Business Strategy For John Lewis Ltd
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Added on 2020-10-23
Business Strategy For John Lewis Ltd
Added on 2020-10-23
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Business Strategy
Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1 ..........................................................................................................................................1P1 Impact and influence ofthe macro environment on John Lewis and its strategies...........................................................1TASK 2 ...........................................................................................................................................3P2 Internal environmentand capabilities of a John Lewis Ltd..........................................................................................3TASK 3 ..........................................................................................................................................5P3 Porter’s Five Forcesmodel evaluate the competitive forcesof a John Lewis Ltd. ..................................................................................................................5TASK 4 .........................................................................................................................................6P4 Theories,concepts and models, interpret anddevise strategic planning for John Lewis Ltd. ..........................................................................6CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10.......................................................................................................................................................10.......................................................................................................................................................10
INTRODUCTION Business strategy is a set of competitive moves and actions that business uses to attractcustomers, compete with competitors and accomplish organisational goal effectively. It isconsidered as an important component to enhance the business environment in order to gaincompetitive advantage. Business environment is the combination of all external and internalfactors which have direct or indirect influence on the growth or expansion of company. It is notstatic in nature as it acquire enormous opportunity which enable them to attain high profitability( Progress, H., Whilhemia and Tarisai, 2013). Furthermore, business environment enable thefirm to identify their strength and weakness and to analyse or evaluate their competitorsstrategies in order to achieve target positioning among market. John Lewis Ltd, one of thesuccessful retailer that operates in department store, home store, supermarket etc. which isincorporated in the year of 1864. It's headquartered is in London, UK and it is regarded as theUK largest employee owned business. This report covers influence of internal and externalfactors on business growth, application of PESTLE, SWOT and Porter's five force model toanalyse the business capabilities and its competitive forces. Finally the usage of theories andmodels which is mentioned in this report in order to interpret strategic planning or decisions. TASK 1 P1 Impact and influence of the macro environment on John Lewis and its strategies.Business environment consist of two main factors in which company has control over theinternal while on external factors firm has no control over its operation (Amran and et. al.2016). It is classified into two types such as micro and macro environment. Micro environmentare those factors such as suppliers, customers, marketing intermediaries etc. which has directinfluence on the operation of company on the other hand macro environment consist of generalfactors on which business has no control over its functions or operations. Some of the macrofactors are political, legal, cultural, economic etc. which is complex and dynamic in nature.Apart from this business environment helps the firm to understand their strength and weakness inorder to improve their performance and make effective business decisions. A company frames aneffective business strategy to get proper direction in contributing their best effort towards theattainment of pre determined goal. In case of John Lewis, one of the famous company in retailindustry which is founded in they year of 1864. It has several competitors i.e. macro factors
which affect its sales and productivity. In order to cope up with these factors John Lewis'smanager understands the dynamic business environment and take corrective course of action inorder to face heavy global competition effectively and efficiently. However, PESTLE is a toolwhich analyse or evaluate the external environment or factor and enable the firm to anticipate thecurrent and future competition in order to accomplish high productivity and profitability. JohnLewis applies the PESTEL to analyse its macro environment which is described below: Political Factor: This factor includes political changes, modification in interest rate,government policies and regulation etc. which effect the business operations and itsproductivity (Ghorbani, Bahrami and Arabzad, 2012). Due to Brexit, UK governmentmodified the trading policy and marketing strategy of company which effected JohnLewis operations. UK government decided to exit the European Union which reduced thevalue of pound and created an uncertainty with trade restriction in Europe. However,John Lewis is benefited with the stability of UK government which enable them toreduce the corporation tax which help them to gain competitive advantage. Environmental Factor: In the current scenario everyone is concerned about clean andhealthy environment in order to stay fit and energetic. In the current scenario of UK,customers prefer eco friendly product which impact the productivity of John Lewis.However, John Lewis introduced the eco-friendly and recyclable products like pollutionfree vehicles, kettle, washing machine etc. in order to reduce or minimise the operationalwaste in order to improve the morale and gain the satisfaction level of customer. Social Factors: This factor is concerned with attitude, lifestyle, behaviour of an individualwhich influence the productivity and performance of company.Recently, there was atremendous demand occurred among customer in terms of trends of fashion which effectthe John Lewis overall performance. However, John Lewis adapt corrective course ofaction as they introduced trendy clothes for young and middle aged group people whichgain the attraction of customer and enhance their business effectively.Technological Factor: In today's world technology plays a vital role in the expansion ofbusiness operation. Now, online trading becomes the trend among the customer whichimpact the John Lewis business operation. However, John Lewis grasped the opportunityand introduced the online websites where customer can order any product of their own
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