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Business Strategy of John Lewis - Assignment

   

Added on  2020-12-26

12 Pages3095 Words367 Views
BUSINESSSTRATEGY

Table of ContentsINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1............................................................................................................................................1M1...........................................................................................................................................3LO 2.................................................................................................................................................3P2............................................................................................................................................3M2 ..........................................................................................................................................5LO 3.................................................................................................................................................5P3 ...........................................................................................................................................5M3...........................................................................................................................................6LO 4.................................................................................................................................................6P4............................................................................................................................................6M4...........................................................................................................................................7D1...........................................................................................................................................8CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10

INTRODUCTIONBusiness strategy refers to the combination of competitive course of action as well asmoves taken by a company with a view to direct the performance of organisation towards theachievement of goals. Such actions and decisions are largely aimed at assisting the organisationto undertake key methods and processes which can ensure business growth and sustainability fora long term (Johnson and et. al., 2011). In this regard, the following report is carried out on thestrategic evaluation of John Lewis which is a global chain consisting of departmental stores thatconducts its operations across United Kingdom. This organisation deals in segments such asclothing, jewellery, accessories, furniture, watches etc. This report consists of PESTLE analysisfor macro-environmental together with SWOT analysis for ascertaining internal resources andcapabilities. Also, it includes Porter's Five Force analysis to get knowledge about the competitiveenvironment within specific business sector. Lastly, the available strategic choices for companyare ascertained together with the development of a SMP.LO 1P1It is essential that a company constantly evaluates and assesses its external environmentwith a view to gain knowledge of the various external environment elements that have an impactupon the functioning of entity. In relation to this, management of John Lewis has carried outPESTLE analysis to examine the impact of macro environment on business operations, asfollows:-Political:John Lewis carries out its operations within the confines of United Kingdomwhich is a politically stable and strong country. This provides assistance to organisations likeJohn Lewis to inflate its sustainability within market place for long term. In addition to this, thepolitical system of the respective country significantly reduced the corporation tax which tendsto act as an opportunity for the company to enhance its sales as well as profits . Further,occurrence of political turmoil and/or terrorist attacks within Europe or UK will strive to serve asthreat for the entity. In response to this, entity should always maintain adequate and relevantquantity of products and essential resources so that political adversities does not lead to shortageof stock. 1

Economical: Being a developed country, the economical state of United Kingdom is verypowerful. This nation fosters the development of establishments which introduce innovations atrapid intervals with a view to give a boost to the overall economy of nation. In this regard,Innovate UK Smart Grants is an effective programme run by UK government with a view toprovide assistance to organisations. But British exit from EU is a political and economic statewhich has been causing several discrepancies within the nation leading to economic stress in allthe sectors of corporate world, especially the retail sector. To deal with this, John Lewis shouldprovide its offerings to the population of UK at reasonable prices so that the revenues earned bycompany are not affected by the lowering of purchasing power of customers owing to Brexit.Social: The lifestyles of people of a nation keep on changing owing to the trends thatarise within an economy. In this regard, John Lewis introduces only those products inmarketplace which are consistent with the latest trends and consumer behaviours so as toguarantee its sustenance for longer time frame. It renders aid to the organisation in effectivelymeeting the needs and preferences of people by rendering innovative products like watches,accessories, designer clothes etc. (John Lewis: competitive advantage in a tough retail market,2015). In an instance where an external social trend is identified by the competitors ahead ofJohn Lewis, this will serve as a threat for the entity. This is because such situation possesses thepotential to affect the sustainability of company in marketplace. To obviate such types ofscenarios, company ought to continually put funds within Research & Development so that latesttrends can be ascertained before the rivals with a view to become the leader in retail sector. Technological:Rapid advancements take place in terms of technology and the newtrends and techniques have to be taken into account by the organisations in order to enhance theirsales and profitability while simultaneously reducing the cost. In this regard, John Lewis gainentry into online market looking upto it as a technique to significantly cut shot usage of paper,thereby attaining recognition from customers in marketplace (John Lewis SWOT and PESTELAnalysis, 2019). However, large expenses have to be incurred so as to successfully introduce anew technology within the organisational confines. To feasibly deal with this, the organisationshould assign a particular proportion of budget to ensure implementation of a new technology inevery 6 months.Legal:To ensure compliance with all laws and legislations acrossthe departments oforganisation, the HR manager of John Lewis enforces a stringent corporate culture wherein strict2

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