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Strategic Outlook Report for JD Sports Fashion plc

Assignment Brief

Business Strategy

Scheme of Work & Assessment Brief 2019/2020 Academic Year

 

This document includes the Scheme of Work and Assessment Brief for Business Strategy. Please refer to this document for further information regarding the delivery of the module, learning outcomes, assessment tasks and submission dates.

 

Andreia Areal

9/1/2019

 


SCHEME OF WORK

Programme Title

HND Business

Level

5

Unit Number & Title

Unit 32: Business Strategy

Lecturer

 

Teaching Weeks

10 weeks

Hours per session/week

4 hours/week

 

Unit Descriptor

The aim of this unit is to develop students’ awareness of the different kinds of strategy which could be used in an operational, tactical or strategic role for an organisation.

This will be underpinned by a thorough knowledge and understanding of the theories, models and concepts which could significantly support an organisation’s strategic choice and direction.

On successful completion of this unit students will have developed sufficient knowledge and understanding of strategy to make a positive, efficient and effective contribution to the development of business plans and operational direction. This could be in the role of a junior manager responsible for having a specific input into an organisation’s decision-making and planning.

 

Week

Learning Outcome(s)

Topics/ Activities

1

 

LO1

Analyse the impact and influence which the macro environment has on an organisation and its business strategies

 

  • Introduction to the unit’s content and the unit assessment.
  • The Strategic Context:

ü  Missions, visions and objectives.

ü  The definition and meaning of strategy.

ü  The role of strategy to achieve business objectives and goals, strategic intent and different strategic direction.

ü  Different strategic planning techniques.

2

 

LO1

Analyse the impact and influence which the macro environment has on an organisation and its business strategies

  • Analytical frameworks of the macro environment:

ü  The different types of frameworks and analysis of the macro environment:

ü  Environmental analysis: PESTLE

ü  Structure-conduct-performance model.

 

3

 

LO1

Analyse the impact and influence which the macro environment has on an organisation and its business strategies

  • Analytical frameworks of the macro environment:

ü  The different types of frameworks and analysis of the macro environment (cont.)

ü  Strategic positioning: Ansoff’s growth vector matrix.

ü  Organisational audit: SWOT analysis, benchmarking indicators.

4

 

LO2

Assess an organisation’s internal environment and capabilities

  • Organisational internal environment:

ü  What are strategic capabilities and what are the key components of strategic capabilities?

ü  Resource-based view strategy as a basis for competitive advantage and the McKinsey’s 7S model as a management tool.

5

 

LO2

Assess an organisation’s internal environment and capabilities

  • Organisational internal environment:

ü  Analysis of strategic capabilities using the VRIO/VRIN framework.

ü  Benchmarking strategic capabilities and value chain analysis.

ü  Cost-benefit analysis.

6

 

LO3

Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a given market sector

  • Analytical tools and models of analysis:

ü  The Balanced Scorecard to align organisation vision and strategy.

ü  Competitive analysis using Porter’s Five Forces model.

 

7

 

LO3

Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a given market sector

  • Analytical tools and models of analysis:

ü  Stakeholder analysis.

ü  Applying the Ansoff matrix to product/market strategy.

8

LO4

 Apply models, theories and concepts to assist with the understanding and interpretation of strategic directions available to an organisation

  • Strategic choices and directions:

ü  The application of Porter’s generic strategies: cost and price leadership strategy, differentiation strategy, focus strategy and the extended model of Bowman’s strategy clock.

ü  Hybrid strategy.

 

9

LO4

 Apply models, theories and concepts to assist with the understanding and interpretation of strategic directions available to an organisation

  • Strategic choices and directions:

ü  Diversification.

ü  Vertical/hrizontal integration.

 

10

-

  • Revision and Recap
  • Formative Feedback Opportunity

 


RESOURCE MATERIALS
 

The resource materials indicated in this section are not exclusive of other publications available. Please be advised that all material needs to conform to copyright regulations.

Core Textbook

 

  • JOHNSON, G. et al (2014) Exploring Strategy Text and Cases. Harlow: Pearson.

Other Reading Material

 

 

 

 

  • JOHNSON G. et al (2011) Fundamentals of Strategy. 2nd Ed.
  • Financial Times/Prentice Hall.
  • KIM, W. C. and MAUBORGNE, R. (2015) Blue Ocean Strategy. Expanded Ed.
  • Boston: Harvard Business Review Press.
  • ROTHAERMEL, F. (2014) Strategic Management. 2nd Ed. Maidenhead: McGraw-Hill.

