PESTLE and SWOT Analysis of John Lewis Partnership

The assignment requires a comprehensive analysis of the external environmental factors affecting John Lewis Partnership using the PESTLE framework. This includes political, economic, social, technological, legal, and environmental factors. Additionally, a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is conducted to identify the company's strengths and weaknesses, as well as potential opportunities and threats. The assignment aims to provide insights into the company's external environment and internal capabilities, enabling effective decision-making.

Business and Business
Environment

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types and purpose of organization.........................................................................3
P2. Size and scope of various business organizations.................................................................5
TASK 2............................................................................................................................................6
P3. Explain the relationship between different organisational functions and how they link to
organisational objectives and structure........................................................................................6
TASK 3............................................................................................................................................7
P4. PESTLE analyse along with their positive and negative impacts.........................................7
P5. SWOT analysis of Organizations..........................................................................................9
P6. Interrelation of strength and weakness with external factors..............................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment refers to the sum total of all external and internal factors which
could affect the business and its operations directly or indirectly. The analysis of business
environment is very important in order to smooth functioning of business. To understand this
concept company, John Lewis Partnership has been selected. The different types and purpose
and legal structure of chosen organization is being explained in this report. As size and scope of
range of different types of organizations has also been explained in this report. The different
function of organization is interlinked with each other which are also being explained in this
report. There are different macro environment factors which have huge impact on business
operations are also being discussed. Apart from this, the strength and weakness of organization
has been explained. Beside this relation of strength and weakness with macro factors is being
explained.
TASK 1
P1. Different types and purpose of organization
There are different business organizations which are operating their businesses in
country. Every organization has different purpose of doing business like earning profits, societal
welfare etc. The organizations are public, private and voluntary sector (Business environment.
2018). There is legal structure which is being governed by government; it needs to be followed
by every type of organization. The purpose and type of organization is discussed below:
Private Company:
Private companies are those companies which are run and managed under private
supervision. The governments have no stake in private companies. These companies have
primary aim to maximize their profits and gain more market share. The organization have right
to issue their share in public. The legal authorities have less control over these types of
organizations.
The John Lewis Partnership is a company which was founded in 1929 at Oxford Street,
London. It was founded by John Speadan Lewis. The company has diversifies business like
clothing, watches and jewelry, cosmetics and house ware etc. The company has around 90000
employees are working for this organisatiion (Wetherly, 2014).
Purpose of John Lewis Partnership
 The main purpose of this company is maximizing its profit and market share.
 To have strong financial position in forthcoming years.
 As to get brand equity around the world.

 To overcome its competitors by providing valuing product at affordable price to its
customers.
Legal Structure of private company:
Partnership:
Partnership refers to the firm which is created by two or more person who share the
common goal. There is an agreement between the partners for sharing profit and loss of firms. If
there is no agreement then it is shared equally by partners.
Sole Proprietorship:
The business which is set up and run by an individual person is known as sole
proprietorship. The individual is liable for all the profit and losses of firms.
Limited companies:
It refers to the companies who have different members and limited liability in company.
Public Company:
Public companies are those which is governed and regulated by the government of
country. The legal authorities have proper control over these organizations. As the activities of
these organizations are performed under the eye of government. The police department, health
care institutions and educational institutions are considered as part of public company.
National Health Services (NHS) is a public organization which provides the free medical
services to poor and needy people of society. The company is largest public company of UK. As
it provides the health care services to all around the world.
Purpose of NHS To provide basic medical facilities to needy and poor people of society at free of cost.
 To create awareness about different diseases in the society and provide them prevention
measures.
 It organized free medical camp services for local public to promote better health.
Legal Structure of public company:
Central government:
Central government is liable to control and monitors the activities which are related to
central government departments.
State Government:

