Business and Business Environment: Impact of Macro-Environmental Factors on Sports Companies

This report analyzes the impact of macro-environmental factors on sports companies like Admiral Sportswear and Sobell Leisure Centre. It covers PESTLE and SWOT analysis, types of sports companies, and links among organizational functions. The report also discusses the positive and negative effects of political, economic, social, technological, legal, and environmental factors on business operations.

Business and the
Business Environment

Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Various sports companies' types and missions............................................................................3
The magnitude and reach of different types of business sectors.................................................5
Links among various organisational functions:...........................................................................6
PART 2............................................................................................................................................7
Positive and negative impact of the macro-environmental on business operations....................7
Examination of strength and weakness of organisation through internal and external analysis: 9
Strengths and weaknesses with respect to external macro elements:........................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment refers to the internal and externals surroundings which are having impact
on the business of the organisation. The business environment is one of the wider and valuable
aspect of the organisation which the managers need to analyses. It is very important for the
managers of the organisation that they effectively analyse the environment of business because it
helps them to established effective strategies in the organisation. There are number of internal;
and external factors are present in the market which the management of the organisation need to
evaluate in effective manner because it helps them to use for achieving success in the market.
The external factors are legal, environment, political and internal factors are culture belief and
many more. The impact of these factors are both positive and negative on the business of the
organisation. If the management of the organisation analyse the impact of these factors then it
becomes easy for them to take advantage of these factors and makes them opportunity for the
organisation. There are different types of internal and external stakeholders are present in the
organisation such as suppliers, customers, employees, management and many more. The
evaluation of needs of these stakeholders are very important for them to analyse the same. It
provides different opportunity to the company because it helps them to a grab these opportunities
in effective manner. The organisation which is chosen here to demonstrate this report are Sobell
leisure centre and Admiral sportswear which are sports organisation of the world. the report
shows the pros and cons of the macro environmental of business operations with the help of
PESTLE and SWOT analysis. With the consideration of this project, objective and structure of
the company and the relationship between different functions of organisation are outlined.
PART 1
Various sports companies' types and missions
All the three organisation which is chosen above in the report are respected field of the
organisation which has conducted their business in the market of United Kingdom (Akhtar and
Sushil, 2018). All the companies which is taken here are having different mission and visions
and the brief discussion related to same are given below:

Public Sector: These companies are having a legal status of public organisation of the market.
The government of the respected country has enables number of subsidies and other benefits to
these organisation of the market. The aim of these organisation is not to earn profit for their
personal needs but to conduct the business for the welfare of the society. One of the valuable
example of this type of organisation is UK sports council which is the organisation run by the
government of United Kingdom (Bedi, 2019).
Mission: The mission statement of the company reflects to maximise the production of company
by effectively allocation of resources.
Construction by law-
 Central government- All the companies of the market which are working under the head
of Public company are controlled and managed by central government. These companies
of the country are supported by the government in term of monetary.
 State government: There are only few departments are present in the market which is
controlled by the state government otherwise the main responsibility of the management
are lies in the hands of central government.
 Local government— It is not possible for any type of local government to interfere in the
working of public organisation.
Private sector- It is related to those organisation of the market which is managed and controlled
by private individual or the corporate in the market. The central objective of the company behind
the the performance of these types of business is to earn the profit for their personal needs and
desires. The environment of privatisation are very high in the world under which the government
backed company are handover to corporates for the fixed commission. One of the important
advantage of this scenario is that it helps the organisation to become more competitive and their
management becomes effective in the market (Belyaeva, 2018).
Mission – The main objective of the company is to earn huge profits from the market and helps
the organisation to achieve growth in the market.
Construction by law -
 Sole proprietorship refers to those entity of the business under which the whole business
of the organisation are controlled and managed by single person. All the decision related
to the business are taken by this single authority in the organisation.

