Macro Environmental Analysis docx.

MANAGEMENT

Contents
Introduction............................................................................................................. 2
Section 1: Macro Environmental Analysis......................................................................2
Pestle analysis......................................................................................................... 3
Political factors-................................................................................................... 3
Social factors-...................................................................................................... 3
Economic factors-................................................................................................. 4
Technological factors-............................................................................................ 4
Legal factors-...................................................................................................... 4
Environmental factors-........................................................................................... 5
Section-2: capability................................................................................................... 5
McKinsey framework............................................................................................... 5
TOWS Matrix......................................................................................................... 6
Section-3: competitive analysis..................................................................................... 8
Porter`s five forces model.......................................................................................... 8
Porter generic strategies........................................................................................... 10
Section-4: strategic plan............................................................................................ 11
Conclusion............................................................................................................. 12
References.............................................................................................................. 13

Introduction
With the changes in the business environment, financial performance is not the only criteria
to check the performance of the MNCs. For aggressive expansion, the company have to face
legal and economic impact of another country. Being a business advisor, I have received the
responsibility to create a strategic plan with its positioning with several strategic tools. The
report is based on strategic tools, which includes TOWS matrix to analyse the internal
environment, PESTLE analysis for analysing the macro-environmental analysis or external
environment. Section-3 analyses the competitive positioning of JD Sports by applying
porter`s five forces model. In order to analyse the current positioning, the report uses Ansoff
matrix and porter generic strategies to identify the potential expansion for the company. On
the concluding note, business advisor creates a strategic management plan, which directs
strategies, objectives, and tactical actions for upcoming five years.
Section 1: Macro Environmental Analysis
Mission-
Mission statement of JD Sports is to become UK`s well known sports retailer. The company
aims to avail customers with wide range of products by ensuring quality and service for
women, men and children`s footwear.
Objectives-
The marketing objective of JD Sports is to open new stores and expand at global level. JD
Sports must diversify the product range and further acquire new organisations. The company
often aims to provide desirable brands to the customers, which finally surpass its competitors
such as Foot Locker, Zumiez, Cole Haan, and rue21.
Vision-

The vision is to become most faithful and trustable organisation in world.
Pestle analysis
This tool is used to conduct the analysis of the business environment. Pestle analysis avail
insight in the operating challenges in the environment affecting JD Sports.
Political factors-
Overall systematic influence of political risks, which JD Sports is exposed to include that if
the political factors are stable then it will be able to expand its market in other nations. As it
present globally, which says that it has political pressures and tensions affecting growth
opportunities with JD Sports. The law enforcement in relation to business especially contract
law is compulsory to accomplish. For instance- prohibit alcohol and other conditions, which
must be fulfilled while conducting business. If the organisation is not able to do so then
inefficient amounts of the government regulations can discourage business. As the company`s
headquarter is situated in UK, London who already maintains appropriate relations with other
nations. This facilitates the company to open retail stores in other nations without any barriers
(Rastogi, and Trivedi, 2016).
Social factors-
Currently, it is seen that Asia pacific is quite likely to register as one of the largest market
because of increasing disposable income of customers. North America is likely to witness
growth because of adoption of advance technology and awareness of health and fitness
activities (QY Research, 2019). The JD sport`s product is not limited to sport persons, and
athletes. Increasing awareness of health and fitness centres in developing nations and
increased personal disposable income can make sportswear as centre of attraction.
Furthermore, the increasing participation of women in fitness industry has been increasing
(Lotayif, 2016).