Industry Analysis Factsheets for Pearson BTEC Higher National Diploma in Business Management Unit 1

The report includes a factsheet on JD Sports, its products and services, size and scope, vision, mission and business objectives, organizational and legal structure, and stakeholder analysis. Additionally, the report highlights the relationship between different departments of an organization such as marketing, human resource, production, R&D, IT, and finance, and how they work together to achieve business objectives.

Pearson BTEC Higher National Diploma in Business Management
Unit 1 Business and the Business Environment
Portfolio of Industry Analysis Factsheets (Part 1)
Environmental Business Audit Presentation (Part 2)
Name:
ID:
1

Table of Content
Part 1: Portfolio
1.0 An introduction to sub-sectors and the different types of organisation in the
industry, the market size and the growth of the international business environment
p
2.0 A factsheet for a selected sub-sector sports company p-p
2.1 Background details of the organisation p
2.2 The products and services it offers p
2.3 The size and scope of the organisation p
2.4 Vision, mission and business objectives p
2.5 The organisational and legal structure p
2.6 Stakeholders’ analysis p
3.0 An organisational functional structure flow chart p
4.0 How internal departments, for example - finance, marketing, work together to meet
business objectives p
5.0 Conclusions p
References p
2

1.0 An introduction to sub-sectors and the different types of organisation in the
industry, the market size and the growth of the international business environment
The term business environment is defined as sum total of all the factors like social, political,
legal which are external to the business organisation and can influence their functioning.
Business environment is engaged with several forces like suppliers, customers, government
and so on. It differs from place to place and even from country to country. An organisation
must be aware about certain changes that could take place in an organisation at any point of
time. The below report is based on JD Sports, which is a British multinational retailer and is
headquartered in London, England. The company deals in sports wear, and its accessories
products mostly of its own label. The report is categorised into two parts that is assessment 1
and assessment 2. The assessment 1 involves several types of organisation in context with
purpose and legal structure, different size and scope of organisations, interrelationship with
different functions and its link with organisation structure. In accordance with assessment 2,
it is engaged with positive and negative impact of pestle analysis on all private, public and
macro organisation (Shoaf, Jermakowicz, and Epstein,2018).
Organisation is a form of human association which it was established for attainment of some
purposes. The main aim behind establishment of these organisations is to either earn profit or
social welfare. There are various kind of organisation which are discussed below:
Public sector organisation: This type of sector is engaged with those
organisations that are owned and financed by the government on behalf of general public.
The primary objective of public organisation is not just to earn profits but they also focus on
social welfare. Some of these companies are The Armed Forces, Bank of England.
· Purpose: The main purpose of these companies is to serve all the people with high
quality and distinctive output and services in order to educate, inform and entertain.
Legal structure: Legal structure of public organisation include
 Central Government: They collect funds in from Income Tax through public which
assist in project execution and completion.
 Local Government: They majorly gathered funds from the trusties and community
charges which are formerly known as council tax.
 State Government: As it had specific power applicable on specific departments.
3

