Analyzing the Impact of Macro Environment on John Lewis Ltd's Strategies

Business
Strategy

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment on a
given organisation and its strategies.......................................................................................................3
TASK 2..........................................................................................................................................................5
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.............................................................................................................................................5
TASK 3..........................................................................................................................................................7
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector for an
organisation.............................................................................................................................................7
TASK 4..........................................................................................................................................................9
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for a
given organisation...................................................................................................................................9
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
Business strategy refers to a mechanism or technology that allows a company create
viable and higher level policies and approaches to accomplish objectives and priorities
effectively. By effective strategic strategy a company may gain many advantages that help it
meet goals and priorities, such as economic growth, market advancement, financial performance
change, client base and so on (Yuliansyah, Rammal and Rose, 2016). Throughout the area of
strategy, 'strategic management' involves establishing and executing the core goals and actions
developed on behalf of stakeholders by the leading executives of an enterprise on the basis of
capital identified and an internal and external climate evaluation carried out by the company For
this task, John Lewis Ltd is the company chosen. This was created in 1929 by John Spedan
Lewis. We primarily work in the shopping market, with their head offices in Oxford Road,
London, UK. Their ranges include clothes, watches, shoes, luxury goods, chairs, health items,
cosmetics, bedding and several other facilities. This related research includes subjects such as
market assessment and analyzes with respect to micro and macro environmental factors. These
would also provide proactive strategies for environmental evaluation.
TASK 1
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies
A company should examine the external factors that impact the respective company to
effectively conduct and manage the business (Sanden, 2016). PESTEL analyzes and analyzes the
macro-environmental variables was done by John Lewis Ltd. PESTEL description which is
given below in conjunction with John Lewis Ltd.
 Political: Most businesses prefer to enter the European Union sector in the United
Kingdom. There is far less competition obstacle in Europe of which the businesses,
which tends of struggle with John Lewis Ltd, are made easier to join. As a consequence,
the UK government has agreed to slash corporate tax from 30% to 28%, helping
businesses improve their potential competitiveness. The businesses will also be able to
act efficiently and adequately with their company processes and activities. However,

under the conditions, modifications to government rules and regulations that John Lewis
Ltd. would need to implement new plans accordingly.
 Economical: The British economy risks stagnation, because of the volatile condition with
rising interest rates. The supermarket firms will sell their goods and services at affordable
costs to tackle these circumstances. It also impacts the John Lewis Ltd. company, they
are often forced to sell their goods at affordable cost and provide discounts. With their
pricing strategy, the business organization attracts more people very easily, but it is very
challenging for other business leaders to change appropriate strategies.
 Technological: In order to reduce wasting of paper, John Lewis SA provides internet
shopping and encourages consumers to buy in any location. The organization also uses
sophisticated technologies to quickly and reliably control its departments and activities.
Adoption of modern technologies simplifies research and allows it effective, while at the
same time costing companies that control their spending and other activities.
 Environmental: Initiatives are developed to improve the air by several supermarket
businesses. John Lewis Ltd. also utilizes recyclable materials and electricity to minimize
emissions by introducing innovative technology and methods to decrease the carbon
footprint. With the production of skin friendlier, more earth conscious goods, but at the
same time more capital to be spent in these methods; the business is able to draw many
more buyers.
 Legal: John Lewis Ltd. needs to manage that the legislation applicable to both consumers
and workers' health and welfare when operating in the retail industry. Renewable
products can be used in textile development. They will always look after their employees
in accordance with this by ensuring their health and proper facilities. John Lewis Inc can
successfully and reliably run the market by following the correct criteria, but adjustments
in these considerations have a daily impact on the manager's decision taking.