HND Business: Business Environment Analysis of JD Sports

This report provides a comprehensive analysis of the business environment of JD Sports, a fashion company in the sports industry. It begins by explaining different types of organizations (public, private, voluntary) and their legal structures. It then examines the interrelationship of various functions within an organization, such as marketing and human resources, and how they link to organizational structure. The report further uses PESTEL analysis to demonstrate the positive and negative influences of the macro environment on JD Sports' business operations. It also determines the internal strengths and weaknesses of JD Sports using SWOT analysis and explains their interrelationships with external macro factors. The analysis aims to provide insights into how JD Sports can navigate the competitive market by understanding both internal capabilities and external environmental factors.

Business and Business
Environment

Contents
INTRODUCTION.......................................................................................................................................................................................3
PART 1........................................................................................................................................................................................................3
LO1: Explain the different types, size, and scope of organisations.........................................................................................................4
.....................................................................................................................................................................................................................4
LO2: Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational
structure....................................................................................................................................................................................................5
.....................................................................................................................................................................................................................5
PART 2........................................................................................................................................................................................................6
LO3: Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on
business operations..................................................................................................................................................................................6
LO4: Determine the internal strengths and weaknesses of specific businesses and explain their interrelationships with external
macro factors............................................................................................................................................................................................8
CONCLUSION..........................................................................................................................................................................................10
REFERENCES..........................................................................................................................................................................................11

INTRODUCTION
The organization performance and growth are affected with the changes occurring in the market. It is necessary to analyses the
environmental factors and trends of market as business is influenced by the environment in which it runs its functioning but there are
the several factors which are out of control for the business. The analysis of environment defines strategic tool which comprises of
micro and macro factors which influence the industry and performance. In the study the discussion is done on the different types of
organization with the size and scope, legal structure. It also discusses the interrelationship of organization function with its structure.
Further it also discusses PESTEL analysis and SWOT examination of JD Sports.
PART 1

Business and the Business EnvironmentVoluntary sector organization- This organization is non-governmental in
nature carried for the society benefit by carrying social activities rather than
profit.
The objective is to enrich the society and providing benefits at large without
maximizing any profit.
Legal structure of voluntary organization includes trust and unincorporated
associations.
Size and scope of different types of organizations
JD Sports
It is the fashion company which deals in the sports industry and is based
in the Great Manchester. It deals in the accessories and clothing relating to
sports. The company approximately 34000 employees and its vision is to deliver
the long term growth earning in sustainable manner so that the total shareholder
returns are enhanced by way dividends and share price performance.
LO1: Explain the different types, size, and scope of organisations.
Public sector organization- This is run and owned by the governments on
behalf of general public to provide the social services for the society
benefits called as not for profit organization.
The objective of such organization is to utilize the resources fully and
offering goods and services to the public by creating money for society
wellbeing.
Different legal structure in public company includes firms owned and
controlled by central government which has working in whole nation, the
firms owned and controlled by central government but has working in
particular state and lastly, firms owned and controlled by local government.
Private sector organization- This organization is run and operated
with the aim of maximizing profit by the individuals and it is the part of
economy.
The purpose of this organization is to make profit which is the integral
part of the economic system owned by the private individuals and groups.
Legal structure in this includes sole proprietorship wherein there is
single owner who has control and management of whole firm while second
is partnership in which there are two or more than two owners and
ownership and management is shared between them. Third is companies
which is a separate legal entity distinct from its owners.

England Cricket Board
It is a national governing body of the cricket in the England and
Wales. Its headquarter is at the Lord’s Cricket ground in the north west of
London. It covers all the levels of cricket in England and includes the
national teams of England men, England Women and the England Lions. It
also includes teams of people with learning disability, physical disability,
visually impaired and the deaf.
Sports England
This is the voluntary association which was formed in the year 1996
by the Royal Charter in order to support, charter and also encourage
development of the sports as well as sports excellence. It is the non-
departmental public body which manages the sports activities.
LO2: Demonstrate the interrelationship of the various functions within an
organisation and how they link to organisational structure.
Marketing and human resource department
Advantage – Interrelationship between marketing and human
resources department helps in the fulfilment of the needs of marketing
department regarding the skilled marketing executive.
Disadvantage- This can increase the work load increase the confusion
and conflict among both department.
Purchasing and R&D department
Advantage- This helps to build the effective purchasing plan without the
risk of resources wastages due to the help of right information. provided by the
R&D department regarding organisation needs according to the market, to meet
customers demand.
Disadvantage- This cannot be easy to make the selection of right and one
most appropriate information from R&D department. Sometime this cannot be
easy for purchasing department to understand research and development
department.
 Imitator Entrepreneurship – It is a sort of organisation that only copy
the formulation and strategies of another efficient entrepreneur.
 Research Entrepreneurship – They provide higher way of research on
all situations before developing approaches and strategies in business.
 Determined Entrepreneurship – In this enterpriser will adopt their own
formulation and develop their own managerial tactics that will not linked
with any other business.
 Successful Entrepreneurship – Successful enterpriser are those who
faced all problems and faults in the management but still they are
continuously deal with issues by applying such appropriate tactics and
methods.
REFERENCES
Aminoff, A and et.al., 2017, April. Exploring disruptive business model
innovation for the circular economy. In International Conference on
Sustainable Design and Manufacturing (pp. 525-536). Springer, Cham.
Amit, R and et.al., 2017. Strategies for the entrepreneurial millennium. Creating
value: Winners in the new business environment, pp.1-12.