Private Sector Organisation: These sector includes those organisation which are established
and controlled through private and individuals. The owner of private organisation can be
either a single individual or group (chmittem, 2021). For example: Marks and Spencer is
British base multinational and private company which indulged in retailing businesses in
various countries like UK, US and many more (Huber, Kaufmann, a(Swart, K., 2017).
Purpose: The purpose of JD Sport is to make inspirational quality which is accessible
to others.
Legal structure: The legal structure of company is described below:
Sole proprietorship: A company with one employee is called as sole trader. Somehow
it is having necessity of obtaining the licence from local authority in various kind of business
such as small business or street shops.
· Partnership: A partnership is an association of more than one individual. The legal
obligations in partnership are similar to sole trader. Also, the partners are bound to sign a
partnership agreement which legally bounds them in paying debts or sharing of profits in
agreed proportion(Ma, Wang, and Teng, 2021)
(Levinthal, and Workiewicz, 2017).
· Limited company: According to this company it owns entity which need registered to
become a limited group of company. The limited companies are profit which belongs towards
company that does not involves any kind of shareholder. As shareholder marks their track of
profit from dividend. The corporation tax must be paid through company on profit earned
in each year. Marks and Spencer is also registered as limited company segment.
Voluntary organisation: It involves a group on which individuals of those who have
willingly enter into an agreement to form an organisation in order to accomplish an objective.
Oxfam is global charitable organisation structure who works towards reducing the poverty in
nation. Some of these organisations are Unicef and British heart foundation.
Purpose: The purpose of Oxfam is to end injustice with respect to poverty and
promoting the rights of women.
Legal structure: - The legal structure of company is described below:
· Trust: There is no membership structure because they are non-democratic
organisations. All the trustees could be personally liable for contracts.
· Unincorporated Association: In context with this association, there is no kind of
separate legal existence. All types of contracts must take place by individuals which would be
on the behalf of group.
4

2.0 A factsheet for a selected sub-sector sports company
2.1 Background details of the organisation
JD sports was founded by John Warle and David Makin in 1981. They started from a small
shop later expanded bro Bury, Manchester. Operation of the company is in UK. Various
countries in Asia, United States of America and New Zealand. The company is listed on
London Stock Exchange and it is a essential element of the FTSE 100 Index with its
majority of ownership is with Pentland Group. (McMahon, 2018)
(Al-Azzawi, and Kaya, 2021)
2.2 The products and services it offers
JD sports offers various sports products and its accessories all over the world. Company is
collaborating with several big brand such as Nike, puma, vans, Jordan, crocs, Reebok,
Adidas, Levi's etc. that gives them an edge over its competitors as people can get all the
products under the one roof with having variety of branded products (Orgambídez, and
Almeida, 2020).
2.3 The size and scope of the organisation
Firm has more than established 3500 stores around the world spread in to various countries
and providing employment to more than 38000 workers, operating for the company. By
pursuing several operations like production of the products, supply chain for the products,
employees in various departments like sales, finance, marketing etc. Even company is scaling
themselves in to various parts of the world in order to increase their revenue and for long
term growth and success of the brand (Randhawa, and Ahuja, 2017).
2.4 Vision, mission and business objectives
Vision, mission and business objectives of the firm is mentioned below:
 Objectives – JD sports main objective is to earn long term sustainable earning
and success to increase their over all returns of shareholder funds by the
positive movement of their share price and dividends while maintaining their
commercial capabilities to focus in the growth and success of the firm and its
stakeholders (Sangwa, and Sangwan, 2018).
 Vision – Company's vision is to motivate and encourage people around the
world to be physically and mentally fit.
5

 Mission - JD sports is focusing in gaining the respect, goodwill abd the trust
from the consumer around the world by providing them the world class
products and services at the affordable price.
2.5 The organisational and legal structure
Organisational Structure:
 Pyramid Organisational Structure- It is a hierarchical based structure starting with
the administration level at the top then descending of levels to the lower one of the
business. In context to JD Sports, management is following this structure in order to
smooth working environment of the company (Shoaf, Jermakowicz, and
Epstein,2018).
Legal structure:
 Partnership – In this kind of business activity there is an mutual agreement in
between more then two people that is done and accepted on terms and consent of
every partner of the organisation. In case of JD sports, company gets its majority of
funds from its partners itself in order for smooth working of the business.
2.6 Stakeholders’ analysis
This is an essential procedure which is utilise to provide all the techniques in which high
quality of goods are supplied and it is analysed that all the uncertain utilisation to eliminate
the challenges and the altering obstacles that assist in keeping the advancement and its ways
with the every techniques that are to be executed in the organisation. In context of JD Sport it
is mentioned below: High power - High Interest: In this usually every authority that have high power in
the firm as in context to JD Sport, management utilise this to make a crucial role in
the organisation and also concerned on betterment and encouragement in the
commercial activities (Swart, K., 2017) High power- Low interest: in this concept utilisation to include all the stakeholders of
the firm that is use to give important capital funds in order to smooth running of the
business. JD Sport will have to give all the mandatory information about the
operations and working of the company so that it can help in convincing and
satisfying them.
6

