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

This report discusses 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.

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

With the advancements in technology surrounding the businesses, the artificial intelligence helps
the business to be accessible 24*7 with the help of site chatbots. With the help of E-commerce,
the consumers can now engage with the operations of a business anytime and from anywhere.
 Negative Impact
Technology keeps changing and if JD sports does not upgrade its usage of technology, customers
might go to the rival firms who are providing better services with advancements. The use of
more and more disruptive technology have made the business to provide with quality products
due to the cut-throat competition in the market.
Legal Factors
Changes in legislation governing businesses, imports and exports and legal factors affects the
smooth functioning of the company (Chavez, and Sharma, 2018)
 Positive Impact
Laws surrounding the business of JD firms have helped them grow internationally.
 Negative Impact
JD sports being an MNC has to follow all the rules and regulations of the countries and also
balance the same with its home country, UK. This can create a hindrance for smooth functioning
of the organisation.
Environmental Factors
This factor is concerned with the environment and its protection, like waste disposal laws, CSR
 Positive Impact
Working in a way which will least affect the environment will be beneficial for JD businesses as
it will comply with CSR regulations.
 Negative Impact
Not complying with the CSR regulations can make the working of the business hard for JD
sports or even make them shut their business in the market (Boojihawon, and Ngoasong, 2018)
Internal and external analysis:
JD sports is a well known retain company of England based on sports and fashion. The company
was founded in 1981 by John Wardle and David Makin. The SWOT analysis of JD sports are as
follows:
STRENGTH
 Trustable supplier:- the supplier of the
WEAKNESS
 Improper finance:- sometimes the

JD sports are very faithful and
punctuate. The company gets the raw
material for the manufacturing of the
goods on time because of this JD
sports are able to wins the hearts of the
consumer.
 Market exploration:- the performance
of the company for entering a new
product into the market is always good.
The company always achieve success
and this become a strength for the
company as they expand their business
as far as possible.
company is not able to use the cash
efficiently and efficiently in the
different functions of the business.
Because of this, the JD sports not able
to fulfil the demand of the market.
 Outdate technology:- Since the JD
sports expand their business across the
globe but they use the old technology
for the manufacturing of the goods and
also in the other parts of the business.
The company have to improve their
technology if they don't they cannot
stand in the market for a long period of
time (Betti Sarens, and Poncin, 2021)
OPPORTUNITIES
 New market:- The JD sports has a
huge opportunities to expand their
business and enter into the new
emerging market. By signing trade
agreement with the government of the
different countries they make first step
for the success of the business
(Belyakova,and Belyakov, 2021).
 Youth Trend:- Nowadays the youth of
the different part of the country start
following the trend of fitness and
fashion day by day. The JD sports has
an excellent opportunity to grow their
business across the globe and capitalize
this trend.
THREAT
 Seasonal demands:- change in trends
because of the season directly affect the
profit of the business. Most of the
highly profitable product of company
are seasonable and because of this JD
sports are not able to generate the as
much profit as they want.
 Different market different laws: This
is the biggest threat which are facing by
the company in the recent days.
Different emerging country have
different laws so that the JD sports
always have to be focus and be always
ready to face the different laws of the
country

VRIO ANALYSIS:
 Valuable – In accordance to this framework, JD sports plc's workers are their valuable
resource. The essential component of the workers is that they are highly trained which
leads to the higher level of performance as well as productivity of the firm. Additionally,
company's level of retention is also very high.
 Rare – This analysis shows that brawny leadership of the JD sports plc, is considered to
be their rare resource. Integrity of the managers and motivation of the workers in
accordance to the need of the company and offering them with appropriate environment
of work as well as offering them the required compensation and rewards that makes sure
motivation and loyalty in the workers.
 Imitate – The most common aspect that consumers relates to the company is their
brawny brand reputation. JD Sports plc, is one of the most well recognised company that
makes it more expensive as well as tough for other firms to imitate.
 Organised – In context to the JD sports plc, their supply chain and distribution network
make sure to approach to their consumer regarding the availability of their goods in the
stores. Hence, it can offers a sustainable competitive benefit to the organisation.
Strengths and weaknesses that interrelate with external macro factors:
Factors Strengths Weaknesses
Political Political way of united
kingdom is very stable and
also plays an important role in
the working of JD Sports as
they work accordingly to
follow all the executed
governance and policies to
work in a efficacious way
without any difficulties and
company can also supply their
Political instabilities, sudden
changes in policies, procedures
and rules can create tangled
situation for the company, that
can lead to company
modifying their way of
working in order to satisfy the
policies of the government
(Amankwah‐Amoah, and
Syllias, 2020). In terms of the

products to both state and
central government.
JD sports, any law related to
the import can impact the
functions of the company.
Economic In United Kingdom, numbers
of fund givers and capital
investors are set to provide the
funds in order to raise funds
for JD sports management can
get maximum investment as
they have higher selling power
which generate revenues for
the investors also.
Due to high price of the
products and change in
business cycle, there is
chances that can affect the
consumers base and their
loyalty.
Social Usually, the firm an create
better impact by enhancing
their work in on promoting
well being and physical health
in the society.
Manufacturing of different
products can lead to making
various industrial waste and
can increase carbon emission
which can give company a
backlash from the consumers.
Technological The technological
advancement in the country
can help in the growth through
several automation and tech
like search engine optimisation
or artificial intelligence. In
context to JD sports, company
can adapt various latest tech
which can help management in
supplying innovative products
with premium quality.
Adapting the various
technologies can lead to higher
rate of cost in developing a
product which can lead to JD
Sports getting lower margins
or they have to higher the
prices of their products which
is not beneficial to hold on to
their consumer base.
Legal Strict laws and regulation can False practice of

keep the firm intellectual
working safe (Ahmed, Zafar,
and Ali,2020)
manufacturing or change in
laws can interrupt their smooth
working.
Environmental Firm can improve their
goodwill by initiating various
campaigns that can help in the
betterment of the environment
or they can also make
biodegradable products.
Usually it can be bit costly to
adopt various method of
environment development and
also time consuming to ensure
that these practices are being
met.
CONCLUSION
From utilising several framework in the above report it is concluded that business environment is
influenced by its all external factors and internal factors that is the key aspect in order to keep
operations and functions of the business. Companies need to understand and know their every
external factors which can affect their business and even its strengths and weaknesses which can
help them in getting edge over its competitors. Additionally, there are various types of
companies like private, public an voluntary having different mission and vision in order to
maximise their profits, development of society and proving several services in the benefits of the
people. Moreover, it can assist in understanding their consumer base and helps in promoting their
brand and which is also possible by the companies in order to full fill their social, legal and
environment duties which can help them in their brand awareness and their long term success.

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