Business Strategy: Application of Outlines and Analysis of Macro Environment

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Application of suitableoutlines with its impact on the macro environment......................3
M1 Critically analyse the macro environment to determine and inform strategic management
decisions.................................................................................................................................5
D1 Interpretation of data to conduct competitive analysis.....................................................6
TASK 2............................................................................................................................................7
P2 Examine internal situationaswell as capabilities of business organisation.......................7
M2 Critical analysis of internal environment.......................................................................10
TASK 3..........................................................................................................................................10
P3 Apply Porter’s Five Forces model to evaluate the competitiveness of the organisation,10
M3 Strategies in order to increase competitive advantage as well as market position........12
TASK 4..........................................................................................................................................12
P4 Implementation of a concepts & models, interpret & devise strategic management plan for
the company..........................................................................................................................12
M4. Strategic management plan (SMP)...............................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy refers to the series of different sort of decisions that will help a business
owner and entrepreneur in order to accomplish their goals & objectives in a proper manner. Their
main aim is to grab the attention of customers available at the marketplace so that there goals &
objectives can be attained in a proper manner. Herein, Business strategy delineator master plan
commonly used by higher authorities of business entity so that they can maintain long term
sustainability within the market (Vrtana and Gogolova, 2020). In the present report, John Lewis
Ltd. is chosen as the base organization works as a retail business organisation. The company
mainly deals in goods which are furniture, cloths, jewellery, watches, and many more. This is a
project, which includes different sections on the basis of which learning and understanding about
the strategies which provides best results. For this, PESTLE analysis is going to be conducted by
the management team to identify the external environment whereas SWOT and VRIO help in
knowing the internal capabilities of a business organisation. Furthermore, Porter Five Force
model is going to be discussed in order to know the competitiveness available at the marketplace.
At the end, Ansoff matrix is going to be included so that the best and most suitable strategy can
be adopted by management team .
TASK 1
P1 Application of suitable outlines with its impact on the macro environment.
Company overview
John Lewis is a British multinational organization established in the year 1929 by John
Spedan Lewis. Company mainly deals in variety of products which includes furniture, clothing,
watches, cosmetics, accessories, beds and biding, jewellery and many more. It is said that the
main aim or purpose of John Lewis is to create happiness of all the members, with the help of
their worthwhile as well as by satisfying their employment in a well defined and successful
business’, it is said that with the success is being measured on the capability in order to sustain &
enhance the position as outstanding retailer (Kader and Hossain, 2020).

With the help of keeping all these in mind, it is said that the strategy of John Lewis is based on
the three major interdependent objectives which are Partners, profit and customers.
The manager emphasised on external environment for performing business activities &
function in a proper manner. In relation to John Lewis, the supervisor emphases on examining
the macro environmental factor by adopting PESTLE analysis framework at workplace.
Objectives of John Lewis
 The major objective of John Lewis includes creating happiness among the customers of
the company and making sure that they are also satisfying the employs with a number of
benefits.
 Objectives of John Lewis include expanding their business and venturing into new
markets for growth of company and increasing its revenues.
 They also aim at providing optimum quality of services and products to their customers
to achieve maximum customer satisfaction.
PESTEL Analysis
PESTLE Analysis is a framework adopt for assessing external environmental that impact
direct on performance of business organisation. In assistance of this, it is necessary to make an
effective plan for operating the business functions in smooth way. In relation toJohn Lewis Ltd,
the higher authorities adopt the PESTLE framework which is defined below:
Political factor: Political factor includes government regulation, taxation structure, trade,
tariff and so on which directly affect the performance of organisation. Therefore, the manager
emphasis on boosting its business as well as taking entrance in the UK market. It generates high
level of competition for John Lewis Ltd within marketplace. Apart From this, the UK
government agrees to reduce the trade of taxation form 30% to 28% that helps the company in
boosting profitability level in the future (Cavusgil and et. al., 2014). Beside from this, it is
necessary for business organisation to implement the strategies, policies & procedures as per
theguidelines which is given by the government. It assists the firm in operating its business
activities & functions in smooth way. And also helps in growing sales and profit in upcoming
period of time.
Economical Factor: These factors involve interest rate, unemployment rate as well as
inflation and deflation rate and many more. Due to Brexit, the economic condition of UK is