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Business Strategy of John Lewis

   

Added on  2020-10-22

13 Pages3915 Words365 Views
BUSINESSSTRATEGY
Business Strategy of John Lewis_1
Table of ContentsINTRODUCTION...........................................................................................................................1P1 Application of frameworks to analyse the impact of macro environment on organisationand its strategies...........................................................................................................................1P2 Analyse the internal environment and capabilities of a given organisation using appropriateframeworks..................................................................................................................................3P3 Porter Five Force model to evaluate competitive forces of market........................................6P4 Strategic planning for organisation.........................................................................................7CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
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INTRODUCTIONBusiness strategy refers to the planning done and decisions taken by firm to give astrategic direction to the operations and functioning of company. This is largely done with theaim to capture the attention of a large number of people (Brewster, 2017). Business strategyassists a company in undertaking measures so as to ensure timely achievement of organisationalgoals and objectives. This renders a competitive advantage to enterprise over rivals present inmarketplace. The present report is based on John Lewis which is a retail organisation offeringproducts belonging to a variety of segments such as clothing, food, furniture, cosmetics, watches,furniture etc. This report includes PESTLE analysis to gain an insight into the influence of macroenvironment together with SWOT and VRIO analysis for gaining knowledge aboutorganisational capabilities. Further, Porter Five Force analysis is done to examine the company'scompetitive environment. Lastly, Ansoff matrix is used to conduct analysis of available strategicoptions and do strategic planning.P1 Application of frameworks to analyse the impact of macro environment on organisation andits strategiesIn today's hyper competitive era, companies have to continuously examine the macroenvironment in order to ascertain the external factors which have a significant influence uponbusiness operations in marketplace. This analysis assists an organisation to develop strategieswhich can ensuring orderly conduct within the enterprise (Cavusgil and et. al., 2014). Themanager of John Lewis has conducted PESTLE analysis to make an evaluation of the macro-environmental factors as follows:-PESTLE AnalysisThis can be referred to as a strategic tool which assists the organisation in taking intoaccount the external factors which impact upon an organisation in order to devise and developstrategies that ensure effective execution of business activities. PESTLE analysis of John LewisLtd is given below:-Political:John Lewis has been conducting operations within UK which is a part ofEurope. The political system of Europe is strong and significantly fosters the growth of businessorganisations. In this regard, the UK government has reduced the corporation tax from 30% toapproximately 28% which will assist John Lewis to enhance the sales and profits of entity withinUK (John Lewis PESTEL Analysis, 2019). The political system can also act as a threat for the1
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company owing to terrorist attacks or a political turmoil. To effectively deal with this, entityshould maintain adequate stock so that there is no shortage of resources or goods in adversepolitical situations.Economical:The economy of United Kingdom is strong which supports the businessoperations of company within marketplace. Also, UK government provides assistance to theorganisations which come up with rapid innovations. However, the economic system of UK ispresently affected by Brexit which tends to create a lot of economic tensions within all thecorporate sectors across the country (Goffee and Scase, 2015). To deal with this, John Lewis canprovide products at reasonable prices so that the inflation resulting from Brexit do not impactupon the sales figure and profitability of company. The organisation can even offer lucrativediscounts or attention grabbing deals to keep the loyal customer base in-tacked.Social: The trends of population of a country as well as market have to be continuouslytaken into account by businesses to make sure that they sustain in market for a long period oftime. Post the evaluation of market trends and consumer psyche, John Lewis launches uniqueand fashionable products into market which assist in grabbing the attention of a large number ofpeople within UK. Such products include clothes, accessories and other trending items (JohnLewis: competitive advantage in a tough retail market, 2015). Apart from this, the threat for thisenterprise is the probability that a market trend or consumer lifestyle is anticipated bycompetitors before John Lewis. To escape such situations, organisation should constantly investin R&D department to tap the advantage of utilising and formulating the latest trends.Technological:With the passage of time, constant advancements take place in marketand corporate world which have to be taken into account by business organisations so as toensure long term sustainability. John Lewis entered into online selling channels to ensure declinein use of paper and to significantly gain the attention of customers and to offer convenience andease to people (John Lewis SWOT and PESTEL Analysis, 2019). This business entity makes useof advanced techniques and systems to effectively manage its business operations. However,formulation of advanced technologies across the organisational premises require huge investmentwhich may act as a threat for the entity. Thus, John Lewis should incorporate this cost in thefinancial budget so that there is no discrepancies in relation to finance.Legal:John Lewis ensures compliance with all the legalisations linked with health andsafety, employment, corporation tax so as to avoid getting penalised or publicly prosecuted. They2
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