This assignment focuses on the business environment of a chosen organization, John Lewis Ltd. It includes a PEST analysis, Porter's Five Forces analysis, and SWOT analysis.
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Running head: BUSINESS STRATEGY ASSIGNMENT Business Strategy Assignment Name of the Student Name of the University Author Note
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1BUSINESS STRATEGY ASSIGNMENT Table of Contents Introduction:...............................................................................................................................3 Company Overview:..................................................................................................................3 SWOT Analysis:........................................................................................................................4 Strengths:............................................................................................................................4 Weakness:..........................................................................................................................4 Opportunities:.....................................................................................................................5 Threats:...............................................................................................................................5 Porter’s Five Forces Analysis:...................................................................................................6 Competitive Rivalry: High.................................................................................................6 Threat of Substitutions: High.............................................................................................6 Bargaining Power of the Buyers: High..............................................................................6 Bargaining Power of the Suppliers: Moderate...................................................................7 Threat of New Entrants: Low.............................................................................................7 PEST Analysis:......................................................................................................................7 Political impact on the organization:..................................................................................7 Economic impact on the organization:...............................................................................8 Social impact on the organization:.....................................................................................8 Technological impact on the organization:........................................................................8 Conclusion:................................................................................................................................8 References:...............................................................................................................................10
2BUSINESS STRATEGY ASSIGNMENT Introduction:.............................................................................................................................12 Evaluation of the Environmental Factors:................................................................................12 Strategic Plan:..........................................................................................................................15 Conclusion:................................................................................................................................0 References:.................................................................................................................................1
4BUSINESS STRATEGY ASSIGNMENT a crucial role in increasing the generation of revenue to £ 3.78 billion in the year 2017 (Johnlewis.com. 2019). With a precise monitoring of the parent organization, John Lewis Partnership, the selected organization is able to improve the business operations in terms of the infrastructure and the quality of the products that they offer to the customers. SWOT Analysis: Strengths: The selected organization is seen to experience a significantly strong brand for their products. The organization is able to provide the value for their customers’ money and that has enabled it to create a strong sense of customer loyalty amongst the customers of the organization (Zakariaet al.2014). The selected organization is subjected a significant economic growth and that is playing a crucial role in expanding their business to reach out to the customers with the products and the services. The organization provides significant amount of scope to the customers of getting products of other brands and their own brand under one roof. The significant skills and competencies of the employees of the organization is seen to provide the much required competitive advantage to the selected organization in competing with the competitor organizations in the aspect of quality in the services of the employees. The selected organization provides the scope of achieving the international deliveries which enables it to serve the global customers in an efficient manner. Weakness: One of the major weakness of the selected organization is the lack of sufficient products to meet the diverse needs and requirements of the customers in an effortless manner.
5BUSINESS STRATEGY ASSIGNMENT It is pretty evident that the supermarkets of modern generation are creating different sections for the products of different genres and the plan is influenced with the idea of selling products in accordance to the diverse requirements of the customers (Zakariaet al.2014). Hence it is pretty evident that the selected organization is significantly limited in terms of offering variety of products to the customers. Opportunities: With a precise focus on the increasing number of the young professionals leaving away from their homes, the company has the chance to target the youth generation in a more efficient manner. The company will be able to generate significant amount of revenue through targeting the youth generation with their optimum quality products. The company has the scope of increasing their product chain with the inclusion of bestseller products that it currently does not sell. The effective expansion of their business through opening new stores will be a significantly profitable idea for the senior management of the selected organization. Threats: The impact of the economic turmoil in the European region has the potential to affect the business operations of the selected organization in a detrimental manner (Lamey 2014). Apart from that, the impact of the recession is pretty evident with the decrease in the purchase quantity of the customers of the modern generation. The increasing labour and employment charges in the UK region has the potential to affect the business operation of the selected organization and along with that the frequent changes in the business regulations and the labour laws has the possibility to affect the business conduction of the mentioned organization.
