Industry Analysis of JD Sports: Business and the Business Environment

This report provides an industry analysis of JD Sports in the context of Business and the Business Environment. It covers sub-sectors, types of organizations, market size, growth of international business environment, and interrelationships between internal departments. The report includes a fact sheet of JD Sports, an organizational functional structure flow chart, and stakeholder analysis. The report concludes with an analysis of different business structures and interrelationships between internal departments.

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)
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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
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Introduction
Business environment refers to the information of internal and external factors like
employees, supply and demands, customer needs and expectations etc. The factors impact
upon the function of the company, how the company performs directly or indirectly. JD
sports is the British sports fashion retail company, located in bury, UK (Möller, Nenonen and
Storbacka, 2020).
This report will discuss the sub-sectors and types of organization, market size and
growth of international business environment. It will also cover fact sheet of JD sports and
interrelationship of departments. Further there will be conclusions based upon analysis of
different business structures and the interrelationships between internal departments.
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
Sub sectors and Types of organization
The sports industry is consisted of three organizational sectors such as public, non-
profit, and commercial. These categories are the most important for the various type of
organization which is involved in sports. According to the UK market size which dropped in
2019 as compared to 2018, as JD sports launch in US by buying athletic goods. From this
new deal US market shows 29 percent of annual revenue of JD sports in 2021.
Public sector
It is based on the government based units, agency, departments, and they are called
public because it created by the people, for the people. The government supports facilities
like -park spaces, recreating centres, sport areas to their residents (Kim and et.al., 2019).
Development of sport and recreation programs are provided among all the residents like
children, youth, and adults. In the context of JD sports, it is the public limited company so it
is the part of public sector.
Non-profit sector
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It is consisted of voluntary organizations, its main purpose is not making the profit,
but addressing the social cause, special interest and the member needs. Many sports
organization are non-profit organizations, no one collects the financial profit from work of
non-profits. People of these organizations choose individual to function towards the executive
committee and also the board of directors. The international, national, state and local sport
organizations work as the non-profitable organizations for instance the international Olympic
committee, the international cheer union, etc. School, colleges, universities is government
sanctioned and funded organizations as well they serve and provide the education to all the
students. Sports is the most common it is easily offered by the schools by such activities like
physical education, intra group sports, and inter school competitions. Others like college and
universities make their contribution towards sport by training of future leaders, some of them
are situated between public and non-profit sector (González-Serrano, Añó Sanz and
González-García, 2020).
Commercial sector
The third category is the combination of the organization which has the objective to
generating profits. This is also central to the operations in whole sport industry and gives
important functions in providing the products and services of the sport to the population. This
organization's role in sports consider professional sports franchise, leagues and different
sports entities, providers, goods manufacturers, retailers, media, and the departments which
influence sports with sponsorships.
Difference between large, medium, small and micro sized
There are major difference between large, medium and small and micro sized where share of
micro is huge in sports industry is of 46% medium and small divided equally in percentage
and total it forms 50% large is consisted of only 2%
Difference between national and international transaction and global franchising
National means where the economical transactions are placed within geographical
boundaries of particular country. Buyer and seller in national business exist in in same
country and it is easier to perform business research in national business. Also, it deals in
single currency. International is totally opposite because in this economic transactions are
channelled across border with various countries. Buyer and seller lies in different countries
