Business Environment: Industry Analysis Factsheet & Audit Portfolio

This report provides an in-depth analysis of the business environment, focusing on industry analysis through a factsheet and environmental business audit. It covers various types of organizations within the sports industry, including private (Nike), public (JD Sports), and voluntary sectors (Community Amateur Sports Club). The report discusses the legal structures, sizes, scopes, visions, missions, and objectives of these organizations. A stakeholder analysis is conducted, and an organizational functional structure flow chart is presented. Furthermore, the report examines how internal departments like finance and marketing collaborate to meet business objectives, highlighting the interrelation between human resources, IT, and finance. The conclusion emphasizes the critical role of the business environment and the importance of conducting SWOT and PESTEL analyses for effective decision-making and company growth. The document is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

Higher National Diploma in Business
Management
Unit 1 Business and the Business
Environment
Portfolio of Industry Analysis
Factsheets (Part 1)
Environmental Business Audit
Presentation (Part 2)
Name:
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Table of Content
Part 1: Portfolio
1.0 An introduction to sub-sectors and the different types of
organisation in the industry, the market size and the growth of the
international business environment p
2.0 A factsheet for a selected sub-sector sports company p-p
2.1 Background details of the organisation p
2.2 The products and services it offers p
2.3 The size and scope of the organisation p
2.4 Vision, mission and business objectives p
2.5 The organisational and legal structure p
2.6 Stakeholders’ analysis p
3.0 An organisational functional structure flow chart p
4.0 How internal departments, for example - finance, marketing,
work together to meet business objectives p
5.0 Conclusions p
References p
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1.0 An introduction to sub-sectors and the different types
of organisation in the industry, the market size and the
growth of the international business environment
Business Environment comprises all those factors that create an influence on organisational
and operational activities such as stakeholders, competitors, rules and regulation, industry etc.
to maintain a relationship with consumers (Gromoff, A., Bilinkis, Y. and Kazantsev, N.,
2017). This report is based on 3 sports firms. Nike (private), it is an American multinational
corporation that deals in athlete footwear and apparel, headquarters in Beaverton, United
States. Second one is JD sports(public) it is a British sport retail company based in Bury,
England. Third one covers voluntary sector that is (Community Amateur Sports Club)
headquarters in UK. It is eligible for taxation purpose. In this report, topics that are covered is
several types and purpose of organisation, discuss size and scope of business, and
relationship between various organisation functions, objectives and structure.
Public, private and voluntary organisation and its legal structures.
Private sector-
Private sector organisation can be understood as a company which is a part of economy that
is owned by individuals and company which is not ruled by government. The main purpose
of private sector organisation is to earn profits. When private sector organisation is
established only the owners are responsible for business actions. There is no involvement of
government or outside control to operate such kind of business. Nike is one of the best
example to understand private sector organisation which purpose is to earn larger amount of
profits and to grow and develop their business day by day.
Legal structure of private organisation:
Partnership: Partnership is a contractual agreement between two or more parties with a
purpose to share predetermined or equal profit and losses in the business.
Sole proprietorship: A business which is ruled by single individual and have unlimited
liabilities in their business.
Companies: In the Companies Act 2006, a company is a separate legal entity which may be
established as private or public sector.
Public sectors-
Public sector organisation is a part of economy which is owned and controlled by government
(Appiah-Adu, K., Okpattah, B. and Amoako, G.K., 2018). It does not consist private
companies, voluntary companies or households. This type of company exists to offer services
for its citizens. Similarly, to the voluntary sector, public sector organisation does not seek to
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earn profit. Funding for public sectors are generally raised through variety of methods
consisting fees, taxes or financial transfers from other levels of government. JD sports is a
public body which intended to deliver positive contribution to the community.
Legal structure of public sector organisation:
Central government: Companies like department of international development or
environmental agencies which have Central Government influences.
State government: When public sector is operated at state level then the legal structure is
determined by State Government.
Local government: Generally, this involves local government and municipal corporations.
