Industry Analysis Factsheets and Environmental Business Audit of Nike

Business and Business
Environment
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BUSINESS AND BUSINESS
ENVIRONMENT
INTRODUCTION
Business environment is referring to collection or sum of all the external and internal
factors that are related to customer needs, expectation, demand and supply,
government, market trend etc (Möller, Nenonen and Storbacka, 2020). The report is
based on Nike, that is multinational corporation which are designed, manufacturing,
development etc. The report discussed the sub-sectors, size and growth of different
types of industry with the help of organisation structure.
Introduction to the sub sector of organisation
 Sports industry is the industry in which the services and the products are delivered in context of sports. The sport industry is bifurcated
into three sub sectors which include public, private and voluntary sector.
 In the sectors there are many companies which are divided according to their size, scopes, mission and the business objectives of the
organisation. All the organisation contributes in the sport industry equally but in different style or manner. (Lee, 2017)
Public sector
 public sector refers to the department, agencies or units which are based on the government.
 In this sector the amount is collected in from the people inform of direct and indirect taxes.
 The facilities and possibility considered in private sector are of the people and for the people of the country in order to deliver satisfaction.
 The government provide sport equipment as the commodity and area for the sport activity is services to fulfil the demand and supply of
consumers.
 The public sector also introduces various programmes to motivate or encourage the youth and adult as well as old people for being active
citizen of nation.
 JD sport organisation is a retail company which considered as the public sector industry.
 The organization delivers wide range of clothing and sportswear accessories to the consumers.
 The organization includes every size of the products with the mission is to deliver huge options to the customers (Turner, D. and
Carnicelli, 2017).
 The objective is to increase the market share by 30% by introducing new outlets.
 JD sport organisation is a retail company which considered as the public sector industry.
 The organization delivers wide range of clothing and sportswear accessories to the consumers.
 The organization includes every size of the products with the mission is to deliver huge options to the customers (Turner, D. and
Carnicelli, 2017).
 The objective is to increase the market share by 30% by introducing new outlets.
Voluntary sector
 it is considered as the non-profit organisation which aim to deliver social support and addresses the social causes rather than generating
profit.
 In this sector the organization deliver various programmes to give assistance to the sport personality in order to give wings to the
individual.
 EFL trust is the organization which deliver product and service related to the sports.
 Puma is the partner of the organisation which provide retail sport product in wide range.
Private sector
The sector includes those organisations which are privately owned by the entrepreneurs (Jones, et.al 2020).
The aim of the organisation is to generate profit in exchange for services offers to the buyers.
The organisation delivers the product with the objective of achieving the goal of the organisation.
The organisation provides facilities of sports product like clothing, sports equipment’s and footwear too.
The vision of the organization is to lead the international market by growing surplus.
Organisational Structure
Organisational structure is related to the system that are accomplish and connecting with the activities that are occur within the
organisation. There are four types of organisational structure such as Divisional, functional, matrix and autarchy.
There are major three types of business functions such as finance, marketing and operations. These three functions are different according
to size and nature of organisation and the organisation structure followed by the Nike is functional organisational structure.
According to functional organisational structure there are sub division of department on the basis of marketing, production, human resources, information
technology and customer services. All these departments are work accordingly ( Gaspary, Moura and Wegner, 2020). Each the functions are inter-related
to each-other because it is help to achieve the business objective. Also, marketing team are promoting the services that can be offered by organisation and
it has inter-related with all the functions. Production department are produced the product on the basis of commands of marketing team because they have
all the information regarding the demand of customer. The software and technical things are followed by IT department. Functional structure is related to
all the skilled specialist of their field.
Organisational function
The chosen organisation is Nike that is use functional organisational structure and there are different departments included in this structure
such as marketing, operations, information technology, customer services, finance department etc. All the departments are inter-related to each other
marketing department is take the responsibility in order to developing and managing the business growth when it perform according to the work closely
on the basis of marketing the efficiency of the business are monitor by finance department there are also helps in order to generate revenue ( Brezigar and
Vidau, 2018). The finance department are responsible for transporting the revenue for the different activities which are ensure about maximisation of
growth of wealth. With the help of marketing there are also helps to promote the product and services of the company such via digital platforms.
Information technology are also help Nike in order to radiated about how companies are practising on marketing. They are widespread
availability of communication and information are belonging to marketing department. There are other functions that are changing the relationship
between customers and suppliers. There are competitive advantages so that it has maintain the rivals, IT are help to create the new product by
considering the existing market that can help for enhancing the customer services. The advertisement of products and services are depending on the IT in
order to promote the products and services that are help for providing new experience so that it can help for targeting the new audience. The B2b and
B2C business are depend on the marketing’s strategies of business. There are so many software that are used by organisation in order to benefit the
marketers such as MIS (marketing information system) which are enable for manager in order to share information and work together virtually.
The operation and production department are work together for making goods at the time of operation process which is also defined as act of working
(Hui, Latif, Hinsliff-Smith and Chen, 2020). When both the department are come together there are action taken such as turning the raw material, capital
into services and products, human resources which can be sold by the company. The production management are related to administration which are
belongs to activities that are help in creation of goods. Operation management are also known as the part of concerning management with delivery and
production of services and goods. The motive of each of the department is to meet the objective of the organisation so that it can help for maintaining the
growth.
Advantages: The executive and team leader has proper experience and knowledge for the particular field. For instance, when the person is responsible
for the IT department he has the perfect knowledge about it because there is need of responsible person. Also, all the team member has the clear idea
about the hierarchy of firm so that they can understand about to whom they are going to reports. The functional organisational structure is help to earn
profit for the business and also grouping the employees who are based on their expertise and skills.

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Disadvantages:
This structure is related to one dimensional that is why employees are getting boredom in order to wait for new challenges. There is possibility of not
using correct appraisal so that it can create conflicts that may arise in order to appraisal and promotion system ( Wei, Liu and Hsieh, 2021). Also, in the
functional organisational structure there are seen that employees are getting knowledge about their department only they have no choice for learning new
skills.

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Notes: Along with SWOT analysis as internal environment in context of leading company NIKE. Furthermore, the report will shade a
light on the interrelationship among the analysis to promote the organisation.
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Notes: It will denote the upcoming or forthcoming challenges for the organization. With the help of the PESTEL analysis the
administration introduces the services and commodity attribute of the organization.
Political factor
 The factor consists of the rules and regulation impose by the government for the business enterprises and the industry.
 This factor gives assistance to the organization in order to grow in the global as well as international market.
 In this factor authorities apply the employee’s laws in which the individual is protected under the authority.
 The enterprises expand the business in foreign market by determining the political background of the company.
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