Business and the Business Environment: Ilford Sports Club Case Study

This report discusses the sub-sectors of the sports industry, including public, private, and voluntary sectors. It also analyzes Ilford Sports Club's legal structure, interrelationship between organizational functions, and provides a case study on the impact of external and internal factors on the club's business environment.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART A...........................................................................................................................................3
Introduction to sub-sectors...........................................................................................................3
Explaining of organization working under sub-sector.................................................................5
Interrelationship between the organization functions..................................................................6
Organisation structure..................................................................................................................7
PART B............................................................................................................................................9
PESTLE Analysis........................................................................................................................9
Internal strength and Weakness of company.............................................................................12
Critical analysis of external and internal factor impact.............................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is referring to all the internal and external factors of the
organisation which are influencing its functions. It also covers all the factors that are related to
suppliers, customers, competitors, government and also included cultural, social, technological,
political and legal conditions (Möller, Nenonen and Storbacka, 2020). The major important of
business environment are to analysis the competitor’s actions and strategies which are need to
understanding the advantages of business environment with the help of deploying resources in
order to take one step forwards in the business. The present report is based on Ilford sports club
that is situated in UK, it has providing affordable sports accessories and products. Moreover, the
study highlight sub sectors of the different type of organisation with its market size and growth
in the international market. Also, explain size, vision, mission of the company with its legal
structure and relation of marketing, finance with its advantages and disadvantages. Then,
research about externals and internal environment audit which are affect the business. Also,
PESTLE & SWOT analysis for identify negative and positive factors which are influencing the
sports market with rises of competition, funding activity etc. Critically analysis of both the
internal and external factors which are need to determine the expansion plan and
recommendation of the report.
MAIN BODY
PART A
Introduction to sub-sectors
Sports industry is one of the biggest industry in which there are different types of
organisation are included at the same time covid-19 impacted in such a way all this companies
has affected and still suffering. There are three major types of sectors in any industry such ass
public, private ands voluntary.
Public sector
The public sector refers to the part of economy in which both public enterprises and services are
composed (Möller, Nenonen and Storbacka, 2020). There are included all level of the
government that controlled enterprises. in the sports field the government has provided the fund
for sports activity and generate with the help of selling goods and services. The main purposes of
the organisation are to provide all the sports products and services at low price so that’s customer
can buy it easily.

For example, Local leisure centre is a common example of public sector as well as they have
offered all types of products and services including gym facilities, sports, swim etc. also, it has
provided at lower prices as well as for students, children and senior citizen. It has included all
facilities swimming pool, large sports hall, cafeteria, squash court, hockey or soccer pitch etc.
with all indoor and outdoor games. The public sector vision is related to affordable efficient
market growth on the basis of social transformations. To get desired future position in the
market. The provision of all the sports products or services to eligible individual or group for not
primarily cash generated purpose and deliver services.
Market size: The market size of the public sector includes 9.5 million which shows more than
16.7% people are involving in this area that contribute to employment (Nudurupati,
Garengo and Bititci, 2021).
 Growth: There are some of the secondary sources which reflected that business operating
in an area when company needs to increases because there is increment in the % of
growth from the last year as well.
Private sector
This sector is mainly run by individuals or companies with an aim for raising the profit. Also,
this type of sector is mainly run with an aim for increasing the overall profit by generated by the
products are analysing the need of customers as well it helps to generate high level of revenue.
 Growth: The growth of the company is increases from 4000 because that can also
contribute the high amount for the growth of the economy.
 Market size: It has the highest market size as compared to others sector because most of
the individual establish business for gaining profit. Also, it has opportunity for innovation
and hire youth for building new projects.
Voluntary sector
In this type of companies’, the main purpose is to creating a social impact instead of
making profit and this is also known as third sector for not-for-profit (Cherunilam, 2021). Also,
this kind of sectors are mainly contributing to help the public sector so it can save money and
deliver the best and better service. There is small business included in this sector in order to
contribute to the society and there are large number of donation it creates from big industries.

