Global Business Environment: Opportunities and Challenges for JD Sports in India

Global Business
Environment

Table of Contents
TASK 1............................................................................................................................................3
INTRODUCTION ..........................................................................................................................3
About the chosen developing country..............................................................................................3
Application of Theories of business environment on the selected context/country........................4
Critical evaluation of opportunities and challenges that are present and how to manage aspects of
corporate governance, business strategy and cultural sensitivity....................................................7
Discuss and analyze the different barriers experienced by foreign businesses in the selected
country supported by different examples.........................................................................................8
Provide appropriate strategies and other relevant recommendations to enable the company to
succeed in the selected developing country.....................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
TASK 2 .........................................................................................................................................12
Introduction....................................................................................................................................12
PESTLE analysis.......................................................................................................................12
SWOT analysis..........................................................................................................................14
Pestle analysis on the basis of SWOT analysis.........................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

TASK 1
INTRODUCTION
The global business environment is said to be an environment including various
sovereign nations along with factors that are external to domestic environment of country. It
impacts decision-making process of company operating in a country regarding utilisation of
organisational resources as well as capabilities. Within this report, JD Sports Fashion Plc is taken
into consideration which is a UK-based organisation founded in the year 1981 by John Wardle
and David Makin. It deals in sportswear and provides exclusive products and services to its
potential customer-base within marketplace (Aerni, 2018). JD Sports wants to move its
production facilities to another developing country hence, the chosen developing country which
will demonstrate different aspects of this report is India. This report covers application of
multiple theories of business environment such as Pestle analysis, Hofstede cultural dimensions,
etc. It also includes opportunities and challenges that exist along with process of managing
aspects of corporate governance, business strategy and cultural sensitivity while operating
business in chosen country. Moreover, distinct barriers that are faced by global businesses in
chosen developing country will be discussed and analysed. Additionally, appropriate strategies
and other recommendations will be provided for enabling company to achieve success and
growth in chosen developing country.
About the chosen developing country
The chosen developing country in this report is India and the reason behind selecting
India as a developing country is that it has a wide scope in retail industry because of its healthy
economic growth, dynamic demographic profile, enhancing disposable income, urbanisation and
many more factors (Ahmad, Omar and Quoquab, 2020). These factors assist India in achieving
its success and growth within the retail industry and drive its growth in well-organised retail
market in an effective and efficient manner. The retail market in India is growing at a rapid rate
and with more than 1billion people, the respective developing country is extreme attractive
market for home as well as international retail players. The people in India are having diverse
taste and preferences in products of retail market and it will provide a competitive edge to JD
Sports as the company is engaged in offering a large number of products like apparels, footwear,
accessories and recreational products in retail industry.

Application of Theories of business environment on the selected
context/country
There are multiple theories of business environment that help in analysing opportunities
as well as challenges that exist in business environment. Some of these business environmental
theories include Pestle Analysis, Hofstede Cultural Dimensions, etc. These theories are explained
as under in context to JD Sports while moving production facilities in India:
PESTLE Analysis
It is a tool that helps in analysing the impact of macro-environmental factors existing
within a country that influences the functioning of an organisation (Alshare and Sewailem,
2018). JD Sport should use this theory for evaluating and analysing impact of such factors at
time of moving its production facilities in India:
 Political factors: Such factors are associated with government guidelines, rules and
regulations, policies, political stability, etc. In relation to JD Sports, company should be
aware of changing governmental policies and rules of India in which it wants to move its
production facilities because changes in such political factors like trade restrictions can
influence performance of organisation adversely.
 Economic factors: These factors include inflation rate, interest rate, exchange rate,
economic lockdown and many more. In context to JD Sports, economic factors such as
taxation policy and inflation might impact business operations of company in a negative
way. Hence, company should be aware of such factors and adopt appropriate business
strategies for sustaining within marketplace while moving production facilities in India.
 Social factors: These factors consist of lifestyle, taste and preference, expectations of
customers, health consciousness and many others (Amankwah-Amoah, Khan and
Osabutey, 2021). In relation to JD Sports, company must understand varied perceptions
as well as taste and preferences of Indian customers regarding footwear, apparels, etc.
and then produce and design products for them. This will help company in capturing
more market share which will boost sales volume and profitability of company.
 Technological factors: It includes advancements in technologies which impact
functioning of business. JD Sports should use highly developed and upgraded
technologies as well as machines while performing production facilities in India such as