Macro Environment and Capabilities of John Lewis Ltd

Business Strategy

TABLE OF CONTENTS
INTRODUCTION..............................................................................................................................3
P1 Apply an appropriate frameworks analyse the impact and influence of macro environment
on the John Lewis Ltd and its strategies......................................................................................3
P2 Analyse the internal environment and capabilities of John Lewis by using framework........5
VRIO of John Lewis...................................................................................................................8
P3 Apply porter’s five forces model evaluates the competitive forces of given market for John
Lewis Ltd.....................................................................................................................................8
P4 Discuss about the theories, concepts and models or device strategic planning....................11
2. Justify and recommend the most appropriate growth platform and strategies.......................14
CONCLUSION.................................................................................................................................14
REFERENCES.................................................................................................................................16

INTRODUCTION
Business strategy is basically an approach that can perform action or set specific decision
which assists the entrepreneurs in achieving the enterprises goals and objectives. Enterprise
strategy is basically implementing in the organization which are working under the macro and
micro environment factors that control the overall performance of business activities. This
assignment will discuss about the PESTLE and SWOT analytical framework for identifying the
opportunities and threats of organization. It will describe Analytical framework the impact or
influence the culture and environment of business and its strategies. Furthermore, This report
will describe the Porter’s five forces model which evaluates the competitive environment of the
global market. At last, it will cover the theories, concepts and models help for strategic planning
of business.
P1 Apply an appropriate frameworks analyse the impact and influence of macro environment on
the John Lewis Ltd and its strategies.
Pestle analysis is providing a frame work to investigate the John Lewis non controllable
external factors that have potential impact on the business operations, it is the better position that
considered likely minimise the risk in the future. Macro environmental factors refer to all the
external uncontrollable forces that impact in both negatively and positively in decision making.
Political Factor-This factor include the change in the governing power of country, political
factor impact on the business environment and changes of government policies as well
(González Rodríguez and et.al., 2018). John Lewis is the fastest growing organization that has
many departmental store which may considered the political factor while formulating the
marketing and selling approach or strategies. So if there is certain and rapid changes in the
political factor it will be creating problem for company. John Lewis has faced the political issues
of the business which are affected by the government policies, regulation impact on the
economy, customer buying habits and international trade laws. Regulation affects the products
that can import, export and sold the item in stores.
Economic Factor- This factor influence or impact on the business due to exchange rate,
inflation rate of currency and interest rate etc. John Lewis can be formulating the price strategy
related the product and services. In this way, it considers the changed in terms of economic

forces. If there is rapid changes in the inflation and deflation rate of company then there will be
challenges for company to handle it properly. In John Lewis, The economic is facing the
recession and very sensitive to change in terms of interest rates. There are rigid competition with
the Lewis business that has lead to the retailer provide a lot of incentive from the consumer. It
will influence the John Lewis as the price that have driven down most of time.
Social Factor- in John Lewis, Social factor may affect the demand and supply of function in the
organization. It includes preferences, trends, taste and fashion because customer may give more
presences and changes in values, attitude and belief of public. In this way, Social factor is main
concept that need for organization to identify the requirement of people on the basis of trends in
marketplace. In John Lewis, The customer shifting preference and lifestyle has corresponded to
the opportunities for enterprise. It has created a new opportunities in market by customer which
causes by the society. It is becoming more important that should be introduced as more branded
in departmental stores.
Technological Factor- Technology environment has supported the Lewis enterprise to increase
the shopping experience of customer. They are directly influence the sales approach to increase
productivity and profitability in marketplace. John Lewis are carrying out IT system which help
to access through the secure server and make flexible. It is an advancement of modern method
which include change in the development, knowledge etc. John Lewis Company has targeted to
the new customer in market while formulating the market strategy for promoting an effective
services in marketplace. Sometimes, technology may increase the risk threats regarding the data
security and privacy.
Environmental Factor- John Lewis must ensure that it has sufficient amount of resources need
for product development. In case, if the organization does not considered that effect on the
business production and supply functions. Lewis can use the renewable resources for the
production such as wool and cotton. It may include the natural resources which are required as
a raw material, non-renewal natural resources etc. The threats are in term of legal aspects,
penalty for health and safety. There are increasing the energy efficiency and reducing the carbon
footprints.
Legal Factor- This factor may involve the change in their legal and regulatory framework, it has
changed in the legal rules that affect the organization in positive and negative ways. John Lewis