Voluntary sectors-
Voluntary sectors can be understood as an organisation whose primary motive is to deliver
positive contribution to the society rather than to earn profit. It is often called the civil
society, third sector or not for profit sector (Jafari-Sadeghi, V., and et.al., 2020). This type of
organisation is not dependent on local or national government and also distinct from the
private companies. Charities are the most single category within the voluntary sector. Others
consist cooperatives, community interest companies, community benefit societies, credit
unions and so on. For example, The Amnesty International is an international voluntary
organisation in UK. The main purpose of this organisation is protect the human rights of
every person, enshrined in the Universal Declaration of Human Rights.
Legal structure of voluntary sectors:
Unincorporated associations: In this type of association, two or more persons are involved
whose purpose is same.
Trust: It is a non-profit association that is surrounded by trustees on behalf of the members.
Trustees are held to be responsible.
2.0 A factsheet for a selected sub-sector sports company
2.1 Background details of the organisation
Nike
 Background: It is an American MNC that is connect with development of designs, it
is formerly known as Blue Ribbon Sports. This company headquarters in Beaverton,
In Portland metropolitan area.
JD Sports
 Background: It is a UK based sports company, it was established in year 1983 and
become a specialist in fashionable brand. At present they owned with 56 stores.
Community Amateur Sports Club
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 Background: It was introducing in 2002. It supports grass roots sports by labour
government. It provide advantage related to tax relief donation, capital gains tax and
other charity purposes.
2.2The products and services it offers
Nike
 Product & Services: They deals in clothing, accessories and sports
equipment’s and provide a better comfort to its customers (Zameer, H., and
et.al., 2020)
JD Sports
 Product & Services: It comprise 2 section- first related to sports fashion in
which they include Foot patrol, Finish Line, DTLR. And second one based on
outdoor products which involves Millets, Ultimate outdoors, Go fishing and
Naylors.
Community Amateur Sports Club
 Product & Services: Provide wide range of activities, services to support and
direct advice for groups.
2.3 The size and scope of the organisation
Nike
 Size & Scope: It is a biggest sports power brand in world and its offered various
items for sale by single corporation which includes broad range of shoes, clothing of
men women and children.
JD Sports
 Size & Scope: JD Sports is a leading sports company in UK, which includes several
limited edition and exclusive designs of Adidas(Charter, M. ed., 2017). Its scope is
very vast as it is a multi channel retailer of sports brand and casual wear.
Community Amateur Sports Club
 Size & Scope: It scope is very wide and it is based favourable treatment with similarities of
charitable trust.
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2.4 Vision, mission and objectives
Nike
 Vision: To bring aspiration and innovation for every Athlete in world.
 Mission: Do everything possible to enhance human capability.
JD Sports
 Vision: It wants to become most trustworthy business across the globe.
 Mission: Its main aim is to provides long haul sustainable growth and improve total
share return. And it also enhancing fiscal capability for investing in growth.
Community Amateur Sports Club
 Vision: To describe in a concise way of a business key purpose.
 Mission: Brand purpose and provide clarity to potential customers.
2.5 The organisational and legal structure
Nike
 It comprises a combination of vertical and horizontal structure with a several
reporting lines.
JD Sports
 It used a pyramid structure in order to highlight complex skills that manger needs to
achieve for organisation success.
Community Amateur Sports Club
 It involves legal procedures.
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2.6 Stakeholders’ analysis
Nike
 Consumer, Employees and Communities.
JD Sports
 company secretary and non-executive independent director.
Community Amateur Sports Club
 local government staff and shareholders.
3.0 An organisational functional structure flow chart
Organisational structure refers to a system that can used to collect specific activities
for accomplish target of business in an effective or efficient manner.
In case of Nike, it has follow geographic divisional structure. It is totally based on necessity
of business across globe along with its unique personality in different regions. Thus, this is
helpful for maintain a leadership image in corporate world.