 Partnership refers to those structure of the business under which all the business is run by
two or more people in the organisation
 Non- profit sector – It is related to those type of organisation which is only formed for
the welfare of the society. All the profit of the organisation are utilise for noble activities
which provide benefits to general public (Das and Kundu, 2018). The ambers of this type
of company cannot utilises the profit of company for their personal use. A non-profit
sports organisation, for example, is Sobell Leisure Centres.
Mission – The central objective of this type of organisation is to work for the walfare of the
society.
Construction by law
 Trust- It refers to those sector of the organisation which is developed for the special
purpose which is property and money management. This structure of the business
powers to trustee to make the contracts on the behalf of the trust.
 Unincorporated detachment- It lacks an independent legal existence and is excellent for a
small organisation with a membership since it is simple to establish.
The magnitude and reach of different types of business sectors.
Admiral Sportswear is one of the private company which operated their business in the market
of UK.
The management of company deals in sports wear and it is one of the valuable brand
which reflects in cricket, football and many more sports of United Kingdom.
 History: It is one of the oldest company of the market which provides their services in
sports sector of the market.
 Services- The management of the company deals in different types of sports wear and
equipments in the market (Dziubaniuk and Nyholm, 2020).
 Size: The management of company has provide employment to large number of
customers which is more than 75000 and earns huge sales in the market.
 Stockholders- The company's main stakeholders are its vendors, players and employees

 Mission: To increase the profit of the organisation by satisfying the needs of the
customers in the market.
 Vision: To become the valuable and powerful brand of market which are having diversed
arms.
Public company- UK sports
This organisation is a public company which manage and control the Olympics and
Paralympic in United Kingdom (Gaganis, Pasiouras and Voulgari, 2019).
 History- The management of this company organised Paralympic and Olympic which
helps to benefits the group of specially able person of the world.
 Services- The management of this company promotes the will of customers to provide
funds for the commencement of games and motivates the players to enhance their
performance.
 Size- With medals 120 Paralympic and 65 in London as Olympic medals, it has made a
considerable commitment in sport.
 Stockholders- The players, partners, and board members are the company's most
important stakeholders.
 Vision – To make the country a hub for the sports activities.
 Missions - They aspire to be the driving force behind British medal performance on the
world stage (Gao and Li, 2020).
Sobell Leisure Centre – Non- profit organisation.
 History – This sports centre is located in Islington neighbourhood of London which acts
as sports hubs for the people of the locality.
 Services – There are number of varieties of sports materials, gadgets and rquipments are
offered by the company to their customers
 Size - It runs close to 60 fitness-related centres and has 260 amenities.
 Stakeholders - Trustees, volunteers and employees are the stakeholders include in
company.
 Mission – To make the life of customers more sustainable and effective by their
qualitative product range.

 Vision - By enhancing and managing the level of living, it wants to provide the highest
quality service in the support commercial enterprise (Gogokhia and Berulava, 2021).
Links among various organisational functions:
The interplay among a company's many and disparate operations is vital to its success. For
carrying out the organisational productiveness and profitability, it's miles vital to well control the
connection. In the organisation, all capabilities are interconnected
.
 Finance and production-To installation raw materials, labour, machinery, and one-of-a-
kind equipment, the manufacturing department requires economic investment . To do so,
the finance department develops a production price range and allots the sufficient cash to
the producing and one-of-a-kind departments of the company.
 Marketing and Human Resources Management (HRM) – In the organisation, those roles
collaborate to obtain a not unusual place goal. Marketing is in feature of disseminating
logo facts to clients, while Human Resources is in rate of hiring certified and gifted
personnel to assist the employer obtain its objectives (He and Ortiz, 2021).
 Information technology and sales- The information technology aspect of the organisation
enables the employees to act smartly in the organisation and also enables them to make
the business more competitive in the market.
Connect the organisational functions to the organization's goal and structure –
Organisational structure played important role in the success of the organisation in the
market. The structure of the organisation reflects effective system which is helpful for
transmitting information to the organisation and also makes able the organisation to operate their
business to deal with number of barriers present in the market. The management of Admiral
sports has hierarchical structure which enables the organisation to transmit the information with
the help of specific hierarchy in the organisation. It helps the organisation to achieve the goals
and objectives in effective manner. All the rules and policies which the management of the
organisation developed are effectively reached to their employees with the help of hierarchical
organisational structure.

