Analyzing the Global Business Environment for JD Sports

This report provides a comprehensive analysis of JD Sports within the global business environment. It begins with an introduction to the global business environment, highlighting its impact on decision-making and resource allocation, and then focuses on JD Sports, a British sports fashion retailer. The main body includes a SWOT analysis, detailing the company's strengths (strong supplier relationships, brand value, cash flow), weaknesses (limited growth, need for investment), opportunities (technology investment, free trade policies), and threats (liability laws, increasing raw material costs, competition). The report also examines the operations impact analysis, exploring JD Sports' retail outlets, digital customer experience, multichannel distribution, and the effects of Brexit. The report also discusses JD Sports' social and environmental responsibilities, capital investment, and concludes by emphasizing the importance of analyzing the global business environment for strategic improvements. The report references several academic sources to support its analysis.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Swot analysis ..............................................................................................................................1
Operations impact analysis ........................................................................................................2
CONCLUSION ..............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global business environment refers to the business environment in different countries
affect the organisation in both aspects positive as well as negative. This include the decision
making , resources and etc. there are two type of business environment one is micro and second
is macro environment but global business environment mainly focus on external environment
which include economic, political, trade policies, tax policies , legal and technology
environments (Brenner, 2018). The report below is based on JD sports ; this is based on British
sports fashion retailing company, Founded in 1981 in united kingdom. JD sports company has
different category such as sports shoes, clothes and some other products related to sports. The
report below include strength, weakness, opportunities and threat. Operation impact analysis of
JD sports.
MAIN BODY
Swot analysis
Swot analysis refers to planing of strategies in organisation used to observe
strength,weakness,opportunities and threat.
Strength : Strength micro and positive factor of company. JD sports has strong
relationship with suppliers of materials. Company has strong brand value in market and has loyal
customers in market this is biggest strength of JD sports. Company has high flow of cash that
give resources to company for explore new market. Company use new techniques for production
and use great quality raw material.
Weakness : Weakness is negative factor of company. JD sports has limited growth
because they change products structure and current culture. For better growth and performance
company need more investment for new technology to meet market trends and fulfil customer
needs. Profitability lower then average (Dos Santos, 2019). Planning related to finance is not
done properly and it affect on profitability of company. Company investment high if customer
not attracts to new strategies and face loses in company in long term.
Opportunities : Opportunities are macro factor that increase the growth of company. JD
sports can invest in new technology through free cash flow or stable cash. less inflation rate give
more stability to company. In UK there is free trade policies so company enter in different
market in countries. New technologies provide better opportunities to company because
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technology is important part now days in business for customers as well as company , technology
makes work easy. Company explore new techniques for growing their business and sales.
Threat : Threat is negative macro factor which company have no control over. Laws of
liability are different in every countries, different liability demand given change policies.
Increasing raw material is threaten for JD sports . Increasing strengths of local business is
creating competition in market. Unskilled employees in company , it affect on performance of
company and these factors are threaten for JD sports (Hamilton and Webster, 2018).
Operations impact analysis
Operations impact analysis refers to collecting relevant data, which used in improving
and developing business strategies to handle the emergency problems in organisations.
Retailing stores : JD stores has different outlets different countries , they explore many
market. Company provide product awareness to customers , in current scenario they use latest
technologies in company to improve performance and growth. Company provide digital
experience to customers , JD sports provide online services to customers such as customers can
give feedback to company so they can develop their services and fulfil customers needs and meet
expectations.
Multichannel's of distribution : JD sports grow on international level , they grow their
business digitally or on social media platforms. Social-media-marketing is very popular now
days through this company can reach out maximum number of customers. On social media
content is very important to attract customers. Target buyers of JD sports are youth. Because
youth take more interest in physical activities (Helms and Nixon, 2010).
Brexit war : Due to Brexit war UK and EU relations are not good. They change their
trade policies in country this affect companies also. JD sports affected to . Brexit war affect the
productivity, sales and profitability of JD sports. Due to Brexit war countries tax policies also
change , both countries change their tax rates, trade policies , product related policies according
their comfort and needs.
Social and environment responsibilities : JD sports use natural resources for production
as much as possible , company dispose waste material in proper manner so environment not
affected. JD sports has JD foundation also to provide funds to needy people or child education.
They give donations and give some amount of profit to charity, company fulfil social
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responsibilities it helps in increasing brand value of company in market. Company use eco
friendly raw material in production.
Capital investment in business : JD sports has different investors, shareholders they are
strength of company. Through more investment they use latest technologies in company it helps
in performance and growth (Kokodey, Gnezdova and Lomachenko, 2018). This provide long
term stability in market. Huge amount of investment provide high level of growth , JD has
various stores in different countries explore more market or enter in new markets with products
needs good investment.
CONCLUSION
It is concluded that global business environment is effective for business to analyse
strengths , weakness, opportunities and treats . Company can improve strategies after analyse the
various factors that affect directly or indirectly to company. Analyse external environment is
very important for business this affect the most. Operations impact analysis collect all the
relevant data which used for improving and developing strategies in better way such as retailing
stores of company has different outlets in different countries it increase brand value. Company
take step through market trends first they research about market trends like competitors, price
factors , customer needs and many more , they make strategies accordingly. Company involve in
social responsibilities this helps in brand image of company in market.
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REFERENCES
Books and Journals
Brenner, B., 2018. Transformative sustainable business models in the light of the digital
imperative—A global business economics perspective. Sustainability, 10(12), p.4428.
Dos Santos, M.A. ed., 2019. Integrated Marketing Communications, Strategies, and Tactical
Operations in Sports Organizations. IGI Global.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Helms, M.M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now?. Journal of
strategy and management.
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
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