Sports Direct: A Detailed Business Environmental Analysis Report

This report presents a business environmental analysis of Sports Direct, focusing on the comparison of public, private, and voluntary organizational structures. It explores the purpose, size, and scope of these organizations, using Sports Direct as a case study within the public sector. The analysis includes an examination of internal and external factors, as well as the impact of macro-environmental influences on the company's performance. The report further examines the interrelationship between various organizational departments such as finance, HR, marketing, and sales. The report concludes with an evaluation of Sports Direct's strengths and weaknesses in the context of the broader business environment, including comparisons to other companies like Brake Bros Ltd and Red Cross, providing insights into the company's market position and operational strategies.

Business Environmental
Analysis

TABLE OF CONTENTS
INTRODUCTION
TASK 1
P.1. Explanation of Different Types and Purpose of Organisation
P.2. Size and scope of different types of Organisation
P.3. Relationship Between the Different Organisation
CONCLUSION/ OPINION
TASK 2
P4 Impact of macro environmental factors
P5 Internal, external analyses
P6 Interrelationship between macro factor and strength or weakness of business
CONCLUSION
REFERENCES

INTRODUCTION
The project report is based on the Environmental analysis of Sports Direct. The report
lays emphasis on the comparison of three types of organisation structure namely: - Public;
Private and Voluntary along with the purpose of these organizations (Internal, external analysis.
2018. Online). The report lays focus on the size and scope of different types of organisations on
different basis in a tabular format. Further the assignment focuses on the interrelationship of
different organisations namely: - accounts; finance; Human Resource; Purchase; Production;
Marketing; IT; Research and Development; Sales; Distribution; Customer Service etc. with one
another (Internal, external analysis. 2018. Online).
TASK 1
P.1. Explanation of Different Types and Purpose of Organisation
There are different types of organisation namely: - Public; Private and Voluntary. The
explanation is to be given on the basis of types of sector and their purpose and its structure.
Types of Sector Definition of Sectors Selected
Organisation
Purpose and
Structure of
Organisation.
Public Sector Public Sector can be
defined as that part of
a country's economy in
which there is
government
interference. It
includes: - Central;
State; Or Local
Government Bodies
(Impact of macro
environmental factors.
2018. Online.).
Sports Direct is the
selected organisation
in this case.
The motive of
organisation is to be a
pioneer in the field of
sports accessories,
lifestyles and luxury
apparels.
 The Public
limited
company is a
much larger
type of
organisation
and just like
private sector it

is run by the
Board of
Directors on
the behalf of
shareholders.
 It can sell its
shares on the
Stock
Exchange
(Internal,
external
analysis. 2018.
Online.).
Private sector It is that sector of
organisation in which
the role or the
interference of the
government is very
nominal. These are
such organisations that
are not directly
controlled by the
government agencies
and organisation
(Impact of macro
environmental factors.
2018. Online.).
Here, Marks and
Spencer are the
selected organisation.
The main purpose of
marks and Spencer is
to be at the apex in the
field of retailers. The
organisation is at the
top in the field of retail
market segment.
The legal structure of
the company is as
follows: -
 It's a joint stock
company
having a
separate legal
identity, it’s a
part of business
and under any
circumstance it

cannot sell its
share to any
members from
among the
public.
 Here the
liability of a
shareholder is
limited.
Voluntary Sector These are those
organisations, that
work for the society as
an NGO, without
having motive of
earning profit.
The chosen
organisation here is
Red Cross.
The main purpose of
Red Cross is to be at
the apex in the field of
providing health care
services.
The legal structure of
the company is as
follows: -
 It's a
government
organisation a
dis having
completely a
separate legal
entity.
 It's a part of
business and
under no
circumstance it
cannot sell its
share to any
members from

among the
public (Impact
of macro
environmental
factors. 2018.
Online.).
Here, in this report, Sport direct is such an organisation that is doing its business operations in
the field of all the sports related accessories and is trying to provide its customers best services
from its end (Impact of macro environmental factors. 2018. Online.).
P.2. Size and scope of different types of Organisation
In every type of business there is a different type of scope in it. Every business
organisation is having a different size of operations in its respective field. The business owners
operate their organisation with a motive of different purpose of solving the issues of customers in
the market. Organisations operate according to the geographical areas and demographic details
and also on the basis of needs of the customers in that area. Before the establishment of an
organisation, a lot of money is invested on the research and development with the motive of
knowing whether, the organisation would be able to sustain in that area or not (Impact of macro
environmental factors. 2018. Online.)
1. Size of Selected Organisations: -
Type Name of Private
Sector Organisation:
-
Brake Bros Ltd.
Name of Public
Sector Organisation:
-
Sports Direct
Voluntary sector
Red Cross
No. Of Employees 84,939 17,345 3500 Staff and 17
million Volunteers
Turnover 10,622 Billion
(Pounds)
3,245.3 Million
(Pounds)
Approx. 2.1 billion
pounds

Value of Assets 7,550 million (Pounds) 1212 Million (Pounds) Approximately 986
billion pounds
Opinion About
Organisation
The company is really
doing very good and
has set a benchmark in
front of its rivals. The
performance of
company in just okay
in terms of Turnover
and valuation of
assets. This
organisation is a
medium level
organisation
Here, the company is
required to improve its
performance by
avoiding the work
division in the no. of
employees so that the
employees can work in
a better way, and in a
more effective manner
to achieve the goals of
organisation. This is a
micro level
organisation (Size and
scope of different
types of Organisation.
2016. Online.).
This company is
performing excellent if
its turnover and assets
valuation is compared.
This organization is of
middle level.
If talk about Sports Direct which is a public limited company, then, the performance is
really not good in respect of size. The turnover and valuation of assets is really not up to the
mark. The company can increase its turnover and assets valuation by laying more and more
emphasis on it and put efforts to improve it.
One most important factor which is affected by the size of organisation is the work
culture or the work specialisation of employee that are working in the organisation (Lee and
et.al., 2015. Online.). It determines that how a task can be broken in small parts the more
specialisation is required by the employees.
2. Scope of Selected Organisation