 Market size: This sector is mainly contributing by approx. 19 billion to economy of
United Kingdom which are reflected that its market size increases year by year. all the
growth is depending on the funds which are get by other institutions.
Growth: The growth rate of this sector increases from ten years because the large number
of organizations in this sector also raise. Due to pandemics, it has affected in such a way
where no much profit is earning by the company (Islam, 2019).
Explaining of organization working under sub-sector
Public sector
British Petroleum is the deal in this sector Background: The headquarter of the organisation is in London and that also operated in
many different locations in the world. The company were acquired most of the several
businesses which are invested in Standard Oil of Ohio. Vision: To have a best competitive in corporate world and also improving the workplace
in order to employing diverse people in the society so that it benefiting them. Mission: With the help different activities the company will display some unchanging
qualities in order to complying with integrity and honesty that contribute to human
progress.
Business objectives: The business objective is for increasing the market share as well as
offer wide range of products to the customers (Ramchandani, Shibli and Kung, 2018).
Also, to contribute more and more public for the employment process are help to
generating more revenue for the society. Legal structure: Public limited company Products and services offered: It provided oil and gas and that is why, this is considered
as 7th largest firm in world. Size and scope: The size of the company reflected by operating in more than 80 countries
which more than 1100 stations.
Private sector: Example is Mark & Spencers

 Background: It was established in 1981 that is one of the top British sports brands. This
is the company which is also based in UK, (Greater Manchester). This is opens most of
the unit at the global level so it attracts the range of customers. vision: To becoming one of the most trusted business in the world in order to offering
effective and high quality products to the company. Mission: For supporting all clubs and schools with the help promoting the values which
are driven the approach to the sports. Business objectives: Increase the market share with the offering more effective sports
product to the local public. Legal structure: Private limited company products and services offered: This is offering all kind of clothes and different equipment
which are related to sports for public at low and affordable rate (Bright and Deegan,
2021). size and scope: The size of the organisation is large because there are more than 402000
employees working all over the world which shows that the size of a company
comparatively large. Also, it has 952 stores at global level.
Voluntary sector: NHS Background: This company provided emergency and urgent services to its customers
with regard to fashion. Along with this, it also helps the people for providing medical
help and also assisting with health costs. products and services offered: It provides all the products and services which are related
to all health, sports etc. size and scope: The size of the firm is comparatively large and it is operating at global
level and the scope of the organisation is such that it can support the disable people and
their families. vision: The vision of NHS is to deliver better health, better care and better value of
people (Maine, Samuelsson and Uman, 2021).

 mission: The mission is to provide best quality of care to each person every day. business objectives: This is helping for improving the business performance and also
improving the brand image.
 Legal structure: The legal structure of NHS government with the reference of clinician.
Interrelationship between the organization functions
Business functions are including all those activities that are carried out by an enterprise
and that is divided into main functions that’s are related to support functions. This is very
necessary to maintain all the department function by considering all the factors. Ilford sports,
there are different types of business which are manage the related function. There are all are
closely related with each to perform the business in an effective manner. Such as marketing
activities are related to all the function because the command given by other department will
help for further process. Also, the interrelationship of these business functions is as mentioned
below:
Marketing and Human resource: Both the function of the company is work closely to
each other such that HR department of cited business mainly work for recruitment the
employees which the helps marketing department (Luong, 2020). This is so because
helping an organization for promoting the business products within the market. However,
HRM are responsible for all the employment branding which are help to ensure about
organization for able to provide all the important services and products to their customer.
Further, advertisement related to hiring and recruiting process are based on the marketing
for the purpose of advertising all way long.
Operational department with Research and development: There is a major connectivity
with these departments because in research and development sector it is mainly identify all the
needs of the customer and then pass the information to the same operation department. Along
with this, this has been analysed that all the operational department which are mainly helping to
examine all the production of a product and services for assisting for creating a better result of
the company.
Marketing department and Finance: It has been evaluated that both of the department are
helps the company for improving the financial performance in order to promoting the
product and services in the market (Huang and Rust, 2021). Also, it has been realised that