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4.0 How internal departments, for example - finance,
marketing, work together to meet business objectives
A manager is responsible for the activities held within the organisation (Cheah, J., Amran, A.
and Yahya, S., 2019). In business, there are various functions and operations which needs to
be operated with proper coordination. All such functions in the business are interrelated and
support each other to create a proper internal structure. In Nike's context, the manager of the
company overlooks the activities and ensures about the proper coordination between all the
functional department in the company, resulting in high productivities.
Human Resource and marketing-
Human Resource is the backbone of any organisation and plays a very important role
to manage the human resources in a productive way in the organisations. HRM is linked with
the employees and staff members in the company. In Nike's context, they are dealing with
talented and skilful members who are needs for accomplishing the business objectives.
Marketing department is dealing with the promotion of company's offerings including
products and services and provide a basic a knowledge about the market with a purpose to
increase sales and profits. Marketing function needs people to be involved in the marketing
activities so that it is coordinated with human resource to get the right talent to manage the
operations. Also, marketing department acknowledge the HR manager about the job
vacancies, its types, number of vacant seats and many more.
Finance and IT department-
IT department plays a very significant role to accomplish the business objectives
(Aldossari, S. and Mukhtar, U.A., 2018). This department ensures that a company is make
optimum utilization of latest and advanced technologies. Finance department possesses a role
of providing the budget. In Nike context, finance department plays an imperative role as they
grant funds for everything which a company requires and also maintain a record book of
every transaction. They are interrelated in the Nike Company as they provide a certain budget
to the IT department so that can use latest equipment and other tools in the company.
5.0 Conclusions
It is being conclude from above report is that business environment plays a key role in every
organisation as it generates positive and negative implication through macro factors. These
factors create very vast impact on Nike' Company as it affects product quality and consumer
awareness. For identify this, leader may conduct SWOT and PESTEL analysis of company.
This help to maintain workflow of business and also create a stability in workplace.
Therefore, this analysis helps to managing all operational activities that can make a better
future planning and effective decision making for boosting company growth.
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References
Gromoff, A., Bilinkis, Y. and Kazantsev, N., 2017. Business architecture flexibility as a
result of knowledge-intensive process management. Global Journal of Flexible
Systems Management. 18(1). pp.73-86.
Appiah-Adu, K., Okpattah, B. and Amoako, G.K., 2018. Building capability for
organizational success: An emerging market perspective. Journal of African
Business. 19(1). pp.86-104.
Jafari-Sadeghi, V., and et.al., 2020. Internationalisation business processes in an under-
supported policy contexts: evidence from Italian SMEs. Business Process
Management Journal.
Zameer, H., and et.al., 2020. Green innovation as a mediator in the impact of business
analytics and environmental orientation on green competitive
advantage. Management Decision.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Cheah, J., Amran, A. and Yahya, S., 2019. External oriented resources and social enterprises’
performance: The dominant mediating role of formal business planning. Journal of
Cleaner Production. 236. p.117693.
Aldossari, S. and Mukhtar, U.A., 2018, June. Enterprise resource planning and business
intelligence to enhance organizational performance in private sector of KSA: a
preliminary review. In International Conference of Reliable Information and
Communication Technology (pp. 343-352). Springer, Cham.
Radenković, M., and et.al.,2018. Harnessing business intelligence in smart grids: A case of
the electricity market. Computers in industry. 96. pp.40-53.
Hrustek, L., Furjan, M.T. and Pihir, I., 2019, May. Influence of digital transformation drivers
on business model creation. In 2019 42nd International Convention on Information
and Communication Technology, Electronics and Microelectronics (MIPRO) (pp.
1304-1308). IEEE.
David-West, O., Umukoro, I.O. and Onuoha, R.O., 2018. Platforms in Sub-Saharan Africa:
startup models and the role of business incubation. Journal of Intellectual Capital.
Calvino, F. and Criscuolo, C., 2019. Business dynamics and digitalisation.
Baporikar, N., 2021. Influence of Business Competitiveness on SMEs Performance.
In Research Anthology on Small Business Strategies for Success and Survival (pp.
1054-1075). IGI Global.
