Industry Analysis of JD Sports: Business and the Business Environment

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