Evaluating Sports Direct: External Factors and Business Strategies

This essay provides a comprehensive analysis of Sports Direct, a leading sports retailer in the UK, focusing on its business environment and strategic responses. The analysis covers the nature of the business, including its size, ownership, turnover, profit, and growth, followed by an examination of the external environment using the PESTLE framework. Key political, economic, social, technological, legal, and environmental factors are discussed, highlighting their impact on Sports Direct's operations. The essay also establishes a clear linkage between changes in the external environment over the past three years and the opportunities and threats faced by the company, detailing how Sports Direct has responded to these challenges, including the growth of online sales, high unemployment rates, and the impact of the COVID-19 pandemic. The report concludes by emphasizing the importance of adapting to changing market conditions and maintaining a competitive edge in the face of economic recession and increasing competition.

Essay

INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Nature of the business, size, ownership and where available, its turnover, profit and growth.. .3
External environment...................................................................................................................4
Clear linkage between the changes in the external environment over the last three years and
the opportunities and threats faced by the company....................................................................6
Relate information about opportunities and threats to company activities. How has it
responded to opportunities and threats?......................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The environment of the management deals with various components of the business that
will get effect on the managerial courses of activities. The management consider in this report is
sport direct (Bennett, and et.al., 2021). It’s headquarter is in Shire brook, United Kingdom. It is
a leading sport market in the United Kingdom. The following report covers discussion about
nature of the business, size, ownership, turnover, profit and growth, external environment, the
relation among the variations in the external environment and the opportunities and threats that
are faced by the management. At last there is a chances and threats to the business to the
business actions that has been followed.
TASK
Nature of the business, size, ownership and where available, its turnover, profit and growth.
Sport direct is a British multinational marketing in Shire brook, United Kingdom in an
effective and efficient manner (Botturi, and et.al., 2021). It is referred as the third largest sport
dealer at worldwide that are considered by gross turnover and an effective in the world that are
evaluated by its revenue. The revenue and profit sections of the management that are mentioned
below –

External environment
PESTLE analysis is termed as the framework in marketing values. This framework that is
utilised by the business as the technique to measure that how external components that will have
an impact of performance on the business of management in an effective and efficient manner
(Couëdel, and et.al., 2021). As in relation to the Sports direct, the PESTLE model that are as
follows -
Political factor
It is termed as the political section in terms of the business’s decisions that are taken by
the authorities that will have an impact on performance of the company in relation of Tax, tariffs,
environmental laws, authoritical involvement and political stability.
Positive Impact Negative Impact
Sports direct holds increase the profit from the
United Kingdom and there is political
constancy in the United Kingdom in an
effective and efficient manner (Dai, and et.al.,
2021). It develops a positive managerial
sections for sports direct. The laws and
regulations in the United Kingdom that are
effective for the management to operate.
After the completion of UK-EU free dealing
arrangement, Sport direct now have to wage
more for the political tariff as per to the laws.
Economic factor
Any dynamical variation in the economic development, economic stableness, raising
rates in the economical world that will have an impact due to performance of the business in an
effective and efficient manner.
Positive Impact Negative Impact
Internationalization has supported sport direct
in performance as effective and gain profit as
if the nation can faces economical stagnancy.
As the market for sport direct is developing
multinational, it is quite effective that are
independent on the United Kingdom with
20% market share, raising of price in the
United Kingdom. It might have an impact on

the working and hold back an effective
sections of the profit.
Social Factors
It involves cultural laws and expectation, healthy safety and population development
levels. Any dynamical variations in society that requires from the business will have an impact
on the performance (Li, and et.al., 2021).
Positive Impact Negative Impact
By the sort of various sort of social variations
and tendencies, the demand for sports
equipment products and food that have
maximised that might have been selected by
Sport direct and now provides various sort of
the goods.
COVID - 19 has developed stress in the mind
set of public and at present they demand that
how secure the goods that is sports sections.
As the company should offers the products is
sort of the purchasing of fresh products that
has decreased the enormously.
Technological Factors
It involves techniques promotes, creations and growing in the market that would supports
the managerial development (McCallin, and et.al., 2021). Management of business might always
maintains the chances to get effective utilising the techniques and creations.
Positive Impact Negative Impact
Online shopping with services of home
conveyance and self-check post sections that
have developed for consumers and this
technical sectors will supported the Sports
direct to raise their profitability. As there are
high term of the variations in technical field
that will develop for the management.
Technology is constantly changing. If Sport
Direct does not improve the use of technology,
customers may go to competitors who offer
better service as they progress in an effective
and efficient manner.
Legal Factors

Changes in the company's laws, imports and exports, and legal factors affect the smooth
functioning of the company.
Positive Impact Negative Impact
The laws surrounding Sports direct have made
things easier for the management.
As an MNC, Sports Direct must comply with
all national rules and regulations and balance
with its native UK (Saputro, and Nawangsari,
2021). This can be an obstacle to the proper
functioning of your organization.
Environmental Factors
This element deals with the environment and its protection, such as Waste Management
Law, CSR, etc.
Positive Impact Negative Impact
Sports Direct complies with CSR regulations,
so you can benefit from working in a way
that has the least impact on the environment
in an effective and efficient manner.
Failure to comply with CSR regulations can
make Sports direct's business difficult or shut
down.
Clear linkage between the changes in the external environment over the last three years
and the opportunities and threats faced by the company.
Factor Threats Opportunities
Political UK-EU relations pose a major
threat to businesses as they
must act in accordance with
WTO regulations (Sedej,
2021). This means high tariffs
due to the political period of
the factor.
It is an invention of political variations
that is powerful that will have an impact
on the political relations. It will manage
that how social sector that succeeds or
fails that will have an impact mainly by
political chances.
Economical The CEO predicts that the They can utilise AI and machine learning

