BMS412 Business Environment: Analysis of Organizational Impact

This report provides a comprehensive analysis of the business environment, focusing on UK Sports, Sobell Leisure, and JD Sports. It examines the type, size, and scope of each organization, explores the interrelationship of functions within their organizational structures, and assesses internal and external influences through SWOT and PESTLE analyses. The report also evaluates the impact of globalization on organizational strategy and decision-making, highlighting how these factors affect business operations and overall performance. This in-depth study offers valuable insights into the complexities of the business environment and its influence on organizational dynamics.

Business Environment

Table of Contents
INTRDUCTION..............................................................................................................................3
TASK...............................................................................................................................................3
Type, size and scope of the organization.....................................................................................3
The interrelationship of functions on organization structure.......................................................7
Internal and external influencers via SWOT and PESTEL analysis on business operations......8
The influence of globalization on organisational strategy and decision making.......................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRDUCTION
Business environment basically refer to those factors which are responsible for
maintaining positive relationship with lower level employees and consumers. It includes
government activities, suppliers, competitors, industry trends, stakeholders and others. The
chosen companies for understanding business environment effectively within organizations are
UK Sports, Sobell Leisure and JD Sports. All these three organizations are very famous for
their services and product in sports field especially for young generations (Abusweilem and
Abualoush, 2019). This report will cover type, size and scope of the organization, The
interrelationship of functions on organization structure, internal and external influencers via a
SWOT and PESTEL analysis on business operations. It also covers influence of globalization on
organizational strategy and decision making. With help of effective business environment
productivity and work efficiency of employees are increased easily for long time.
TASK
Type, size and scope of the organization
Public sector firm –
It this type of firm management mainly focused on facilitating reliable and quality
products to consumers (Ajimoko, 2018). Due to this UK Sports is highly concentrate on young
generations for enhancing the sale of their product and revenue in market for long time. Because
in today's time only youngsters like to watch and play the sports at higher rate. Therefore, it is
necessary for management that they must facilitate quality sports equipment’s to their players for
playing the games effectively. In this type of organization their activities are run according to
various legal structures which are described below -
 Central – In this stage management mainly focused on distributing their products and
services to consumers in every location according to supply and demand. For balancing
the supply and demand effectively management always maintain their supply chain in
systematic manner. The other highlight of this company is that they are always run their
activities in legal manner and are totally linked with government.
 State - It refer to focusing on specific area or state for supply and sell their product to
customers. The main advantage of using this method firm is that their revenue is

increased easily in low time which creates problems for competitors. This strategy is also
helpful for analysing the current traditions, trends and cultures of various peoples and
location effectively in short duration.
 Local – It is basically a part of public sector and according to this structure the
interaction with citizens and civil society are enhanced effectively in localized manner
(Brennan and Tennant, 2018). In this structure agencies are hired by firm at large level
which leads to maintain effective communication with customers for long time. In this
way the queries and problems of the consumer are solved by worker’s inn fastly.
Size and scope of UK Sports -
 The organization was established in 1997 which is headquartered in United Kingdom.
The foundation of this organization is developed with help of collecting funds from
national lottery system and government.
 This firm also introduced various sports programme and sports league at international
level. Due to this reason their popularity is also increased at maximum level between
public.
 In aspect of size firm has invested huge amount in their sports activities such as
Paralympic and Olympics (Buckley and Casson, 2019). With help of huge amount
players of their organization easily achieved more than 160 medals in these activities.
 In aspect of scope management are decided to made bidding in different types of sporting
event. Because with help of bidding players are easily motivated and put their full effort
for play the game with honesty.
 In aspect of vision firm is trying to build positive relationship with various sports bodies
and international federations. But in aspect of mission firm conducted their sports event
at national in every country.
Private sector firm -
It is defined as the part of the state or country economy which is operated by the various
firms. In this structure the management of JD Sports run their departmental and operational
functions in private manner (Buhalis and Leung, 2018). The main objective of this type of
organization is to increasing their productivity and portfolio in time with help of maintaining
customer satisfaction level effectively. In this type of company their activities are run according
to the various legal structures which are described below -

