Business Management.

Business Management

BUSINESS MANAGEMENT 1
Introduction
Strategic management is the continuous planning and monitoring, analysing the environment
to develop the strategies. The company has to analyse the environment to develop the
strategies in order to gain the objective. There are many tools are used to analyse the
environment such as Porter’s Five Forces Framework, PESTLE Analysis, Value chain
analysis, and many others (Dobbs, 2014). In this report, John Lewis and Partnership has been
taken into consideration to analyse the environment of the company as well as the retail
industry. John Lewis & Partnership is a department store which operates throughout the
United Kingdom. It was established in 1929 in the United Kingdom. The company has the 51
stores in England, Scotland and Wales. The company earns the operating income with the
amount of £243.2 million with the help of 38100 employees (John Lewis & Partnership,
2018).
In the beginning of this report, UK retail market will be discussed. Later on, PEST Analysis
and porter’s five forces will be used to analyse the environment of the company. Porter’s
generic strategies will be analysed so that the company will get the success in the future.
UK apparel sector market
The apparel market of UK has been growing continuously over the last few years. In the
2018, the market value of the industry is 60.7 billion euros. With the market value, the annual
expenditure on clothing, sales volume and the other values will increase with the 57.8 billion
pounds in 2017. The majority of the demand of the industry comes from women rather than
the men. There are many brands that hold the high market value in the market such as ASOS,
Marks and Spenser and many others. There are many consumers who prefer the buying
clothes in the physical shops with the per cent of 71.2. But the sale of clothing in internet has

BUSINESS MANAGEMENT 2
been also increases with the continue rate of 56% in 2017. The apparel market of the UK is
growing with the number of enterprises in the last five years (Statista, 2018).
(Source: Statista, 2018)
PEST Analysis-
Political
It has been seen that the political uncertainty disturb the retail market of UK. The market of
UK exists from the EU that made it difficult for the retailers industry. It is difficult for the
retailers to effectively plan the life beyond the Brexit. There are many brands that have their
agreements come to an end due to which the prices are rises and the companies face the
heavy loss (Hamilton-Hart, and Stringer, 2016).
Economical
The population of UK has been rising continuously year by year and reach at 62.2 million in
2010. There are many women than men having a longer life expectancy due to which the
population is increases. The GDP rate of UK is also increases with the annual rate 1.3% in
the annual chain. The country ace the deflation period with the rate of 4.6% due to which the
transportation cost is decreases. The industry has a benefit of reducing the cost of

BUSINESS MANAGEMENT 3
transportation because it has high cost services. The unemployment rate of UK is increases
with the rate of 68.1% to 1.53 million. The increasing unemployment rate affects the entire
economy. Increasing unemployment rate means decreasing the purchasing power of
consumers. The demand of the consumers is reduces due to low purchasing power and
negatively impact on high growth of the industry (Computer World UK, 2013).
Social
It has been seen that the taste of the consumers is changing with the passage of time. It is
difficult for the industry to adopt the new changes with the passage of time. There are many
consumers who does not prefers the fashion trends and wants the old material which is
require for it. The demand of those consumers is decreases due to adopting the new trends by
the industry. It is difficult for the industry to take care of the demand of both the types of
consumers in the market.
Technological
It has been founded that the retail industry adopts the new technology in the economy in
order to high growth of the market. The market uses the technology by distributing the goods
and services to the consumers through online. The industry developed the many websites and
applications to fulfil the demand of consumers through online. The industry can use the new
technology in buying, selling and weighing the products. New technology helps the
consumers to compare the prices with the different websites and with a single click they fulfil
their demands. New technology develops the mind of people and brought them closer to each
other. The demand of consumers is increases with the high rate that has a positive impact on
the industry (Morden, 2016).