State government is liable for ensuring effective operations of agencies which are run by
the state government.
Local Government:
The local government is liable to ensure that company is running its operations
effectively at district level (Smith, 2016).
Voluntary Company:
Voluntary companies are those which are created by some volunteers to provide free of
cost services to the society. The purpose of business is to social welfare at without profit. They
are more concerned with society rather than earning profit.
Oxfam is a voluntary company which provides free medical services to needy and poor
people and it also provides the helps to people who are affected by any natural disasters.
Purpose of Oxfam: To reduce and remove poverty from society and every can live a joyful life.
 To provide the education facilities to weaker part of society.
 As to give reliefs to people who are affected by any natural disaster in country.
P2. Size and scope of various business organizations
As every organization have different size and scope according to their capacity. This
depends upon the sectors in which sector company operating its business activates The size and
scope of different organizations are as follows:
John Lewis Partnership:
Size:
Size refers to the how big an organization in terms of number of employees who are
working there. As there are ample number of workers is working for organization. Around 90000
workers are working for John Lewis Partnership. The company has conglomerate business. It
deals in cosmetic, retail, jewelry and clothing etc are main product of company. The company
has reported its revenues around GBP 10 Billion for the fiscal year 2017-18
Scope:
The scope of this organization is very big. As it have different businesses in every
industry. The company deals in clothing, retail, supermarkets, fashion, cosmetic and jewelry etc.
These are the businesses of company in order to gain more market share, the company has
adopted strategy of more marketing share. Apart from this company has decidd to launch their
footwear products at affordable prices to customers.

NHS:
Size:
The NHS is the largest public organization of country UK. As it has approximately 1.6
billion employees are working for company. The objectives and purpose of NHS is fulfilled with
the help of the employees only. As main purpose of company is to provide free medical services
to the deprive people of society.
Scope:
The NHS provide the services to all around the world. It provides the health services in
field of Medical, Dental and optical care services. The NHS can come up with free medical camp
facility for regular free health checkup for people.
OXFAM:
Size:
The OXFAM includes the 20 charitable trust which are working for OXFAM and
working for betterment of social welfare. The company was founded in 1920 by the volunteers to
provide the services to society (Shenkar and Chi, 2014).
Scope:
The main objective of OXFAM is to protect and provide healthy life to deprived people
of society. So they can live a happy life. Apart from this now organization is performing the
various activities like disaster relief, policy research and immigration.
TASK 2
P3. Explain the relationship between different organisational functions and how they link to
organisational objectives and structure
Success of an organization is depends upon the performance of all departments of the
organisations. There are various functions which are performed by the company. These are sales
and marketing, production and operation, finance and accounts, research and development etc. It
is beneficial for the corporations so that it can accomplish the targets and achieve the sustainable
success. It maximise the efficiency and productivity so that work can be done in effective and
smooth manner. All departments are interrelated to each other and it helps the company to
accomplish its targets. Different organisational functions of John Lewis Partnership are as
follows:
Marketing with research and development department:

Marketing department has to perform marketing function in the organisation. They
analyse the needs of consumers and on the basis of that they try to satisfy the wants of
customers. It promotes the products of company and research and development department help
the marketing team by providing the useful information such as taste, preference, habit etc. It
helps the marketing department in the marketing of company products. Marketing team of John
Lewis Partnership can take help from the research and development team so that marketing can
be done effectively. It can help the organisation to achieve its objectives (Savrul and Sener,
2014).
Finance and production department:
Production department needs fund for the manufacturing of goods and without money it
cannot buy raw material and does not produce products. Finance department of the organisation
can provide help to the production team in arranging the sufficient funds so that they can
purchase raw material and manufactures the products. In John Lewis Partnership finance team
provides the money to the production department so that they can purchase the material and
produce the goods. It can help the organisation to achieve the objectives of maximize the
production.
Human resource with marketing:
Human resource department of the company is responsible to recruit the most suitable
candidates in the organisation so that they can perform the needs of company. Relation of
Human resource department with marketing department can help the organisation to hire skilful
employees who have knowledge about the marketing and its concepts. It helps the John Lewis
Partnership to accomplish marketing and promotional objectives which can boost the sales.
TASK 3
P4. PESTLE analyse along with their positive and negative impacts
PESTEL analysis can help the organisation to evaluate the environmental factors so that
it can protect their business from the negative impact. John Lewis Partnership can analyse these
environmental so that it can effective measures and achieve its organisational goal. PESTEL
factors analysis are as follows:
Political factors: It can influence the business environment of an organisation. Government of
country can control this factor. It includes taxes, labour law and environmental law. John Lewis
Partnership can be affected by it in the following ways:
Positive impact: Stable policies of UK government can help the John Lewis Partnership to
implement the strategies so that it can take effective decisions in the organization (Hamilton and
Webster, 2015).

