Global Business Environment Analysis: A PESTLE Analysis of JD Sports

This report presents a PESTLE analysis of JD Sports, a British retail company specializing in sports and fashion. The introduction highlights the importance of understanding the global business environment for effective decision-making. The main body delves into the PESTLE factors affecting JD Sports, including political (BREXIT's impact), economic (inflation and pandemic effects), social (market trends), technological (innovation adoption), environmental (sustainability efforts), and legal (compliance). Each factor is examined with positive and negative implications for the company. The report recommends that JD Sports analyze negative factors and develop strategies to improve business performance, especially considering COVID-19 restrictions. The conclusion emphasizes the PESTLE analysis's role in strategic planning and decision-making for organizational success. The report references various books and journals to support its findings.

Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
In an organisation there are many factors that affect the functioning of the company.
These factors are determined by the company by analysing the global business environment
(Chambwera, 2021). This helps in making effective decisions by the company. The company
chosen for this report is JD Sports. It is a British retail comp-any of sports and fashion and was
founded in 1981. the company is head quartered in Bury, UK. The report consist of the PESTLE
analysis of the JD sport to determine the influencing factors of global business environment.
MAIN BODY
There are many factors that influence the growth of the company which is determined
with the help of PESTLE analysis. The PESTLE analysis with respect to the JD Sports company
is explained below: Political: With the BREXIT laws the trading and other laws are very uncertain in UK till
new policies are made (Revenko and Revenko, 2021).
Negative: It has impacted JD sports as they are uncertain about the trading laws.
Positive: The BREXIT agreement will make it easy for JD sports in ensuring that future trading
are correct. Economic: This factor is further dependent on various factors like: inflation, interest
rate, etc.
Negative: Recent global pandemic have cost JD sports with huge loss as they did not made
enough supplies.
Positive: There is inflation seen in the economy due to COVID-19 and this may provoke demand
of higher wages by workers which will also increase the cost of JD sports. Social: The company when targetting market have to look at various social factors. The
demands of the customers change with the change in market trends.
Positive: To cope with this factor, JD sports have to produce products in accordance to the trends
and season. This way the company will be able to make more sales.
Negative: If the trend is not followed then JD sports sales will decline resulting into losses. Technological: There are lots of innovations made in the technology.
Positive: JD sports to increase its profitability and customer satisfaction, it must adopt new and
advanced technologies to sustain market competition.

Negative: The company for providing training will have to spend on employees to train them.
The employees may also leave the company after they complete training. Environmental: The organisations have major negative impact over the environment
(Demirel and Eskin, 2021).
Positive: To minimise the negative impact upon the environment, JD sports is recycling its waste
and producing products that are used by using minimum resources to make the resources
sustainable.
Negative: The company while relying on renewable energies to recycle the waste have to spend
huge amount upon it which is financially affecting the company. Legal: There are various legal formalities to which the companies have to comply with
to run and carry out business activities (Bodrova, and et. al., 2021).
Positive: JD Sports comply with legal rules which helps them to carry out business activities
effectively.
Negative: The company, if do not comply with laws then that will impact its reputation and also
the company will be held legally liable.
From the above discussion, it is recommended to the company JD sports that they must
analyse all the negative factors and plan strategies relating to improving business performance
keeping in line with COVID-19 restrictions so that customers are comfortable buying products
from them. This will increase their sales giving company with economic advantage.
CONCLUSION
From the above report it is concluded that all these factors of PESTLE analysis helps in
determining the accurate planning and strategies which are needed by the company. This helps
company to make effective decisions which will help it to grow and be successful.

REFERENCES
Books and Journals
Bodrova, T.V., and et. al., 2021. Internal Control for Ensuring Sustainable Development of a
Business. In Frontier Information Technology and Systems Research in Cooperative
Economics (pp. 579-587). Springer, Cham.
Chambwera, C., 2021. Business News Making Practices in Zimbabwe. In Re-imagining
Communication in Africa and the Caribbean (pp. 217-233). Palgrave Macmillan, Cham.
Demirel, E. and Eskin, I., 2021. Investigation of the Effects of Environment on Financial
Reporting. In Ethics and Sustainability in Accounting and Finance, Volume II (pp. 19-
38). Springer, Singapore.
Revenko, L. and Revenko, N., 2021. The Fourth Industrial Revolution and Digital Platforms as a
Strategic Vector of Global Agribusiness Development. In Digital Strategies in a Global
Market (pp. 185-198). Palgrave Macmillan, Cham.