and in international, business research is hard to conduct. It deals in multiple currencies with
high risk.
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Difference between joint venture and licensing
Joint venture grow in commercial way for trading purpose which is used by
merchants and businessman to perform sizeable abroad trading operations. Joint
venture is more self-determined as compare to franchise. Joint projects creates new
markets for goods and services whereas franchise corresponds to franchisor strategy
and regulations for example in food franchise where all franchise all around sell the
same items and services. Franchising and license are the business agreements where the
brand features are shared in exchange with fee. Franchising agreements concern to all
business whole brand and operations whereas licensing agreements are applied to the
registered trademarks.
2.0 A factsheet for a selected sub-sector sports company
2.1 Background details of the organisation
JD sports is the fashion public limited company headquartered in bury, UK. It was
established in 1981 by John Wardle and David Makin which named as JD, and it deals in
clothing and sportswear accessories. JD started with trading with a single store in bury, great
Manchester in 1981 and further opened the store in Arndale centre, Manchester in 1983 (JD
sports, 2022). It is leading UK specialist retailer brand of fashion, sports and casual wear. By
1996 the company operated 56 stores in total, and by 2011 it has controlled most of the EU in
Germany, Ireland, Spain, Netherlands, and France. At the present moment it has concluded as
the most progressive merchandiser in the sportswear for quality and its exclusive stylish
range.
2.2 The products and services it offers
The product and services of the company are categorized as sportswear has in-store service
branded as JD, fashion wear is provided with e-retail services and branded as JD gyms,
accessories are provided in store, home delivery with brand naylors. JD sports has the clear
vision of becoming the most trusted company in the world, whereas its strategic plan for the
future discusses about what and where of the company future. Company's vision statement is
identifying the goals and to operate better in its strategic, managerial, general decision-
making process as well.
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2.3 The size and scope of the organization
The company market their products into different brands including JD, scotts, lab, tessuti,
nicholas deakins, etc and the e-commerce portals works as merchandising their products.
From this new deal US market shows 29 percent of annual revenue of JD sports in 2021.
2.4 Vision, mission and business objectives
The company believes in following some aspects which fulfil their vision, mission and
objectives such as :
 Strong consumer connection : the strong connection base can be build by inspiring
the globally minded customers by connecting with the universal culture of sports,
music, fashion. The detail understanding of street consumers and fashion set up the
variety of products to request to the audience.
 Excellence in physical retail : the group of the company is committed towards
promoting brand in premium environment whereas the store remains at the centre of
its strategy. Continuously, their groups set up global standard for the retail experience.
 Omni-channel capability : JD uses the digital platforms to increase their reach and
also the facility for their consumers to shop easily across all the channels. The main
motto of the company is they want their customers able to make a purchase easily
however and whenever they want.
2.5 The organisational and legal structure
JD sports is the fashion public limited company (PLC), A plc is which comes under UK
company law, also it is limited liability company which offers shares of stock to common
public (Bavorová and et.al., 2021). Companies are different in law from individual owners of
business. It has the separate legal entity which includes the company name and seal, where
the property can be owned, borrow money and shareholders not be responsible for company's
act. PLC can be listed or unlisted in the stock exchanges, whereas JD sports is listed in
London stock exchange.
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2.6 Stakeholders’ analysis
In the discussion of JD sports stakeholders, it refers to people work for the outcome of the business.
The company's stakeholders have the chances of positive or negative cause in the entity's directions,
various executives are included in acquiring the JD sports stock to the level which pleases all
shareholders (Huth, 2019). It is concluded as the number one stock in total number of employees
category among related companies.
3.0 An organisational functional structure flow chart
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CEO
Sales and
marketing
Direct sales
Customer
Service
Production
Quality
Control
Human
Resource
Management
Finance Research and
Development
Board of
Directors