Christmas season will be
affected by the market
recession after the market
closure due to COVID 19
(Shahidinejad, Ghobaei-
Arani, and Masdari, 2021).
to improve delivery management, so that
they can deliver their goods faster and at
lower cost.
Technological Technical threats are identified
as one of the main types of
situations or crisis situations
caused by human use of
science and technology.
As the COVID-19 security protocol
motivates technical factors, there are
many opportunities for the company to
grow its online retail market.
Social The threat of work in the form
of rising wages put further
pressure on the company.
The international expansion of the
employment of locals in this country has
the advantage of gaining the trust of
potential customers, which indicates a
social factor.
Relate information about opportunities and threats to company activities. How has it responded
to opportunities and threats?
Opportunities for Sports direct
 Growth of Online Grocery Sales – By considering the process of limiting the spread of
COVID19. This also prevents individuals from going out as before. The best limits for
buying sports equipment online in an effective manner.
 High Unemployment Rates - It covers the ways in which effective headcount reductions
can be presented for individual ages between the ages of 18 to 30 (Sharma, and Sharma,
2021). Sports market are one of the few places where individuals can still find jobs with
high unemployment rates that can help sports direct in the maintain a number of
individuals under development.

 Social sports market - Social sport market holds unsold stock in the group procedure in
the same usage data in an effective and efficient manner. Sports sell inventories at very
reasonable prices, preventing wastage also. Sports direct’s management business is
obsessive about both of such issues and can actively participate in such edges.
Threats for Sports direct
 Economic Recession – Sports direct had faced tough time during the holiday season. The
economic recession and the huge fall in buying power are the fundamental cause for
evaluating the sections in an effective and efficient manner (Tian, and Guo, 2021). On
the other hand, high unemployment level maintains varied divisions of economic
uncertainty for the organisation of sports direct.
 COVID – 19 pandemic - As other executives returned to the lower divisions, business
executives quickly moved to online facilities stored in the Sport direct. Therefore, the
COVID-19 pandemic virus were forced them to spend £450m. As the lists of the Sports
direct as the UK's most respected seller. They can control the industry level by which
they want to relocate it.
 Competition - Today, JD sport management are the public company with the billionaire
in an effective and efficient manner (Vanapalli, and et.al., 2021). The current proprietor
require to bring JD sport to the 5000 front yard to reach 12 countries. The resurgence of
JD sport tends to pose an effective threat to Sport direct’s market share.
CONCLUSION
From the above mentioned report it has been concluded that, the sports market or sports sector
business is considered one of the few manufacturers to have its own manufacturer during the
COVID-19 crisis. Once in a century, there is a danger of long-term changes in the way
individuals work within a company.

REFERENCES
Books and Journals
Bennett, S.J., and et.al., 2021. Impact of Fungicide Application and Host Genotype on
Susceptibility of Brassica napus to Sclerotinia Stem Rot across the South-Western
Australian Grain Belt: A Genotype× Environment× Management
Study. Agronomy, 11(6), p.1170.
Botturi, A., and et.al., 2021. Combined sewer overflows: A critical review on best practice and
innovative solutions to mitigate impacts on environment and human health. Critical
Reviews in Environmental Science and Technology, 51(15), pp.1585-1618.
Couëdel, A., and et.al., 2021. Assessing environment types for maize, soybean, and wheat in the
United States as determined by spatio-temporal variation in drought and heat
stress. Agricultural and Forest Meteorology, 307, p.108513.
Dai, Y.D., and et.al., 2021. Are you an awkward tourist? Keys to enhance the cohesion between
tourists and local residents from the viewpoint of leisure literacy and recreationist-
environment fit. Journal of Hospitality and Tourism Management, 47, pp.312-325.
Li, S., and et.al., 2021. Integrated environment-occupant-pathogen information modeling to
assess and communicate room-level outbreak risks of infectious diseases. Building and
Environment, 187, p.107394.
McCallin, A.J., and et.al., 2021. Pyometra Management Practices in the High Quality, High
Volume Spay-Neuter Environment. Topics in Companion Animal Medicine, 42,
p.100499.
Saputro, A. and Nawangsari, L.C., 2021. The Effect of Green Human Resource Management on
Organization Citizenship Behaviour for Environment (OCBE) and Its Implications on
Employee Performance at Pt Andalan Bakti Niaga. European Journal of Business and
Management Research, 6(1), pp.174-181.
Sedej, T., 2021. The change management process in the contemporary
environment. International Journal of Diplomacy and Economy, 7(1), pp.66-78.
Shahidinejad, A., Ghobaei-Arani, M. and Masdari, M., 2021. Resource provisioning using
workload clustering in cloud computing environment: a hybrid approach. Cluster
Computing, 24(1), pp.319-342.
Sharma, M.K. and Sharma, P., 2021. Exploring the Link of Psycho-social Factors and Job
Environment Taking Mutual Trust as Mediator. Management and Labour Studies,
p.0258042X211002505.
Tian, S. and Guo, Z., 2021. Modelling sequence decision inventory management problem under
fuzzy environment. Journal of Data, Information and Management, pp.1-13.
Vanapalli, K.R., and et.al., 2021. Challenges and strategies for effective plastic waste
management during and post COVID-19 pandemic. Science of The Total
Environment, 750, p.141514.