such as climatic conditions that
impact the functioning of a organsitaion.