Pikhart, M., 2018, August. Technology enhanced learning experience in intercultural
business communication course: a case study. In International Symposium on
Emerging Technologies for Education (pp. 41-45). Springer, Cham.
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Daidj, N. and Egert, C., 2018. Towards new coopetition-based business models? The case of
Netflix on the French market. Journal of Research in Marketing and
Entrepreneurship.
Daradkeh, M. and Moh'd Al-Dwairi, R., 2018. Self-service business intelligence adoption in
business enterprises: the effects of information quality, system quality, and analysis
quality. In Operations and Service Management: Concepts, Methodologies,
Tools, and Applications (pp. 1096-1118). IGI Global.
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Table of Content
Part 2: Presentation
SLIDE 1
SLIDE 2
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SLIDE 3
SPEAKER NOTES:
This PPT is based on 3 sports firms. Nike (private), it is an American multinational
corporation that deals in athlete footwear and apparel, headquarters in Beaverton, United
States. Second one is JD sports ( public) it is a British sport retail company based in Bury,
England. Third one covers voluntary sector that is (Community Amateur Sports Club)
headquarters in UK. It is eligible for taxation purpose. In this report, topics that are covered is
several types and purpose of organisation, discuss size and scope of business, and
relationship between various organisation functions, objectives and structure.
SLIDE 4
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SPEAKER NOTES:
 Political: It refers to external framework that can used by marketer for identify effect
on organisation. IT includes leadership, government policies and changes in foreign
trade, tax policy etc.
Positive impact: Due to certain changes in governmental policies. It creates a
positive implication on Nike, it helps to create a stability in political climate with in
main marketplace, enhancing trade policies and developing governmental support for
business. This help to builds company image and improving its competitiveness.
Negative impact: This company run their business all over world, sometimes it
creates severe loss because of change in tax rates it can increase. Due to this change
price to items also expand which generate a negative impact on consumer demand.
 Economic: It creates a direct implication on economic performance which can reflect
profitability of business (Hrustek, L., Furjan, M.T. and Pihir, I., 2019). It includes
trade, taxation and financial policies. Performance of Nike is totally depending upon
economic state.
Positive impact: Company focus on developing markets for providing better
goods and services which is beneficial for customers. If audience are highlight satisfy
with quality of brands, then it increases consumer reach.
Negative impact: An organisation facing threat due to rapid growth in market
improvement. It takes as an opportunity but is also causes issues in company such as
labour cost increases and also enhancing supply chain and production of products in
business.
 Social: It major focus on find out emerging trends that affect market (David-West, O.,
Umukoro, I.O. and Onuoha, R.O., 2018). It comprises changes in geographical sector,
demographical change, social and cultural trends and lifestyle.
Positive impact: In Nike, company can face several effects in terms of
improving people health by the help of developing nation, products safety also increases
and enhancing positive behaviour in term of leisure. All these things are very helpful for
engaging customer for increasing organisational growth.
Negative impact: Nike is a multinational company who works in many areas
of globe. This long lasting definite image create miserable conflicts because every
year new trends arise which generate adverse impact on out dated product.
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 Technological: It refers to certain changes in technology that affect entire industry. It
includes several factors such as innovation in digital techniques, research and
development, automation etc.
Positive impact: In improvement of technologies, Nike's are able to increasing
brand image, because they are coming up with new trends and product in market
according to customer demand which assist to knowledge its appearance in between
rivalries.
Negative impact: The investment of research and development is increasing
which create an adverse effect on company as most of competitive firms try to
enhance new technological supports in respect to clothing, shoes and equipment. And
continuous changing in technology also putting pressure on business to generate
efforts related to product enhancement.
 Environmental: It determines those issues that reflect surrounding of business and
based on ecological terms (Calvino, F. and Criscuolo, C., 2019). IT involves change
in weather and climate, natural disasters etc.
Positive impact: A change in climate create an effect on Nike's company
towards success as developing range of environment law aids to improve
sustainability programs which help to recognize company to become best. It also
effects supply chain of products.
