Individual Strategic Management Report for JD Sports PLC

This report evaluates the strategic management structure of JD Sports PLC, a UK-based sports fashion retail management company. It includes an external and internal analysis, identification of competitive strategies, and the use of Bowman's Strategy Clock. The report also covers the company's plan to expand in Asian countries, specifically Singapore.

Individual Strategic
Management Report

Executive Summary
Strategic management is becoming an essential concept at present days. By this, it is stated that
the difficulties and changing behaviour of the management are maximising and it develop
problems for management. In respect to deal with such problems, it is required for the
management that the should apply strategic management in respect to deal with it. The following
report covers evaluating and examination of internal and as well as external environment with
the utilisation of structure and then use of strategic management tactics.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION ..........................................................................................................................4
TASK...............................................................................................................................................4
External analysis.........................................................................................................................4
Internal analysis..........................................................................................................................8
Identification of Competitive Strategies.....................................................................................9
Strategic Direction :..................................................................................................................10
CONCLUSION .............................................................................................................................12
RECOMMENDATION.................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic management is termed as the procedure in which the management is concentrating on
planning to utilise the managerial resources effectively in respect to accomplish managerial
targets and aims. It needed an effective evaluation of process in the business for managing
business. In dynamical business environment, each day the difficulties are maximising and that's
why it becomes important to use strategic management in respect to maintain the issues and
become capable to deal with them (Barrozo, 2021). In relation to JD Sports PLC is undertaken
that is UK based management that operate their management in multinational field of
marketplace. It is found to be the British sports fashion retail management that operate their
management. It was established in 1981 in Bury, greater Manchester. Management are listed in
London stock exchange and also have stores in Europe, US, New Zealand, Asia and Australia.
They are presently following the progressive aspects of management in Asian countries for
higher term of future opportunities. The report covers the objectives to examine the strategic
management structure. In respect to use strategic management structure, this report also involve
external and as well as internal analysis and key issues of the management.
TASK
External analysis
JD sports is one of the UK based sports fashion retail management that operates their
organisation not just in UK but also in varied other nation like United States, Asia, Australia and
so on. At presently they are planning for progression of their company in Asian nations. As they
are selecting Singapore in respect to extend their management. They selected this nation because
it is the centre of business (Barykin, and et.al., 2021). It is found that Singapore is one of the
major centre in Asia. The cause for selecting this nation is that they have less tax policies and as
well as effective talent development schedule that can be utilised by manageable at the time of
progression of management. It is termed that externals or outsiders in Singapore are enabled to
own 100 per cent management that they set up in the nation. In respect to extend management in
multinational marketplace, it is critical for the business that they must primarily examine the
external environment. It will support them to determine and analyse furthermore problems of
external environment. It is related with regulations of industrial world that are becoming more

complex and by this it is important to evaluate the impact of external situations in respect to
operate the company in another countries as effectively. By this purpose, macro and as well
micro analysis of external environment is essential.
Macro analysis
It is very essential for the management that they could do macro analysis in respect to evaluate
the external environment. In macro analysis, it involves all the components that might be have an
impact on the managerial roles as directly or indirectly (CATHERINE, and ENG, 2021). It is
founded that JD Sports PLC requires to utilise PESTEL analysis model as it supports in
examining the macro environment factors. It involves 6 factors that are as follows - Political factors - Political factors are taken up with the policies and laws that created by
government of the nation like tax policies, political stabilities and so on. As it is essential
for JD Sports PLC that they should examine the political factors of Singapore as they are
extending their management in this business. In relation to the JD Sports PLC, it is
related to the lower risk in political factors as per to the report of political and as well as
economical risk consultancy, due to which Singapore is found to be lowest political risk
nation. Economical factors – Economic factor involves sort of economies, economical
development rate, inflation rate, unemployment rates and so on. It is critical for JD Sports
PLC to evaluate economical environment as they are extending their management in
another nation. Their economical factor have an impact on the managerial functions. In
relation to JD Sports PLC, they select Singapore who have high per capita income
(Cavallo, Ghezzi, and Sanasi, 2021). They are highly engaged in free economical
marketplace by which there are varied term of factors that involves lack of manpower,
high costs of manpower and minimise in productivity that might be offered negative
effects on the managerial performance and effectiveness. Social factors – Each day the customers choice and selection are maximising change and
by which, it is very essential for JD Sports PLC to determine all the components that are
linked to the expansion of management. As there are many social cultural differences that
might be occur when JD Sports PLC is extended their company in diverse country. It is
determined that regular changes of market tendencies develop difficulties for

