Business Strategy Outline | Assignment

Business Strategy

INTRODUCTION
Business strategy refers to the company's working plan to attain its visual modality,
mission, prioritizing verifiable, competitive with success and optimizing fiscal execution with its
business model. It can be a strategy or plan which is developed by the management department
of the company to to achieve the desired ends and aims (Akter and et. al., 2016). This document
is related to John Lewis which operate its business worldwide and offers various products such
as clothing, watches & Jewellery, giftware, cosmetics, housewares, home appliances, financial
services, food direct services and others. This firm was founded in 1929 by John Spedan Lewis
and headquartered in Oxford Street, London. This document will obdurate about the impact and

determinant of macro environment on an administration and investigating of the inner
environment and susceptibility. Further will be defined about Porter's five force model and
theories or conception to assist with the apprehension and interpretation of strategical directions
available to a company.
TASK 1
P1. Impact and influence of the macro environment on an organisation and its strategies
Micro environment refer to the leading outside and unmanageable components that affect
and determinant an organisation's decision making or create impact on its performance and
strategies. To analyse this impact and affect, the manager of John Lewis can use PESTEL
analysis. It is a framework or methods which can be utilized to determine the macro environment
of John Lewis. PESTEL analysis of this organisation is as following:
Political- This component consider political policy and stability such as mercantilism,
financial, taxation and others. And these political factor affect the decision making or strategy of
the company. For example, authorities tax argumentation can drop-off or change the net profit
amount on merchandise and services that are manufacture by the organisation. This fluctuation in
policies affect the decision making of the company. If the corporation tax increases 30% from
20%, John Lewis pay more taxes which will affect the profit of the company in negative manner.
Economical- It consider interest rates, occupation or unemployment rates, raw
substantial cost, domestic transaction revenue enhancement and others. For example, In UK, the
whole economic system is lining recession and very erogenous to modification in interest rates
and it affecting the business concern and decision-making of the organization (Bromiley and
Rau, 2014). If the government make change in interest rate, the management department of John
Lewis also design its policies according to them. If the government decrease the percentage of
interest rate then it help in improving the business of John Lewis and its sales also.
Social- This factor concentrate on the ethical situation and include change in customers
needs & wants, family unit statistic, education level, lifestyle, ethnic tendency, knowledge
modification and others (Chen and Jermias, 2014). For example, now these days, there are
various changes are occurred and generated in the tastes & preferences of customers needs due to
change in life style so John Lewis produce branded and trendy clothes according to the demands

of its customers. This assist in acceleration the sales of the organization and help in increasing
the profitability of it.
Technological- This factor consider alteration in analogue or mobile technology,
mechanization, investigation and improvement etc. Now these days, net purchasing is the main
trend for the retailing industry which immediately determinant and affect the gross sales
conceptualization. For example, In John Lewis, the management department of the company use
various technologies such as MS excel, MS word and others which reduce the paperless
operation and positively impact the business concern plan of action and determination devising
of the company.
Environmental- This factor consist climate, recycling procedures, carbon footprints,
waste disposal, sustainability and others. In John Lewis, the administration division of the
organisation decently precede the environmental laws, pollution act, carbon emission and others
and it create positive impact on the environment as well as organisation also. By reducing the
wastage and managing the inventory, the company can positively affect the decision making
because then the manger of the company develop polices and strategies according to it which
help in minimizing the wastage.
Legal- This component consider various laws and legislation that are formulated by the
authorities for the sustainable moving of an organisation and for the employees also such as
employment legislation, consumer law, health and safety act, discrimination act and others. For
example, In John Lewis, the administration division of the organisation decently precede these
laws so that they can help in the smooth running of the firm. This affect the company in a
favourable manner and help in its growth (Chu, KrishnaKumar and Khosla, 2014). If the
company do not follow consumer protection act then it negatively affect its growth and sales in
term of reduce customer base.
TASK 2
P2. Analysis of the internal environment and capabilities of a company
Internal environment refers to the surroundings within the organisation, including current
employees, suppliers, costumes, management, corporate culture that describes employees
behaviour and others (Eaton and Kilby, 2015). Capabilities refers to those resources that offer the
platform for the firm and provide primary source of profit for the company. To analyse the

internal environment of the administration the manager of the organization can use SWOT
analysis. In context of John Lewis, it is as following:
Strengths Weaknesses
 John Lewis is the one of the most
leading retail store in the UK and has a
powerful brand representation in the
market because it offering broad orbit
of style and trendy brands.
 The company operate its business
worldwide and 35,000 employees are
working under it and have a strong
online presence in the market.
 The company use high pricing strategy
and the cost of components are high
than grocery store and food market.
 The firm offered limited range of
products in comparison to super
markets which limits the consumer base
(Klettner, Clarke and Boersma, 2014).
Opportunities Threats
 If the company use more digital
promotional channels and online sales,
it provides a great opportunity to the
company to increase the sales.
 By making excogitation in its exiting
commodity and services according to
the consumers' inevitably and demands,
it can grab opportunity to increase the
profitability.
 There are amount of competitors such
as Marks & Spencer, ASDA, Tesco and
others in the marketplace and they
produce various utility merchandise
which generate competition for John
Lewis.
 Change in government rules and
regulations also generate threats for this
company because it run its business
intercontinental.
To analyse the capabilities of an organisation, the administration division of the
organization can usage VRIO model. It is a important investigation tool which is developed to
help the firms to uncover and protect the resources and capabilities that provide them a long term
competitive advantages (Leonidou and et. al., 2017). With the help of this framework, the John
Lewis can determine the way in which all operations cooperate. This model have four elements
that consist value, rarity, inimitable and ability to compete favourably.

