Present a critical analysis of both the external and internal factors, to determine whether the organisation should proceed with its expansion plan, presented as conclusions and recommendations.

Unit Learning Outcomes

LO1 Explain the different types, size and scope of organisations.

LO2 Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure.

In your role as Junior Insights Strategist, you have completed the industry insight analysis and your line manager has now given you another project. This is to complete research into the external and internal business environment. The sports company is looking to expand their distribution channels to include both e-commerce players (for example Google shopping) and physical retailers (for example JD Sports). To enable the company to make any strategic decisions, they need you to present a business case to the leadership team.

Completion of the project will involve a PESTLE analysis to research the sports retail market, develop insights and predict future growth potential in new markets. The project will also involve a SWOT analysis to determine the company position in the marketplace and the potential opportunities for distribution expansion while minimising risks and threats.

Your presentation will include the findings from an external and an internal audit:

• a PESTLE analysis to identify positive and negative impacts of external factors and influences on the sports retail market, including a ‘traffic light chart’ evaluating level of competition, funding activity, legal complexity and investment opportunity available

• a SWOT analysis to explore and explain the organisation’s internal strengths and weaknesses as a company

• critical analysis of both the external and internal factors, to determine whether the organisation should proceed with its expansion plan, presented as conclusions and recommendations.

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