Negative Impact: High rate of taxes can influence the business of John Lewis Partnership
because it reduces the profits of the company. It is not a good sign for the organisation.
Environmental factor: Economic factor of a country can affect the business of an organization. It
involves unemployment rate, inflation rate and interest rate. John Lewis Partnership can be
affected by it in the following ways:
Positive impact: Effective economic flow in the united Kingdom can help the organization to
increase its business and its operations (Crane and Matten, 2016).
Negative impact: High rate of inflation can affect John Lewis Partnership because it has to
maximise the prices of its products and consumers does not buy the goods at higher price.
Social factors: Social factors of United Kingdom can influence the organisation. These factor
includes income, age group, culture, health etc. It can affect John Lewis Partnership in the
following ways:
Positive impact: John Lewis Partnership can makes the product as the needs of society so that it
can satisfy the wants of consumers.
Negative impact: It John Lewis Partnership does not develops the products as per the needs of
customers than they does not buy it and it can reduces the sales of the organisation which is not
for the company.
Technological factor: Technology of a country can affect the business of the organisation.
Effective and updated technology can be use by the John Lewis Partnership so that it can
maximize the efficiency.
Positive impact: Better use of technology can maximize the productivity and makes the work
smooth. It can help the company to work effectively. It can makes the better quality of a product
and minimise the cost (Hilton and Platt, 2013).
Negative impact: If employees of John Lewis Partnership does not know that how they can
properly use the technology than it can hamper the productivity and minimise the efficiency.
Environmental impact: Environmental factors of a country can influence the business of the
company. It involves weather and climate of United Kingdom. It can affected the John Lewis
Partnership in the following ways:
Positive impact: John Lewis Partnership can makes the goods as per the environmental
conditions so that it can adjust in the environment of United Kingdom
Negative impact: If John Lewis Partnership does not follow the environmental laws than it can
make trouble for the organisation and company does not want it (Chen and Storey, 2012).

Legal factor: Legal factors of a country can influence the business of the organisation. It
involves employment laws, copyright and patent laws, discrimination laws etc. It can affect the
John Lewis Partnership in the following ways:
Positive impact: By following the legal policies and laws of United Kingdom it can protect its
business from the environmental factors (Charter, 2017).
Negative impact: If John Lewis Partnership does not follow the legal rules and does not take
care about the health and safety of consumers than it can affected by it. As a result it can reduce
the sales of the organisation.
So PESTEL can help the John Lewis Partnership to analyse the environmental factors so
that it can take protect its business and makes the effective decisions. As a result it can maximize
the efficiency and productivity of its business.
P5. SWOT analysis of Organizations
SWOT analysis is analysis of strength, weakness, opportunities and threat of
organization. It helps to identify the strength and weakness of company in order to make plan
and policies according to company’s strength. It will help the John Lewis Partnership to find new
opportunities in market and grab these opportunities to gain more market share and maximize
their profits. The SWOT analysis of John Lewis Partnership is being discussed below:
Strength:
Strong Online Presence:
The company has very strong presence in online marketing. It gives its customers a
seamless online shopping experience to its customers. This is the biggest strength of company.
As one buy anything from their different online store. The consumer can access to any product at
one touch.
Extensive Product offering:
The main strength of company is that it provides the different range of diversifies product
to its customers. The customer can get everything under one roof. This is very helpful for
company to generate more revenues.
Weaknesses:
Lack of innovation:
The innovation is key to success in today’s dynamic market. But John Lewis is lacking at
innovation part. This could lead to low profitability and high competition in the market for
company. As customer expect something new from companies at this part company is not able to
fulfill the customer requirement to some extent (Bryman and Bell, 2015).