Source: VRIO Model,(2019).
Value- If an asset is valuable, it is beneficial for the firm because it assist in supply some
goodness to the organisation. In John Lewis, there are various origin such as worker, natural
substantial and others are some important resources and they assist the organization to increase
agonistic vantage and create competition to others.
Rare- It is related to those resources and products which are uncommon and have
flooding petition at market place. John Lewis produce some rare products in accessories and
home appliances in comparison to other retailers (Patel and Chrisman, 2014). It help the
company to achieve competitive benefits.
Inimitable- The resources are hard to imitate if they are extremely expensive. Such as in
John Lewis, there are skilled and qualified employees who help the firm to develop and
manufacture rare and unique product so that it can gain competitive advantages (Peng, 2017).
Organisation- In a company the resources are unionised to acquire worth only if it is
supported by the processes, structure and culture of the firm. If a resource and product is
precious, unique, difficult to find or unionised well to gaining control, then it help the company
to get competitive advantages till long term.
Illustration: VRIO Model

TASK 3
P3. To evaluate the competitive forces by using Porter's Five force model
Porter's Five Force Analysis- It is an instrument and technique which is utilized by the
companies to examine the competition in the market related to the business. This model can be
utilized by the administrator of John Lewis to monitor the competition. It is as following:
Threats of New Entrants- In John Lewis, Threat of new entrants are low because it is the
one of the leading retailers firm and has a strong brand image. Apart from it, to be starring in
retail diligence, more fund and capital are required for the investment so it is not easy for new
entrants.
Threats of substitutes- This force is also low in context of John Lewis because the
organisation fabricate commodity and work accordant to the trend and fashion or accordant to
the needs and postulation of the customers. So that it can provide satisfaction to them.
Bargaining power of suppliers- In John Lewis, the negotiation power of provider are
comparatively low because there are number of provider in the marketplace and they provide raw
material to the company. John Lewis is not totally parasitic on suppliers as it primarily trade its
proprietary commodity which is favourable for profit margins.
Bargaining power of buyer- It is relativity high because there are number of competitor
of John Lewis and they provide various substitute products to customers at affordable price
(Scholes, 2015). In retail sector, the needs and postulation of customers for commodity and
services are high as it needed for their daily life.
Threat of competitions- In retail industry, there are number of competitor such as ASDA,
Tesco, M&S and other and they create competition for John Lewis so the threat of contention is
flooding. There are many retailers and they compete with this company by providing their own
products and services at best price and use good promotional strategy to attract consumers.
TASK 4
P4. Use a range of theories, concepts and models, interpret and devise strategic planning for a
firm
Every business can not survive and operate independently and can not face the challenges
from outside. For the amended perceptive of the position, John Lewis can use Ansoff Matrix
(Shuen, 2018). It is a strategic planning tool that help the managers of the company by providing

a framework for future growth. This strategy can be utilized by the administration division of the
organization as marking growth strategy. In context of John Lewis, Ansoff Matrix is as
following:
Market penetration- It is the first stage of this model and risky strategy. Market
penetration provide the relevant and correct information related to competitors and needs or
demands of consumers. But this strategy is needed for the more investment in the new market
which affect the proficiency of the company. In John Lewis, in simple words, it the strategy in
which a company or firm tries to attain the growth of the organization with its existent trade
goods and services in existing marketplace segments in order to increase the market share of the
firm. In John Lewis, the organization can sell more home and garden furniture and accessories
with innovative features to its current consumers and new customers also who are loyal towards
it.
Market development- This strategy consist the pursuit of additional market segments or
geographical regions. In Context of John Lewis, by exploitation this plan of action, the
organization can expand its business in new market or new geographical location with its
existing products. This is risky stage because in it, the company is expanding into a fresh
marketplace. In this stages, the company give more concentration on the market segments
decisions like existing consumers, competitors and others which help in achieving high level of
efficiency (Spender, 2014). In it the organisation can usage different gross sales transmission
such as online or direct gross sales and target various groups of multitude to alteration of the
sales and earn profit.
Product development- It is the third strategy and the main motive of it is to introduce the
fresh goods in existent marketplace. In context of John Lewis, if the organisation utilize this plan
of action, it can promote its new or innovative product in the existent marketplace (Thompson,
Strickland and Gamble, 2015). It is little hazardous for the company because the product is fresh
in the market so there are risk that the product will liked by the consumers or not and it will be
helpful for the firm to provide different agonistic benefits. The administration division of the
organisation can usage this scheme to extend the product by producing various variants or
repackage the existing goods and services.
Diversification- It is the last strategy and there is high risk because in it product and
market both are new. So, it is hard to analyse that the product and services both will liked by the

