Business Environment Analysis: PEST & Porter's Five Forces Models

This presentation provides an analysis of the business environment, focusing on Sports Direct and the NHS, using both PEST (Political, Economic, Social, and Technological) and Porter's Five Forces models. The PEST analysis examines the macro factors influencing these organizations, while Porter's Five Forces assesses the competitive intensity and attractiveness of their respective industries by considering competitive rivalry, bargaining power of suppliers and customers, threat of new entrants, and threat of substitute products. The conclusion emphasizes the importance of understanding the business environment for effective strategic decision-making, enabling managers to identify opportunities and address challenges. The presentation references academic sources to support its analysis.

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Business
Environment
Part 1

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Table of Content
 Introduction
 Analysing the firm’s business environment using both PEST and Porter’s Five
Forces models
 Conclusion
 References

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Introduction
 Business environment refers to the sum of all
micro and macro factors of an organisation
which directly affect its operation. To define
the business environment the selected
company is Sports Direct, it was founded in
1982 by Mike Ashley.

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Analysing the firm’s business
environment using both PEST and
Porter’s Five Forces models
 Business environment is the most
essential aspect of any company
as well as it Includes internal and
external forces which directly
associated with the working and
function of the organisation.

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 PEST analysis refers to the business tool to analysis
the various macro factors that helps the managers of
company to make effective strategies to get
opportunities and face challenges. The PEST
analysis in reference to Sports Direct are as follows-
 Political
 Economical
 Social
 Technological

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 The NHS ( National Health Services) is a
public organisation which provides hospital
and services to the people of UK. The PEST
analysis in context to NHS are as follows-
 Political
 Economical
 Social-
 Technological

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 Porter's Five Forces models
 The Porter's Five Forces in context to
Sports Direct are as follows-
 Competitive rivalry
 Bargaining power of suppliers
 Bargaining power of customers
 Threat of new entrants
 Threat of substitute products

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 The Porter's Five Forces in context to NHS
are given below-
 Competitive rivalry-
 Bargaining power of suppliers
 Bargaining power of customers
 Threat of new entrants
 Threat of substitute products

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Conclusion
 As per above presentation it is concluded that business environment is the most
essential aspect of any company. By using PEST analysis and Porters five forces the
managers can determine their macro and micro environment which affect their
business operations

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References
 Antonescu, D., 2018. Are business leaders prepared to handle the upcoming
revolution in business artificial intelligence?. Quality-access to
Success. 19(166).
 Fadaki, M., Rahman, S. and Chan, C., 2020. Leagile supply chain: design
drivers and business performance implications. International Journal of
Production Research. 58(18). pp.5601-5623.