Business Strategy

BUSINESS
STRATEGY

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
P1 Macro environmental analysis with PESTLE analysis.....................................................3
M1 Critique of PESTLE Analysis..........................................................................................5
P2 Internal analysis with the help of SWOT and VRIO analysis...........................................5
M2 Critique of internal environment......................................................................................8
P3 Five Force analysis............................................................................................................9
M3 Ways to improve marketplace positioning....................................................................10
P4 Strategic planning with Ansoff Matrix............................................................................10
M4 SMP................................................................................................................................11
CONCLUSIONS............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy refers to the course of action along with decisions that together give an
alignment to the functioning of business enterprise (Brewster, 2017). This is majorly aimed at
capturing the attention of a large quantum of population with a view to achieve organisational
objectives in set time frame. This provides assistance to an organisation in gaining a strategic and
competitive edge in marketplace. This report conducts strategic analysis of John Lewis that is a
British retailer dealing in product segments such as watches, clothing, jewellery, food, cosmetics.
This comprises of PESTLE, SWOT as well as VRIO analysis to gain an insight into macro
environment of entity and company’s capabilities. Furthermore, Five Force model is included to
assess firm's competitive atmosphere. Further, Ansoff matrix is included to analyse the strategic
options and devise a strategic management plan.
P1 Macro environmental analysis with PESTLE analysis
To conduct and successively running business operations in effectual manner business
organisations are required to assess their macro environment factors which will assist them to
evaluate the external factors which has a great impact on the organisation (Cavusgil and et. al.,
2014). John Lewis has done macro environmental analysis with the help of PESTLE.
PESTLE Analysis
It can be defined as the strategic technique that is used to analyse the external factors
affecting an organisation to develop suitable strategies to carry out the business operations in an
effective manner. PESTLE analysis applied to John Lewis as follows:-
Political: The business organisation has been functioning within the marketplace of
United Kingdom which is a part of EU. In Europe, the political state is strong and this results in
creating great chances of competition for John Lewis Ltd. Because of this reason the government
of UK has decided to decrease the corporation taxes from 30.2% to 28.1% that will be really
helpful for the business organisation to augment profitability in the market (John Lewis PESTEL
Analysis, 2019). The implementation of the political factor in successful manner will lead the
organisation in carrying out their business operations in effective and efficient manner. John
Lewis is also required to develop the strategies according to the rules and regulations formed by
the government. The threat in this regard for the company can be a political turmoil or terrorist
attacks. To deal with this, organisation should keep a back-up plan through which they can
ensure least harm owing to adverse political state.

Economical: The economy of United Kingdom is influenced by Brexit owing to which it
is facing recession due to which there are high fluctuations in the interest rates. To handle this
situation effectively the business organisations working in the retail sector are required to
provide the products at a low price to the customers (Goffee and Scase, 2015). This market
situation will also affect the business operations of John Lewis Ltd. they will also need to cut the
prices of their products and services for the customers and also required to provide great offers to
sustain in the market. John Lewis Ltd. is required to develop the products in view of that they
will be able to attract more consumers with their pricing scheme. But it is very complicated for
the manager of the organisation to amend the strategies accordingly. The opportunity associated
with economic system of UK is that the economy of this nation is strong and facilitates the
growth of businesses that launch innovative products.
Social: Culture of the society changes at a fast pace that result in the creation of great
opportunities for the business organisations to catch the attention of customers by presenting new
products and services in the market (Chen and Jermias, 2014). That helps a business organisation
in gaining a large customers base and profitability in the market. John Lewis Ltd. introduces new
and fashionable products in the market to catch the attention of the customers in successful
manner such as clothes, accessories etc. (John Lewis: competitive advantage in a tough retail
market, 2015). In this regard, threat for the company is the probability that an external market or
consumer trend is detected by rivals earlier than John Lewis. To deal with this, company should
invest in R&D through which knowledge can be gained about key trends in market.
Technological: These factors refer to the internet shopping which is introduced by the
John Lewis Ltd with the aim to decrease the wastage of paper and catch the attention of
customers and giving the facility for shopping at any time from any place (John Lewis SWOT
and PESTEL Analysis, 2019). The business organisation also use advance tools and techniques to
manage their business operations in effective manner (Chang, 2016). These factors help them to
implement new technology which formulates their work in a easy and successful way. But
adopting new technology is expensive for the company which affects their financial plan and
other activities, thus, John Lewis should allot a particular segment of budget to procurement of
adequate and effective techniques or technologies.
Legal: While working in the retail sector John Lewis Ltd. make sure that all the
legalisation associated with the health and safety for the customers and employees are duly