6BUSINESS STRATEGY ASSIGNMENT Porter’s Five Forces Analysis: Competitive Rivalry: High The selected organization is subjected to significant amount of competition from the competitor organizations such as the Marks and Spencer, ASDA and Tesco in the retail segment and considering the product categories, the company is seen to face notable amount of competition from the business organizations such as the Zara and Next Plc in the fashion retail segment. The basis of the competition is seen to be the quality of the products and the pricing strategies of the companies. With a precise focus on the significant market share of the above mentioned organizations, it is pretty evident that the company is facing an intense market competition. Threat of Substitutions: High As mentioned above, the UK retail industry is currently populated by considerable number of organizations with the capability of providing quality products and the services. Along with that, majority of the organizations are seen to apply competitive pricing policy which enables them to target the customers of low and the middle income groups in an efficient manner. In addition to this, organizations such as Zara or ASDA are seen to use their expertise of designing the products in accordance to the preferences of the customers and that is playing a crucial role in improving the customer loyalty amongst the customers (Zakariaet al.2014). Hence it is pretty evident that the organizations operating in the UK retail industry is facing high threat of getting substituted. Bargaining Power of the Buyers: High With a precise focus on the number of available organizations capable of offering quality products at a significantly competitive prices, the customers of the UK retail industry are observed to have high bargaining power. With a precise understanding of the impact of
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7BUSINESS STRATEGY ASSIGNMENT the price war initiated by the market leaders of the industry, it is evident that the customers will get the chance to purchase the products in accordance to their preferences from a number of efficient organizations. Bargaining Power of the Suppliers: Moderate With a precise focus on the need of quality supply, on time supply, accurate supply at reasonable prices, the impact of the suppliers on the mentioned business industry is pretty significant. However, the above mentioned ideal characteristics are seen to present in majority of the suppliers of industry and that produces a significant barging power to the customer organizations in selecting the supplies. However, the impact of Brexit is significant in reducing the number of international suppliers in the region and that makes the bargaining power of the existing suppliers to be moderate (Sahret al.2016). Threat of New Entrants: Low The scope of entering the market for the new organizations is seen to be limited owing to their concern of bulk investment for the setting up of the required infrastructure and the high level of competition that these organizations are expected to face in the industry from the organizations such as Zara, ASDA, Marks and Spencer or Next Plc. PEST Analysis: Political impact on the organization: The impact of Brexit on the business operations of the selected organization is significant. With a precise focus on effects of Brexit, it is pretty visible that majority of the business organizations of the nation are finding it difficult to achieve skilled labours and along with that, the business operations of many of the multinational business organization is observed be restricted as a result of Brexit (Sahret al.2016).
8BUSINESS STRATEGY ASSIGNMENT Economic impact on the organization: With a precise focus on the economic condition of Europe, it is pretty visible that the impact of recession is pretty maturely managed by majority of the business organizations operating in the industry (Sulaiman, Abdullah and Ridzuan 2014). However, the impact of the economic turmoil in the European region has pretty prominent effect on the business operations of the organizations operating in the mentioned industry. Social impact on the organization: The retail industry is seen to be significantly influenced with the varying preferences of the customers and that is significantly evident in the fashion retailing section. The increasing urgency amongst the organizations in reducing the lead times and increasing the design cycles is considered to be one of major proof or adjustment that the organizations are able to conduct. Technological impact on the organization: Consideringthetechnologicalaspect,itisvisiblethattheorganizationsare incorporating the digital solutions in the promotional and marketing campaigns. Along with that, majority of the organizations are seen to focus on the utilization of the digital catalogues for effective communication of the features of their products and services to the customers (Sulaiman, Abdullah and Ridzuan 2014). Conclusion: On a concluding note, it is pretty evident that the mentioned organization is facing significant amount of competition from the competitor organizations such as Zara, ASDA, Marks and Spencer or Next Plc. Considering the various aspects of the business environment of the mentioned organization, it is visible that the company is facing notable amount of difficulty in the sourcing of the skilled employees and in the triggering the purchase intention
9BUSINESS STRATEGY ASSIGNMENT of the customers owing to the impact of the economic turmoil. From the findings of the macro and micro environmental studies of the selected organization, it is pretty evident that thementionedorganizationisexpectedtointroducesomenecessarychangesforthe improvement of the business operations of the organization.
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10BUSINESS STRATEGY ASSIGNMENT References: Johnlewis.com.2019.JohnLewis&Partners.[Online].Availableat: https://www.johnlewis.com/ Johnlewispartnership.co.uk2019.JohnLewisPartnership.[Online].Availableat: https://www.johnlewispartnership.co.uk/ Lamey, L., 2014. Hard economic times: a dream for discounters.European Journal of Marketing,48(3/4), pp.641-656. Sahr, D., Compton, M., Carr, A., Wilkes, G. and Behrens, A., 2016. Brexit: what are the options for the financial services industry?.Journal of Investment Compliance,17(4), pp.45- 53. Sulaiman, M.A., Abdullah, M.A. and Ridzuan, A., 2014. Customer relationship management (CRM) strategies practices in Malaysia retailers.Procedia-Social and Behavioral Sciences, 130, pp.354-361. Webber, R., 2013. The evolution of direct, data and digital marketing.Journal of Direct, Data and Digital Marketing Practice,14(4), pp.291-309. Zakaria, I., Rahman, B.A., Othman, A.K., Yunus, N.A.M., Dzulkipli, M.R. and Osman, M.A.F., 2014. The relationship between loyalty program, customer satisfaction and customer loyalty in retail industry: A case study.Procedia-Social and Behavioral Sciences,129, pp.23- 30.