Lack of International Presence:
The globalization is very important in order to be sustainable in this competitive market
and to take competitive advantage. As John Lewis is lacking at the part of their international
presence. The company has less presence in global market as it mainly focus on local market.
Opportunities:
As opportunities for the John Lewis are discussed below:
Scope to enter new markets:
As company has less presence in the international market so John Lewis can enter into
global market in order to attain more market share and get their goals achieved.
Increased purchasing power:
The John Lewis can use the increased purchasing power of consumer as an opportunity
for their company. As increased purchasing power will improve the lifestyle of people and
people will spend more on their fashion which ultimately could lead to profit to John Lewis
Partnership.
Threats:
Intense Competition:
There is tough competition in the market so it is a big threat for John Lewis to overcome
their competitors. As there are other supermarkets and grocery store in the market like Tesco
which is major threat for company.
Changing Laws:
The laws are keeps changing so it is a threat for company as it is difficult to apply new
laws and legislations in the company. And non following of these laws could leads to heavy
penalties on company.
P6. Interrelation of strength and weakness with external factors
Macro factors have some strength and weakness which can affects the organisation.
There are various external factors which can influence the John Lewis Partnership. These factors
are described as follows:
Political factors: This factor is control by the government of a country. It includes policies,
taxes, laws and regulations. Political condition of United Kingdom is stable which helps the John
Lewis Partnership to operates its business effectively (Boons and Lüdeke-Freund, 2013).

Strength: Stability in the political factors can be the strength of company. It follows the proper
rules, regulations and laws which help the organisation to perform better.
Weakness: If John Lewis Partnership does not follow the laws related to these factors than they
have to heavy pay penalties.
Economic factor: These factors involves exchange rates, disposable income, interest rate,
inflation rate etc. Fluctuations in these factors can influence the business of John Lewis
Partnership.
Strength: It can be the strength of the organisation when it analyse the economic factors and
then takes the management and business decision.
Weakness: High interest rate can reduce the earnings of the organisation because it have to pay
more interest.
Social factors: These factors involves income, age group, safety and health etc. John Lewis
Partnership properly analyse these things so that it does not influence its business.
Strength: If John Lewis Partnership follows the culture of society and develops the products as
per the needs of persons of society and take care about the health of people. As a result more
number of consumers can attract towards the organisation and it can increase the sales of the
company.
Weakness: If John Lewis Partnership does not perform according the expectation of society than
consumers does not purchase the products and it can reduce the sales of the organisation.
Technological factor: Innovative technology can help the company to maximise the efficiency
and it makes work smoother.
Strength: By using new and updated technology can help the John Lewis Partnership to
maximize the productivity and minimizes the cost of production.
Weakness: If organization does not have enough fund to acquire the innovative technology than
it does not take advantages of new and effective technology and than shows the weakness of the
company (Andersson and Holm, 2015).
CONCLUSION
In the conclusion it can be said that there is forms of organizations which have their
different size and scope. The functions of companies are interrelated with each other. As
interrelation helps to company for smooth functioning. The PESTLE analysis is very important
in order to identify different external factors of environment and prevention from these factors.

These factors can have the positive or negative impact on the operations of organization. The
SWOT analysis helps the company to identify their strength and weaknesses and make plan
accordingly. These strength and weaknesses are directly related with the external environment of
company.

REFERENCES
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Online
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