The assignment is focused on analyzing business strategies and operations in an organization. It covers the importance of conducting internal and external analyses using various models such as SWOT, PESTEL, and Porter's five forces model. The document also includes references to relevant books and journals for further study.
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Table of Content INTRODUCTION........................................................................................................3 TASK 1.......................................................................................................................3 P1 Applying appropriate frameworks analyse the impact and influence of the macro environment on a given organisation and its strategies...............................................................3 TASK 2.......................................................................................................................5 P2 Analyse the internal environment and capabilities of a given organisation using appropriate frameworks...................................................................................................................................5 TASK 3.......................................................................................................................8 P3 Applying Porterâs Five Forces model evaluate the competitive forces of a given market sector for an organisation.............................................................................................................8 TASK 4.....................................................................................................................10 P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for a given organisation..............................................................................................................10 CONCLUSION..........................................................................................................11 REFRENCES............................................................................................................13
INTRODUCTION Business strategy is refers to a process or technique that help an organization to develop plans and strategies of appropriate as well as higher level in order to achieve goal and objectives in effective manner. Through appropriate business strategies a company is able to attain various advantages which help in achieving goal and objectives such as competitive advancement, expansion of business operation, enhancement in financial status and customer base and so on (Alsudiri,Al-Karaghouli and Eldabi, 2013). Organization which is selected for this assignment is John Lewis Ltd. That is established by John Spedan Lewis in year 1929. They are mainly operating their business in retail industry and it is headquartered in Oxford Street, London, United Kingdom. They offer variety of product and services such as clothing, watches, jewellery, giftware, furniture, foods, cosmetics, beddings and many more. Respective report includes topics like evaluation and analysis of marketplace in respect of micro and macro environment factors. Along with this it will include strategic plans which are used for evaluating environment. TASK 1 P1 Applying appropriate frameworks analyse the impact and influence of the macro environment on a given organisation and its strategies For conducting and running business in effective manner a company should analyze its external factors which are affecting the respective company. John Lewis Ltd conducts PESTEL analysis for evaluating and analyzing its macro environment factors. Explanation of PESTEL of which in context of John Lewis Ltd. is given below- ďˇPolitical: Many companies decide to enter in the United Kingdom market part of Europian Union. The market barrier in Europe is very less which makes it easy for the companies to enter into it, which seems as competitors for John Lewis Ltd. Due to this the UK government takes a decision to reduce the corporation tax from 30% to 28% which will help the companies in enhancing their profitability in the future (PESTEL Analysis of John Lewis,2019). Also the companies will be able to conduct their business operations and functions in effective and appropriate manner. But according to the requirements the rules and regulations of the government changes which mean John Lewis Ltd. may also have to develop new strategies accordingly.
ďˇEconomical:The economy of United Kingdom is dealing with recession due to which sensitive situation occur for changing interest rates. In order to deal with these situations the companies of retail sectors should offer their products and services at low prices. This situation also influences the business of John Lewis Ltd., they also have to offer their products at low prices and provide discounts also. Respective company very easily attracts more customers with their pricing strategy but for other company managers it is very difficult to change their strategies accordingly. ďˇTechnological:John Lewis Ltd. offers internet shopping in order to minimize the wastage of paper and attract customers for shopping any time and at any place. The company also use advance technology in order to manage their administrations and operations effectively and efficiently (PESTEL Analysis of John Lewi,2019). Adoption of new technology makes the work easy and effective but at the same time it may be costly for the companies which affect their budget and other activities. ďˇEnvironmental:Many retail companies are taking initiatives to make the environment clean. John Lewis Ltd. adopts new technologies and strategies for reducing their carbon footprints also they use recyclable papers and energy to reduce pollution. By this the company is able to attract more customers by developing such products which are more skin friendly and environment friendly but at the same time more money has to be invested adopting these techniques. ďˇLegal: While operating in retail sector John Lewis Ltd. has to ensure all the legalization related to the health and safety of the customers as well as employees. They should use renewable resources for manufacturing clothes (Chang 2016). Along with this they should also take care of their employees by ensuring their safety and proper equipments. By adopting the legal factors effectively John Lewis Ltd. can run its business effectively and efficiently but the regular changes in these factors affect the decision making of the manager.
