BUS 100 - Introduction to Business: Foot Locker Business Analysis

This report provides a comprehensive business case analysis of Foot Locker Inc., an American sportswear and footwear retailer. It begins with an introduction to the company, its mission, and its global presence. The report then delves into the critical issues faced by Foot Locker, including the rapid pace of consumer preference changes, technological disruptions, and the challenges posed by increased competition. It examines the company's organizational culture, management style, and the limitations of its current strategies in adapting to the evolving business environment. The analysis further explores the external environment using SWOT and PESTLE analyses, identifying opportunities such as technological advancements and digital marketing, as well as threats like competition and changing consumer trends. The report also assesses Foot Locker's organizational goals, mission, and strategies, highlighting the need for flexibility, innovation, and a broader consumer focus to enhance its performance and competitiveness. The analysis underscores the importance of effective leadership and controlling to overcome the challenges faced by the business organization. Finally, the report concludes with a summary of the key findings and recommendations for Foot Locker to improve its business operations and adapt to the dynamic market conditions. This report is a solution to the business case analysis assignment for BUS 100 Introduction to Business class.

Running head: INTRODUCTION TO BUSINESS
INTRODUCTION TO BUSINESS
Student’s Name
University Name
Author note

1INTRODUCTION TO BUSINESS
Table of Contents
Introduction................................................................................................................................2
Description and analysis............................................................................................................3
Critical issues faced by company...............................................................................................3
Environmental analysis..............................................................................................................7
O&T of the SWOT Analysis..................................................................................................7
Pestle analysis (External environmental analysis).................................................................8
Organizational goals, mission, and strategies......................................................................11
Organizational culture and history that may have lead to this Critical Issues.....................13
S&W portion of the SWOT Analysis...................................................................................14
Conclusion................................................................................................................................15
References................................................................................................................................17

2INTRODUCTION TO BUSINESS
Introduction
Foot Locker Inc. is an American sportswear and footwear business organization
headquartered at New York City. The business organization was established as a separate
company in the year 1988. The company is a successor of Woolworths Company. The Foot
Locker Company offers various footwear products including divisions such as Champs
sports, House of Hoops and Footaction USA. The business organization celebrates the
sneaker and youth culture throughout the world by offering its portfolio of footwear brands.
The business organization has outlets in more than 27 countries including Australia, Asia,
Europe and America1. The purpose of the business organization is to inspire and influence the
youth. The mission of the business organization is to fuel a shared passion for self expression
and create positive experiences for the customers. The purpose of this report is to analyze the
critical issues faced by the business organization. It analyzes the organizational strategies and
it’s aligned with the business environment. It conducts environmental analysis for the
business organization and determines the threats and opportunities faced by the business
organization. Further, the report analyzes the organizational analysis for the business
including the strategies, mission and goals of the business.
1 footlocker.com.. About Us. [online] Available at: https://www.footlocker.com/ (2020) [Accessed
21 April 2020].

3INTRODUCTION TO BUSINESS
Description and analysis
Critical issues faced by company
Major issues faced by Footlocker
As per research an analysis it has been identified that the speed of disruption and the
pace of consumer preferences and demands are exceeding which makes it difficult for firms
like Foot Locker to keep up with them. The technological changes, the political scenario,
increased competition are some of the major drivers behind the issues and the challenges that
are being faced by the business organization2. The apparel and the footwear industry in USA
have been undergoing transformations and changes of consumers and digital market place
which impacts retailers like Footlocker3. Innovation and disruption are some of the important
retail trend in the market. One of the most important issues that are faced by Footlocker is the
changing needs and preferences of the consumers. The business organization faces
uncertainty in the fashion market. The most popular product in the store might go out of style.
The consumers continue to demand for new and unique products in the market especially
with the increased competition in the market. This market scenario challenges the business
organization to keep up with the exceeding needs and demands of the consumers. This
creates high level of uncertainty in the business environment.
Company culture as per business environment –
The employees of the business organization are provided with a set of instructions and
rule to perform their jobs as per the needs of the business. The strategies and policies of the
2 Cody, Jason Allen. "Initial Interest Confusion: What Ever Happened to Traditional Likelihood of
Confusion Analysis." Fed. Cir. BJ 12 (2013): 643.
3 Bhaduri, Gargi. "Influence of consumers’ brand expectations on apparel brands’ US-based sourcing
strategy." Journal of Consumer Marketing (2017).