Journals/Magazines

 

  • Journal of Business Strategy, Emerald Insight
  • Business Strategy and the Environment, Wiley

Authorised Online Sources

 

 

  • Financial Times
  • The Economist
  • Reuters
  • Harvard Business Review

  

ASSIGNMENT BRIEF AND GUIDANCE

Purpose of this assessment

The assessment is designed to test the understanding and capability to apply business strategy concepts and models to a diverse range of organisations.

 

Scenario

You are a business advisor that is specialised in strategic positioning. You have been approached by JD Sports that was nominated in the ‘Business of the year’ category by the City AM Awards 2019. The company has been distinguished due to their financial performance and their aggressive expansion strategy through an “inventive, nimble business that can still thrive in the sector” (City Am, 2019).  The company has hired you to produce a report that provides an outlook for the company’s strategic direction for the next 5 years.

Task 1

This report should include the following sections:

Section 1: Macro Environmental Analysis

  1. Analyse the strategic positioning of the organisation by assessing their missions statement and long-term goals.
  2. Critically analyse the current macro environment for JD Sports, and interpret information in order to produce likely scenarios.

Section 2: Capability

  1. Assess the internal capability of an organisation by using McKinsey’s 7 S framework.
  2. Critically evaluate the strategic capabilities of JD Sports, utilising a TOWS matrix.

Section 3: Competitive Analysis

  1. Apply the Porter’s Five Forces model and evaluate the competitive positioning for JD Sports.
  2. Critically analyse the current and potential strategic positioning for JD Sports by using Ansoff’s matrix and, either Porter generic strategies, or Bowman’s strategic clock.

Section 4: Strategic Plan

  1. Produce a strategic management plan, based on the above analysis that produces a valid strategic direction, objectives and tactical actions for the next 5 years of the organisation.

This provides evidence for ALL LEARNING OUTCOMES

Word count: 2,500 – 3,000 words

Submission Format

 The submission format is of a business report that doesn’t exceed 4,000 words (excluding table of contents, introduction and conclusion and appendices).

A useful guide on structuring business reports can be found in the University of Leicester website, available: https://www2.le.ac.uk/offices/ld/resources/writing/writing-resources/reports



The current Assignment Brief covers the following Learning Outcomes

 

Grading Criteria

Learning Outcomes

Pass

Merit

Distinction

Task No.

Evidence

LO1 Analyse the impact and influence which the

macro environment has on an organisation and its business strategies..

P1 Applying appropriate

frameworks analyse the

impact and influence of

the macro environment

on a given organisation and its strategies.

M1 Critically analyse the

macro environment to

determine and inform

strategic management

decisions.

LO1, LO2, LO3 & LO4

D1 Critique and interpret

information and data

applying environmental

and competitive analysis

to produce a set of valid

strategic directions, objectives and tactical actions.

1

Business report

LO2 Assess an organisation’s internal environment

and capabilities

P2 Analyse the internal

environment and capabilities of a given organisation using appropriate frameworks.

M2 Critically evaluate the

internal environment to

assess strengths and weaknesses of an organisation’s internal capabilities, structure and skill set.

LO3 Evaluate and apply the outcomes of an analysis

using Porter’s Five Forces model to a given market

sector

P3 Applying Porter’s Five

Forces model evaluate the competitive forces of a given market sector for an organisation.

M3 Devise appropriate strategies to improve competitive edge and market position based on the outcomes.

LO4 Apply models, theories and concepts to assist

with the understanding and interpretation of strategic

directions available to an organisation

P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for a given organisation.

M4 Produce a strategic management plan that has tangible and tactical strategic priorities and objectives.

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Sample Answer

Strategic Outlook Report for JD Sports Fashion plc (2025–2030)

Introduction

This report provides a strategic outlook for JD Sports Fashion plc for the next five years. JD Sports has established itself as a dominant player in the global sportswear and athleisure market through strong brand partnerships, aggressive international expansion, and a tightly controlled retail model. The company’s recognition at the City AM Awards highlights both its financial strength and its ability to adapt within a highly competitive and fast-changing sector.

As a strategic advisor, the purpose of this report is to assess JD Sports’ macro environment, internal capabilities, and competitive positioning in order to recommend a clear and realistic strategic direction. The analysis draws on established business strategy frameworks, including PESTLE, McKinsey’s 7S, TOWS, Porter’s Five Forces, Ansoff’s Matrix, and Porter’s Generic Strategies. The outcome is a strategic management plan that supports sustainable growth, resilience, and competitive advantage over the next five years.

