Analyzing Business Strategy of John Lewis Partnership Plc

This report analyzes the impact of macro environment, internal environment, and competitiveness of the market on the business strategy of John Lewis Partnership Plc. It includes PESTEL evaluation, SWOT analysis, and Porter's five force model to evaluate the organization's strategies. The report also discusses the impact of political, economic, social, technological, legal, and environmental factors on the organization. The subject is Business Strategy, and the course code is not mentioned. The college/university is not mentioned.

Business strategy

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Apply appropriate framework to analyse the impact of macro environment in chosen
organisation and its strategies......................................................................................................1
TASK 2............................................................................................................................................4
P2 Analyse organisational internal environment in chosen organisation by using framework...4
TASK 3............................................................................................................................................7
P3 Apply Porter' five force model to analyse competitiveness of market in organisation..........7
TASK 4............................................................................................................................................8
P4 Apply various theories and practices to interpret strategic planning of organisation.............8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is consider as set of competitive moves as well as actions which is
mostly used by a company for various purpose such as attracting customers, gain succession,
improve performance and attaining goal. Respective report is based on the John Lewis
Partnership Plc which is a British organisation. It operates under the John Lewis & Partners
department stores, Waitrose & partners by providing Banking and financial services in order to
satisfy large no. of consumer’s wants. This report will include several topics that are impact as
well as influence of macro environment at a company, evolution of internal environment and
capabilities.
MAIN BODY
TASK 1
P1 Apply appropriate framework to analyse the impact of macro environment in chosen
organisation and its strategies.
PESTEL evaluation of John Lewis Partnership:
It is important for an organization to develop understanding about micro environment and
various elements included within it(Kunc and O’brien, 2019). This is helpful in developing
aggressive strategies which helps an organization to grow and attain sustainability as per market
analysis. Macro factors are responsible for direct impact upon organizations. In order to develop
proper understanding about these factors PESTLE analysis is used.
PESTLE analysis
It is an framework that has been used in order to conduct analysis upon various factors
like political, economical, social, technological, legal and environmental perspectives. Further in
relation to John Lewis partnership PESTLE has been conducted as follows:
Political factor:
These factors are based upon those policies that has been formed by government in
relation to tax, labour and environmental policies. These policies develops direct impact upon
working of an organization(Kitsios and Kamariotou, 2019). The factor is responsible for making
growth possible within market of UK by helping in attainting sustainability within market. The
political environment of UK is quite suitable since the government has focused upon reducing
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tax from 30% to 28% that has helped in increasing profitability within an organization(PESTEL
Analysis of John Lewis | Business Teacher, 2019). Thus the element is important for the selected
organization.
Positive effect:
Decrease with inside the company taxation could be very an awful lot essential element
for John Lewis Partnership in gaining better degree of profitability and sustainability with inside
the marketplace de. Flexibility in taxation policies
Negative impact:
It is easy to enter within the marketplace of UK which has been enhancing number of
competitors within marketplace that has been enhancing bargaining power of consumer on John
Lewis partnership Plc adversely(Why Expand To The UK?, 2020). The competitors with
respective factors of an organization are M&S, House of Fraser, ASOS and Primark. This makes
potential evaluate respective factors potentially for building strategies and tactics.
Economic factors:
The factors relates with direct impact upon economy through elements like rate of
interest, taxation, laws and governance, wages with governmental activities. This factor holds
responsibility regarding profit and revenue generation within economy. The economic
perspective in UK has become quite uncertain after Brexit and has impacted retail industry for its
sales of product and services(Kingsnorth, 2019). Thus it makes direct impact formed upon
economic strategy of organization with high rate. In order to develop understanding about its
impact both negative and positive aspect has been discussed as follows:
Positive impact:
In relation to John Lewis its is known by organization that in UK marketplace is
important with innovation and potential developed within growth of market. Due to this rigid
competition within marketplace is able to sell more product and services with the potential of
consumer helping in uplifting its income.
Negative impact:
In context of John Lewis if recession within the economy takes place then profit ration
decreases which makes economic instability created in an organization. Thus economic factors
has negative impact upon organization's growth.
Social factors:
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As per these factors the change within culture, taste and preferences is understood by an
organization. It leads towards development of organization according to diversity existing in
market. Also, potential demand of consumer is understood with needs that makes organization
achieve materialistic aspects regarding its product and services. In this regard potential of John