customers in the new market place or not. In John Lewis, it is more risky strategy in comparison
to above others because there are small range for exploitation extant skilfulness or for attaining
economic system of standard. The primary benefit of this strategy is that if any firm adopt it, the
business concern endure from various circumstances which may not be impressed by others.
From the above mentioned matrix, market development strategy can be the most suitable
and relevant for the effective and efficient growth and development of John Lewis. Because it is
one of the leading retailer company which operate its business at global level and produce
diversified products and services. It help the organisation to expand its consumer exposure which
enable the company to add value and improve the brand images. With the help of this strategy,
the company can manufacture its new and innovative product in the market according to its
customers demand which can help in growth of the firm.
Strategic management plan
It refers to a document which is utilized by the organisation to communicate within firm's
aims, set priorities, insure that workers and other neutral are on the job towards common goals or
adjust the company's way in consequence to a dynamical environs. In context of John Lewis, it is
an ongoing process which help in monitoring and determining the business strategies. The
management department of John Lewis can used it for exploding the gross sales and profit of the
organization.
Objectives- The objective of the company is to increase 20% sales within 2 years by
using the market development strategy.
Aim- The aim of the organisation is to furnish gratification to the customers by producing
good and quality services and providing happiness to the employees by designing better strategy
for their growth.
Vision- To strengthen the John Lewis brands and drive new development.
Mission- The mission of the firm is to offer and provide high attribute trade good in
various sphere in which it operate its business such as food services, quality, hospitality and
others.
Strategies- It mention to the action plan which is formulated by the management
department of the company to attain its short term and long term objectives. It include planning,
directing, controlling different activities of the business (Akter and et. al., 2016). There are

various strategies that can be used by the organisation to examine the business situation of the
organisation and manage the firm. Some of strategies are as following:
Market analysis- It is an analysis which can be used by the company to monitor and
determine the necessity and postulation of the customers. In John Lewis, the administration
sector of the organisation can usage this analysis to distinguishing the customers inevitably and
postulation (Bromiley and Rau, 2014). When the firm spread out its business in new industry
then with the help of this analysis it can identifying its customers and know about their needs and
demands. For example, if this company expand its business in China then with the assist of this
analysis it can identifying the scope of its product in the new market.
STP- It refers to a strategy which is used by the companies to analyse the customers,
products, services and markets. In it segmentation, targeting and positioning are included.
Segmentation- In John Lewis, this consist, dividing and sub dividing the market in
various parts. The market division can be done on the foundation of statistic, geographical and
psycho graphic components. The management department of the company divided it customers
on the basis of above factors.
Targeting- In it, the company target its consumers and it is done on the foundation of
their taste & preferences, financial gain, lifestyles and others. In John Lewis, the firm target
youths, college students, employees and working class professional who are fashion conscious or
help them in building a brand image.
Positioning- This the strategy in which, the administration division of the organization
usage unique things such as promotional strategies, pricing strategies and others. In John Lewis,
the administration division of the organisation usage unique selling strategy to attract more
consumers. For positioned in the market, the institute can usage skeeming and superior pricing
because it produce products according the high society people.
Organisational structure- John Lewis is an worker owned UK firm which operate its
business through John Lewis & Partners department stores, Waitrose & Partners supermarkets
and others (Chen and Jermias, 2014).
Tactics- It refers to those actions which support the strategies that are adopted and
enforced by the company and management department of the company (Chu, KrishnaKumar

and Khosla, 2014). Some of tactics are following that can be used by John Lewis to support the
strategies:
Packaging- It is an important and beneficial tactics that can be used by the company and
help in the business or sales growth. In John Lewis, the firm can use that kind of packaging and
paper which is easy to recycle and do not harm the environment. Because now these days most
of the customer support to eco friendly packaging and help in protecting the environment. It help
the company to alteration the gross sales and raise the profitability and customer base also.
Free delivery- It is another beneficial tactics that can be implemented by the
administration division of the organization for increasing the consumer base and sales as well. In
John Lewis, the organisation can provide free delivery to its customers when they make
shopping online. At present time multitude like online shopping cause of deficiency of time so
this tactics help the company in increasing the sales and enhancing the productivity.
CONCLUSION
As per the defined content, it can be terminated that business strategy is an important tool
and techniques which assist the organization to accomplish its business maturation and achieve
various competitive advantages. To achieve the opportunities and growth, the organisation must
analyse its internet and external environment. For micro environment analysis, PESTEL analysis
is done and for internal, SWOT is conducted which helps in analysing strengths and weaknesses
of firm. Porter's Five Force model is defined for the competitive investigation so that the firm
can identifying its competitors at market place. Ansoff matrix helps in determining appropriate
growth strategy for firm and strategic management plan assists in its growth and development.

REFERENCES
Books & Journals