Business and the Business Environment: Positive and Negative Impacts of Macro Environment on JD Sports

Business Environment

Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
PART 2............................................................................................................................................3
Positive and negative impacts the macro environment:...............................................................3
Internal and external analysis:.....................................................................................................5
Strengths and weaknesses that interrelate with external macro factors:......................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business Environment is a accumulation of every external and internal components such as
needs and evaluation, customers, proprietor, consumer, suppliers, employees, supply and demand
internal external activities by economic adjustment, market tendency, social trends, government
etc. These elements impacts the operations of the organisation and on how a firm is working.
Collection of these elements determines the businesses or firms position and environment. It
assists in understanding commercial opportunities, getting crucial resources, helps in planning
and enhance over all productivity, growth and income of the business. There are many kinds of
business environment such as Macro and micro environments. It is very essential features of any
organisation. The report is based on the England Cricket Board, Sports England and JD Sports
which are all based on United Kingdom. The following report will discuss about the types of
different organisations along with its structure, scope size. Further report will cover about link
between functions of organisations along with its connection to objective and structure of the
organisation. It also contains external and internal analysis along with relation between macro
factors like strength and weaknesses.
PART 1
Covered in Factsheet.
PART 2
Positive and negative impacts the macro environment:
Pestle analysis is a concept in marketing principles. This concept is used by the management as a
tool to check how macro external factors influence the working of the organisation. Every
business has to analyse its macro external factors to have a competitive edge in its strategic
planning (Ganeshan, Shadangi, and Mohanty, 2018). These factors will be discussed in relation
to JD sports.
Political factors
It is related to political scenario surrounding company, decision taken by the government which
might affect working of the business like Tax, tariffs, environmental regulations, government
intervention, political stability.
 Positive Impact

JD sports has gained maximum profits from the UK which was possible due to the political
stability in that country.
 Negative Impact
After the end of UK-EU free trade agreement, JD sports now has to pay more for the trading in
and around EU as the WTO rules are now applicable. This will increase the costs for the
company.
Economic Factors
Any changes in the economic growth, economic stability, Inflation/deflation in the economy
would affect the working of an organisation (Edmonstone, 2021).....
 Positive Impact
Internationalization has helped JD sports work smoothly in and around the world and increase its
market share. Hence one country going through depression period might not reduce its
profitability.
 Negative Impact
Fluctuations in the foreign exchange rates might influence the price of JD sports' products in the
low-middle class countries.
Social Factors
It includes cultural norms and expectations, health safety and population growth rates. Any
changes in society needs from the company will affect its working (Chen, and Reyes, 2017)
 Positive Impact
The variety of social changes and demands from the consumers help JD sports better understand
the markets and come up with different products to increase its market share.
 Negative Impact
environmental consciousness among the society might influence their demand for the products of
JD sports.
Technological Factors
It includes technological advances, innovations and development in the field which might help
businesses grow. Businesses should always look for opportunity to get efficient using technology
and innovations
 Positive Impact