JD Sports: Business Environment Analysis, Macro and Micro Factors

This report provides a detailed analysis of JD Sports' business environment, examining various factors that influence its operations. It covers different types of organizations, including public, private, and voluntary sectors, and their legal structures. The report describes the scope and size of various companies and explores the interrelationship between different organizational functions and how they link to company objectives and structure. It identifies the positive and negative impacts of the macro environment on business operations, supported by specific examples using PESTEL analysis. Furthermore, the report conducts an external and internal analysis of JD Sports using SWOT analysis to identify strengths and weaknesses and explains how these are interrelated with external macro factors. The document is available on Desklib, a platform offering a wide array of study tools and solved assignments for students.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Describe various types and purposes of organizations public, private and voluntry sectors and
legal structures............................................................................................................................3
Describe scope and size of a range of different types of companies...........................................4
Describe interrelationship between different organizational functions and how they linked to
company objectives and structure...............................................................................................6
Identify positive and negative impacts that macro environment has upon business operations
supported by particular examples................................................................................................7
Conduct external and internal analysis of specific organization in order to identify strength
and weakness...............................................................................................................................8
Explain how strength and weaknesses is interrelated with external macro factors....................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term business environment is defined as combination of different forces or factors
which are responsible for producing impact on organizations capability effectively. Due to the
various effects of various sources company easily identified their own strength and weakness
within low time. Then after that company easily delivered high quality goods to users for long
duration. The chosen company is JD Sports and the company was established in 1981. The
company is dealing with wide range of sports products (Acar and Özşahin, 2018). The head
office of this sports company is situated in UK. The report will be covered different types, size
and scope of organization. It also covers interrelationship of various department activities within
company and how they are connected with organization structure.
TASK
Describe various types and purposes of organizations public, private and voluntry sectors and
legal structures
Public sector -
The public sector is defined as those firm which is running by government on the behalf
of normal citizens. The main objective of this kind of company is to enhancing profit margin
with help of facilitating high quality goods and services to users in low price. The best example
is Adidas which comes in the category of public sector.
Different legal structures -
 Central – In aspect of central company mainly concentrating on enhancing the sale of
services and goods to users globally. In this way Adidas easily increased their profit and
market share at higher rate.
 State – In this legal structure organization is highly concentrating on particular state for
increasing sale and popularity of their products. In this way also company easily
increased their revenue at maximum level.
 Local – Here organization is run their activities and services in localized manner for
increasing the sale of their goods effectively.
Private sector -
The private sector is basically defined as those firms who facilitates their services and
products to users in privatised manner. The ultimate objective of this kind of company is to

enhancing their profit margin at maximum level by providing high quality goods to customers.
But here the value of lower level employees is very less because higher authority put lot of stress
in their job roles and responsibility. The best example is JD Sport which are comes under this
category.
Different legal structures -
 Partnership – In this structure responsibilities and duties are distributed equally between
partners in business and other type of workers. Due to distributing the responsibilities
effectively workers easily accomplish their task in effective and systematic way.
 Sole trader – In this kind of structure all powers are controlled by individual person
which leads to enhance the performance of lower level employees (Brenner, 2018). In
respect of JS Sport due to run the function by individual person coordination are
maintained effectively between employees.
Voluntary sector -
This kind of firms did not have any type of connection with private and government
institutes. The main objective of this kind of organization such as Hockey and Athletic sports
club is to run welfare functions between employee and public. Due to providing various benefits
and quality to customer’s goodwill of company are easily sustained in market.
Different legal structures -
 Trust – In this kind of company or club management mainly focused on the desires and
wants of users and workers. In this way the positive brand image of firm are easily
sustained in their minds for long time.
 Unincorporated association – It is also one kind of voluntary company and their main
function is to assist large firms by providing different facilities. It tend to involve a small
group of members with short term goals and is appropriate where there is no intention to
acquire property.
Describe scope and size of a range of different types of companies
The above mentioned companies are categorised on the basis of scope, size, mission,
vision, objectives and stakeholders which are explained below -
Public sector -
Adidas -