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TASK 2 P2 Analyse the internal environment and capabilities of a given organisation using appropriate frameworks John Lewis Ltd conduct SWOT analysis and VRIO analysis for analysing its internal environmental, through with them able to identify its capabilities in proper as well as effective SWOT Analysis:- StrengthWeakness ďˇTherespectivecompanyhavevery strong brand image that encourage and attract peoples for buying products. ďˇThey also have very strong presence through online which offer trendy and attractive design to customers. ďˇManagement of John Lewis Ltd focuses onmaintaininganddeveloping effective employeeâs relations. Through which they able to motivate as well as retain employees for long run (John Lewis SWOT Analysi,2019). ďˇJohn Lewis Ltd attract their customer byofferingdesignerandtrending products in affordable to their potential customers. ďˇJohnLewisLtdisfacingissuesin expandingbusinessininternational market. ďˇAlong with this they are also lacking in developingappropriatemarketing strategies. ďˇThey are also lacking behind in context of competitive advancement at local, national and international marketplace. OpportunitiesThreats ďˇBy effective and appropriate strategies respective company can expand their business in international marketplace. ďˇJohn Lewis Ltd can also develop new, innovative and unique selling strategies for attracting more and more customers. ďˇRegulationsandruleswhichare developingbygovernmentaffect business operation of John Lewis Ltd (Bharadwajand et. al., 2013). ďˇOne of the major threats for respective company is their competitor such as
ďˇThey can also introduce new ranges of products. ďˇThe respective company also enhance their business by creating private labels in effective and appropriate manner. ASDA,TESCOPlc,Marksand Spencer, ZARA and many more. ďˇJohn Lewis Ltd also has fear of failure i.e. if they expand in new or diverse culture market they may face failure. By conducting SWOT analysis respective company understand their strength, opportunities, weakness and threats. Now they conduct VRIO model in order to analysis their capabilities to expand business. VRIO Model: -This particular model is adopted by a company in order to indentify and analysis its capabilities(Chang, 2016).By this they can develop and indentify many things such as create appropriate vision and mission statements and objectives, do analysis of internal and external factors and many more. Explanation of VRIO model in context of John Lewis Ltd is given below:- FactorsValuableRarityImitableOrganizedWhat is the result? Global presence Global presence ---Competitive disadvantage ProductsProductsProducts--Partially competitive SoftwareSoftwareSoftwareSoftware-Temporary competitive advantage EmployeesEmployeesEmployeesEmployeesEmployeesCompetitive advantage Valuable:It refers to those elements of John Lewis Ltd which are valuable for them and those help in attaining goal and objectives.
ďˇGlobal presence-It is valuable because through this respective company earns various things such as effective brand image, profitability, loyal customers and many more. ďˇProducts-Reason behind valuable of this element is that, by this company able to attract more and more customers in effective manner. ďˇSoftware-It is valuable because by this respective company able to secure as well as manage their data in effective and appropriate manner. ďˇEmployees-These are most valuable for John Lewis Ltd because by this they able to attain each and every goal in effective manner. Rarity:It refers to those factors which are rare and by which John Lewis Ltd gain competitive advancement in effective manner(Eatonand Kilby, 2015). Here global presence is not rare because there are various competitive companies present at marketplace. ďˇProducts- Products are rare for respective company because it is different from other company in respect of quality and design. ďˇSoftware- It is rare because it is developed by respective company according to their need and requirement which is different of every company. ďˇEmployees- This factor is rare because every employees of John Lewis Ltd have their unique and innovative skills and knowledge which company in attaining goal. Imitable-It includes those factors which are not copied or imitate by another company in order to gain advantage(Iacob, Quarteland Jonkers, 2012). In respect of respective company products are imitable by other company to gain competitive advantage. ďˇSoftware- Software of respective company is not imitable because it is based on their need which is very hard to copy. ďˇEmployees- Employees of John Lewis Ltd are very effective and skilled which is not possible for anyone to copy. Organized-It refers to those factors of respective company which need very little organization and by which they attain goal and objectives. Software of John Lewis is not organized factor because it needs to be organized on timely basis. ďˇEmployees-Employees of respective company on need to be organized on regular basis. They are very skilled and knowledgeable. John Lewis Ltd also provides training to employees when they adopt new strategies.
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TASK 3 P3 Applying Porterâs Five Forces model evaluate the competitive forces of a given market sector for an organisation Porterâs five force model is a technique or methods which are adopted by an organization for conduct evaluation and analysis of intensity of competition at a marketplace. Through which leaders and managers of a company is able to design and decide strategies, plans and policies in proper manner(Jocovicand et. al., 2014). Along with this an organization also increases its profitability ratio as well as customers base in effective and efficient manner. This process mainly include factors like operations, structures, work conducted, products and services and many others. Management of John Lewis adopt Porterâs five force model in order to conduct market evaluation in effective and efficient manner, explanation of that is mentioned below:- ďˇThreat of new entry: -It is considers as a situation in which any new company enter into particular market easily. It is also possible when that specific market is highly profitable and there is very less barriers as well as legislations. Due to this various company want established their business in particular market in particular marketplace or industry. In respect of John Lewis Ltd, threat of new entry is low. It could be so because it not easy for new enterprises to establish their business same like John Lewis in less duration of time (John Lewis -- the five competitive force,2019). According to analysis of marketplace of United Kingdom respective company is considers under top 10 retail companies. ďˇThreats of substitute: - It is a condition when the competitive company offers the same product and services at same quality but at lower price. In this case, there is huge chance that the buyer will switch to other options who are offering same quality of product at lower price. Here, buyer is the king of the market as they get more substitutes of a particular product and services. In John Lewis Ltd. case threat of substitute is lesser as there is no close substitute company that can offer same quality product at lower price. ďˇBargaining Power of Customer: - The bargaining power of customer is a condition where customer can ask for product and services but at more bargained price. When there are various substitutes in the market then only customer get this chance to bargain the price(Lawton, 2017). Provided, it can affect the production of an organisation when it