management as they are unable to know the behaviour of consumers. It is critical to
examine social cultural factors that also involves components of population. Technological factors – It becomes one of an essential factor that requires to be evaluate
by management in the procedure of external environmental analysis. Technology are
maximising everyday that develop higher pressure on the business that they should
involves the situation of techniques in the business by which they can gain competitive
boundary (Chen, and et.al., 2021). In the case of progression of management in other
country, JD sports PLC is in touch situation as they requires to adapt techniques that are
termed by the candidates of that nation. If they not understand the utilisation of higher
techniques then how it will be possible for business to utilise such technologies.
Technological factors might also have effects on the managerial cost structure as they all
are very costly and unable to afford by the management. Legal factors – It involves all the required laws like Civil law that might be deals by
management in the progression of company in diverse country (Etemadian, and
Parhizgar, 2021). Every country have their own legal laws and regulation and that's why
JD Sports PLC requires to follow all rules and regulations.
 Environmental factors – Environmental factors is linked with some essential factors like
weather, climate, recycling, rules that linked with environmental pollution and so on.
Such all factors should be termed by management in an efficient manner by which JD
Sports PLC is capable to change their roles.

Micro analysis
In relation to the macro analysis, JD Sports PLC requires to examine the micro
environment analysis. In respect to analyse micro environment, JD Sports PLC should utilise
Porter's Five force frameworks. It involves 5 essential forces that are as follows - Bargaining power of suppliers – Bargaining power of suppliers is found to be effective
in the manner of JD Sports PLC as they operates in sports fashion management in which
the amount of suppliers are less as compared to another management (Garzella, and
et.al., 2021). It will have negative effects on JD Sports PLC as high power of suppliers
lead to low term of profitability of management. Bargaining power of buyers – It is founded that the bargaining power of buyers in JD
Sports PLC is lower that becomes supportable for management as they are unable to
maximise their profitability margin. The reason of low bargaining power of buyers is
there are very low amount of management that offers qualitative and standardise sport
wear. Competitive rivalry – In the stage of competitive rivalry, it is determined that by the
effect of globalisation the competition is maximising as there are various business
management that are accessible in the marketplace that offers similar qualitative goods to
the customers. By this, it is found that the profit margin of JD Sports PLC might have an
impact. Threats of new entrants - Globalisation offers entrepreneurs to come in marketplace.
But in the manner of sports fashion management, it is one of the management that have
lower term of threat as because there are low competition as compare to other sectors that
decrease the threats of new entrants (Järvinen, 2021). It is difficult to enter in this field of
marketplace.
 Threats of substitute – In case of substitute, there are low term of substitute available in
the marketplace due it is not essential for JD Sports PLC to fear from substitutes but still
they require to prepare themselves as because the competition is maximising.

Internal analysis
Internal analysis is very essential for the business so that they make the tactics. They are capable
to understand the internal resources and capabilities that supports them to prepare that resources
that require to gain competitive benefits in the field of marketplace (LI, 2021). It is very essential
for the business that they should develop their internal resources effective so that they can
overcome with the external environment impact. Internal analysis can be done with the help of
VRIO model that covers 4 essential factors that are as follows -
Resources Valuable Rear Imitable Organised
Employees Yes Yes Yes Yes
Financial
Resources
Yes Yes No Yes
Research and
development
Yes Yes No No
Patents Yes No No No
 Valuable – In the case of JD Sport PLC, it is evaluated that they are skilled workers and
effective financial resources as they are operate their business from 40 years. By it, they