 Low power-High interest: This generally show that people having very low power in
the firm but have the crucial interest. It Is used to give the support in the assigned
tasks and the operations whereas, with high interest. In terms of JD sport, consumers
are considered under this concept as they have high interest in the products of the
company but have low power of authority.
 Low power- Low interest - In this people have zero to no interest in the operations of
the business and there is no authorised power assign to them. In relation to JD Sports,
Media and government can be considered under this concept as they have low power
in the operations of the business with having very low interest in it too (Vivares,
Sarache, and Hurtado, 2018).
3.0 An organisational functional structure flow chart
Organisation Structure of Public and Private sector organisation
There are several types of organisational structure like hierarchical, flat structure and
many more. In context with chosen public and private organisation it is being described
below: -
Public sector sector organisation: -
 Hierarchical Organisational structure: It is a pyramid shaped organisation structure
in which the chain of command goes from up to down. Various companies follow
hierarchical organisation structure. In this, hierarchies are divided on the basis of
executive board, commercial board, governor and so on.
Private sector organisation: - The chosen company is JD sports.
 Flat organisation structure: - It is involved with the structure with few levels of
middle management between both employees and leadership. In context with JD
Sport, they follows flat structure in order to encourage staff members in the process of
decision making (Widodo, M.L., Soekmadi, R. and Arifin, H.S., 2018).
4.0 How internal departments, for example - finance, marketing, work together to meet
business objectives
The organisation structure is a systematic system that determines how a particular task is
directed in the business organisation to achieve desired goals and objectives, it also helps in
analysing how the information flows between different departments of the organisation.
7

There are different departments in the organisation which are highly depended on each other
in order to effectively carry out the activity and achieve desired goals collectively. In case of
Marks & Spencer which is continuously working towards satisfying their customers and
achieve maximum profit through effective coordination between different departments. The
relationship among the different departments of the company is highlighted below:
· Marketing and Human resource department: There is a direct relationship between
marketing and human resource department. In context with the department of human
resource, the chosen company ensures that there is an availability of skilled and qualified
employees in the marketing department. It also provides required and efficient level of
training to all the employees of marketing which helps in enhancing overall performance of
the company. On the other hand, the marketing department helps human resource department
attracting large number of candidates using marketing strategies.
· Production department and R& D department: The production department ensure
that quality products and services are produced. In context with R&D department of Marks &
Spencer, it provides required information about the current trends and changing taste and
preference of the customers to the production department. Through this, they could produce
goods according to the requirement of their target customers effectively. Both the
departments collectively works towards satisfying the needs of their customers.
· IT department and Finance department: The finance department plays an essential
role in ensuring the availability of fund in each and every department so that they can
effectively carry out their activity. The finance department of Marks & Spencer ensure that
there is availability of finance in the IT department so that they can smoothly carry out their
activity (Zeimers, G. and Shilbury, D., 2019).
5.0 Conclusions
It is stated with above mentioned points that business environment is combination of micro as
well as macro factors which directly influence operations of a company. It is imperative to
analyse business environment constantly for further growth & enhancement. There is
discussion about different kind of organizations such as public, private as well as voluntary
entities.
References
Al-Azzawi, T. and Kaya, T., 2021. The Impact of Cloud Computing on Organizational
Performance. International Journal of Cloud Applications and Computing (IJCAC), 11(4),
pp.136-151.
8