PART 2
LO3: Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on
business operations.
Notes - The industries regulate the influence of external environment by categorizing positive and negative influence on the business
to take correct actions and to have the benefit of revenue in future.
Political factor- The JD Sports is presented in the different countries with the high political stability there is growth in the market
trends with the stable

Economic factor- The high inflation reduces the purchasing power which affects adversely to the organization. The global expansion
influences the financial market efficiency.
Social factor- The study of change in demographic pattern helps the JD Sports company in choosing the right market segment with
high potential growth. The management practice of the JD Sports is adjusted with the high and low power
Technological factor- The JD Sports has the opportunities to improve the business performance with the development of information
and communication technologies. The investment is made on the research and development activities. To understand the firms value
that is made by the competitors on micro and macro level.
Environmental factor- There is a trend to use the Eco-friendly products where the green policy is adopted by the JD Sports. There is
adverse impact with the changes in environmental regulation.
Legal factor- The JD Sports is required to follow various laws of health and safety to protect the employees and employer so that a
secure environment can be provided.

LO4: Determine the internal strengths and weaknesses of specific businesses and explain their interrelationships with external macro
factors.
Notes –
Strengths- The high brand value is created of the JD Sports. It also helps in offering wide range of customer services.
Weaknesses- The JD Sports spend more on the training and development of the employees due to the high attrition rate.
Opportunities- The JD Sports have the growth opportunities by offering services with innovative modes. The operating cost is
reduced by the application of effective strategies.
Threats- With the increase in the competition the stable profitability has increased in the industry. The JD Sports also faces threat in
the shortage of skilled work force in the global market which leads to slow growth.

Notes - The internal factors of the JD Sports are strength and weakness that are related to the external factors of opportunities and
threats. The performance of the activities is hampered as the strength is related to the opportunities and weakness is related to the
threat. In the JD Sports, the strength is the internal efficiency of management and opportunities is the brand image, competitive
capability, large market shares which is managed by efficient management. The strength and opportunities improve the productivity of
the JD Sports as efficient management utilize the external opportunities to promote the market with the innovative ideas and services
(Schell and et.al., 2020).
The weaknesses of the JD Sports when the lack of utilization of resources which is required in generating profit. The threat is
fall in control of market and large market share. The interrelation of the threat and weakness is harmful for the JD Sports as due to
weakness the threat becomes aggressive which leads to loss in market share.

CONCLUSION
From the above discussion, it is concluded that different types of business have their legal structure which also contains the size
and scope and business is regulated in the society with the specific purpose. This report also discusses the interrelationship with the
organization functions and structure. It also debates on the micro and macro influences of the organization with the PESTEL and
SWOT analysis to get know of the adverse and optimistic impression. To expand the organization operations in the competitive
market it considers the entire environment and customers’ requirements to have the better opportunities for the customer satisfaction.

REFERENCES
Books and Journals
Aminoff, A and et.al., 2017, April. Exploring disruptive business model innovation for the circular economy. In International
Conference on Sustainable Design and Manufacturing (pp. 525-536). Springer, Cham.
Amit, R and et.al., 2017. Strategies for the entrepreneurial millennium. Creating value: Winners in the new business environment,
pp.1-12.
Bilińska-Reformat et.al., 2019. Sustainable development concept and creation of innovative business models by retail
chains. International Journal of Retail & Distribution Management.
Bouranta et.al., 2017. A comparative analysis of competitive priorities and business performance between manufacturing and service
firms. International Journal of Productivity and Performance Management.
Candi and et.al., 2019. Two birds with one stone: the quest for addressing both business goals and social needs with
innovation. Journal of Business Ethics, 160(4), pp.1019-1033.
Del Giudice and et.al., 2017. Global knowledge intensive enterprises and international technology transfer: emerging perspectives
from a quadruple helix environment. The Journal of Technology Transfer, 42(2), pp.229-235.
Delpechitre and et.al., 2018. Faking it: salesperson emotional intelligence’s influence on emotional labor strategies and customer
outcomes. Journal of Business & Industrial Marketing.
Hwang, G and et.al., 2017. Developing performance measurement system for Internet of Things and smart factory
environment. International journal of production research, 55(9), pp.2590-2602.