Strategic Planning for John Lewis Ltd: Analyzing Macro and Internal Environment

Strategy

Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies...........................................................................................3
M1 Critically analyse the macro environment to determine and inform strategic management
decisions............................................................................................................................................5
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks........................................................................................................................................5
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set.................................................................6
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector
for an organisation.............................................................................................................................6
M3 Devise appropriate strategies to improve competitive edge and market position based on the
outcomes............................................................................................................................................6
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for a
given organisation.............................................................................................................................7
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...........................................................................................................................................9
D1 Critique and interpret information and data applying environmental and competitive analysis to
produce a set of valid strategic directions, objectives and tactical actions.........................................9
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................10

INTRODUCTION
It is very important for company to develop and create effective strategies in highly
competitive environment. Strategies can be described as the framework that will support
organisation to enhance its business activities and operations (Pagani, 2013). By determining
different factors business is able to develop strong strategies. This report is based on John
Lewis Ltd company. This organisation was established in 1929 and founder of this is John
Spedan Lewis. Main products and services of this organisation is watches, clothing,
cosmetics, furniture, direct food services, financial services and many more. This report will
include different factors of macro environment that will have impact on business. Internal
environment and capabilities of business is also determine. Apart from this ranges of theories
are analysed in order to develop strategic planning of organisation.
MAIN BODY
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies.
Macro environment of business consist of various factors that have influence of performance
and productivity of business. It is crucial for John Lewis Ltd organisation to analyse and
evaluate factor of external factor in order to take better decision for growth and development
of business. In order to evaluate different factors of macro environment PESTEL analysis
framework is considered. This is an effective tool that will support organisation to take better
decision for growth of business. PESTEL analysis in context of John Lewis Ltd company is
mention below in detail.
Political factor – John Lewis Ltd organisation is performing its business functions in retail
sector and rules developed by UK government will lead to have major impact on respective
company. Political factor consist of regulation and policies, taxation charges. Trade
restriction, stability and in stability of political party and many other factors. Government of
UK is taking decision regarding decrease of corporation tax from 30 % to 28 %. This
decision of UK government will be very supportive for John Lewis organisation as this will
help in increasing profits of business.
Economical factor – This factor is major related to economic rate of country. Economical
factors consist of exchange rates, inflation rates, interest rate, economic system of country,

employment rates, GRP rate etc. UK country has stable economic system that helps in
continuous growth of GRP and economic rates (Köseoglu and et.al., 2013). John Lewis
organisation will be benefits by UK economy system and perform business operations in
more effective manner. Due to high employment rates in country, customer purchasing power
increase and this will help John Lewis organisation to increase its sales and profits.
Social factor – It is essential for organisation to consider social factor while taking business
decisions and developing strategies. Social factors includes elements such as cultural,
regional, demographic, preference of customers and so on. John Lewis organisation is
creating products and services which is as per the need and requirement of customers. This
helps in developing strong relationship with customers as well as increase sales of John
Lewis company. Population size and demographics targeted by respective company has high
power and potential to purchase the products. Positive attitude and preference of customer
will be very supportive for organisation to accomplish desired goals.
Technological factor – This factors is related to up gradation and modification in
technology. New and innovative technology is very supportive or organisation as this help in
increasing manufacturing of products as well as accomplishing desired goals. Technology is
very important for company dealing in retail sector as this support organisation to
performance business task in more speed in less time. UK country technology increasing very
fast and this can be consider as advantage for John Lewis organisation to accomplish desired
goals and objectives. With the help in new and advance technology respective company will
be able to gain competitive advantage over other rival companies.
Environmental factor – John Lewis company needs to consider environmental factor while
developing strategies as well as performing business activities. Environment factor can lead
to have major impact on business productivity (Khalili Shavarini, Salimian and Nazemi,
2013). This factor consist of weather, climate condition, water bodies, pollution, ecological
system and other natural elements. John Lewis organisation is using different natural resource
in its production process. Lack or limited availability of these resources can affect the
manufacturing of products and services.
Legal factor – This factor consist of all laws and legalisation that is developed by
government. It is essential for respective company to consider laws such as employment law,
health and safety law, patent rights, copyright and so on. This organisation is developing
different types of products and services that will lead to meet with the needs and