Business Strategy - John Lewis Ltd Solved Assignment

Business
Strategy

INTRODUCTION
Business strategy is defined as a technique or tool through that a firm can develop or
create plans and strategies of high level for attain goal as well as target in successful as well as
efficient style (Alsudiri, Al-Karaghouli and Eldabi, 2013). By this company is also able to gain
various advantages for example enlargement of business operations and functions, competitive
advancement, increase in financial position and customers bases and many more. Organisation
that is selected for this assignment is John Lewis Ltd. Which is founded by John Spedan Lewis
in year 1929. Its headquarter is at Oxford Street, London, United Kingdom and the respective
company is operating its business at industry of retail. Products offer by respective company are
watches, clothing, giftware, jewellery, furniture, food, cosmetics, beddings and many others.
Topics which are going to be discussed in this report are analysis and evaluation of market on
micro as well as macro environmental element. Moreover, it mentioned strategic plan of action
in order to evaluate environment evaluation.
TASK 1
P1
If a company want to operate as well as run their business operations in appropriate
manner they need to evaluate its macro environment factors by which they are able to know
external factors which affect this organization. John Lewis Ltd conduct PESTEL analysis which
help them in evaluating as well as analysing their macro environment factors.
PESTEL Analysis - It refers to technique which is use to analysis external or macro factors
of an organisation which help them in developing strategies accordingly as well as effectively.
There letters stand for Political, Economic, Social, Technological, Environmental and Legal.
Description of PESTEL analysis in respect of John Lewis Ltd is mentioned below- Political: Respective company decide to come in into United Kingdom market part of
European Union. In Europe marketplace obstruction or limitation is very less due to
which companies can enter into market easily, which is seems as competitors for John
Lewis Ltd. Due to this government of UK take decision to reduce corporation tax from
30% to 28 % which is helpful for respective company to enhance profitability in future
basis (John Lewis PESTEL Analysis, 2019). By adopting political factor in effective
manner respective company is able to conduct their business operations and functions in

effective and appropriate manner. But rules and regulation of government change
according to requirement due to which John Lewis Ltd also have to develop strategies
accordingly. Economical: United Kingdom economic is dealing with recessions due to which
sensitive situation occur for changing interest rate. In order to deal with this situations all
companies of retail sectors needs to offer products and services at low price to their
customers (Bharadwaj and et. al., 2013). This situation also influence business and
operation of John Lewis Ltd, they also have to reduce their price of products and offer
discounts to customers most of time. When John Lewis Ltd develop products accordingly
they able to attract more customers with their pricing strategy. But it is very difficult for
respective company manager to change strategies accordingly. Social: Social culture and lifestyle of society change on the regular basis which is
opportunities for a business to attract customers by offering new products and services.
That helps a company in increasing their customers bases and profitability. John Lewis
Ltd introduce and offers new and trendy products in order to attract and please customers
in effective manner. By this company able to introduce new products according to change
in trends and demand of customers in order to enlarge their customers bases and
profitability. It is also threat for a company to develop or make changes according to
competitors, otherwise customers shift to another company. Due to this factor currently
respective company able to develop products and services in effective manner according
to changing demand of society. Technological: It is define as method which is adopted by a company in order to conduct
their operation and functions in effective manner. In regards of John Lewis they adopt
online process or shopping offer which help them in reducing waste of paper. It will
attract customers too and encourage them to shopping any where as well as at any time.
Along with this respective company also adopt advance technology that leads to
accomplishment of products with effective time as well as quality. But there is some side
effect of this like adopting new technology may hamper on this company budget. They
also change or update their process as well as they also need to provide training to
employees.