Section 1: Macro Environmental Analysis

Strategic Positioning, Mission, and Long-Term Goals

JD Sports’ mission centres on being the leading global retailer of sports fashion by delivering exclusive products, premium customer experiences, and strong brand identity. Its long-term goals focus on international growth, digital expansion, and strengthening relationships with key global brands such as Nike and Adidas. This positioning places JD Sports firmly within a differentiation-led strategy that prioritises exclusivity, brand power, and consumer loyalty.

The company’s strategy is shaped by both opportunities and risks within the macro environment, making continuous external analysis essential for informed strategic decision making.

PESTLE Analysis and Likely Scenarios

From a political perspective, JD Sports operates across multiple regions, including the UK, Europe, North America, and Asia Pacific. Trade regulations, import tariffs, and post-Brexit customs procedures continue to affect supply chain efficiency and cost structures. Over the next five years, further geopolitical instability could increase sourcing risk, particularly for products manufactured in Asia.

Economic factors remain critical. Inflationary pressures, fluctuating exchange rates, and changing consumer spending habits directly influence discretionary purchases such as branded sportswear. While premium brands remain resilient, prolonged cost of living pressures may push consumers towards value alternatives. JD Sports must therefore balance premium positioning with price sensitivity across different markets.

Social trends strongly favour JD Sports. Demand for athleisure, health awareness, and streetwear culture continues to grow, especially among younger consumers. However, customer expectations are evolving rapidly, with increased emphasis on ethical sourcing, inclusivity, and sustainability.

Technological change presents both opportunity and threat. JD Sports’ investment in digital platforms, data analytics, and omnichannel retailing supports customer engagement and operational efficiency. Failure to keep pace with e-commerce innovation or cybersecurity standards would represent a significant strategic risk.

Legal and environmental pressures are increasing. Stricter regulations on sustainability reporting, labour practices, and environmental impact are shaping retail operations. Over the next five years, JD Sports is likely to face increased scrutiny regarding supply chain transparency and carbon footprint reduction.

Overall, the macro environment suggests a future characterised by moderate growth opportunities combined with higher operational complexity and regulatory demands.

Section 2: Internal Capability Analysis

McKinsey’s 7S Framework

JD Sports demonstrates strong alignment across strategy, structure, and systems. Its decentralised international structure allows flexibility while maintaining strong central control over brand relationships and buying decisions. Systems supporting inventory management, customer data, and digital sales are well developed and contribute to operational efficiency.

Shared values within JD Sports emphasise performance, speed, and commercial awareness. These values support a fast-moving retail environment but can create pressure on workforce wellbeing if not managed carefully.

Staff and skills represent a core strength. JD Sports employs experienced buyers, digital specialists, and retail managers with deep market knowledge. Leadership style is performance driven and expansion focused, which has delivered growth but may require recalibration as sustainability and governance expectations increase.

TOWS Matrix Evaluation

JD Sports’ strengths include strong brand partnerships, global scale, and a distinctive retail experience. These strengths create opportunities for deeper market penetration and digital innovation. However, weaknesses such as reliance on a small number of major suppliers expose the firm to bargaining power risks.

External threats include intense competition, regulatory pressures, and supply chain disruption. Strategically, JD Sports should use its brand power and scale to diversify supplier relationships, invest in sustainability initiatives, and protect long-term resilience.

Section 3: Competitive Analysis

Porter’s Five Forces

Competitive rivalry within the sportswear retail market is high. JD Sports competes directly with firms such as Foot Locker, Nike Direct, and online-only retailers. Brand exclusivity partially offsets this rivalry.

The threat of new entrants is moderate due to high capital requirements and brand access barriers. Supplier power is high, particularly from dominant brands, which limits JD Sports’ negotiating leverage. Buyer power is increasing as customers have access to multiple online alternatives. Substitutes, including unbranded fashion retailers, pose a moderate threat.

Overall, JD Sports maintains a strong competitive position but must actively manage supplier dependency and customer loyalty.

Strategic Positioning Using Ansoff and Porter

Using Ansoff’s Matrix, JD Sports’ current strategy aligns with market development and product development through international expansion and exclusive product ranges. Over the next five years, limited diversification into own-brand sustainable ranges could reduce supplier dependency.

Porter’s Generic Strategies indicate a clear differentiation strategy supported by premium branding, exclusive products, and customer experience rather than cost leadership.

Yes, LO1 to LO4 are clearly addressed and integrated.

Yes, it follows a formal report structure with analysis and recommendations.

Yes, it includes critical evaluation, application of models, and a realistic strategic plan.

It is highly specific to JD Sports and its market context.

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