 Partnership – In this stage the roles and responsibilities are clearly distributed between
more than one individual with help of written agreement. Due to effective agreement
conflict are easily reduced between all level of employees and departmental functions are
also run in smooth manner. With help of this agreement positive understanding between
employee and employer are also sustained in long term.
 Sole proprietorship – In this structure liabilities and whole organizational activities are
fully handled by the single person (Hanaysha and Pech, 2018). In this way the portfolio
of the firm is also increased at maximum level in low time. Due to single ownership the
chances are easily increased for conducting the illegal activities by company owner.
 Companies – It is defined as the small part of the firm which provides the contribution
for fulfilling the basic needs of the organization in time. When the needs of company are
effectively then definitely their productivity are increased. In this small part various
components are involved for run their activities smoothly which includes suppliers,
CEOs, employees and others.
Size and scope of JD Sports -
 The company was established in 1981 in UK and it is the largest brand in comparison
with other sports company. The headquarter of this firm is situated in England.
 It is one of those company who offered wide range of products in sports field which
includes apparels, shoes, sports equipment’s and others.
 In aspect of size, the strength of the employees in firm is around 33, 000 which is
essential for run the activities of organization smoothly. Due to having strength of
workers the portfolio of JD Sports is also sustained continuously for long period.
 In the aspect of scope management providing their services and sports equipment’s to
their new and existing players nationally. The other fact is that this equipment’s are
provided by board of national sports to firm.
 The main vision of JD Sports is to capture the market share at large amount with help of
facilitating services to customers internationally (Kemper, Hall and Ballantine, 2019).
But in the aspect of mission their ultimate goal is to supply best quality product to
consumers at any cost.

Voluntary sector firm -
It is defined as the group persons who operates their firm in the form of separate entity
without any help of private and government organizations. Therefore, Sobell Leisure is coming
under this category and the management of this company is mainly focusing on welfare of public
with low profit. In this type of organization, management did not much focus on legal aspects but
it is necessary for them to follow the structure to run their activities smoothly which are
explained below -
 Trust – It is basically refer to the part of voluntary sector and in this structure the main
motive of management is to provide support to employees and communities financially.
The other role of trust is to maintaining financially stability of other firms in effective
way.
 Unincorporated association – It is defined as the group of people who gathered for
fulfilling various purposes of consumers (KHOA, 2020). Then in this way the
relationship with customers and others for long time. The main highlight of this structure
is that management are not highly focused on profit and due to this the popularity of their
image are increased between normal people.
Size and scope of Sobell Leisure -
 The company was established by Michael Sobell in 1973 which is headquartered in UK.
It is a popular brand in UK which comes under the category of voluntary sector and they
facilitate their product directly to public.
 It is one of the company who facilitates latest and unique services to customers in
comparison with other companies. It includes trampoline park, gym, swimming pool and
other services.
 In aspect of size, management provides more than 260 facilities and 50 hubs which had
been effectively managed by the Sobell Leisure.
 In the aspect of scope, management decided to develop effective infrastructure in market
with help of wide range of product and services (Khodaei and Ortt, 2019). With help of
this strategy convenience are easily increased for consumers for buying the product in
low time.

 The vision of this firm is to facilitate reliable products to customers in any situation and
their mission is to maintaining the respect and legacy of sports for long duration between
public.
The interrelationship of functions on organization structure
 Human Resource – In this department the main role of senior officers is to manage the
whole activities and employees of organization effectively. The other function is to hiring
and facilitate training to the employees. In this training old and existing employees
achieved the knowledge regarding their product and services. Therefore, it is necessary
for JD sports that they must facilitate knowledge to their employees within organization
for developing their ability, skills and their talents effectively.
 Finance – The main function of this department is to manage the flow of the expense
effectively whether it is internally and externally (Lee and Shin, 2018). Because expense
is the most important element for the increasing the growth of firm and also essential for
reducing the risk in their activities. In context to JD Sports, it is necessary for
management that they must perform their financial activities in long term. Activities
includes managing employee salaries preparing financial records and so on.
 Marketing – The important role of this department is to increasing awareness of their
product and services effectively in the minds of the consumers. Due to this for increasing
awareness in their product management are using different types of strategies in market
which includes advertising, digital marketing, personal selling and others. In context to
JD Sports, it is necessary for management that they must utilized these strategies
effectively which leads to increase the sale of the product in long term.
Interrelation between Finance and marketing -
The interconnection between finance and marketing is very essential for run the functions
of the organization smoothly. Finance played the crucial role for releasing the funds to marketing
department for their various activities. It includes digital marketing, personnel selling,
advertising etc. and with help of this strategy the buying power of consumers are easily
enhanced. The other role of finance department is to prepare the budget or record with help of
accurate calculations. Because when the budget is prepared accurately then only the activities
which are related risk are highly reduced. With help of using this method the unwanted expenses

are easily identified by senior officers and then according to that work efficiency and
productivity of employees are effectively increased in short duration.
Interrelation between human resource and finance -
Due to strong connectivity between these two departments training and other activities
are worked in smooth manner (Parc, 2021). According to this relation finance played the major
role for run the functions of human resource department smoothly such as training and
development etc. Because in HR activity lot of investment are needed for train the new and
existing effectively and this investment are released by the accounts section. The main motive of
providing this training to each and every employee is to clear their roles and responsibility within
organization. Because their skills are essential for maintaining the good communication between
producer and consumer for long time. Due to effective budget the resources are utilized in
effective manner by employees.
Internal and external influencers via SWOT and PESTEL analysis on business operations
PESTEL Analysis of JD Sports -
It is a method which is used by organization for evaluating the external factors effectively
and these external factors are uncontrollable for organization which are described below -
Political – It is connected with those factors which is which affects the performance and
activities of organization in political manner which includes policies, trade regulations etc.
 Positive - In context to JD Sports it is necessary for management that they must adapt the
policies of UK government effectively for run their business effectively.
 Negative – Due to regular change in the policies of government management of JD sports
are not able to keep stability in their performance. It creates negative impact in the minds
of consumers towards their goodwill reputation.
Economical – It is related with those factors which effects the productivity and growth of
organization economically which includes price, interest rates, employee wages etc.
 Positive – It is essential for JD Sports that they must use different pricing methods for
attract the young generations in large number. Because in this process management are
able to easily fix the affordable price for all customer segments.
 Negative - Due to their brand value and global presence management did not utilized
their pricing strategies effectively which create negative impact in the minds of customers
for their product.