Here, my selected organisation is Sports Direct. In this case, the company wants to widen
the scope of its improvement, by choosing whether it has to work as a sole entity or whether it
has to get merge with some other company or the organisation and start functioning in
partnership and joint stock company or in howsoever the organisation feels to be better for
performing its functions (Size and scope of different types of Organisation. 2016. Online.)
Scope of different types of organization (Public sector, private sector and voluntary sector
organization)
Type Name of Organisation
Brake Bros Ltd.
Name of Organisation
Sports Direct
Name of Organisation
Red Cross
No. Of
Outlets/Branches
It has more than 500
stores.
It has a total of 470
stores in all over UK.
Red Cross is having its
branches in different
countries.
Operational Area The company deals in
the manufacturing of
the food products;
beverages and other
items mainly to the
hotels and catering
industry in UK at more
than 20 distribution
centres.
It is a sports' company.
It manufactures all the
sports accessories that
are being provided to
the customer. It
includes: -
equipment’s of
football; baseball;
hockey; tennis; cricket
etc (Size and scope of
different types of
Organisation. 2016.
Online.).
Main area is to provide
health care services
like clinical services,
health services,
hospital services etc.
No. Of Products/
Service
The products made by
the Brake Bros.
includes; cakes;
pastries; pizzas;
The products made by
Sports Direct include:
- all those products
that are made for the
Ambulance service,
Care trust service,
mental health services,
hospital treatment

burgers and many
other products.
sports persons. It
includes: - bats; bowls;
tennis; feather cock;
racket etc. and also the
equipment’s required
for playing these
sports (Size and scope
of different types of
Organisation. 2016.
Online.).
services etc. These are
just in respect of
facility of people.
Opinion About the
Organisation
The opinion in respect
of organisation is that,
the company is going
good in respect of
giving satisfaction to
the customers. By
providing, quality
products to the
customers and giving
them prompt service
and fulfilling their
needs and demands is
the only way of
standing out of the
crowd. So, this
organisation is wide
(Size and scope of
different types of
Organisation. 2016.
Online.).
Sports Direct is the
only company, that is
giving feather cock to
all the sports lovers.
and providing them all
the sports
equipment’s. So, this
organisation is narrow.
This organization is
really good in their
field and provide
excellent services to
their customers or
patients.

3. Employment: - The organisation has given employment to a lot of workers and because of this
only the rate of employments is higher in this nation as compared to that of others. The Sports
direct is such an organisation, that has given employment to a lot of employees and has increased
the rate of employment. The organisation is focusing on improving the scenario of
unemployment.
Category Name of
Organisation
Company Website No. Of Employees
Public sector
organisation
Sports Direct www.sportsdirectplc.c
om
17345
Private Organisation Brakes Bro www.brake.co.uk 84939
Voluntary
Organisation
Red Cross www.icrc.org 15448
The organisation which is having more no. of employees is having the higher rate of
employment in that nation. Red Cross is such an organisation which is marked as the second
largest chain of NGO in UK in field of voluntary organisation. The company was founded by
Clara Barton in the year,1881. Later on, it got expanded (Size and scope of different types of
Organisation. 2016. Online.).
P.3. Relationship Between the Different Organisation

Departments Explanation of Coordination Between the
Departments
Purchasing and Production Both these departments are interlinked with
one - another. If the purchase department will
not purchase the sample of any product from
the market only, then the production
department will be able to do the production
of any product. And it happens in Sport
Direct.
Production and Human Resource If the production is required to be done at the
most then, the HR Department of Sports
Direct, is required to recruit the employees so
that, the production target can be achieved in
an effective manner (Size and scope of
different types of Organisation. 2016.
Online.).
Marketing and Accounting The expenses; salaries and wages of all the
respective departments are required to be done
by the accounts' department. In Sports Direct,
the marketing department is required to give
complete details of all the expenses done.
Research and Development and Finance Until and unless the R & D department will
not be having some finance and permission
from the Finance department then the,
research of company's products and its scope
in any undeveloped area would be unknown
by the company (Size and scope of different
types of Organisation. 2016. Online.).
IT and Operations Until and unless, IT department will not
provide proper facilities to the operations'

department or to the Top management, then
the operation department would not be able to
meet out the requirements of the organisation.
Marketing and IT The marketing department and IT is related to
each other because if the department will not
provide basic facilities to the concerned
department then, the Sports Direct will not be
able to market its products in a better way.
Sales and Finance The Sales and Finance Department are related
to each other because, if there will be no sales
then, then revenue will not be generated
(Internal and external factor analysis. 2016.
Online.).
Distribution and Finance Distribution is somewhere related to the
finance, reason being, if the finance
department will not support then, the
distribution will be quite difficult.
Distribution and Sale Both are interrelated to each other in some or
the other way. Reason being from distribution
only the sales will be motivated.
Customer Service, Sales and Marketing Customer Service, sales and marketing are
interrelated to each other because if customer
is not satisfied from the sales, then
requirement of customer service is generated
and to promote sales marketing is required
(Internal and external factor analysis. 2016.
Online.).
CONCLUSION/ OPINION
The task concludes that, each and every department is interconnected and having
interdependency on each other. For Example: - if the finance department will not provide