Local structure of the organization
Product Structure
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CEO
FINANCE
FINANCE
FASHION
MARKETING
CUSTOMER
RELATION
MANAGER
SALES
DIRECTOR
PRODUCTS
SPORTS
SHOES
SPORTS
ACCESSORIES CLOTHING

4.0 How internal departments, for example - finance,
marketing, work together to meet business objectives
In the company there are interrelationships between departments in which they
communicate with each other. Each department has its roles and work with reacting to the
outside environment of the JD which helps in achieving company's actual goal. The
information is shared from one department to another such as in JD the sales and marketing
department communicate with each other about sales and market demand to get the positive
outcome. The financial analysis is done on the basis of how the company is performing in
their sales. Apart from that marketing departments also gives the necessary information
related to demand of the products therefore it can make out the profit ratio of the company.
The prices of the company started fluctuating with year 2016 to 2020, it is seemed that it is
performing high as the share prices are growing 800 where in 2016 its was around 200 to
250. Further, in the may 2020 it recorded a drop-off in share prices which recovered later on
(share prices of JD sports, 2022).
According to the JD sports it says that multichannel strategy is given the competitive
advantage during pandemic the report shows the rising sales close to hit the profits which
might have been expected in a year as the shops was closed because of restrictions.
Disadvantages of the company can be occurred if the financial planning is not made properly
in efficient manner, the low sales can also leads to many disadvantages (Chauhan and Kalkis,
2020). In current situation the company investment in technology is not at position with their
vision whereas company must invest in technology to make the further process.
Analysis of different business structures and interrelationships between internal departments
Hence, in the discussion of JD the interrelation between the departments helps in
fulfilling the positive outcomes and overall it has positive impact. As it is discussed the
shares of the company are also highly in demand, and the multichannel strategy has given the
best results at the time of pandemic. The internal departments of the company are those
where the sales and marketing department communicate with each other, the different
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departments has different roles which together makes a result in achieving the company's
goal. In the discussion of JD the sales and marketing discuss the aspect of financial analysis
of the company which shows how the company is performing in their industry. The company
can increase their technology which is suitable with their vision and the financial planning is
necessary reaching up to the level of more sales ratio (Oulton and et.al., 2022).
Stakeholders and their responsibilities
Stakeholder plays primary role to help company in meeting the objectives with
necessary contributing their experience and views in a project. Stakeholder are of two types
internal and external. Internal are directly linked with company and external are not directly
linked but impacted with some way of the outcomes. Customer is the primary stakeholder
which is linked with company and economic success. Employees are key stakeholders as they
appoint good and services issued by company also the quality of work directly impacts on
customer support. Governments are the secondary stakeholder which is indirectly connected
with company investors and shareholders are types of primary shareholders who keep
companies financially alive and projects are possible by them with provision of funds. Local
communities is the area in which business is situated and it is a secondary stakeholder as it
benefits from company economic investment through job creation. Supplier’s and vendors are
the external stakeholders who exist outside, and they are primary stakeholders as sell to
benefits by the revenue created from sales and services.
5.0 Conclusions
From the above report it has been summarized the public, non-profit, and commercial
sectors and types of organization in sports industry. It also includes fact sheet under which it
gives the explanation of the company. After that analysis has been done on interrelationship
of departments by using visual mapping. Further, at last it has been concluded about the
different business structures and interrelationships between internal departments which fulfils
the business objectives.
References
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Möller, K., Nenonen, S. and Storbacka, K., 2020. Networks, ecosystems, fields, market
systems? Making sense of the business environment. Industrial Marketing
Management. 90. pp.380-399.
Huth, C., 2019. Repositioning Golf as a Health Sport–an Empirical Stakeholder Analysis
from the Supplier’s Point of View. International Journal of Golf Science. 7(2).
p.10403.
Bavorová, M., and et.al., 2021. Agribusiness social responsibility in emerging economies:
Effects of legal structure, economic performance and managers’ motivations. Journal
of Cleaner Production. 289. p.125157.
Kim, M., and et.al., 2019. The antecedents and consequences of positive organizational
behavior: The role of psychological capital for promoting employee well-being in
sport organizations. Sport Management Review. 22(1). pp.108-125.
González-Serrano, M. H., Añó Sanz, V. and González-García, R. J., 2020. Sustainable sport
entrepreneurship and innovation: A bibliometric analysis of this emerging field of
research. Sustainability. 12(12). p.5209.
Chauhan, H. and Kalkis, H., 2020, July. Downstream Intra-organizational Product Market
Competition Between Employees: A Theoretical Approach. In International
Conference on Applied Human Factors and Ergonomics (pp. 18-25). Springer,
Cham.
Oulton, K., and et.al., 2022. Culture, cognisance, capacity and capability: The
interrelationship of individual and organisational factors in developing a research
hospital. Journal of Clinical Nursing. 31(3-4). pp.362-377.
Reunanen, H. B., 2020. Social Media Development and Sponsorship Groundwork for a
Professional Athlete.
Debnath, R., and et.al., 2021. Political, economic, social, technological, legal and
environmental dimensions of electric vehicle adoption in the United States: A social-
media interaction analysis. Renewable and Sustainable Energy Reviews. 152.
p.111707.
El Khateeb, S. and Shawket, I. M., 2022. A new perception; generating well-being urban
public spaces after the era of pandemics. Developments in the Built Environment. 9.
p.100065.
Kaya, D. G., 2021. Views of Sports Sciences Students about Distance Education during
COVID-19: SWOT Analysis. Journal of Education and Learning. 10(2). pp.159-168.
Ziyi, M. E. N., 2020, December. SWOT Analysis of the Business Model of Short Video
Platform: Take Tik Tok as an Example. In 2020 Management Science
Informatization and Economic Innovation Development Conference (MSIEID) (pp.
38-42). IEEE.
Alarie, C., and et.al., 2021. SWOT analysis of an outpatient rehabilitation physical activity
intervention for individuals with mild traumatic brain injury.
Online
JD sports. 2022. [Online] Available through: <https://www.global.jdsports.com/>
share prices of JD sports. 2022. [Online] Available through:
<https://www.assignmentworkhelp.com/accounting-and-mangerial-finance-for-jd-sports-
fashion-plc/>
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legal factors of JD sports. 2022. [Online] Available through
<https://www.case48.com/pestel-analysis/9025-Jd-Sports-Fashion-Plc>
Table of Content
Part 2: Presentation
Slide 1
11