 Size – The Adidas is a multinational UK based company and they are sell their sports
products in other countries also. In this way the revenue of firm is highly generated
within low time and the total number of employees of this firm is around 61, 401.
 Scope – Regarding scope due to keeping strong infrastructure and talented worker’s
management easily delivered quality products to customers on time.
 Vision – The vision of this organization is to sustain long term growth in market with
help providing high quality goods and services to users.
 Mission – Mission of this firm is to interconnect and operates as entire shaping the
identity of company at international level.
 Stakeholders - It involved investors, sponsors, customers, suppliers and others.
 Objectives – The objective of this kind of firm is to enhance their profit level at higher
rate with help of providing goods to users for long duration.
Private sector -
Jdsport -
 Size – The Jdsport is a multinational which is situated in UK and this brand is also
dealing with wide range of sports products (Cristofaro, 2020). The employees who are
worked in this organization is around 37, 297.
 Scope – Regarding scope due to keeping highly skilled employee’s organization easily
sustained their portfolio at maximum level from other competitors.
 Vision – Vision of this organization is to become number one sports brand in market of
UK with help of providing quality product to users as per their needs.
 Mission – Mission of company is to develop strong connection with all customer
segments for sustain the sales of their goods effectively.
 Stakeholders – The main stakeholder of this firm are employees, customers, board of
members and others.
 Objectives – The ultimate profit of this firm is to enhance profit in any way.
Voluntary sector -
Hockey and Athletic sports club

 Size – It is the biggest and popular sports club in UK and in this club various types of
sports are played by different players. In this club around 1.4 million employees are
working.
 Scope – It is highly essential for the management of this firm that they must use
advanced equipment’s to run their functions smoothly.
 Vision - A club's vision statement should: Brand the club's purpose. Offer clarity to
potential members and partnering organizations.
 Mission – The mission of club is clarifying the essence of club existence. It explains the
requirement the club was developed to fill explains why the organization exists, and what
it hopes to achieve in the future.
 Stakeholders - Since this is a voluntary organisation so this involves trustees,
voluntaries, staff members etc.
 Objectives - Assist in creating social wealth and society improvement which creates the
growth in the economy (Liñán, Paul and Fayolle, 2020).
Describe interrelationship between different organizational functions and how they linked to
company objectives and structure
For gaining strong position in market the selected companies are run different kinds of
departmental functions effectively for increasing competition in market effectively.
 Finance – The department of finance played the major role in aspect of dealing with
different legal obligations for carried out different kinds of expenses within company. It
procured the production factor and utilized effective plans for usind funds in optimized
way.
 Marketing – It is also one type of departmental activity which is conducted in business
for popularising their goods and services effectively in market. With help of marketing
organization easily developed strong positive relations with new and potential clients for
long duration.
 HR – In this department the resources of the firm are utilized in optimized manner. This
department also carried the function of recruitment and selection for hiring best and
talented candidate as an employee in low time.
Relationship between various organizational functions

 Marketing with HR – The department of both marketing and HR are closely linked with
each other. Therefore, here the department of HR have the full responsibility for
facilitating various resources to workers. Due to using various resources employees are
able to do their difficult task quickly.
 Marketing with finance – Marketing and finance both are highly interlinked with each
another. Here the main role of finance is to prepare the budget or prepare the fix amount
for marketing activities. That means without the release the funds marketing department
is not able to run their functions in smooth manner.
Various organizational structure -
 Functional structure – In this kind of structure organization is distributed into different
departments which is applied by JD Sports (Longmore, Grant and Golnaraghi, 2018).
Due to effective distribution all kinds of responsibilities and roles are accomplished by
employees in effective manner.
 Divisional structure – This kind of structure is used by various organizations such as JD
sports and others for providing high quality products to users in long term. The firm is
operating their business as per their own structure for sustaining their goodwill in market
effectively.
Evaluation -
The objective, structure and functions of company are closely interlinked with each other
Due to having close connection between these three components, the management of JD Sports
is able to maintain their vision, mission and reputation in market for long time. These
components also assist the firm for balancing their performance and productivity in their services
effectively.
Identify positive or negative impacts that macro environment has upon business operations
supported by particular examples
PESTEL Analysis -
The PESTEL Analysis is basically a framework or method which is used by management
of Jdsports for analysing the macro external forces effectively. Those forces are -
 Political – The elements which are comes under this factor are trade regulations, tax
system and political stability government policies etc. The regular changes in the policies

