logo

Business Strategy Assignment- John Lewis

   

Added on  2020-10-22

13 Pages4431 Words90 Views
Business Strategy

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Impact and influence of the macro environment on the firm ...............................................1TASK 2............................................................................................................................................3P2. Analysis of the internal environment and capabilities of a company...................................3TASK 3............................................................................................................................................5P3. Implementation of Porter's Five Force model to evaluate the competitive forces................5TASK 4............................................................................................................................................6P4. Use of different theories, models and concepts to interpret strategic planning for the firm.6CONSLUSION................................................................................................................................7REFERENCES................................................................................................................................8

INTRODUCTIONBusiness strategy refers to those plans and activities which are designed and developedfor efficient running of the business of the firm. These plans and acts are beneficial for the firmbecause they help in making decisions so that the organisation can attain its aims and objectivesin an effective manner. Business strategies are useful for the effective management of the firm sothat the firm can manage business activities ans operations of the organisation (Aithal, 2016).This assignment is related to John Lewis Partnership which is an employee owned UK retailfirm. This organisation was founded in 1929 by John Spedan Lewis and headquartered inLondon, England, UK. This company manufacture various products like clothing, watches &Jewellery, giftware, cosmetics, home products, accessories, food direct product and financialservices. This report will be discussed about the impact and influence of macro and microenvironment and capabilities of the firm. Further will define about the outcomes by usingPorter's Five Forces model to a market and use numerous models, theories and concepts toanalysing and interpreting strategic directions available to the firm.TASK 1P1. Impact and influence of the macro environment on the firm Macro environment refers to those external factors which create impact on the businessstrategies and actions of the firm. In context of John Lewis, it can a set of external conditionwhich affect a business development efforts in both aspect positive as well as negative. Tomonitor the impact of macro environment, the management of this firm can use PESTELanalysis which is as following:PESTEL Analysis- It is a tool and technique which is used by the management of company todetermine the macro environment factors which create impact on the firm. It involves variousfactors such as political, social, economical and others that affect the business operations andactivities. The impact of these factors are as following:Political- This factor consists political stability, level of corruption, bureaucracy,Taxation policy, wage legislations and others. In UK, the government of this country makedecrement in the corporation tax from 39% to 28% which is favourable for this company becauseit help in increasing the profit margins of the firm in forthcoming time (Allen and Truman,1

2016). But the government of UK make increment in interest rates which negatively affect theconsumer confidence and sales of the firm. Economical- It is another factor which include exchange rates, economic growth rate,discretionary income, inflation rate, unemployment rate and others. In UK, there are ongoingchanges are generated in the economic condition. For example, all the business operation of thefirm are depend on the labour and worker so if there are any change occur in economy, it directlyaffect the labour cost (Beamish and Lupton, 2016). In 2017, the development is slowing down asreal incomes were compressing. It affect the sales and cost including business rates and wages innegative manners. Social- It involve taste and preference, culture, values, trends and various other factorwhich affect the business and strategies of the company. In UK, there are various kind ofchanges occurred in John Lewis due to change in trends and fashion so the firm also offerproducts accordingly to their potential customers. This positively affect the business of this firmin terms of profit. This firm produces western clothes but it operate its business internationally soit is not fulfil the need of those customers who prefer traditional wear according the culture ofthe nation. It unfavourably affect the business and growth of the firm. Technological- It include various technologies which can be used by the company indifferent manners such promotional, operational, management, production etc. John Lewis ishave information that now these days customers prefer online shopping so the management ofthe company used online tool and technologies to provide this services to it customers. It help inretaining the clients and maximizing the productivity of the business of the company. Themanagement of the company expected that johnlewis.com responsible for these kind activitieslike online shopping etc. and in 2014, it hit £1billion turnover. But the management of thecompany do not use more channels and tools of promotion which unfavourably to the firm. Environmental- Weather, climate change, recycling, waste management, environmentallegislations and others are include in environmental factor. In John lewis, the management of thecompany follow recycling and waste management process which help in minimizing the wastageand managing the inventory. With the help of it, the management of the firm manage carbonemission and other kind of pollution. Now these days, customers are also conscious about theenvironment they also have demand of eco friendly packaging which will not harm theenvironment. It help the company in enhancing productivity and increasing profitability. Some2

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business Strategy Overview | Assignment
|13
|4161
|23

Business Strategy Outline | Assignment
|14
|4393
|32

P1. PESTEL Analysis of John Lewis
|14
|3735
|327

Strategic Management Plan of an Organisation
|13
|4026
|423

Analysis of Macro-Environment and Internal Environment of John Lewis Ltd.
|16
|5013
|22

Business Strategy For John Lewis Ltd
|13
|3863
|308