Business Environment: Sports Companies Types, Missions, and Analysis

This report provides an in-depth analysis of the business environment, focusing on various sports companies. It begins by classifying different types of sports organizations—public, private, and non-profit—and examines their respective missions, using examples like UK Sports, Sobell Leisure Centre, and Admiral Sportswear. The report then explores the magnitude and reach of different business sectors, highlighting the size, services, stakeholders, and missions of the selected companies. Furthermore, it investigates the links among different organizational functions, such as finance, production, marketing, human resources, IT, and sales, and how these functions contribute to the company's goals and structure. Part 2 of the report assesses the positive and negative impacts of macro-environmental factors (Political, Economic, Social, Technological, Legal, and Environmental) on business operations, utilizing PESTLE analysis. It also includes an examination of organizational strengths and weaknesses through internal and external analysis, with a focus on how external macro elements influence these aspects. The report concludes by summarizing the key findings and providing relevant references.

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 is a broad term which defined as the internal and external
surroundings which are influenced by various factors related to business such as employees,
needs of the customer and their choices, supply and demand, business operations, technology
involves in business, current trends, policies and laws formulated by government etc. These
factors play an important role in influencing the business operations and criteria of the firm. This
report represents various sectors involved in business and different types of organisations in
accordance with market size and growth and also several types and purpose of different sports
organisations are classified. The report has taken three sports company in consideration which
are UK Sports, Sobell leisure centre and Admiral sportwear with their respective field
(Schniederjans, 2018). Also, 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
There are three main sorts of sports organisations, each with its own set of goals, as listed
below:
Public Sector: Because they operate in the public sector, these businesses are backed and
subsidised by the government. These organisations work without making a profit to give services
to the general public. The UK Sports Council, for example, is a government-run sports
organisation (Rendtorff, 2019).
Mission: To maximise the country's production at a low cost by providing the finest services
with limited resources.
Construction by law-
 Central government- The central government of a country controls the public
organisations or sectors that are supported by the government's treasury collection.

 State government: Only the dew department has responsibility over public entities, and
the federal government does not intrude much in these areas.
 Local government—municipal governments have the ability to manage these sectors and
generate profit or revenue for their communities.
Private sector- Individually or corporately owned and run firms are referred to as the private
sector. They operate with the purpose of earning a profit because they are not government-run. It
takes shape as a result of the development of new firms or the privatisation of government-
owned enterprises (Śmigielska, 2018). Admiral Sportswear is a privately held sportswear
company, for example.
Mission - The objective is to produce money or profit from investment returns while employing
more people than the government.
Construction by law -
 A sole proprietorship is a legal entity in which one person owns a business and is
personally responsible for all obligations.
 A partnership is a legal structure in which two or more people operate a business by
sharing all of the company's liabilities and benefits.
 Non- profit sector - The voluntary sector consists of organisations that were established
with the intention of having a beneficial social impact rather than generating a profit.
Third-sector non-profit organisations are also known as third-sector non-profit
organisations. You are not employed by the federal, state, or local governments, nor are
you employed by a private company (Prashar, 2018). A non-profit sports organisation,
for example, is Sobell Leisure Centres.
Mission - The purpose of this programme is to assist people in attaining their objectives and
living their best lives.
Construction by law
 Trust- This sector was established with the goal of defining a clear purpose for money
and property management. In this case, the Trustee is in charge of contracting on 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 a privately held corporation:
In the United Kingdom, this corporation is a well-known cricket, football, and sportswear
brand. In both fashion and football, it has a long and distinguished history.
 History: It is the oldest English sportswear manufacturer, dedicated to the football
association.
 Services- This business offers a comprehensive choice of football clothes and equipment,
with a focus on football performance.
 Size: It employs about 75500 people worldwide and generates roughly $ billions in
yearly sales (Pikhart, 2018).
 • Stockholders- The company's main stakeholders are its players, employees, and
vendors.
 Mission: To boost profits by offering participants with high-quality products and
services.
 Vision: To develop a reputable and powerful brand image so that we may become an
internationally known firm.
Public company- UK sports
This corporation is a government body in charge of Olympic and Paralympic sports
investments in the United Kingdom.
 History- It pioneered Paralympic and Olympic sports by collaborating to achieve world-
class results. In order to help elite athletes, it evolves persons and programmes .
 Services- It encourages people by offering finances and advising players on how to
enhance their performance.
 Size- With 65 Olympic medals and 120 Paralympic medals in London, it has made a
considerable commitment in sport.
 Stockholders- The players, partners, and board members are the company's most
important stakeholders.
 Vision - National goals are powered by Paralympic and Olympic success.