have an effective management that develop effective financial resources (Nagoya, and
et.al., 2021). It will supports them to finance in any actions that could not resist them to
get success. Their workers are valuable for them as it found that management is capable
to gain competitive benefits as because of their skilled workers. By it, they have creative
thoughts to operate their management as effectively. Rare – It is determined that workers, financial resources and research and development
division is found to be rare in the section of JD Sports PLC. Workers are rare as they are
essential resources for the development and advancement of any management and JD
Sports PLC have skilled workers that's why they are rare for them (Oehmichen, and
et.al., 2021). It is difficult for any management to develop the financial resources as
effective to take higher time and efforts that are performed by JD Sports PLC in an
efficient manner. It is found that financial resources of JD Sports PLC is rare for them as
they are not effectively made by another management. Imitable – Workers of JD Sports PLC is imitable as any management can imitate their
workers strengths with the adaption of suitable training and growth schedule. Their
financial resources are difficult to imitate as it needs higher efforts of the management. It
is related that research and development that is also difficult and complex to imitate that
needs patience and market research are time consuming task. Imitate of resources and
skills of the management develop issues for them as they are unable to accomplish their
targets and aims efficiently. They require to make distinguished resources and skills that
help them to deal with furthermore issues.
 Organised – In this factor, it deals with the workers and financial resources of JD Sport
PLC are termed to be well defined that develop competitive benefits for them (Rossidis,
Belias, and Vasiliadis, 2021). The well defined management of JD Sports PLC needs
investments and training schedule that help them to develop workers skilled and it lead to
accomplish managerial targets and aims. On the other side, it is determined that research
and growth division and copyrights of management will be termed as not organised and
that's why it is not easy for the management to extend their company in another country.
Identification of Competitive Strategies
Bowman's Strategy Clock :

It is one of the essential model of the marketing that assist a firm to evaluate the position
in the market area and also what their rivals have to offer. Following are the eight factors of the
Bowman's strategic clock:
 Low Price – it refers to the concentrating on the low price of the goods. The firm
concentrates on manufacturing large volume of goods, which can assist firms in getting
more revenue because of the margin in the volume.
 Low price and Low added Value – In it the firm concentrates on giving low value
products with no differentiation of the product.
 Hybrid – It Concentrates on utilising both low price as well as product differentiation as
it is effectual in the market because the consumers can be easily convinced.
 Differentiation – In it the firm concentrates on the quality of the good as it make the
consumers purchase more products (Shahwan, and Esra'a, 2021). The firm concentrates
on the advancement which can be attain to the good which would be successful in the
market area.
 Focused Differentiation – the main goal is on the specific range of the firm that needs
top quality products at a very high cost. The rivalry in the segment is high as any
fluctuation in the cost or quality can impact the sales.
 Risky high margins – In this factor firm asks for more high prices for the goods that are
known to be mediocre by the consumers.
 Monopoly Pricing – It refers to the organisational divisions that gives the products that
is given by them and as they find no rivals in the market area. As because of this the firm
find their rates of the products.
 Loss of market share – It is the worst stage for the firm as in it the firms are not capable
to sell a product that is needed by the consumers.
In accordance to the JD Sports, firm is adopting the focused differentiation strategy as the
need of their strategic planning as because company is concentrating on tapping in to the Asian
market and requires an edge over their competitors in that market area by selling more advanced
good which assist the need of the consumers in that particular market area.
Strategic Direction :
In order to expand the operations of the business it is very mandatory to select the
appropriate way (Srinivasan, and et.al., 2021). There is requirement of the appropriate research