PART 2
Positive and negative impact of the macro-environmental on business operations.
PESTEL observe is performed through a enterprise to discover the various factors that have an
impact on it in phrases of social, political, technological, and monetary considerations. This
evaluation aids the enterprise in scanning the enterprise surroundings as a way to check its path
or projected function with regards to their industry (Hofmann, 2019). The following are the
wonderful and bad results of PESTLE evaluation with inside the context of Admiral sportswear.
:
 Political: The authorities has the authority to adjust the economic system and industries.
Legislation and monetary guidelines are examples of political influences. Trade tariffs,
taxation, economic guidelines, and taxation all have a power at the firm. The high
quality have an effect on on Admiral Sportswear is that the political balance of the
United Kingdom economic system is mainly useful to the firm. The terrible outcome is
that the game zone is financially reliant at the authorities.
 Economic – This element has an instantaneous bearing at the long-time period viability
of the organisation. And have an effect at the call for for or deliver of the company's
goods. In phrases of Admiral Sportswear's useful influence, the United Kingdom
economic system is displaying symptoms and symptoms of recuperation from the
monetary and inflationary crisis, and its GDP is anticipated to be large than with inside
the past. Negative effect: As a end result of the depression, the company's turnover may
also suffer.
 Social - Social elements, including way of life and demographics, have an effect on the
commercial environment. Customers' shopping for patterns, people's lifestyles, and top
shopping for seasons are all inspired with the aid of using it (Ivanovich, 2020).
Customers' logo preferences, religion, health, and different elements all impact the
promoting of a firm. In the example of Admiral Sportswear, it has a great impact in
phrases of comparing income ability and attracting new dependable customers though
the Olympics. The downside is that so that it will maintain their logo call and
marketplace presence, the unique company need to adapt all social cultures with inside
the converting environment.

 Technological- These elements have an effect on the commercial enterprise industries
greater than another element. The technological invention might also additionally have
an effect on a marketplace and the customer's choice. This element consists of the
studies and department, technological awareness, trademarks, patents and records era. In
context of the Admiral sportswear, its fantastic effect is that the capacity or expertise of
organization's supervisor multiplied in a fantastic mode for running and handling sports
activities in addition to growing performance (Kir and Erdogan, 2021). While its
Negative effect is that player's enthusiasts need to attach on-line with their favourite
athlete because of this, it's miles very hard for the organization to have such kind of
robust era and state-of-the-art virtual platform.
 Legal -Legal concerns impact the business enterprise each internally and outdoor
because the prison state of affairs has a poor effect at the company's processes and
policies. Employment legal guidelines, regulatory organisations, and policies are all a
part of this category. The antitrust law and foremost sports activities leagues have a
beneficial impact on Admiral Sportswear. Its poor effect is if it does now no longer
observe authorities policies, it will likely be subjected to some of penalties. As a result,
those legal guidelines can also additionally have an immediate effect at the business.
 Environmental - Climate, customers, stakeholder values, and geographic places are all
environmental issues to consider. Because humans are getting extra fitness worried and
privy to pollution, those additives have come to be extra important. Admiral Sportswear
has a useful affect because it video display units risky compounds that allows you to
lessen environmental effect and get rid of any hazards. While the disadvantage is that
people at the moment are extra aware of the nation of the environment, and as a result,
they may be starting to keep away from plastic and non-recyclable materials, in addition
to carbon emissions.
Examination of strength and weakness of organisation through internal and external analysis:
The strengths and weaknesses of the organisation are not limited to the internal factors
but their scope covered the number of factors from external environment. It is important for the
managers of Admiral Sportswear's to take effective initiates for the evaluation of these factors so
that it becomes easy for the organisation to minimise the weaknesses and maximise the strengths.
The evaluation of internal and external factors are helpful for the company as it enables the