 Missions - They aspire to be the driving force behind British medal performance on the
world stage.
Sobell Leisure Centre – Non- profit organisation.
History - The sports facility in concern is located in the Islington neighbourhood of
London. It acts as a central location for Islington residents looking for information on
sports and other fitness-related topics.
Services - It offers a large selection of fitness equipment, including gadgets, as well as a
completely equipped air-conditioned gym.
Size - It runs close to 60 fitness-related centres and has 260 amenities.
Stakeholders - Stakeholders include volunteers, trustees, and employees.
Mission - To increase people's opportunities to participate in sports and to encourage
them to do so.
Vision - By managing and enhancing the level of living, it wants to provide the highest
quality service in the support commercial enterprise.
Links among various organisational functions:
The interaction between a company's many and disparate operations is critical to its
success. For accomplishing the organisational productivity and profitability, it is critical to
properly manage the connection. In the organisation, all functions are interconnected.
 Finance and production- To arrange raw materials, labour, machinery, and other
equipment, the manufacturing department requires financial investment (Jafari-Sadeghi,
2020). To do so, the finance department develops a production budget and allots the
sufficient cash to the production and other departments of the company.
 Marketing and Human Resources Management (HRM) – In the organisation, these two
roles collaborate to achieve a common goal. Marketing is in function of disseminating
brand information to clients, whereas Human Resources is in charge of hiring qualified
and talented employees to help the company achieve its objectives
 Information technology and sales- The technical department provides access to the
salesperson in connection to the items and tools for improving the efficacy or efficiency
of the sales pitch. To boost organisational efficiency and profitability, the sales industry
is embracing innovative technologies.

Connect the organisational functions to the organization's goal and structure –
Organizational structure is largely determined by organisational function, since
businesses base their goals and structures on the role they play for their clients. Admiral
Sportswear has a hierarchical organisational structure, which has an impact on the company
purpose by inhibiting innovation and cooperation. It creates objectives and forms an effective
organisational assembly in order to maintain a respectable chain of command at work in order to
increase organisational productivity. Customers are served by the appropriate firm, which
maintains consistency and control inside the organisation. Admiral Sportswear maintains a level
of consistency by exerting a degree of control (Osmonbekov and Johnston, 2018). The structural
framework allows this corporation to keep track of its commercial activities. Everyone
associated with a work or project has a strong understanding of their tasks, which helps the firm
run better. As a result, Admiral sportswear's success in establishing actual objectives and a
corporate structure may assist the company in achieving organisational goals by allowing people
to understand their roles and responsibilities.
PART 2
Positive and negative impact of the macro-environmental on business operations.
Working notes:

 Political: The government has the authority to regulate the economy and industries.
Legislation and economic policies are examples of political influences. Trade tariffs,
taxation, fiscal policies, and taxation all have an influence on the firm. The positive
influence on Admiral Sportswear is that the political stability of the UK economy is
particularly beneficial to the firm. The negative consequence is that the sport sector is
financially reliant on the government.
 Economic – This factor has a direct bearing on the long-term viability of the
organisation. And have an impact on the demand for or supply of the company's goods.
In terms of Admiral Sportswear's beneficial influence, the UK economy is showing signs
of recovery from the economic and inflationary crisis, and its GDP is expected to be
larger than in the past. Negative impact: As a result of the depression, the company's
turnover may suffer.
 Social - Social factors, such as culture and demographics, have an impact on the
industrial environment. Customers' buying patterns, people's lifestyles, and peak buying
seasons are all influenced by it. Customers' brand preferences, religion, health, and other
factors all influence the selling of a firm (Gajardo and La Paz, 2019). In the instance of
Admiral Sportswear, it has a good influence in terms of evaluating sales potential and
attracting new loyal clients through the Olympics. The disadvantage is that in order to
keep their brand name and market presence, the specific organisation must adapt all
social cultures in the changing environment.
 Technological- These factors affect the business industries more than any other
component. The technological invention may affect a market and the customer's choice.
This component includes the research and department, technological awareness,
trademarks, patents and information technology. In context of the Admiral sportswear,
its positive impact is that the ability or knowledge of company's manager increased in a
positive mode for operating and managing sports as well as increasing performance.
While its Negative impact is that player's fans want to connect online with their favourite
athlete due to this, it is very difficult for the company to have such type of strong
technology and latest digital platform.
 Legal - Legal considerations influence the organisation both internally and outside since
the legal situation has a negative impact on the company's procedures and policies.

