Global Business Environment

This report explores the global business environment and its impact on decision making and resource use. It focuses on the PESTLE and SWOT analysis of John Lewis partnership, a British organization dealing in watches, jewelry, clothing, and more.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. PESTLE Analysis...............................................................................................................1
2. SWOT Analysis..................................................................................................................2
Impact of SWOT analysis......................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global business environment is described as an environment which is differentiate
sovereign countries with elements exogenous to the home environment of the business, impact
on the decision making procedure on resource use and abilities (Brancu, Munteanu and Golet,
2016). Business activities can be influenced by the global environment that refers to the
unmanageable regional and international communication that impact how a business conduct
different business operations. This report based on the John Lewis partnership which is a British
organisation that operated by the John Lewis & partners department stores, Waitrose & partners
supermarkets. It was founded in 1929 by John Spedan Lewis. It was dealing into watches &
jewellery, clothing and many others. There are conducting PESTLE analysis and SWOT analysis
and present impact on the functional areas.
TASK
1. PESTLE Analysis
PESTLE analysis is a strategic tool which is utilised by the business to determine and
monitor the macro atmosphere that may have present impact on the efficiency of the business.
There are applying this model on John Lewis model such as: Political: John lewis partnership is tapping into rising market of UK because it essential
part of the European Union. Most of the competitors wants to tap in this market in order
to increase business activities because of Brexit impact on the United Kingdom. As a
result it impact on the retail stores and change their policies and legislation. Economical: In present time UK economy face the problem of high interest rate and
recession. Due to inflexible competition in retail sector has lead to retailers provide more
incentive to the customers. It will show impact on the rate of the products that offer by
the John lewis partnership in steady economy growth for UK. Social: In this factor mainly focus on the social activities ad life style of people. As per
the market trend change customer taste & preferences and linked with the lifestyle to gain
different opportunities of an organisation. John Lewis partnership affect by the retailing
trends that occur in the market and most probably follow by the consumers. In present
time people wants to better products & services. To attract customer company can
introduce more branded and latest fashion to customers.
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 Technological: There are consisting of changes in technology and digitalisation of
resources. Internet shopping is main of the important which is followed by mostly people
in retail sector. So it is shown impact directly that show impact on the sales approach and
profitability of the business organisation. Due to advanced technology increase paperless
work and management focus on the IT department activities in order to access by safe
networks and make available as per the operational activities (Benmamoun and et. al,
2016). Legal: There are consisting of all the legislation which is set by the UK government for
the retail sector. These stores must follow particular rules and regulations like
employment act, sales of goods act. It is applying by the John lewis partnership in order
to smoothly run all the business activities.
 Environmental: Different sources of resources utilised in manufacturing which is known
as cotton and wool are environmentally friendly. These threats as per the requirement
face of legal penalty towards livestock's in condition of health & safety. In this manner
mostly western companies are playing role of large organization in deducting carbon
footprint and deducting energy efficiencies. In present time increase environmentally
friendly methods that must apply by John Lewis partnership in order to increase
productivity.
2. SWOT Analysis
It is a framework which is applying by the organization to recognising and evaluating the
internal and external factors that can show impact on the property of a set project, place, product
and person.
Strength
 It is one of the most upmarket retail store that working working together in partnership
with Waitrose.
 They are providing effective customer services to enhance profitability.
 John lewis partnership offer quality product which is strength for the organisation.
Weakness
 The price of items is grater than as compare of other competitors which is not afford by
every one.
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 This business mainly depended on the labour activities so that become weakness for
operations (Chandwani, Agrawal and Kedia, 2016).
Opportunity
 John lewis partnership have opportunity to attract customer through fresh food because
customer wants non GMO foods.
 Increasing growth of the e-commerce retailing store and people prefer these stores for
shopping.
Threat
 Due to Brexit company face different types of problem that impact on the operational
activities and reduce customers.
 High priority security because many time people try for robbery.
 Adverse impact of the new legislation on business operations.
Impact of SWOT analysis
SWOT analysis is important tool which is applied by most of the organisation and also
apply by the John lewis to know information of internal factors of the business which is impacted
on the efficiency in positive and negative way. After analysis marketing department know that
how to conduct market research and in which factor require to required to focus effectively
because according to they are preparing strategy for the business in order to gain information
about customer which will help to gain opportunity. Finance department coordinated with other
department and set budget according to information which is gain by the SWOT analysis
(Madonsela, Mukwakungu and Mbohwa, 2017).
CONCLUSION
As per the above report follow PESTLE analysis to know different factors of the
company that impact on the business activities positive as well as negative manner. Through
SWOT analysis know strength, weakness, opportunity and threat of the business and how to
remain long time in the market. Through SWOT analysis impact on the different functional areas
because according to that they are preparing effective strategies.
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REFERENCES
Books and Journal
Brancu, L., Munteanu, V. and Golet, I., 2016. Understanding cultural intelligence factors among
business students in Romania. Procedia-Social and Behavioral Sciences. 221. pp.336-
341.
Benmamoun, M. and et. al, 2016. Gulf Arab E‐Business Environment: Localization Strategy
Insights. Thunderbird International Business Review. 58(5). pp.439-452.
Chandwani, R., Agrawal, N. M. and Kedia, B. L., 2016. Mindfulness: Nurturing Global Mind‐set
and Leadership. Thunderbird International Business Review. 58(6). pp.617-625.
Madonsela, N. S., Mukwakungu, S. C. and Mbohwa, C., 2017. Continuous innovation as
fundamental enabler for sustainable business practices. Procedia Manufacturing. 8.
pp.278-283.
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