of government is responsible for decreasing the company performance quickly for long
duration.
 Economical – The elements which are belongs to this factor are inflation, foreign
exchange rates, interest rate and so on. The regular change in rates of currency is leads to
enhance the inflation at higher rate. Due to this organization is not able to increase the
sale of their goods at maximum level.
 Social – The elements which are comes under this factor are demographic trends, power
structure, societal norms and others. That means analysis of change in demographic
pattern assist Jdsports company for selecting correct market segment with huge potential
growth.
 Technological – The utilization of advanced equipment’s assists the JD Sports company
for understanding the technological trends to enhance innovation and profit margin in
business. With help of advanced equipment’s firm have the chance for enhancing
performance effectively (Lu and Xu, 2018).
 Environmental – In context to JD Sports, they adopted the policy of recycling and waste
management in effective manner. Due to the effective use of these type of policy
organization easily reduced cost in their operational activities and also able to maintain
quality in their products.
 Legal – For entering in new segment of market there must be deep study of regulatory
structure and legal environment. Due to this the management of JD Sports followed
different types of laws regarding safety and health to safeguard the employer and
employee so that safe atmosphere can be provided.
Conduct external and internal analysis of specific organization in order to identify strength and
weakness
SWOT Analysis
The management of JD Sports are adopted this analysis for determining the external and
internal factors to develop strategies in competitive market.
Strength -
 This company have strong brand image in market and in customer mind for their
products.

 The channel of distribution of this company is very good and due customers get their
desired product in time.
Weakness -
 In context to JD Sports, management is facing the shortage of skilled employees which
leads to decrease the company performance effectively.
 In some countries the popularity of JD sports company is very less which leads to
decrease their sales effectively (Mukherjee and Sen, 2019).
Opportunities -
 Due to having strong brand image in market, company is able to expand their services in
various locations effectively.
 The stability of company brings low inflation rate in market which leads to increase
company goodwill.
Threat -
 The JD Sports company also faces threat in the shortage of skilled work force in the
global market which leads to slow growth.
Explain how strength and weaknesses is interrelated with external macro factors
For gaining opportunity in efficient manner various kinds of strategies are determined
which assist the company to achieve competitive advantage in market. The model of SWOT
assist in determining the present threat for developing strength with other strategies. The internal
factors of JD Sports is weakness and strength which are connected with the external factors of
threat and opportunity.
In respect of JD sports, the strength is internal effectiveness of opportunities and
management is the large market share and brand image which is managed by efficient
management. The opportunities and strength improved the performance of JD Sports as effective
management use the external opportunities to promote the market with unique services and ideas.
The weaknesses of JD Sports is lack of utilization of resources which leads to decrease
company profit. The threat is fall in control of market and large market share. The interrelation
of the threat and weakness is dangerous for JD Sports as due to weakness the threat becomes
aggressive which leads to loss in market share.

CONCLUSION
After the above analysis it concludes that the concept of business environment plays
major role for run the activities of organization effectively. Due effective business environment
company easily understand that which type of product are highly liked by user and resources of
firm are easily used in optimized manner. The report will be covered different types, size and
scope of organization. It also covers interrelationship of various department activities within
company and how they are connected with organization structure.

REFERENCES
Books and Journals
Acar, A.Z. and Özşahin, M., 2018. The relationship among strategic orientations, organizational
innovativeness, and business performance. International Journal of Innovation
Management, 22(01), p.1850009.
Brenner, B., 2018. Transformative sustainable business models in the light of the digital
imperative—A global business economics perspective. Sustainability, 10(12), p.4428.
Cristofaro, M., 2020. E-business evolution: an analysis of mobile applications’ business
models. Technology Analysis & Strategic Management, 32(1), pp.88-103.
Liñán, F., Paul, J. and Fayolle, A., 2020. SMEs and entrepreneurship in the era of globalization:
advances and theoretical approaches. Small Business Economics, 55(3), pp.695-703.
Longmore, A.L., Grant, G. and Golnaraghi, G., 2018. Closing the 21st-century knowledge gap:
Reconceptualizing teaching and learning to transform business education. Journal of
Transformative Education, 16(3), pp.197-219.
Lu, Y. and Xu, X., 2018. Resource virtualization: a core technology for developing cyber-
physical production systems. Journal of manufacturing systems, 47, pp.128-140.
Mukherjee, T. and Sen, S.S., 2019. Intellectual capital and corporate sustainable growth: The
Indian evidence. Asian Journal of Business Environment, 9(2), pp.5-15.
Murithi, W., Vershinina, N. and Rodgers, P., 2019. Where less is more: institutional voids and
business families in Sub-Saharan Africa. International Journal of Entrepreneurial
Behavior & Research.
Nedum-Ogbede, P.O., 2018. New Technologies in Business Education: Challenges and the way
forward. Nigerian Journal of Business Education (NIGJBED), 3(2), pp.104-111.
Oliver, J.J., 2018. Strategic transformations in the media. Journal of Media Business
Studies, 15(4), pp.278-299.