manufacture the product at the standard quality level but sale it at lower than the standard price the profit margin get influenced. Similarly when it manufacture the product at lower quality for maintaining the lower selling price then it affects the customer's expectation as the quality of product is now degraded. In case of John Lewis Ltd. there is huge chance of getting bargained as there are various companies who are offering same quality of product and services at more affordable price. For this purpose the company must develop an effective strategy for production which can attract customer. ďˇBargaining power of supplier: - It is a situation when there are less number of suppliers in the market of a particular product and services. In this supplier can ask more prices for a standard quality of product that can directly affect the cost of production of a company. Here, supplier's power of bargaining is high as there is fewer amounts of suppliers. In context of John Lewis Ltd. power of bargaining is very low because there is little number of suppliers for supplying a standard quality of product. Due to this management of a company maintains a healthy relation with their respective supplier. ďˇCompetitative Rivalry: - It is refers to the situation where various companies offers same product at lower price than the competitive company's price for getting large amount of market share(Liand Tan,2013). But an intense rivalry may limit the profit earning of the company as it totally depends on the price cutting moves. For this purpose various company adopt the strategic plan and do their strength and weakness analysis. For John Lewis Ltd. there is huge chance of getting competing as there are numerous competitors in the market offering same quality of product and services to the customer. Few examples are ASDA, TESCO Plc, McGrath etc. Therefore, it is must for the company to have an effective plan and develop strategy for the respective factors stated above that will help company in long run. TASK 4 P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for a given organisation John Lewis Ltd management conduct Ansoff Matrix through which they able to analysis and evaluate market in order to develop plans, strategies and policies in effective and efficient manner. Explanation of this in context of respective company is below:-
Ansoff Matrix-It refers to techniques or procedure which is adopted by an organization in order to develop as well as create plans, strategies and policies which help them in expand their business in appropriate and effective manner(McGrath, 2013). This can be generally used by executives, senior manager, marketers and many more who basically strategies plans for their staffs so that they will conduct their work in effective and appropriate manner. In context of John Lewis Ltd, their manager uses respective method so that they conduct market evaluation to identify opportunities in order to develop strategies in effective and appropriate manner. Explanation of this is given below:- ďˇDiversification:According to this strategy an organization introduce new range of products and services at a new marketplace. So that they able to enhance their customers base in effective as well as in efficient manner. In context of John Lewis Ltd enlarge their products range in new market they able to boost its brand profitability and goodwill at a marketplace. Thus for achieving this they have to conduct various function such as identifying potential customers and market, adopt appropriate advertising techniques and many more. ďˇMarket development:According to this method an organization plan to expand their business at new market with the help of new segment. Through which they able to target more and more customers in proper and efficient manner from diverse sections(Murthy, 2012). In context of respective company, they will introduce new product segment in new market. Such as they can offer their same existing products at new market, which they are offering to another market. By this they able to enlarge their customer base of exiting product, along with this they must also offer new range of products with this. ďˇProduct development: It refers to technique according to which an organization develop new unique products range for existing market so that they able to attract and retain customers on large basis and for long time. In respect of John Lewis Ltd, they will develop innovative and unique range of products for existing market for which they can enlarge their customer base in large ratio. Through this customer also get encourage to visit stores on regular basis for checking out new ranges of products, by this company also able to increase their footfall. ďˇMarket penetration:It refers to a technique which is adopted by a company when they want to sustain or expanding their business at existing market by offering existing
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product(Oestreicherand Zalmanson, 2013). In respect on John Lewis Ltd, fro enlarging its business of existing product at existing marketplace they will adopt various techniques in order to attract more and more customers. Such as they will enhance their promotional techniques, offer discounts and attractive offers and many more. Through which they able to convince and cover large ratio of potential customers. By which they able to increase their profitability ratio as well as market shares in effective and efficient manner. After determining and evaluating all factors of Ansoff method manager of John Lewis Ltd identify that product develop is most appropriate and effective for them. For which they will introduce new range of products and services such as now they are only dealing in western clothing. So they can introduce more range of products such as traditional through which they able to attract more and more customers of existing market. This will also help respective company in increasing their profitability ratio and market shares. CONCLUSION From the above discussed point it can be conclude and analysis that business strategies is essential for each and every organization in order to conduct operations as well as functions in effective and appropriate manner. If an organization wants to conduct analysis of internal factors that are affecting business they can use SWOT analysis as well as VRIO analysis. Moreover for conducting analysis of macro environmental factor company may conduct PESTEL analysis. After completing evaluation of micro and macro environment factors an organization must conduct evaluation of competition in a market by conduction Porters five forces model. Along with this for developing appropriate strategies, plans and policies a company may conduct porterâs generic model. Through all these, management of a company able to develop as well as create strategies through which company able to conduct operation function in effective and efficient manner.
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