Employment laws, regulatory organisations, and regulations are all part of this category.
The antitrust legislation and major sports leagues have a favourable influence on
Admiral Sportswear (Ismail, 2018). Its negative impact is that if it does not follow
government regulations, it will be subjected to a number of penalties. As a result, these
laws may have a direct impact on the business.
 Environmental - Climate, customers, stakeholder values, and geographic locations are all
environmental considerations to consider. Because people are becoming more health
concerned and aware of pollution, these components have become more important.
Admiral Sportswear has a beneficial influence since it monitors hazardous compounds in
order to reduce environmental impact and eradicate any hazards. While the downside is
that individuals are now more conscious of the state of the environment, and as a result,
they are beginning to avoid plastic and non-recyclable materials, as well as carbon
emissions.
Examination of strength and weakness of organisation through internal and external analysis:
Notes :
Strength:
 Admiral sportswear has a significant sales volume since it provides high-quality items to
its clients and assists them in establishing a reputable brand position in the market.

 It has a great reputation awareness and marketing budget, allowing it to achieve large
sponsorship deals with sports players and teams.
Weakness:
 Admiral Sportswear continues to face its small product line and operate at a low profit
margin while having a diverse pricing range of items. It may raise questions about the
company's long-term viability.
 In today's sports sector, competition is fierce, and as a result, firm development is slow in
the current market.
Opportunities:
 By utilising high-grade and clever materials, Admiral Sportswear can provide higher
quality goods to attract more clients.
 The company starts to grow and promotes good health. It will result in a consistent
improvement in people's athletic performance, which will need the usage of suitable
clothing. It's because health and fitness are more popular than they've ever been.
Threat:
 An increase in the cost of raw materials, as well as tax rules, might significantly reduce
Admiral Sportswear's income (Carlucci, 2018). As a result, the operational costs will be
reduced.
 Environmental clients push a firm to develop new products and innovate so that waste is
reduced and recycling is promoted.

Strengths and weaknesses with respect to external macro elements:
Notes :
As a consequence, an organization's internationalisation strategies or goals should be
driven by an assessment of its internal strengths and shortcomings. Admiral Sportswear's
strength or power, in this situation, is its capacity to make swift judgments concerning its firm in
the national market. The particular organisation, on the other hand, has multiple weaknesses; as a
consequence, the company's management should proceed with caution while executing various
business strategies. As a result, people may face a number of challenges in accomplishing their
objectives. If a company wishes to succeed in its home country despite its many defects, it must
build internationalisation strategies based on a thorough assessment of its strengths and
limitations.
In the case of Admiral sportswear, the following micro and macro environmental elements might
be interconnected:
 Political factor- The Admiral sportswear is able to control the effects of politics thanks to
its broad network of supporters and champions. It carefully manages its resources in
order to minimise the damage.
 Economic factors- The specific organisation addresses economic challenges by providing
high-quality things at a reasonable price to its customers and managing crises.

Social aspects- The firm provides athletes with nutritious and high-quality clothing to keep them
active and healthy (Albuga and Odeh, 2018). It has the potential to cause big problems
for the business.
 Technology- The company assists in the development of new digital platforms in order to
connect fans with their favourite athletes and to gratify these fans in order to build its
client base.
 Legal considerations- In order to avoid legal entanglements, the Admiral sportswear firm
adheres to all of the government's rules and laws governing the sports industry.
 Environmental factors- The company involved has the ability to solve or manage
environmental issues by using creative or smart materials to create items that will appeal
to clients who are health-conscious.
CONCLUSION
To deal with these issues, the company will need to employ specialised business methods
and procedures. In a changing business environment, organisations are affected by a variety of
macro and micro environmental factors such as social, political, economic, technical, and many
more. As a reason, assessing internal and external aspects to evaluate strengths and weaknesses,
as well as seizing opportunities to cope with threats, has become crucial for all sorts of
enterprises. The micro and macro aspects are inextricably linked and have a significant impact

on the company. As a result, in order to operate effectively, all organisations must address these
factors.

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