HND Business: JD Sports Audit, PESTLE, SWOT & Expansion Strategy

This presentation provides an environmental business audit for JD Sports, utilizing PESTLE and SWOT analyses to assess the company's current position and future expansion plans. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors impacting JD Sports' operations across various countries, highlighting the complexities of international business. The SWOT analysis identifies the company's strengths (faithful suppliers, strong online presence), weaknesses (poor inventory management, insufficient current assets), opportunities (new technologies, rise in customer disposable income), and threats (shortage of skilled labor, strong competitors). Based on these analyses, the presentation recommends that JD Sports proceed with its expansion plans, leveraging its strengths and opportunities while addressing its weaknesses and threats. The conclusion emphasizes the importance of environmental business audits and strategic frameworks like PESTLE and SWOT in guiding business decisions and fostering sustainable growth. Desklib provides access to similar solved assignments and study tools for students.

Higher National Diploma

UNIT 1 BUSINESS AND THE BUSINESS
ENVIRONMENT
Presentation
Environmental Business Audit for JD Sports Company
Presenter Name:
ID:

TABLE OF CONTENT
•A PESTLE analysis
•a SWOT analysis
•Recommendations - whether the organisation should proceed with its
expansion plans
•Conclusions
•References

A PESTLE ANALYSIS – POLITICAL FACTORS
Political factors plays an important role in order to determine those
aspects that consist great impact on long-term profitability of JD
Sports within an particular country, JD Sports company operating
their business in many countries therefore various kinds of political
environment and political risk affects its business operations. The
taxation policy is imposed by the government of different country
which also affects JD Sports as it operates their business in many
countries.

A PESTLE ANALYSIS – ECONOMICAL FACTORS
Factors like savings rate, inflation rate, foreign exchange
rates and many more determine the aggregate investment
as well as aggregate demand in an economy. Whereas the
factors like competitive norms of the affects the
competitive advantage of the company. The economic
factors of the country such as retail industry growth rate,
inflation rate, foreign exchange rate and unemployment
rate are some factors that affects the business operation of
JD Sports in effective manners.

A PESTLE ANALYSIS – SOCIAL FACTORS
The culture of the society as well as way of
doing things affects the business environment
of JD Sports. Attitudes and shared population
of a particular plays an effective role in order to
understand their needs and wants that helps JD
Sports to operate their business in better
manner.

A PESTLE ANALYSIS – TECHNOLOGICAL FACTORS
Innovation in rapid development in technology are
also affecting the business environment of JD Sports
in order to operate their business in effective manner.
This makes company to focus on fast disruption of
technology in their business in order to increase their
competitive advantages as well as profitability.

A PESTLE ANALYSIS – LEGAL FACTORS
The legal frameworks of different countries also affect company
in order to operate their business properly. As the JD Sports
operated their business in many countries which makes them to
analyse as well as adhere legal frameworks properly in order
to operate their business in better manner.

A PESTLE ANALYSIS – ENVIRONMENTAL FACTORS
Different countries has different environmental problems that also
provides greater impacts on profitability of the business. As the
government of different countries imposed various policies in order to
protect the environment and natural resources properly. As these
policies affects JD Sports to operate their business in different
countries as well as increase their profit.

A SWOT ANALYSIS
Strengths
• Faithful Suppliers
• Strong Online presence
Weaknesses
• Poor inventory management
• Shortage or insufficient current assets
Opportunities-
• Development of new technologies
• Rise in the customers disposable
income
Threats
• Shortage of skilled labour
• Strong Competitors

RECOMMENDATIONS - WHETHER THE ORGANISATION
SHOULD PROCEED WITH ITS EXPANSION PLANS
According to the above discussion, it has been recommended to the JD Sports to expand their business in more country as it
has potential as well as capabilities that helps in making their effective growth in international market. The strongest strengths
of the company helps them to provide effective service and products to national and international customers in better manner.
Its strongest online presence helps them to make strong relationship with their customers which helps in attracting more
customers in another country. By developing in technologies helps in making their product innovative which also helps them
to make their expansion in another country in effective and efficient manner.

CONCLUSION
From above presentation, it has been concluded that environmental business audit help company to review their
operations and processes in order to determine the compliances in the regulation of environment. PESTLE
analysis is an effective tool that help company identify their external environment factors that create problems in
their business operation or create opportunities in order to increase their growth in effective manner. SWOT
analysis is an important framework that help company to identify their inner strong and weaken areas along with
external opportunities and threats in order to improve their competitive growth in better manner.

REFERENCES
• Alimbekova, G., Kantarbayeva, S., Abdildin, S., Yerzhanova, A.M. and Kydyrbayeva, S., 2021.
Audit as a Tool for Preventing Bankruptcy Risks and Evaluating Development Prospects for
Tourism Industry Companies. Journal of Environmental Management & Tourism, 12(6 (54)),
pp.1617-1626.
• Nugrahanti, T.P. and Jahja, A.S., 2018. Audit Judgment Performance: The Effect of Performance
Incentives, Obedience Pressures and Ethical Perceptions. Journal of Environmental Accounting and
Management, 6(3), pp.225-234.

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