finance department are providing funds to marketing department for promoting the
products in context to assisting for improve the brand image with meet the objectives as
well.
Finance department and Human resource: HR department of the organisation are
considered as the key pillar of a firm because they providing training to the employees in order
to assisting the firm for meeting the defined aim. Moreover, working for each other help the
company to gain more competitive advantage for generating better results as well.
Overall, it can be analysed that all the department are inter-connected between the business
functions such as Ilford sports is able to meeting the defined objective. Moreover, the
organisation also gain major competitive advantage in a business for effective results in
order to financial performance which are generated. This is so because all of the business
functions are majorly interlinked with each other also, the company is able to improving
the performance of business and meet for defining the objectives (Nuseir, 2019). Further,
the brand image of the company are provided improved and derive better results.
There are some of the pros of business structure such as follows:
 This is enables for flexible types of business expansion.
 The tax rate are stuck at 29.3%
 The government are help in the agreement for defined objectives.
There are some of the business structures such as follows:
 The Ongoing cost & high set-up in order to comparing all the other structures
 It is important a higher level of cited firm’s responsibility and understanding.
 Loss on the full control over business.
Organisation structure
It is referring to the system in which all the activities are directed for achieving the goal of an
organisation, it also determines the flow between all the level of the company. There are
different types of organisational structure such as follows-
Hierarchical organisational structure-
This is the pyramid shaped structure in which the chain goes from top to down as well as
CEO to low level of employees.
Advantages-
 It helps to better defining all the level of responsibility and authority.

 In this each of the person report to specific project person in order to explain about the
enquiry.
 This is motivating the employees on the basis of clear paths and promotion.
Disadvantages-
The structure can cause employees for acting in interest of department instead of whole
company (Yankah, Aigbavboa and Thwala, 2018). Also, there is a possibility of slow down the innovation due to bureaucracy and lower
level of employees are felt that they do not have any ownership.
Functional Organisational structure
This is similar to the hierarchical structure this is also goes top to down in refers to the
authority but there are different types of functions in the company in which employees are
distributed according to their interest. For each of the department there is need for managing
independently.
Advantages-
 It allows the employee for focusing on own role
 This encourages specialisations
 All the employees are self-determined which help to complete goal of the organisation.
Disadvantages-
 This can create silos in the organisation. Communication is hampers interdepartmental.
Horizontal structure
In this structure this is fits for the company which are fit to the lower employees and upper
level management, this is suitable for small enterprises that needs less supervision and
more involvement from employees (Shah, 2021)
Advantages-
 Employees has given more responsibility
 open communication
 It improves coordination & speed for implementing new ideas
Disadvantages-
 This create confusion and not having clear supervisor
 It can difficult for maintaining the company for growing beyond start-up.

Justifications-
It has been critically that there are both positive and aspects of the organisational
structure because all the organisations have own nature and that’s why the flow of authority and
responsibility are going accordingly. Also, the Ilford UK should follow functional structure org
structure because it will help for segregating the work to the employees according to their
designation and authority. On the other hand, hierarchical structure is not allowing the
employees to participate in the decision regarding bureaucracy. They have less ownership and
less chance of innovation to the companies. For sports organisations it is important to use
functional structure so it has systematic work. Internal and external department are linked with
the functional organisational structure. Marketing, finance, human resource, production, IT etc.
are all inter linked with each other’s because all the marketing activities are depending on
finance, HR or IT.
Critical analysis of the complexities of different organizations and structures
It is not easy to operate the business as they have to face various complexities such as
changes in the rules and regulations, technological advancements and various finance related
issues.
Complexities in public sector organisation
Public companies faces various complexities and one of the biggest problems faced by
the public sector companies is to satisfy the stakeholders of the organization. One of the issue
that every company is facing is to satisfy the demands and requirements of the customers as there
needs keep on changing but in order to survive in the market it is required to use various digital
marketing strategies such as use of social media marketing.
Complexities in private sector organization
One of the complexities faced by the company is the arrangement and managing the
financial resources. On the other hand , various rules and regulations are imposed which bind the
company to strictly comply with those policies.
Complexities in voluntary organization
One of the complexities faced by these types of organization that there is high
dependency of donors and on the other hand poor governance is one of the major issue faced
within the NGOs.

