Business Strategy: Analysis and Planning for John Lewis

Business Strategy

INTRODUCTION
Business strategy is defined as the planning and development of strategies that help in
maximising profits of the company. This is known as the set of decisions that is helpful in
attaining goals and objectives of the organisation. Within an organisation, there must be planning
of strategies which will help in building competitive advantage within market (Brewster, 2017).
A strategy of business is helpful for attracting more number of customers and having competitive
advantage. The following report is based on John Lewis. This is a brand of high end department
store that is operating through Great Britain. This brand sells various clothing apparels to
customers. The following report includes SWOT, PESTEL, Porter's five forces model, etc. There
is also information about the strategic planning of the company in which goals are achieved in
less time.
TASK 1
P1
The PESTEL analysis of John Lewis is analysed for knowing what are the different
factors and elements that affects business operations. John Lewis is a branded company that sells
clothes and apparels. As PESTEL analysis is defined as the strategic tool for evaluating the
macro environment of the company. When there are changes in any of the factors – political,
economical, social, technological, environmental, legal then there is affect on the business
activities of this company (Cavusgil, and et. al., 2014). When there are changes in the macro
environment factors, there is direct affect on the John Lewis. The PESTEL analysis of John
Lewis is described below -
Political factors – This has great impact on the profitability and efficiency of the
company. This company deals in personal and household goods in several countries. Because of
this, there is exposure to different political system and environment. There is need to analyse the
political stability before running business.
Environmental factors - The production of John Lewis includes utilisation of different
resources like wool and cotton. These are environment friendly resources and these are used by
John Lewis. There is threat for John Lewis company that it can have legal penalty for the health
and safety of livestock. John Lewis is putting efforts to reduce the carbon footprint. This enables
in increasing efficiency of energy. This is helpful in creating god image in society.

Social factors – Consumers are shifting their preference as well as lifestyle, this affects
the functioning of John Lewis. It is important for the company to analyse the factors that
customers want in their clothing. There are different opportunities in business that helps in
working effectively. It is important for the company that it is evaluating all the demands and
wants of customers for increasing the satisfaction level of employees.
Technological factors – New trend among the customers is internet shopping. This
company has started to provide products on online basis. This directly affects the sales approach
of the company. It is essential for the company to analyse all technological aspects while
providing products and services to people. The various technological factors adopted by John
Lewis are IT system installation, cashless payment systems, etc.
Economical factors - There are both macro and micro economical factors that affects
business activities of John Lewis. Some of the macro factors included saving rates, inflation rate,
economic cycle. The decisions for business are taken by analysing macro environmental
economical factors. The UK market is facing recession and it is very sensitive to the changes
within the interest rates. There is fierce competition in retail sector of market. Thus, it is analysed
that John Lewis has to work in profitable economies for making more profits.
Legal factors – This company ensures that all the business activities and tasks are
completed by following the laws and regulations given by the government. This company is
making use of the renewable sources for the manufacturing of cloth. This brand takes care that
all work is done properly by abiding the laws given by government.
M1
From the PESTLE analysis of John Lewis, it is described that this company has
opportunity to analyse the technological factors that can be used within the processing. This
helps in providing good products to the customers. It is important for the company to handle
work in effective manner and attain organisational goals (Chang, 2016). The managers of John
Lewis consider different factors such as political, legal, social, environmental, economical and
technological while making different decisions of the company. It is important for the company
managers to evaluate positive as well as negative impact of the factors on the company's
processing.