Chernyak-Hai, L. and Waismel-Manor, R., 2019. Gendered help at the workplace:
Implications for organizational power relations. Psychological reports, 122(3), pp.1087-
1116.
Huber, D., Kaufmann, H. and Steinmann, M., 2017. The organizational structure: the
innovative enterprise. In Bridging the innovation gap (pp. 53-91). Springer, Cham.
Levinthal, D. and Workiewicz, M., 2017. Near Decomposability and Organizational
Structure: The Adaptive Rationality of Multi-Authority. In Academy of Management
Proceedings (Vol. 2017, No. 1, p. 15299). Briarcliff Manor, NY 10510: Academy of
Management.
Ma, L., Wang, Y. and Teng, Y., 2021. Evolutionary game analysis of stakeholders under the
whole process trusteeship mode of agricultural production. Kybernetes.
McMahon, J.M., 2018. An organizational structure game (and BINGO! is its name-o).
Management Teaching Review, 3(1), pp.62-70.
Orgambídez, A. and Almeida, H., 2020. Supervisor support and affective organizational
commitment: The mediator role of work engagement. Western journal of nursing research,
42(3), pp.187-193.
Randhawa, J.S. and Ahuja, I.S., 2017. Evaluating impact of 5S implementation on business
performance. International Journal of Productivity and Performance Management.
Sangwa, N.R. and Sangwan, K.S., 2018. Development of an integrated performance
measurement framework for lean organizations. Journal of Manufacturing Technology
Management.
Shoaf, V., Jermakowicz, E.K. and Epstein, B.J., 2018. Toward sustainability and integrated
reporting. Review of Business, 38(1), pp.1-15.
Swart, K., 2017. The South African Sport Industry. In Sport Business in Leading Economies.
Emerald Publishing Limited.
Vivares, J.A., Sarache, W. and Hurtado, J.E., 2018. A maturity assessment model for
manufacturing systems. Journal of Manufacturing Technology Management.
Widodo, M.L., Soekmadi, R. and Arifin, H.S., 2018. Analysis of stakeholders in Betung
Kerihun National Park's ecosystem development, Kapuas Hulu District. Journal of Natural
and Environmental Resources Management, 8(1), pp.55-61.
Zeimers, G. and Shilbury, D., 2019. The interconnected roles of the chair. In Routledge
handbook of sport governance (pp. 262-275). Routledge.
9

Table of Content
Part 2: Presentation
SLIDE 1
SLIDE 2
NOTES:
10

Positive impacts - The United Kingdom is a stable country that include suitable section of
the approaches and authorities that holds continuous manner. As it will support the JD sports
to maintain their political funds, raw material resources as it will increase their profitability
(Chernyak-Hai, and Waismel-Manor,2019). The company have positive impact of this factor
due to having less political interfaces as the UK provide free and effective trade to the
business. So that, JD sports could easily capture large market. Therefore, the company could
attain huge success.
Negative impacts - JD sports are a popular brand that are famous for its arrangements and
schedule in terms of corporate social responsibilities that maintains their initiatives by the
lack of transparency of such section by the United Kingdom government. As the JD sports
facing Brexit impact which creates hurdles for the company to operate in EU countries.
Therefore, it would be a negative consequence for company that hinders their operations.
SLIDE 3
NOTES:
Positive impacts - The management of JD sport provide several discounts on their products
through online shopping of their sports material with high term of impact of the customer that
will have an impact on the sales and profitability in an efficient way. This factor generate
positive impact as the company is proving great sustainable practices. If the firm is being
consent about their society, it will be good for their reputation into market.
11

