Analysis of Macro and Micro Environment of JD Sports

Individual Strategic
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Analysis of macro and micro environment of JD Sports.......................................................3
Internal analysis of the JD Sports...........................................................................................7
Identification of Competitive Strategies.................................................................................9
Strategic Directions..............................................................................................................11
CONCLUSION..............................................................................................................................13
REFERNCES:................................................................................................................................14
Books and Journals:..............................................................................................................14

INTRODUCTION
The term Business Environment refers to an aggregation of all internal and external
factors that affect the business in a direct or indirect way. These can be employees, clients,
customers, suppliers, social trends, economical changes, advanced technologies, government
influences and many more. Sum of these factors influences the business companies situation and
environment. The report is based on the JD Sports Organisation which is a British sports-fashion
company in retail sector (Akao, Watson and Mazur, 2020). It has a world-wide operations in UK,
USA, Australia, New Zealand and Asia as well. In 1981, the company was began by John and
David, that is why is more generally recognized as JD. The headquarter of the brand is in Bury,
Greater Manchester, UK. It is mainly known for fashionable branded, casual and sports-wear. As
the JD Company looks forward to expand its business in the Asia countries, it is very essential to
assess both internal and external environment of the business that affects the day to day
operations of business. It will also find market expansion methods for the JD Sports so that can
make an impactful decisions for the business. Overall, the report is based on different
frameworks and models or approaches that will assist the brand in its strategic decisions.
TASK
Analysis of macro and micro environment of JD Sports.
PESTLE Analysis:
The pestle analysis of the JD Sports is a useful tool to analyse the macro environment
factors of the company. These factors include political, economic, social, technological, legal
and environmental that influences the business operations of JD Sports. Moreover, the changes
in these factors will not only affect the JD Sports but also other players in the retail sectors. The
pestle analysis of the JD Sports is discussed underneath:
 Political factors: Political factors plays a very important role in determining the variables
that can affect the company's long term profitability in specific country or market. JD
Sports has world-wide operations in more than dozen markets and expose itself to several
political environment and risks related with it (Burak, 2020). High stability in political
factors can serve stable business environment with predictable trends of market. JD
Sports exists in various countries and each market is having their own political stress.
These instabilities and stress in the political environment can limit the growth

opportunities available to the company. It is beneficial for the brand to enter in such a
market which have low taxation rates so the more profit can be generated. Hence, the
political factors is one of the big challenges that is faced by the HD Sports as these
factors are fluctuating in nature.
 Economic factors: It is necessary for the organisation to understand economic variables
such as interest rates, foreign exchange rates, inflation rate, labour market conditions and
many more. The GDP growth rate will regulate the brand's ability to pursue the long term
tactics. High GDP also signs the ability of consumer to invest more on the JD sports
products. High unemployment rate signifies the availability of supererogatory labour at
relatively lower wages (Danish and et.al., 2020). Operating in such countries can lower
the cost of production of JD Sports. Hence, by understanding and predicting the labour
market conditions can help the company how it can attract talented employees and
leverage their skills to enhance the organisational performance.
 Social factors: Workplace culture derives strong influence from the societal trends,
values and norms. Studying the demographic trends, consumer's spending patterns, power
structure and shared beliefs can support the JD Sports to make effective content related
with marketing and satisfying their business objectives through informed pestle
framework. Understanding demographic features can support the JD Sports in selecting
the right market segments which has high growth potential. As the company expands
business in the Asian countries, it is very essential to know the common attitude towards
migration as it can affect the business's ability to bring global managers to host country.
Also, considering online shopping behaviour customers is also important that
distinguishes that young customers are more attract to purchase online than old
consumers.
 Technological factors: It is one of the challenging factors from producing until
supplying the good and services, JD Sports has to consider the technological factors. This
can be done by analysing how new technologies can support the brand to increasing the
customer satisfaction and its long term profitability and how much it will impact on the
fund of business. In case of JD Sports, it could help the company by getting a good
insight into what other players in the retail sector are thinking and where retail business
model future is.