4INTRODUCTION TO BUSINESS
business contribute to the business resilience and its competence in the market. The culture of
the business organization demonstrates team based approach to management. The culture of
the business organization is directly reinforced by the management which sets forth a pattern
of behaviour for the employees and the staffs4. The approaches of the business organization is
highly goal oriented to which a staffs or the employees is expected. The culture of the
business organization seeks to foster a sense of belonging among the employees of the
business organization. This organization is effective to some extent, however is inappropriate
as per the changing business environment and uncertain business environment. The
organization structure, cultures and its objectives must be flexible in order to compete in the
highly uncertain business environment. Moreover, the business organization has been
criticized of inappropriate behaviour and poor workplace by some employees. The employees
are provided with clear set goals and objectives as per which the employees are expected to
behave or perform. However, this organizational practice limits flexibility in the organization.
Some of the employees in the business organization also feel excluded as they are not
involved in the major decision making of the business organization. It has been identified
from research and analysis, that the particular business culture obstructs innovation and new
product development as it lacks flexibility and independence in the organization5. This limits
the scope of innovation and new ideas in the business organization, which is critical for the
overall success and profitability of the business organization. Therefore, it can be said that
lack of flexibility, innovation and independence in the organization hinders the ability of the
company to cater to the changing needs and preferences of the business organization6. The
4 KP, Jaheer Mukthar, and Binto Benny. "AN ANALYTICAL STUDY OF FOOTWEAR
INDUSTRY WITH SPECIAL REFERENCE TO MR WALKER FOOT CARE." Purakala with ISSN
0971-2143 is an UGC CARE Journal 31.4 (2020): 1350-1363.
5 Sweeney, Richard A. "A Strategic Analysis of Foot Locker, Inc." (2019).
6 Sweeney, Richard A. "A Strategic Analysis of Foot Locker, Inc." (2019).

5INTRODUCTION TO BUSINESS
rigid organizational culture is one of the main reasons for the business organization to cope
with the issues faced from the external business environment.
Management and leadership as per business environment
The management style and approach of Foot Locker is characterized by team
management. The top management and the executives of the business organization are
competent and efficient employees of the business organization having skills and huge
knowledge. The management understands the important of team work in the business
organization. The business organization has a strong channel of equipment manufacturers and
suppliers which increases the efficiency of the business organization7. The current strategies
of the business organization are focused on the centre of youth culture empowerment. The
business organizations are mainly focused on athletic shoes and sports footwear products and
items for the youth generation8. However, the strategies and objectives of the business
organization focus on limited consumer group and focus only on athletic foot products.
However, the management must consider the changing needs and preferences of the
consumers and cater to larger consumer segment to increase their sales and profitability.
Considering the present business environment, the business organization must consider
expanding their business operations and take a leap forward. The business organization must
invest in business capabilities catering to the needs and preferences of the consumers in the
market as well as support the youth culture empowerment9. The organization requires
7 KP, Jaheer Mukthar, and Binto Benny. "AN ANALYTICAL STUDY OF FOOTWEAR
INDUSTRY WITH SPECIAL REFERENCE TO MR WALKER FOOT CARE." Purakala with ISSN
0971-2143 is an UGC CARE Journal 31.4 (2020): 1350-1363.
8 Sweeney, Richard A. "A Strategic Analysis of Foot Locker, Inc." (2019).
9 Mullane, Katie. "Setting a Trend for Design Rights: An Analysis of Whether the United States
Should Follow the European Union's Model for Fashion Design Protection." Trinity CL Rev. 21
(2018): 276.

6INTRODUCTION TO BUSINESS
effective leading and controlling to overcome the issues and the challenges faced by the
business organization. It has been analyzed that leading and controlling in the business
operations are lacking. This hinders the ability of the business organization to alter the
strategies and culture as per the business environment.

7INTRODUCTION TO BUSINESS
Environmental analysis
It has been analyzed that Foot Locker has experienced position growth since 2014.
However, the business organization needs to combat volatile sales environment. The
company needs to face the challenge poor consumer confidence, small number of consumers
and lack of innovation. This section of the report analyzes the opportunities and threats that
are faced by the business organization.
O&T of the SWOT Analysis
Opportunities – Advancement of technology is advantageous for the business organization
and must be considered as an opportunity for the business organization. This provides an
opportunity for the business organization to develop new products as per the needs and
preferences of the customers. The digital platforms and digital marketing trends are also an
opportunity for the business organization10. To engage with the customers and increase brand
image and perception of the brand in the local as well as in the global market. These
opportunities must be undertaken by the business organization. The competing firms in the
market are implementing the latest technologies and machineries to improve the productivity
of the business organization11. It also enables the business organization to provide unique and
new products to the customers to exceed their expectations12. Therefore, it is recommended
for the business organizations to undertake the prevailing opportunities in the market.
10 Heron, Tony. The new political economy of United States-Caribbean relations: The apparel
industry and the politics of NAFTA parity. Taylor & Francis, 2017.
11 Mullane, Katie. "Setting a Trend for Design Rights: An Analysis of Whether the United States
Should Follow the European Union's Model for Fashion Design Protection." Trinity CL Rev. 21
(2018): 276.
12 Pereira, Pedro. Adidas AG-footwear and apparel. Diss. 2018.