Negative impacts - In various section of the nation it involves dynamical changes in
economical cycle, executives and leaders of the JD sports faces various competition in
context to the inflations in which the value of organisation products will get raise as with the
goods with higher term of funding for the business (Orgambídez, and Alnd Steinmann, 2017).
This factor may create negative influence on the company by not being convenient for the
society and its future.
SLIDE 4
NOTES:
Positive impacts – JD sports performs operations on varied manner of divisions in the
multinational area of the market and as according to the producer and their products, they
have different fields that will lead to the major impact on the sales together with the
productivity and the profitability (Randhawa, and Ahuja, 2017). The company have positive
impact of this factor as they are serving best quality products. Also, by providing goods as
per market trends.
Negative impacts – Customers are effectively coordinating in their aspects as they vary as per
to their nature and they can shift to other brand as per to their needs and desires. So the
management should maintain their economic status to hold their customers. This factor would
have negative impact of this factor. The society response and un fulfilment of customer
demand would not be beneficial for companies’ growth.
12

SLIDE 5
NOTES:
Positive impacts - By adopting new advanced pattern with technical innovation such as
search engine optimisation, IT section of the that will help of the JD sports. This factor could
give positive impact as the company will produce goods, reach to customers through
technological usage. The more JD sports will use modern technology, the more it would
attract modern youth.
Negative impacts - Regular adoption and frequent changes that will maintain the additional
value that will have negative effects on the profit margin (Sangwa, and Sangwan, 2018). The
negative impact may come up with miss use of technology, loss of information and privacy
concerns.
SLIDE 6:
13

NOTES:
Positive impacts - It will help in holding authorial section, safety that will have an impact in
maximising the effectiveness in the business of the operations in an efficient manner.
Negative impacts - If the leaders of JD sports breaks laws or will not getting follows the acts
to safe the social environment then they will face varied problems.
SLIDE 7:
14

NOTES:
Positive impacts - The managers of JD sports follows several section towards declining the
recycling, re-utilising its impact in declining the carbon footprints.
Negative impacts - Some environmental components like non conformation of laws that are
followed by legal sections that discuss the values of price for economical sections.
SLIDE 8:
NOTES:
STRENGTHS
Merging complimentary firms - The track record of the company shows successful
integration with companies. For building technology reliance the company has integrated
with several IT companies.
Faithful suppliers – The firm has collaborated with some trustful suppliers provide great
quantity manufacturing inputs on whom the company can rely.
Brand profile – Jd Sports Fashion Plc has made high reputation and strong portfolio which
proves to be a great strength of the firm. This provide it with a competitive advantage.
Customer trusts and relies on the firm which assures it market presence and builds sales.
WEAKNESS
15

Employee retention - Due to not concentrating on the workforce welfare and not providing
training programs to them, the employees has been less productive and even preference
moving to other similar sector which also increases the recruitment cost of the company.
Old technology – in the past years the company has been lacking in using online resources
which can benefit the country a lot. It should focus relying more on latest market online
trends.
Poor finances – The financial planning of Jd Sports Fashion Plc is not proving to much
benificial for the company. Analysing the current ratio and liquid ratio of the organisation,
shows that they should use their cash more efficiently than what they are doing currently.
OPPORTUNITIES
Transportation – Jd sports and Fashion Plc currently spends a lot in transporting cost.
Creating efficient ways of transporting its product can decrease the cost and help in building
more profits or proving relief to its customer which will help in getting more customer
attraction.
Technology advancements – Currently the organisation targets more on offline markets
which limits their customer availability. Working on automations can provide the company
with greater audience.
Cash flow – The current situation of accounting books of the firm shows stable cash flows.
This open the gates of opportunities for the company. They can invest it in new technologies,
entering new product segments, more diversification with corresponding researches.
THREATS
Competency – Increasing of retail industry is a big threat for the firm. As competition of
retail market is increasing rapidly on global basis the will have to cope up with the new
market trends continuously and maintain its brand profile. Lacking in any choice of their
consumers can make the clients shift to other competitors which provides their all needs.
Shortage of skilled labour – As Jd Sports Fashion is globally diversified it needs trained and
skilled workforce in every of its stores or employees used in certain other workings. Without
employees a company cannot function, and need workers who fits in the job type perfectly.
This is a great threat for the company and a obstacle in its smooth working.
SLIDE 9:
16

SLIDE 10:
17