Industry Analysis Factsheets - Environmental Business Audit Presentation

This presentation provides internal and external environment analysis of a sportswear company i.e. Admiral Sportswear so as to evaluate whether it is able to expand its distribution channels to include both e-commerce and physical retailers. It includes PESTEL Analysis, SWOT Analysis, impact of micro and macro factors on business objectives and decision-making, and recommendations.

Environmental Business Audit
Presentation

Table of Contents
 INTRODUCTION
 The company Background
 PESTEL Analysis to analyze the Positive and negative impacts of macro environment
on business
 SWOT Analysis to identify the internal strengths and opportunities for expansion
 How the strengths and weaknesses interrelates with external macro factors
 Impact that micro and macro factors have on business objectives and decision-making
 Recommendation
 CONCLUSION
 REFERENCES

INTRODUCTION
As part of strategic planning of the business, it is crucial
for the business organizations to analyze the internal as
well as external environment of business so as to take
effective steps to improve the performance of business and
ensure its further expansion. This presentation is aimed at
providing the internal and external environment analysis of
a sportswear company i.e. Admiral Sportswear so as ensure
and evaluate whether it is able to expand its distribution
channels to include both e-commerce and physical retailers.

THE COMPANY BACKGROUND
Admiral Sportswear is a UK based sportswear brand that focuses
on association football. The company was founded in 1914 and
headquartered in England. It deals in the product line of
sportswear offering garments, apparel, sports essentials,
accessories etc. to the cricketers, cyclers and athletes. It was
originally created as an undergarment brand in 1914 then
switched to multi-sports including cricket, cycling and athletics.
The company achieved more success in 1980s and 1990s by the
series of football team sponsorships.

PESTEL Analysis to analyze the Positive
and negative impacts of macro environment
on business
PESTEL Analysis is a business framework that is used by the
marketers to evaluate and monitor the macro environmental factors
that may impact the organization in a positive or negative manner.
The sportswear businesses must also analyze the external
environment so as to ensure better planning of strategies to deal
with the external factors or uncertainties. Organizations are more
able to plan strategically for expansion or other business projects
by analyzing the impact of these external factors on the business.

Political
These factors include the change in government regulations like
taxation policies, political instability, tax policies, environmental
regulations, trade restrictions, tariffs set by the government, etc. that
impact the performance or sports retail businesses. These factors
determine the extent to which the government may impact the
business of industry or company. In context with Admiral
Sportswear, the stability of UK economy provides ample scope for its
growth with its favorable tax agreements.

Economic
These factors include change in interest rates, inflation rates,
wage rates, unemployment (national or local), credit
availability, cost of living, exchange rates, etc. that impact
the business of company. The economic growth or decline
also impact the way an organization conducts its business.
Admiral Sportswear will have to analyze the inflation rates
as it directly affects the prices of its sportswear and other
sports equipments (negatively in the covid19 pandemic).

Social
The social factors that impact the performance of business
include demographics and skill level of population, class
structure, hierarchy and power structure in the society, culture
(gender roles, social conventions), attitudes (health and
environment consciousness), leisure interest etc. For example,
generally males are more interested in sports as compared to
the women, so Admiral Sportswear produces more sportswear
products for men. Also, the high class income people prefer to
wear the sportswear or the athletes etc.

Technological
Technological factors impact the companies positively in designing
the products with innovative ways. In context with Admiral
Sportswear, it is effectively utilizing the technology by its social
media handles like Facebook, Instagram, Twitter, etc. It will also
facilitate the company in distribution expansion by ecommerce
retailers. Admiral Sportswear must do technology analysis to
understand the impact of recent technological developments by the
competitors of Admiral Sportswear Ltd so as to get the competitive
advantage by deploying an advance and effective technology for
production as well as marketing.

Environmental
The environmental factors include waste management policies of
the company, attitudes towards the green or ecological products,
attitudes towards the renewable energy, recycling, laws
regulating the environment pollution etc. So, Admiral Sportswear
must also consider the environment pollution laws so as to
comply with them and leave positive impact if its business
operations such as production, on the society.

Legal
The legal factors include the rules, regulation and
policies of the nation that the business is required to
company with so as to avoid any penalty in case of
violation of any of the laws. Such as the health and
safety law, copyright/patents law, consumer protection
and ecommerce regulations etc. Admiral Sportswear
must consider the rules and regulations relating to the
safety and security of the people while manufacturing
sports accessories so as to avoid any injury.

SWOT Analysis to identify the internal
strengths and opportunities for expansion
SWOT Analysis a strategic planning tool that helps the organization in identifying its strengths, weaknesses,
opportunities and threats. It is also called situational analysis.
Strengths
 Strong Brand Awareness
 Marketing capabilities
 Strong Distribution network
 Skilled workforce

Weaknesses
• Poor labor conditions of other countries
• Lack of diversification
• Ineffective marketing
Opportunities
• Technology
• Emerging markets
Threats
• Competition
• Counterfeit products

How the strengths and weaknesses
interrelates with external macro factors
The strong brand awareness of the company has been possible due to the positive
impact of political factors on the business and a positive economic condition of the
UK. But during the covid19 pandemic, it took a slightly variation but due to the
international market presence, it is enjoying strong awareness and brand value
worldwide. The positive impact of social factors due to their health consciousness
behavior is enabling the marketing capacity of business and thereby adding more
to its strengths.

Impact that micro and macro factors have
on business objectives and decision-making
Micro factors are the internal and macro are external factors that impact the decision
making of the company that in turns affect the objective achievement. In context with
Admiral Sportswear, its internal and external analysis proves that the overall business
performance is good and the company is having positive impact of technological as
well as social factors and it has string brand awareness and opportunity to expand in
the emerging markets with effective use of technology.

Recommendation
It is recommended to Admiral Sportswear that it must proceed ahead with its
expansion plans to expand its distribution channels by E-commerce players i.e.
Google shopping and physical retailers i.e. JD sports as the company has an
opportunity to attract new customers from the emerging markets by the use of
effective technology.

CONCLUSION
It can be analyzed from this presentation that it is imperative for the business organizations to
analyze their micro and macro busyness environments so as to take into consideration the
expansion of business in terms of anything that the business desires. As seen in this case i.e.
expansion in distribution channels that is dome by using different frameworks of evaluation like
PESTEL Analysis, SWOT Analysis etc. The decision making of the company is impacted by
both the micro and macro environmental factors. It is recommended to the sports companies that
they must analyze the external environment so as to make strategic planning regarding their
expansion plans of business.

REFERENCES
 Ahmad Ghazali, N., 2021. Technology Entrepreneurship (ENT 600): Puma.
 Ashraf, M.H., Chen, Y. and Yalcin, M.G., 2022. Minding Braess Paradox amid
third-party logistics hub capacity expansion triggered by demand surge.
International Journal of Production Economics, 248, p.108454.
 Dutta, B.N. and Dayal, B., 2022. Lattice Constants and Thermal Expansion of
AgCl up to 878° C by X-Ray Method. In Volume 5, Number 1 1964 (pp. 73-76).
De Gruyter.
 Gao, F., and et. al., 2021. A reminder in the air: Attention to pollution and the
purchase of critical illness insurance. Available at SSRN 3926974.

Thank You