8INTRODUCTION TO BUSINESS
Threats- The uncertain business environment, presence of stiff competition in the market,
new fashion trends and changing customer preferences can threaten the smooth functioning
and operations of the business organization. Foot Locker faces direct competition with major
players in the market such as Nike Corporations13. It focuses on larger consumer market
segmentation and offers wide range of products and services at lower costs to the customers
unlike Footlocker which mainly targets the youth and focuses primarily on athletic footwear
products14. They take away major portions of the potential customers of the business
organization.
Pestle analysis (External environmental analysis)
This section of the report will analyze the company’s external industry environment and
assess the political, economic, social, technological, legal and environmental aspects in which
the business carries out the operations of the business organization.
Political aspects: Significant changes in political regimes of the country might have
significant impact on the operations of the business organization15. However, USA has a
stable political environment, which is a favourable for the business organization16.
13 Yan, Ruoh-Nan, et al. "Millennial Consumers’ Perceived Consumption Values and Purchase
Intentions: Examining Effects of Made in USA and Traceability Labelling of Apparel." International
Journal of Environmental and Science Education (2019).
14 Zhu, Shengjun, et al. "The upgrading framework in the apparel industry literature: insights from
apparel firms in Ningbo, China." Geografiska Annaler: Series B, Human Geography 101.3 (2019):
231-254.
15 Heron, Tony. The new political economy of United States-Caribbean relations: The apparel
industry and the politics of NAFTA parity. Taylor & Francis, 2017.
16 Yan, Ruoh-Nan, et al. "Millennial Consumers’ Perceived Consumption Values and Purchase
Intentions: Examining Effects of Made in USA and Traceability Labelling of Apparel." International
Journal of Environmental and Science Education (2019).

9INTRODUCTION TO BUSINESS
Economic aspects – The economic conditions in the country is favourable for the business
organization. The income levels of the country have improved since the past years. There is
abundant availability of cheap labours in the US market17. This situation is favourable for the
business organization. However, global economic landscape might be challenging for the
business organization. The US-China trade war might affect the business organization and its
operations18.
Social aspects – Majority of the population in US comprises the youths and the young adults.
This is favourable for the business organizations. However, the consumers in the market are
highly fashionable and trend conscious. Therefore, the trends and fashion must be assessed
by the business organization in order to cater their needs and preferences19.
Technological aspects – US economy is a global leader in technology and advanced
machinery. The country excels in latest technology and the rate of technological
developments and improvements are high in the country. This can be both a challenge and an
opportunity for the business organization. Foot Locker must undertake the opportunity of
advanced technology to innovate and improve their product offerings and maintain its
competitiveness in the market20.
17 Saki, Zahra, et al. "Revealed comparative advantage for US textiles and apparel." Competitiveness
Review: An International Business Journal (2019).
18 Heron, Tony. The new political economy of United States-Caribbean relations: The apparel
industry and the politics of NAFTA parity. Taylor & Francis, 2017.
19 Yan, Ruoh-Nan, et al. "Millennial Consumers’ Perceived Consumption Values and Purchase
Intentions: Examining Effects of Made in USA and Traceability Labelling of Apparel." International
Journal of Environmental and Science Education (2019).
20 Bhaduri, Gargi. "Influence of consumers’ brand expectations on apparel brands’ US-based sourcing
strategy." Journal of Consumer Marketing (2017).

10INTRODUCTION TO BUSINESS
Legal aspects – The regulatory frameworks and laws are stable in the country. They have a
strong legal system to protect the business. This situation is favourable for the business
operations21.
Environmental aspects - US experiences extreme weather conditions in the market. The
country faces adverse weather conditions and climate disasters at times. This might be
challenging for the business organization22.
21 Liu, Harrison. "Tread for footwear." U.S. Patent Application No. 29/562,694.
22 Ma, Yoon Jin, Hyun‐Hwa Lee, and Kylie Goerlitz. "Transparency of global apparel supply chains:
Quantitative analysis of corporate disclosures." Corporate Social Responsibility and Environmental
Management 23.5 (2016): 308-318.

11INTRODUCTION TO BUSINESS
Organizational analysis
Organizational goals, mission, and strategies
It is the mission of the business organization to “fuel shared passion for self
expression”23. The mission statement of the business organization indicates the strategic
vision of the company and its initiatives to grow the business in both short terms and long
term objectives of the business organization. Foot locker aims to create a clear customer
focus to improve the performance of the business organization in core athletic products. The
business also undertakes initiatives to attract the customers in their online stores and retail
outlets by offering executive and relevant places to shop. The vision statement of the business
organization is to create “unrivalled experiences for our consumers”24. The vision statement
of the business organization is brief and concise. It implies that the vision statement of the
business organization does not prompt the opinion of the business or long dialects to the
relevant stakeholders of the business organization. Foot locker must take initiative to
communicate the overall essence of the business organization and formulae plans to
communicate the philosophy of the business. The vision statement of the business must be
descriptive and informative regarding the business and plan to attain its long term goals
strategically25.
The strategic imperatives of the business organization are to elevate the experience of
the potential consumers. It aims to invest in long term growth and profitability of the business
23 footlocker.com.. About Us. [online] Available at: https://www.footlocker.com/ (2020) [Accessed
21 April 2020].
24 footlocker.com.. About Us. [online] Available at: https://www.footlocker.com/ (2020) [Accessed
21 April 2020].
25 Sweeney, Richard A. "A Strategic Analysis of Foot Locker, Inc." (2019).