PART B
Positive and negative impacts the macro environment has on business operations, supported by
specific examples
There are multiple factors that impact the ,macro environment that demographic factors
that influence the operations of the business such as culture, age , gender and lifestyle of the
customers. The countries whose have stable economies' ell high quality products as compared to
the developing and underdeveloped countries. The other is the economic factor that related to the
demand and supply of the goods that also affects the functioning of the company. The other is
the technological factors as it is necessary for the company to use advanced and updated
technologies in order to survive in the competitive market. On the other hand legal factors such
as changes in the rules and regulations by the government which can have both positive and
negative impact on the business.
PESTLE Analysis
PESTLE Analysis is one of the most comprehensive model of tool use to discuss the
external business environment associated with business. This model comprises with all the
potential factors belong to the external business environment that include political factor,
economic factor, social factor, technological factor, environment and legal factor associated with
the external business environment company is dealing at this point in time. The role of the
external business environment is to provide a complete information in respect to all the external
forces creating an influence or impact over the growth and performance of venture under
respective target market.
Political factor
The political factor comprised with the political situation of the society. The government
in United Kingdom is highly supportive towards the overall growth and development of the sport
retail sector. The political parties are deeply interested towards many sports such as cricket,
hockey, football, badminton and many more. The involvement ad interest of the government
along with political parties could further grow the entire industry or sector of business
environment. The policies made by the government have been highly progressive which involve
grants and funding option from the side of government to support the businesses in the sector
(Ennis, 2020). Government interest and policies completely change the dimension of this sector
which can favour and maximise the overall growth and revenue of the businesses in market.

Further the political stability exists in United Kingdom also making a huge difference. As the
government in United Kingdom is politically in a well stable position which further allow to the
businesses operate in the sport retail sector to gain such strength in delivering and executing the
business operations in the industry. Further the government in United Kingdom is a very
influencing situation at world stage as it is requiring in the sports retail sector. Companies are
involving ion exporting heavy product; line at different areas of world. At a political level
government in United Kingdom hold a very decent position which allow the respective
stakeholder o approach the overall growth and development of indysry at a all different pace.
Economic factor
United Kingdom is a massive sports market. The industry could grab a turnover of more
than £366 billion, in financial year 2021 which is further expected to growth to £439 million by
the end of 2024. This is a massive amount of turnover which clearly indicate the potential of the
sports retail sector in United Kingdom to influence the whole business environment of country.
The current growth rate of the sports retail sector has been expected to be around 2.6% on a
yearly basis which will allow the industry to massively expand in the near future (Oe and et.al.,
2021). The buying power and per capita income of people in United Kingdom further inspire to
the people in the country to afford qualitatively well-equipped product line so that better growth
possibilities sports retail sector of country can gain in market. The inflation percentage in United
Kingdom is also restricted to less than 2% rate which is very impressive. The controlled inflation
due to the effective monetary policy adopted by government could further maximise to the
buying power of the target customers in the sector.
Social factor
Social factor comprises with the people, culture, interest of people based in United
Kingdom to approach the sports. The people in United Kingdom are very sport enthusiasts. They
like to pay different sports and also to support the sport. The income and buying power of the
people in country make them believe buying only quality sports products that can match up with
the interest of the respective stakeholder in market (Onyusheva and Seenalasataporn, 2018). The
trend and preferences of the people based in United Kingdom is highly equipped towards the
quality sports product that can go by the need and preferences of the target customer. The sports
sector companies also involve in conducting various tournaments and seminars to spread
awareness and interest of people towards sports in country.

Technological factor
Technology become a crucial part of every industry or market sector part of business
environment. Role of technology is significant in enhancing and maximising the overall growth
and development opportunities in the sector. The world is going towards the technological use to
advance the quality and efficiency of the product segment offer by businesses (Lam and Zhang,
2020). Technological advancement and development in the form of e-commerce practices in
sports retail sector and such other aspects could empower to the whole sports retail sector in
United Kingdom and this could allow to the businesses for expanding to the overall growth and
demand of the product in market. The technology related growth could favour many aspects
which involve supply chain management, sales, customer service, problem solving and many
other aspects. Technology also play a vital role in branding of the business which further
enhance to the overall growth and development of the business in respective target market.
Environment factor
Environment factor is among the most comprehensive business environment element or
factor which support to the businesses. Sports retail sector involve technology and machineries
that also play a role in controlling many environmental impact like pollution and such other
(Tran, 2020). The society is going in a direction where the protection of nature become a
significant element along with the environment allow to the industries to favour the environment
protection and ecological aspect while performing to the business operations. Plenty of corporate
social responsibility related campaigns also launch by the company’s operate in sport retail
sector that also create a massive impact over the growth and performance of the venture.
Legal factor
Legal factor comprises with laws and legislation that involve in delivering the business
operations. All different; laws and legislations like data protection, equality, anti-discrimination
and many more create a vital impact over the growth and development of the business in
respective target market (Koch and et.al., 2021). Licensing practice also follow which require
license for the company dealing in sport retail sector or industry. All these aspects create a
massive impact over the growth and development of the business in respective target market.
The above mentioned elements and factors belong to the external business environment.
All these factors put a direct and comprehensive impact over the entire industry or a sector.

