Comprehensive Analysis of JD Sports' Internal and External Environment

This report provides an analysis of JD Sports' internal and external environments. The internal environment section examines factors such as employee morale, changes in management, and the company's culture, including its focus on celebrity endorsements and Corporate Social Responsibility (CSR). The external environment analysis employs a PESTLE framework, assessing political, economic, social, technological, and environmental factors influencing JD Sports' operations. The report also includes a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats. The analysis considers market competition, consumer behavior, and technological advancements to provide a comprehensive understanding of JD Sports' position and potential for growth. This assignment is available on Desklib, a platform that provides students with AI-powered study tools and resources.

Internal environment P4 – JDs
Internal environment is a component of the business environment, which is composed of various
elements present inside the organization that can affect or can be affected with, the choices,
activities and decisions of the organization.
Employee morale
Employee morale is related to the satisfaction, outlook, and feelings of well-being an employee has
while at work. Employee morale has a direct effect on workplace productivity and can be
experienced on an individual level or as a group.
If the employees at the business are highly motivated work tasks will successfully receive positive
returns and feedback. If most managers can keep their workers motivated they can increase the
efficiency and performance of their organisation. If motivation is low workers are likely to show a
lack of effort in their tasks this will decrease the efficiency of the business
Changes in management
Represents a transformation of the organization's strategy, or a cultural transformation in terms of a
company as a result of environmental changes, structure, technology and people
Depending on the change in management this can either have a positive outcome for JDs, if the
employees like this change and can adapt to this new leadership or improve productivity to its
maximum level. Or it could have a negative impact where the new manager isn’t completing his
objectives properly or the employees do not like this change in management.
Culture
The culture of JDs Sports is focused, traditional, and goal orientated. JDs focus on celebrity
endorsements with popular clothing to create a sense of premium and high end products. This
benefits JDs because this gains the attention of many people who look up to these celebrity’s and
end up purchasing these items sooner than later.
CSR
CSR can be a huge influence on a customer’s insight on a product or service. It demonstrates that
you're a business that takes an interest in wider social issues, this can attract customers with the
same ideals and views therefore making the business more sustainable
External environment
These are all the factors that are only from outside the organisation that impact the operation in a
business determining its performance for example there could be a change in regulations or
demographic trends
Situational analysis
A situational analysis is basically a collection of the different approaches used to measure both
internal and external factors in a business. It successfully allows you to use market research to
evaluate potential customers and projected growth.

Pestle analysis for external environment
Political - Political factors play one of the most significant roles in determining the factors that can
have an impact on JD Sports Fashion Plc's long term profitability in a specific market . JD Sports is
operating in Retail in more than a few countries and exposes itself to different types of political
environment and political system risk. This can be from things such as taxation and industrial safety
regulations. If taxation is higher in other countries it can make it much more expensive to operate in.
safety regulations can forcibly change the nature and style of JDs making it more difficult to operate
comfortably and traditionally.
Economic – These are things such as the interest rate inflation rate exchange rates etc. these can
effect a business’s overall value. If the general skill level of the workforce in other countries is lower
than the standard requirement the company can fail to efficiently operate. Furthermore if the
quality of the infrastructure is poor in the countries chosen to operate in it may not receive the
demand needed.
Social – Depending on the social culture of the country they operate in impacts the culture of the
organisation itself. For example consumers may not like to shop as their leisure activity if the culture
of that country isn’t really interested in the clothing offered by JDs the overall value can decrease if
this organisation fails to supply. Also some countries may not be encouraged by entrepreneurship.
Technological – The technological influences affecting a business’s production and ability to sell. JDs
need to keep up with the constant technological advancement of society in order to stay profitable
Technology introduces a whole new aspect of offering goods to consumers. However they must
evaluate the cost this will have on the business and also analyse how successful it will be.
Environmental – Different countries have different environmental standards which businesses must
meet to continue operating in a country. For example JDs could encourage litter and waste by the
packaging of plastic bags and other materials.
SWOT Analysis
SWOT Analysis is used to determine a business’s strengths weaknesses opportunities and threats in
relation to competition and other businesses.
Strengths
JDs has access to a lot of clothing brands and supply the latest and most popular fashion to the
public. They are also based in a lot of different location.
Weaknesses
There is many other competition that sell just as good quality clothing which may take some
attention from JDs e.g. foot asylum, creps select as consumers have more choice when shopping
Opportunities
There are many opportunities for JDs to improve their performance for example if JDs decided to
focus on social patterns they can get a better understanding of what clothing is trending and
exclusively sell it from their shops.
Threats

A threat to a business can be something like a shortage of recruits, and the improvements of
competitors. This is best to be dealt with as soon as possible to avoid failure in critical areas of the
business.