Slide 2
12

Slide 3
13

Slide 4
14

Slide 5
The change in macro environment factors will not only have direct impact on JD sports but
the others in retail industry as well.
The JD sports looks further in expanding and advantage of core capability, pestle analysis is
useful for developing effective strategies and achievement of long term growth. The
following are the discussion of analysis :
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Slide 6
Company operated in many countries, each country is based on retail industry, so the policy
will make according to it. From the rise in populism all the world the UK can observe the
similar trends, and lead towards the instability in the UK markets.
JD has to maintain the diverse regulations in variety of markets where it is presented. From
the past few years UK and other rising economies has changed the rules and regulations in
the concern of not only market entries, but to see how companies in retail sector operates in
the general markets.
Stakeholders like protest and pressure groups, non-government organization play major role
in making policy in UK.
Company can work with those organizations to distribute in better way to the community
goals as with the corporate goals.
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Slide 7
Taking step in the developed industry can be big challenge due to market saturation than
industry at growth stage.
Also, well-mannered infrastructure provide the facility to the business environment with
impact of increasing the growth aspects of industry in the individual country.
The study and predictions of labour market conditions can be done by JD to understand how
it attracts the talented workers and increase their performing skills to improve the business
performance.
Flexible labour markets can bring the advantages to the JD sports to take high labour
productivity. While in operation with rigid labour markets cause to labour wage and various
issues lifted up by strong labour unions.
By the following factor it can be said that this will put positive impact on company as it
discuss the overall economic environment of the country and it also increases aspects of
improving the business performance.
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Slide 8
As compare to the old customers the younger generation is more attracted towards online.
Company must consider the use of mobiles in youth and social networking sites while
developing their marketing and communicating scheme.
It can be said that social factor will put positive impact on company in form of increasing its
profitability as people prefer to shop online and firm will consider the same trend.
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Slide 9
Technological innovations are important in itself and it is considered for company to stay
ahead in competition.
By focusing on rising technological innovations, the market share of the JD can be increased.
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Slide 10
In consumer protection laws privacy and concern are more important where the JD must go
through data protection laws to protect the consumer data.
The intellectual property laws are introduced to secure the company's licence and ideas.
Enable to protect these rights results in chance of losing competitor y advantage, which leads
to JD weakening position in front of their market players.
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Slide 11
Extreme conditions is adding to the cost of operations where the company invest in making
the supply chain flexible.
It enlarges consumer base because of enhanced brand icon and also gains stakeholder
satisfaction.
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Slide 12
. These models are used to analyse industry structure of company along with corporate
strategy.
Competition in industry
it shows the number of competitors in industry and their power to undercut the company.
suppliers and buyers search out J D's competition if they are in ability to offer beneficial
deals or lower prices.
If the competitive rivalry is less, JD has chance to charge high prices and setting the terms to
achieve maximum sales and profits.
Potential of new entrants in a industry
Power of jd is affected by pressure of new entrants in marketplace.
It cost less time and money for competitor to enter company market to be effective
competitor.
Power of suppliers
it shows how easily suppliers can cause up the cost of inputs.
If the suppliers are short in industry, JD would depend on particular supplier.
Supplier has power who can drive up input cost and for other benefits in trade.
If suppliers are more, company can maintain its lower input cost and increase their profits.
Power of customers
Customers ability to demand for lower prices, it impacts on the basis of how many
customers JD has and the significant of each customer and how much it cost to find new
customers for their outputs.
Small and powerful customer base means each and every individual has power to negotiate
for getting better deals and their benefits.
For JD having smaller independent customers will be easier for as per time charging high
price for increasing profits.
Threat of substitutes
Substitutes good and services which can be used as place of company products affect as
threat.
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Customer pay attention to the benefit products and subs' are the chances of risk which is
being provided by competitors.
Company who produce goods for which there is no substitute is available will improve
power to increase prices as they want.
Without substitute customers will have no option for search and willing buy the company
original products.
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Slide 13
Slide 14
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Slide 15
Strengths - It has the huge product portfolio in which the products are provided in the big
range categories, also has some unique range of products in differentiate with their
competitors.
The company is dedicated towards building the customer relationship by satisfaction to the
present customers, raising the brand quality among likely customers.
Weakness - More investment is required in new technology to combine the process across
the board whereas the investment in technology is not in position with company's vision.
Financial planning is not efficient and proper, current and liquid asset ratio states that
company can efficient use of cash rather than what is performing in present.
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Slide 16
Opportunities - The e-commerce industry is new trend in which peoples are making more
online purchase, JD can follow the same trend and gain its revenue by fashioning the sales
through this.
Threats - Suppliers bargaining power is increased with over the year fewer number of
suppliers, which increases the input cost for JD sports.
Exchange rates keeps changing which put impact on JD which has international sales
whereas the suppliers are general.
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Slide 17
27

Slide 18
28

Slide 19
Kaya, D. G., 2021. Views of Sports Sciences Students about Distance Education during
COVID-19: SWOT Analysis. Journal of Education and Learning. 10(2). pp.159-168.
Ziyi, M. E. N., 2020, December. SWOT Analysis of the Business Model of Short Video
Platform: Take Tik Tok as an Example. In 2020 Management Science
Informatization and Economic Innovation Development Conference (MSIEID) (pp.
38-42). IEEE.
Alarie, C., and et.al., 2021. SWOT analysis of an outpatient rehabilitation physical activity
intervention for individuals with mild traumatic brain injury.
Intellectual Property Law. 2022. [Online] Available through
<https://www.gov.uk/topic/intellectual-property/law-practice>
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Slide 20
30

Slide 21
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