Social – It is related with those factors which are responsible for create changes in the attitude
and behaviour of customers regarding their services and products. It includes family, culture and
sub culture, social class and others.
 Positive – In context to JD Sports, management made lot of research in various aspects
which includes current trends, culture, desires and wants of customer before launching
new product. After analysing all these aspects management introduced the products
which is different from competitors.
 Negative – Due to high population rate firm are not able to manage the distribution
channel effectively (Vitari and Raguseo, 2020). Due to this reason consumer are not able
to receive their ordered products in time.
Technological – It refer to those factors which is responsible for run the operational and online
activities smoothly at the time delivering services to customers which includes updated software
and use of advanced equipment’s.
 Positive -In context to JD Sports, management must AI technology such as self-check in
and check out system which is helpful for increasing the convenience of customers. With
help of this technology users purchased their product in low time.
 Negative – Due to heavy use of technology the investment firm are highly increased for
producing the product. In this way price are also increased in their services which leads to
decreasing the number of customers.
Environmental – It is concerned with those factors which are responsible for effects the
organization naturally which includes pollution, population density, food etc.
 Positive – In context to JD Sports management must initiate green policy which is
essential for reducing the wastage from organization. According to this policy
management used recyclable materials for producing the product.
 Negative – High utilization of carbon footprint by firm increased pollution in atmosphere
which is harmful for the health of living organisms.
Legal – It refers to those factors which impact the performance of organization legally which
includes legal norms and regulations.
 Positive – When management follows the norms of UK government effective manner
then definitely the fairness and transparency in their activities are highlighted between
public.

 Negative – If the JD Sports did not follow their norms strictly then the misconduct
activities are increased within organization by employees.
SWOT Analysis of JD Sports -
It is a technique which is utilized by company for understanding the competitive
advantage in the market then according to that strategies are developed by the top level
management. SWOT stands for strength, weakness, threat and opportunities which are described
below -
Strength includes -
 Use of skilled employees is a very important strength of JD sports. Because with help of
talented employee’s products are delivered to users in time.
In context to JD Sports management always maintained the customer satisfaction level
effectively with help of evaluating feedback of customers in time (Xu and Koivumäki, 2019)
 . In this process management analyse the problems of users effectively and then
according to that solution are provided to them in fast manner.
Weakness includes -
 In context to JD Sports there, prices of their product are very high which leads to
decreasing of customers at higher rate which is not good for their sales.
 Technology creates negativity for organization because due to high use of technology the
maintenance cost of machines is also increased which is not good for organization.
Opportunities includes -
 Due to using facilitating best quality product and services to customers the relation
between customers and producer are easily sustained for long time.
 Effective infrastructure of supply chain management helps the firm to deliver the
products to customers in time. It is also useful for receiving positive word of mouth from
customers.
Threat includes -
 Due to heavy competition JD Sports faced lots of problems for sell their product because
other brand also provides the same product to all customer segment.

The influence of globalization on organisational strategy and decision making
Globalization influenced the organization strategy and decision making in various ways which
are described below -
 In the aspect of organizational strategy, management must expand their operational
activities according to the analysing current trends and culture of various locations
effectively. Due to the expansion of their activities globally the market shares and sales
of their product are easily increased at large scale. When the firm used their strategy in
the form of advanced technology then definitely the resources of the organization are
effectively utilized which leads to increasing the productivity of firm at maximum level.
The other main advantage of implementing organizational strategy globally is that
financial risk are effectively reduced and relation with customers are also developed
strongly. Due to impact globalization it is necessary for management that they must
establish effective supply chain management for balancing the supply and demand of
product in various locations.
 In the aspect of decision making globalization increased the access of data between
multiple persons (Younas and Kassim, 2019). Due to this it is necessary for manager that
they should use effective leadership style for managing the employees systematically. It
means when organization or leaders has the effective decision making ability then
definitely the activities of the firm are continuously run in right direction. In this way the
reliable and quality product are delivered to customers in time. Due to globalization it is
necessary for manager as a leader that he initiate various decisions in the form of policies
at international level. In this way the decisions of managers are worked effectively in
many branches.