Analyzing the Impact of Macro Environment on John Lewis: A Business Strategy Report

BUSINESS
STRATEGY

Contents
INTRODUCTION...........................................................................................................................3
LO 1................................................................................................................................................3
P1 Applying effective frameworks analyse with the impact of macro environment.................3
LO 2................................................................................................................................................5
P2 Identify the internal environment and capabilities of the organisation with the help of
appropriate frameworks..............................................................................................................5
LO3...............................................................................................................................................10
P3 Porter’s five force................................................................................................................10
LO4...............................................................................................................................................11
P4 Strategic direction and strategic management plan.............................................................11
Conclusion.....................................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy defines as a set of different competitive functions and actions which is
undertaken by an organization for leading the company for the achievement of organizational
goals & objectives. These are the courses of action which provide help to the business entities in
order to adopt favourable techniques and measures. These help in performing all the business
functions in an effective manner and attain pre defined targets. This will help the organisation to
become leader at the competitive marketplace. John Lewis is chosen as the base organization
which is a departmental stores perform its business functions at the marketplace of United
Kingdom & mainly deals in food products, watches, furniture, clothing, jewellery, accessories
and many more. This report includes PESTLE analysis along with SWOT and VRIO analysis in
order to conduct internal resources as well as capabilities. Along with this, the report consists of
Porter's Five Force model which will provide insight entity's competitive situation. At the end of
this report, Ansoff’s matrix along with strategic management plan is also going to be discussed
in this report.
LO 1
P1 Applying effective frameworks analyse with the impact of macro environment.
For conducting a business operation at the competitive marketplace in an effective and
appropriate manner it is very essential for the management team to examine the market
condition on a regular basis. Reason behind this is that, these are the macro-environmental
elements which have their own impact on the overall business operations of the company. In this
context, higher authority of John Lewis adopts PESTLE analysis to examine the influence of
macro factors. Below mentioned is the discussion about Pestle analysis related to John Lewis:-
Political: The business functions of John Lewis are carried out at the marketplace of
United Kingdom where the political system of the country is strong as well as stable. This as a
result assists organisations like John Lewis in order to ensure that they maintain their
sustainability at the marketplace for a long duration. Apart from this, UK government has cut
down the corporation taxes which was 30% and now comes to 28% which as a result provide
opportunities to the organisation like John Lewis to enhance their revenues. As a result political
factors provide positive impact on the performance of business organization as the taxes are
mainly reduced by government and have political stability.

Economical: United Kingdom economic conditions are quite strong which effectively
assist in the growth and development of the organization which mainly come up with unique
products, innovative techniques and system. It has also been identified that innovate UK Smart
Grants define as a programme which was started by the UK government’s R&D department
which provide assistance to innovative organisations such as John Lewis. Apart from this,
BREXIT influences the economy of UK in negative manner which leads towards ample number
of economic distress within retail sector. For this, John Lewis requires offering their products
and services within affordable prices and requires providing them discount. Economic condition
of the country is not so effective as due to Covid19, the overall stability got affected due to the
uncertain event arise and affects the living being in a huge negative manner.
Social: It has been said that John Lewis provides products and services to their
customers after conducting an effective research on the lifestyle of consumers. This will help
them in order to provide goods to their customers as per their needs and wants which include
clothing, accessories, watches and many more. Therefore, if management team of the company
consider all the latest trends then it will create threat to the rival companies and customers will
remain loyal towards the organisation. As the situation is very negative at the current
marketplace the social factor highly get influenced in a adverse manner which affects the overall
business operations.
Technological: By passing the time, technology has been changed in a fastest manner
which helps organizations to maintain their sustainability for a long period of time. In relation to
John Lewis it has been identified that company is currently entering into e-commerce with the
motive of reducing consumption of paper. This requires huge investment by the higher
authorities of John Lewis which acts as threat for company. Brexit highly affects the overall
performance and functionality of the business organisation reason behind this is that all the
external factors are linked with the current scenario of Brexit. Along with this, due to rise of
Brexit, it has been said that restriction arise when doing business operations which affects the
technology related aspects. This as a result affect the overall performance of the company in an
adverse manner.
Legal: John Lewis ensures that each and every units of the company need to follow laws
& legislations which are linked with retail sector. In addition to this, the organisation adopts
renewable resource for their cloth production. Furthermore, if the business entity fails to adopt