managers to analyse the strength and weaknesses of the organisation which plays important role
in strategy (Kokodey, Gnezdova and Lomachenko, 2018). SWOT analyses is one of the valuable
tool which helps the organisation to analyse their internal strength and weaknesses and the brief
discussion related to the same are given below:
Strength:
 The management of Admiral sportswear operates their business in many parts since many
years which provide company huge volume of sales. It provided benefit of strong
financial position to the company in the market.
 The management of Admiral sportswear is one of the reputed firm of the market which
are having huge brand value. This helps the organisation to gain number of big sponsor
ship deals in the organisation.
Weakness:
 The management of Admiral sportswear operated their business at low profit margins so
that their customers can get quality product at reasonable prices (Liu and Yang, 2019).
This enables to rise number of questions on viability of company.
 The market of United Kingdom has contains number of firms which provides sports
material. These companies creates stiff competition in the market which leads to happen
price war in the market.
Opportunities:
 Admiral sportswear will use high-grade materials that will help business to produce high
quality product and attract larger number of customers.
 Admiral sportswear concentrates on health of its customers and produce products
accordingly through using comfortable material. It uses sustainable material to protect
environment that will help business to gain competitive advantages.
Threat:
 Now these days cost of raw materials, taxation rules are enhanced that impacts on
organisational performance and profitability.
 In intense competition it is important for business to bring innovation in products that
will create threat for business and impact overall business performance.

Strengths and weaknesses with respect to external macro elements:
Strength as well as weakness are extremely connected with macro environmental variables.
It is important for the business to analyse these factors and their impact on overall business
performance strategy, decision-making and other aspects. Organisation's strengths and
weaknesses are getting influenced by its environment in which it conducts its business
operations. Due to impacts of these environment issues and aspects Admiral sportswear can not
perform its operations in efficient manner as well as creates variety of issues foe the purpose of
achieving success in global market place (Luiz, Ganson and Wennmann, 2019) . Business
internationalisation strategies or goals are getting affected by its internal strengths as well as
shortcomings. Respective organisation's strength is its capacity to develop swift judgements
related to the organisation in national market. There are various weaknesses of Admiral
sportswear such as its effective management, higher prices of material and other that affect
overall business efficiency in competitive business environment. Due to these weaknesses,
organisation faces various difficulties in attaining its determined goals and objectives on time. It
becomes important for the business to identify its internal as well as external factors and their
impact on business in order to lead business operations towards success(Nam and Bao Tram,
2021).
Micro and macro environmental elements in the context of Admiral sportswear are explained
below:
 Political factor- There are various political aspects such as trade barriers, political
stability and instability and other that affect business operations. UK is politically stable
and Admiral sportswear controls the political effects as it has broad network of
supporters and champions in economy. It manages its resources to minimise the damage
in economy.
 Economic factors- The business organisation addresses various economic challenges with
the help of high-quality things that are provided at a reasonable price to its target
audience and also helps in managing crises.
 Social aspects- The business organisation provides athletes with various nutritious and
high-quality clothes for keeping them in active state and healthy. This factor can cause
big issues and problems for the business.

 Technology- The company provides assistance in developing various digital platforms to
connect fans with their favourite athletes. It also helps them for expressing their gratitude
to these celebrities to build its client base.
 Legal considerations- For avoiding various legal entanglements, the Admiral sportswear
firm corresponds and manages with all government's rules, regulations and laws that are
governing sports industry.
 Environmental factors- The company consists with it the ability to address and solve
along with proper management of environmental issues with the proper use of creative or
smart materials for creating items that are appealing to its clients who are health-
conscious in market.
CONCLUSION
According to the findings of the preceding study, there are 3 classes of organizations: private,
public, and non-profit. Every enterprise has its very own structure, mission, and goals, in
addition to a felony framework this is managed via way of means of a fixed of laws. In order to
maximize the organization profitability, all features of those companies are
interconnected. Working jointly, on the opposite hand, has each benefits and disadvantages, and
companies face numerous demanding situations as a result. To cope with those issues, the
organization will want to hire specialized enterprise strategies and procedures. In a converting
enterprise environment, organizations are stricken by a whole lot of macro and micro
environmental elements consisting of social, political, economic, technical, and lots of more. As
a reason, assessing inner and outside components to assess strengths and weaknesses, in addition
to seizing possibilities to deal with threats, has grow to be essential for all varieties of
enterprises. The micro and macro components are inextricably related and feature a massive
effect at the organization. As a result, in an effort to perform effectively, all organizations need
to deal with those elements.

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