Negative impact: The sudden improving environment creates a impact on
sustainability strategies and putting more pressure on business in respect to increase
their efforts which can help to boosting firm's growth.
 Legal: It is based on legal territories that can made by government for every
organisation (Baporikar, N., 2021). It considers consumer law, safety and health
security, restrictions and trade regulation.
Positive impact: A company follow all rules and regulation that is made by
government. A developing country expanding law related to clients. It creates better
standard for workers and employment. It also regulates heath safety and security of
employees which help to increase their confidence.
Negative impact: An improvement in labour law in this developing nation
create hazard for company because, it leads to upraise cost of labour and several areas
where many of Nike's branch located.
SLIDE 5
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SPEAKER NOTES:
Strengths
 Nike positioned itself in entire sports industry with their strongest brand awareness.
 It has created a customer base product at a very cheap range by which they can
connect a lot of audience.
Weaknesses
 A retailer of Nike's company cuts upper margin cost which create a negative impact
on its growth.
 An outsourcing manufacturing of brand create a weakness, because they are not
always control their items due to poor labour cost.
Opportunities
 The involvement of Nike with R & D group assist to recycle items that support small
brands also deliver correct message to customers (Pikhart, M., 2018).
 This comprise celebrity athlete association which gave them better chance to grow.
Threats
 A brand image of firm is coming under this category because of bad treatment of
labour, accusation against high authority.
 It can face fierce competition in product of their market as other rivals such as Adidas,
PUMA etc. comes up with new trends.
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SLIDE 6
SPEAKER NOTES:
 Economical:
Strength: The strong reputation of company in terms of its products quality can
enhance its position in market. And its awareness in mind of customer can improve its
market share and business economy.
Weakness: A less satisfaction of labour in terms of their safety and security affect
adversely. It can generate economic deflation in business.
 Social:
Strength: The standard reputation of brand can surely engage with social customer
and aids to maintain a healthy relationship. Thus, this may help in attaining success.
Weakness: Due to poor treatment with worker, individual switch to other company for
better employment with high security.
 Technological
Strength: This factor assists to improving brand image as innovation in technologies
affect positively new trends.
Weakness: Organisation have to work on labour through technology invention as it
helps to generate revenue that make affect labour cost.
 Legal:
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Strength: Nike can follow all rules and regulation that can made by government it can
enhance its brand loyalty and customer attention (Daradkeh, M. and Moh'd Al-
Dwairi, R., 2018)
Weakness: A labour law, consumer protection law safety law can generate implication
on brand awareness as renowned company always under in legal system.
 Environmental:
Strength: A excellent image of company and brand can increase sustainable practices
of business and provide future success.
Weakness: A low satisfaction level of worker can create an negative implication on
revenue margin of organisation.
SLIDE 7
SPEAKER NOTES:
The major issues that are being faced by the landlord or payment of tax or the rent on the
timely basis or the destruction of properties. The important roles that the landlord should
manage is to provide proper maintenance to their tenant and also to give the receipt and frame
the maintenance of record and receipt of the rent on timely basis.
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SLIDE 8
SPEAKER NOTES:
Calvino, F. and Criscuolo, C., 2019. Business dynamics and digitalisation.
Baporikar, N., 2021. Influence of Business Competitiveness on SMEs Performance.
In Research Anthology on Small Business Strategies for Success and Survival (pp.
1054-1075). IGI Global.
Pikhart, M., 2018, August. Technology enhanced learning experience in intercultural
business communication course: a case study. In International Symposium on
Emerging Technologies for Education (pp. 41-45). Springer, Cham.
Daidj, N. and Egert, C., 2018. Towards new coopetition-based business models? The case of
Netflix on the French market. Journal of Research in Marketing and
Entrepreneurship.
Daradkeh, M. and Moh'd Al-Dwairi, R., 2018. Self-service business intelligence adoption in
business enterprises: the effects of information quality, system quality, and analysis
quality. In Operations and Service Management: Concepts, Methodologies, Tools,
and Applications (pp. 1096-1118). IGI Global.
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