Business Strategy - John Lewis
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Added on 2020-12-30
Business Strategy - John Lewis
Added on 2020-12-30
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BUSINESSSTRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................3LO 1................................................................................................................................................3P1 Applying appropriate frameworks analyse the impact and influence of the macroenvironment on a given organisation and its strategies..........................................................3M1 Critical analysis of macro-environment to communicate strategic decisions..................5LO 2................................................................................................................................................5P2 Analyse the internal environment and capabilities of a given organisation usingappropriate frameworks..........................................................................................................5M2 Critical analysis of internal environment.........................................................................9LO 3................................................................................................................................................9P3 Porter Five Force model to evaluate competitive forces of market..................................9M3 Strategies to enhance competitive advantage and market position................................10LO 4..............................................................................................................................................10P4 Strategic planning for organisation.................................................................................10M4 Strategic management plan............................................................................................11D1 Interpretation of data to conduct competitive analysis...................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONBusiness strategy refers to a set of competitive actions and moves undertaken by abusiness firm in order to lead the company towards attainment of organisational goals andobjectives. Such course of action strives to provide assistance to enterprise in adoptingfavourable measures and techniques (Cavusgil and et. al., 2014). These aid in directing theperformance of company towards achieving the stipulated targets and becoming a leader withinthe specific business sector. The present report is carried out upon John Lewis with a view toexplore the strategical decisions taken by company over the course of years. John Lewis is achain of departmental outlets running across United Kingdom and dealing in segments such asfood, furniture, watches, clothing, accessories, jewellery etc. This paper consists of PESTLEanalysis to conduct macro-environmental and SWOT as well as VRIO analysis to carry outinternal resources and capabilities evaluation. Also, the report includes Porter's Five Forceanalysis to gain an insight into entity's competitive environment. At last, the available strategicoptions for the entity are identified with Ansoff matrix and a strategic management plan hasbeen devised.LO 1P1 Applying appropriate frameworks analyse the impact and influence of the macroenvironment on a given organisation and its strategiesTo successfully carry out business operations in an effective manner, an organisation hasto constantly assess its external environment as the macro-environmental factors have asignificant influence upon the functioning of company. In this regard, the manager of JohnLewis has used PESTLE analysis to assess the impact of macro environment, as follows:-Political:The operations ofJohn Lewis are being carried out within United Kingdomwhich is situated within Europe. The political system of this continent is stable and strong. Thisfacilitates companies such as John Lewis to ensure its sustainability for a long time. Further, thegovernment of UK has cut shot the corporation taxes from 30% to around 28% which providesopportunities to John Lewis to significantly increase its revenues (John Lewis PESTEL Analysis,2019). An instance of terrorist attack or a political turmoil within UK will act as a threat forcompany. Thus, organisation should keep sufficient stock at all times to ensure no discrepanciesowing to political adversities.
Economical: The economic conditions of UK are strong and effectively aid the growthof companies that come up with innovative products, systems and techniques. Innovate UKSmart Grants is a programme started by R&D department of UK government to aid innovativecompanies like John Lewis (Smart: innovation funding for game-changing ideas from business,2019). However, Brexit has been impacting upon the economy of UK in an adverse mannerleading to a lot of economic distress in retail sector. John Lewis should offer its products ataffordable prices so as to deal with the consumer psyche post inflation caused due to Brexit.Also, they can offer schemes or discounts on goods to captivate people belonging to all incomegroups.Social: John Lewis launches products after conducting research upon the lifestyle trendsof consumers and market. This assists them in providing products which match the current needsand requirements of people such as accessories, clothing, watches etc. (John Lewis: competitiveadvantage in a tough retail market, 2015). However, if any of the latest trends are taken intoaccount by rivals before John Lewis, then it can create threats for the company and may evenlead to switching of brands by customers. To tackle this, entity should invest in conductingresearch to gain knowledge of the new preferences of consumers.Technological:With influx of time, rapid advancements occur associated withtechnologies and these have to be duly considered by companies to ensure sustainability for longterm. John Lewis entered into e-commerce with the aim to reduce the use of paper and tosignificantly gain the attention of people towards the initiatives taken by entity (John LewisSWOT and PESTEL Analysis, 2019). But huge investment is required to be made by John Lewisin order to execute such effective technologies across the organisational premises and this serveas a threat for company. John Lewis should consistently incur expenses to gain knowledge of thenew technology prevailing in marketplace.Legal:John Lewis makes sure that all the units and departments across theorganisational premises comply with laws and legislations associated with retail industry andcorporate world. Further, the company makes use of renewable sources for cloth manufacturing(John Lewis to boost renewables use in SmartestEnergy deal, 2019). However, if the enterprisefails to abide by the laws associated with hygiene, health and safety, employment etc., then itwill have to face severe consequences. Thus, John Lewis should ensure to undertake activities inthe interest of law.
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