JD Sports: Evaluating Business Environment with PESTLE and SWOT

This report provides a comprehensive analysis of the business environment of JD Sports, a UK-based sports product retailer, using PESTLE and SWOT frameworks. It examines the political, economic, social, technological, legal, and environmental factors impacting the company's operations. The report highlights JD Sports' strengths, such as a strong and diversified product line, and weaknesses, including high inventory maintenance costs. Opportunities for expansion in untapped markets and threats from high competition are also discussed. The interrelation between these internal and external factors is analyzed, focusing on how strengths and weaknesses are affected by political and economic conditions, such as the impact of Brexit on product costs and taxation rates. The report concludes that understanding and evaluating these factors is essential for developing strategies to increase productivity and overcome challenges in the competitive sports industry. The document is available on Desklib, a platform providing study tools and solved assignments for students.

BUSINESS AND
BUSINESS
ENVIRONMENT

TABLE OF CONTENT
 Introduction
 PESTLE Analysis of JD Sports
 Internal analysis of JD Sports
 Interrelation between strengths and weakness
 Conclusion
 References

INTRODUCTION
 Business environment is one of the most important aspect that is analyzed by the company
in order to sustain in the environment for a longer period of time. The external environment
highly influences the activities and operations of the business
 This report revolves around the internal and external factors that impact the operations of JD
Sports. JD Sports is a UK based company dealing in the sports product. This report further
discusses the interrelation between the external and internal factors.

PESTLE ANALYSIS OF JD SPORTS
 PESTLE analysis refers to a tool used by businesses to evaluate the external or the macro
environment associated with the business.
 Factors covered in this report:
• Political factors
• Economical factors
• Social factors
• Technological factors
• Legal factors
• Environmental factors

INTERNAL AND EXTERNAL ANALYSIS
OF JD SPORTS
 Strengths- Strong and diversified product line
 Weaknesses- High cost of inventory maintenance
 Opportunities- Expansion in the untouched markets
 Threats- High competition in the sports industry

INTERRELATION BETWEEN
STRENGTHS AND WEAKNESS
 Further the external environment is analyzed by taking view of the strengths
and weaknesses of the company. Six factors along with the weakness and
strengths are discussed below:
 Political factors:
 Strengths- Low taxation rate is one of the major strength of JD Sports, UK has
fairly low taxation rate which helps the company in maximizing their
profitability.
 Weakness- The major weakness that the company faces is due to the Brexit
trade, due to this the product cost of their items increased and they were
unable to provide few items that they imported.

CONCLUSION
 From the above reported it can be concluded that the external environment of the business is
essential and evaluation of the factors is important to increase the productivity of the company.
 PESTLE and SWOT are two most important tools in the business that helps in developing the
strategies in the organization. With the help of these factors organization was able to make
strategies and plan that will overcome the challenges.

REFERENCES
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 Park, Y., El Sawy, O.A. and Fiss, P., 2017. The role of business intelligence
and communication technologies in organizational agility: a configurational
approach. Journal of the association for information systems. 18(9). p.1.

CONTINUE….
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