in order to take the proper directions. A firm should know about the need and options which are
there in accordance to make them capable to take the proper decisions. There are numerous of
the opportunities which are there in the market. A firm should evaluate all their opportunities
and take the benefits by grabbing all of them. A strategic associate requires to evaluate both of
the pros and cons of all the given choices in order to achieve the goals and objectives of the
expansion.
Ansoff Matrix :
The framework is being utilised to evaluated the situation of the market. It helps the firm
to select the appropriate way. There are several choices which are there in the market
(Trofimova, 2021). The usage of the Ansoff matrix assists the firm to understand about the top
technique which can be adopted by the firm. It is evaluated that there are choices which are there
by utilisation of the Ansoff matrix the firm will be capable to select the best among all. The
various factors are mentioned below:
 Market Penetration – This strategy is utilised by the business firms in order to sell their
current goods or products in their existing market segment. The firm which is not able to
get the new consumers towards the firm utilises the same. It is advisable that the firm
should increase the expending of the marketing in order to get more and more consumers
to sell their products. The firm operates to get the total attention of the consumers
towards the products in accordance to increase their sales. It is understood that firm JD
sports is a large firm and it is earning very well revenues. The firm can utilise this
technique of the Ansoff Matrix in order to increase their sale of the specific product in the
same market area in accordance to earn more revenue.
 Market Development – In this strategy the firm taps into the new market area for their
firm and sell the current product over there. It is understood that appropriate research is
done in accordance to understand about the requirements and desires of the consumers in
the new market area (Ozhiganov, Nazyuta, and Chursin, 2021). The product that are
already there in the market with the good sales in the market so it is very much
convenient for the firm to increase the sales of the same products. In context to JD Sports,
the firm is increasing the functions in Singapore. There is requirement to evaluate the
market of Singapore and to understand about the wants of the consumers so that top

products are given to them. It will assist the firm to accomplish the objectives of the
company.
 Product Development – It works to operate to introduce new and innovative products or
modifications of the existing one's. It is understood that the consumers have the dynamic
needs towards the consumption of the products. It is very much essential to bring a new
and valuable product in the market in order to fulfil the wants and needs of the current
consumers in an efficient and effectual way.
 Diversification – In it, firm starts selling of the new products in to the new market area.
This method is very much risky for any firm as tapping in to new market with providing
new products can be bit of risky.
JD Sports is increasing their functions in the Asian Market. The firm identifies the option
for their firm in Singapore (Ozkanlisoy, and Akkartal, 2021). It will assist them to earn more
revenue. There is requirement to operate appropriate research and understand the top market area
to position their organisation. Company will initiate their business in the market area in order to
satisfy the consumers by giving them top quality services and products.
CONCLUSION
From the above report, it is concluded that strategic management which plays an essential
role in the growth of the firm. It is crucial to make effectual techniques which can be utilised by
the firm in accordance to scale the business firm. It is important to understand that there are
several market circumstances which should be evaluated by the firm at the time of scaling the
operation. PESTLE analysis is implemented in order to the know the effect of the outside factors
of the firm, Internal evaluation of the firm is done in order to know about the threats and
weaknesses which needs to be eliminated and utilising strength by grabbing all the opportunities
a firm can get in accordance to operate their business functions effectually. In addition to this it
has also concluded that the company must analyse their competitiveness in the market area and it
has also mentioned about the strategic option of the company in order to make them grow and
get long term success.

RECOMMENDATION
At the the time of scaling up of the organisation there is requirement of doing appropriate
research and development and making the top strategy for the firm. Below are the
recommendation which will assist the firm JD sports in order to expand their business in a proper
way -
 The firm should initially do all the research and evaluation of the external market
segment of the area expansion. Through understanding about the situation the firm is
capable to make appropriate decisions. The requirements and desires of the consumers
should be evaluated in order to provide them with best to their consumers.
 They should know about their own weakness and strengths. A firm should do all the
needed internal evaluation in order to make them capable of operating t heir own work in
order to reduce their weakness. It is essential to scale the functions in the new market
area with all the resources and abilities. The firm should give top quality to the
consumers in accordance to make them attracted towards the company.
 It is very much essential to know about the rivals and the techniques which are being
utilised by the firm. It will assist the firm scale the functions effectually. It will also be
capable to give the better then the rivals and can accomplish the growth in the new
market area.
 The firm should keep the quality of their goods high at the time of tapping in to the new
market area. It will assist them to improve the sales and also to tempt the consumers in
that new place. The quality of the goods is essential in accordance to make the consumers
loyal towards the firm.

REFERENCES
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