Internal strength and Weakness of company
On the basis of SWOT analysis internal strength of Ilford is to strong brand value and
awareness which are easy to recognises by everyone. There is huge customer base that helps in
increases the loyalty of the organisation. Also, the customer feedback is help to improve the
services more and get the solution regarding environmental issues. Further, there are wide
variety of services are provided by the company so it helps to attract all age customer and get
more benefit. On the other hand, the weakness is related to economic issue such as due to
pandemic there are very less people comes and buy the products because outdoor sports need
more space and time which are not possible to get by the students in the lockdown. at that’s time
the sale was decreases and it affect the retail business. Along with this, competitors are increases
day by day which are also biggest weakness of company. The major threat is new and emerging
market in the foreign market. There are so many organisations such as Nike, JD sports have
greats customer base and innovative products are attracting the customer at their place. The
opportunities are quiet related to supply and production are depend on the independent
manufacturer that has efficient supply chain.
Strengths and weaknesses interrelate with external macro factors
Every organization works in different surroundings and has various strengths and
weaknesses, and they connected with the external macro factors. It has been observed that they
are affected by the external factors present in the environment. In order to make effective
decision for the company. It is necessary for the organization to conduct SWOT analysis . On the
other hand it is also necessary to identify the various political and social factors that can impact
the functioning of the company. The political factors can have positive and negative impact on
the business that depends upon the circumstances.
SWOT/TOWS analysis and justification how they influence decision-making.
Strengths: The company has huge customers base and wide variety of services is provided by
the company.
Weakness:One of the major weaknesses is the economic issues related to pandemic that can
affect the business. Apart from this other is the increase in the number of competitor which can
be weaknesses as well as threat for the company.

Threat:The major threat is new and emerging market in the foreign market. There are so many
organisations such as Nike, JD sports have greats customer base and innovative products are
attracting the customer at their place.
Opportunities:The opportunities is related to supply and production that depends on the
independent manufacturer that has efficient supply chain.
Critical analysis of external and internal factor impact
The external and internal factors associated with business environment put a direct
impact over the business operations perform by the venture. These factors play a vital role for the
industry to maximise the overall growth and development. Company need to analysis and
evaluate these factors of business environment while making or forming strategies in business.
The different external and internal factors create a direct and massive impact over the business
operations perform by the venture. External factors put a direct impact of different external
factors of the business environment (Geisler, 2020). The business is impacted by both micro and
macro factors that can have both positive and negative impact on the company. The micro
fcatrors includes the customers , competitors , suppliers. With the changes in the technology it sis
necessary to manufacture the products according to the needs of the customers which is not easy.
These factors related to the business environment put a direct and comprehensive impact
over the business. In every expansion plan company utilise these external as well internal factors
related to business environment create a direct impact over the business. Internal factors related
to the business environment involve evaluating the capability and potential of the organization to
perform business expansion practice. The external and internal factors related to the business
environment involve in every decision company make such as business expansion, operation
management and such other aspect. Company can expand at other locations as well by further
offering a new product segment as well that would allow the company to expand the existing
target customer of the company in new sport retail market.
CONCLUSION
It has been concluded that business environment are included with all factors that can be
influence the internal and external environment of the business. The report evaluated different
type and size of organisation which are interrelated to the various function such as marketing,
finance, production etc. Also, analysis that the strength and weakness of the company on the

basis of SWOT analysis. Moreover, it has been critically analysing those complexities of
different organisation and discussed the private, public and voluntary sectors. Moreover, it has
been analysed that there is disadvantages and advantage of interrelationship between different
functions that are impacting on the basis of company structure. Further, determined the external
internal factors of the business environment with the relevant framework of PESTLE analysis.

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