Industry analysis and Environmental Business Audit: A case of JD Sports

This report provides a strategic analysis of JD Sports, a UK-based retail organization dealing in sports and fashion. The report includes SWOT and PESTLE analysis of the organization's internal and external environment.

Industry analysis and
Environmental Business
Audit
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Table of content
Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Swot Analysis of JD Sports.........................................................................................................3
Pestle analysis of JD Sports........................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6
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Introduction
Strategic analysis is referred to the process of conducting a research in context of the
environment of the business where it tends to operate. The strategic analysis is considered an
essential process in order to formulate the strategic planning to facilitate a smooth decision
making process along with a smooth working at the work place (Hajizadeh, 2019).
The report revolves around the concept of strategic analysis of JD sports. JD Sports is
basically a UK based organisation which is a part of retail sector organisation. The organisation
deals in sports as well as fashion. The organisation was established in the year 1981 byt John
Wardle and David Makin.
Main Body
Swot Analysis of JD Sports
The SWOT analysis of JD sports is performed in order to conduct the internal audit of the
organisation. The SWOT analysis of JD sports has been performed below (Teoli, Sanvictores
and An, 2019).
Strengths Weaknesses
 Faithful suppliers- JD sports have
faithful suppliers who are quite
punctual as well. These are strengths of
the organisation.
 Supply chain- JD sports has a strong
supply chain that has facilitated the
organisation to supply the goods across
various geographical boundaries which
has resulted in customer loyalty.
 Brand value- JD sports has a good
brand value that has been helping the
organisation to gain loyal customers.
 Close box success- The organisation
has been quite successful in selling its
products but the weakness is that the
expansion of product suite has failed.
 Old technology- The organisation used
traditional and obsolete technology and
its requires improvement.
 Improper finances- The organisation
has not been using the cash in an
effective manner and thus it is the
weakness of the organisation.
Opportunities Threats
 Transportation-  Seasonal demand- It can be observed
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 Youth trend- The organisation can
focus upon the trends that are popular
within the youth such as fitness and
training. This can be considered as an
opportunity for the organisation.
 New markets- It can be a huge
opportunity for the organisation to sign
various trade agreements with several
countries which can be emerging
markets for the organisation.
that the products that offer high profits
are seasonal and hence it can hinder the
profit of the organisation.
 Raw material cost- The raw material
cost have increased and hence it is
likely to have an impact upon the cost
and profitability of the organisation.
Pestle analysis of JD Sports
The PESTLE analysis of JD sports is performed in order to conduct the external audit of the
organisation. The External analysis of JD sports has been performed below (Perera, 2017).
 Political factors- The political factors that tend to have an impact upon the JD sports as
the organisation is required to seek permission from the government in order to establish
and expand its business in various countries. There is always a risk of government change
which is the most important and impactful political factor.
 Economic factors- Economic factors that affect the organisation are inflation, interest
rate, banking policies, etc. These constraints tend to have an impact over the demand of
the products in the countries. These are helpful in understanding the expenditure pattern
of the population in the country. In order to consider the various economic factors, It is
important for the organisation to focus upon the business cycles, employment rate, etc.
 Social factors- The social factors also have a huge impact over the environment of the
business. The various social factors that have an impact over the business of JD sports are
culture, attitude, educational level, etc. These facilitate the organisation to understand the
target market along with strategies in order to attract the right customers towards the right
product (Capobianco and et.al., 2021).
 Technological factors- The technological factors play a crucial role at JD sports in
aspect of the manufacturing process as well as the supply of the product. It is very
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important for the organisation to analyse the various technological factors of the
organisation. It has been evaluated that the organisation has been using traditional
technology that has been impacting the cost and efforts involved in the operational
process of the organisation. Up gradation in the technology is likely to increase the
customer satisfaction of the customers of the organisation which is likely to increase the
profitability of the organisation as well.
 Legal factors- It has been observed that each country has their different laws and its is
important for the organisation to oblige with the laws in order to survive in the market.
JD sports will require to understand and analyse the various legal factors of a region in
terms of employment laws, labour laws, health and safety laws, intellectual property law,
etc. These will facilitate the organisation to operate in the market without legal hindrance.
 Environmental factors- It is important for the organisations like JD sports to monitor
the various environmental factors that can have an impact over the organisation. The
various factors like pollution, weather, awareness, waste management, climate changes,
etc. are referred as the environmental factors all together. The organisation can analyse
the impact of their operational activities upon the various environmental factors and work
upon decreasing their negative impact upon the environment in order to enhance the
brand image (Islam and Mamun, 2017).
Conclusion
The report concludes that strategic analysis is an essential concept in an organisation. The
report focuses upon the strategic analysis of the primary organisation in terms of internal and
external environment. The internal environment of the organisation has been audited with the
help of SWOT analysis. The external environment of the organisation has been audited with the
help of PESTLE analysis.
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References
Books and Journals
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Hajizadeh, Y., 2019. Machine learning in oil and gas; a SWOT analysis approach. Journal of
Petroleum Science and Engineering, 176, pp.661-663.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Capobianco, N. and et.al., 2021. Toward a Sustainable Decommissioning of Offshore Platforms
in the Oil and Gas Industry: A PESTLE Analysis. Sustainability, 13(11), p.6266.
Islam, F.R. and Mamun, K.A., 2017. Possibilities and challenges of implementing renewable
energy in the light of PESTLE & SWOT analyses for island countries. In Smart Energy
Grid Design for Island Countries (pp. 1-19). Springer, Cham.
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