Lewis is introduced with negative and positive impact as follows:
Positive impact:
The change in consumers taste and preferences has become bigger opportunity for an
organization which has helped in reaping effective outcomes. In relation to John Lewis its has
become important for gaining competitive edge within the market.
Negative impact:
Since society is vibrant in nature which causes faster change within needs of consumer
making organization difficult to full fill demand due to high investment. In relation to John
Lewis it is required to understand about changes for maintaining its consumer base.
Technological factors:
technology is an evergreen changing factor which has been developing on regular base as
per its advancement(Khanmohammadi, Zandieh and Tayebi, 2019). This factor is required by an
organization to be adopted as it makes product circulation possible with better approach for an
organization. This impacts the supply chain mechanism which has been discussed with negative
and positive impact discussed as follows:
Positive Impact:
In context of John Lewis partnership investment is required to be done by making
investment over technology which helps upon making product and services enhance its
experience of an organization. Technological improvement leads towards enhancing of delivery
process within an organization.
Negative factors:
If technology is not improved then organization is not able to cop up with modern
technology trends. This directly impact the operations of John Lewis partnership in terms of
delivering services within an organization.
Legal factors:
These are those factors which is based upon developing legislation and laws with
regulations formed by lawmakers of a country. The factor is responsible for attaining
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development of strong legal framework within an organization. In relation to John Lewis
partnership different regulations is required to be followed which is related with health and
safety, employment laws. Its evaluation has been done as follows:
Positive impact:
In context of organization different norms and conditions that leads upon regulating
organizational work which is based upon legal perspectives. This leads upon bringing strong and
effective framework in terms of legal establishment.
Negative impact:
The organizations deals over various aspects which makes stimulation done over various
adopted laws. In case the laws are not followed by John Lewis partnership results in making
them face legal consequences towards performing its operations.
Environmental factors:
These are the factors which is based upon environment perspectives that is related with
pollution, waste management and climatic conditions. The impact of these factors has been
discussed as follows:
Positive impact:
It is required by John Lewis partnership to seek that environmental awareness is created
in terms of issues existing within society(Ghauri, Grønhaug and Strange, 2020). These issues are
based over pollution and carbon footprints which are major cause of pollution.
Negative impact:
If John Lewis partnership fails to create awareness over environmental issues then sever
consequences are faced which makes negative impact created over growth of organization.
TASK 2
P2 Analyse organisational internal environment in chosen organisation by using framework.
In this rising competition within the world various kinds of relevant perspectives are
important which is based upon bringing changes in internal environment. Internal environment is
based upon various kinds of aspects that relates with various framework which has been
discussed as follows:
SWOT analysis:
Strength: Weaknesses:
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 Superb performance in market: The
main strength of respective
organization possess experiences which
is based upon entering within new
market helping in gaining success
through it. Expansion within market
enables organization for gaining new
revenue stream that has easily
diversified cycle of risk for operating
potential within market.
 The other strength possess by
respective organization helps upon
tracking records which is based upon
acquisition and mergers performed by
an organization. They are successfully
integrated with number of technology
within past years for operating business
activities in effective manner.
 The main weakness of respective
organization that requires investment to
be done with technology which has
been using scale of expansion with
different geographical aspects that is
based upon making efforts developed
within market potential.
 This is other weakness within an
organization over financial planning
which is not done effectively leads
upon creating negative impact upon
organization. It is required to use cash
in most effective manner that makes
outcomes achieved in effective way.
Opportunities:
 The major opportunity within
respective organization is stable free
cash flow provides respective
organization over invest within
adjacent (wayde Sousa Jabbour, 2019).
Due to more investment within bank
has helped upon investing within
technology as well as new product that
makes competitive approach developed
more effectively.
 They are based decreasing cost of
transportation that leads upon lower
Threats:
 In market various trends of isolation
within world economy lead towards
making reaction from other government
which makes negative impact created
with international sales and
profitability.
 Change in consumer buying behaviour
by using online channel proved threat
for the existing physical infrastructure
driven supply chain model. So it is very
much potential to evaluate respective
factors properly in order to gain
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down of shipping prices making
positive approach for John Lewis
partners. This creates opportunities for
growth of organization.
desirable outcomes.
VRIO analysis:
VRIO evaluation is an analytical strategies that used for assessment of organisational
sources which will advantage aggressive advantage. VRIO is acronym with the aid of using
elaborating names as Value, Rareness, imitability and Organized
Resources Value Rare Imitability Organized
Design of
products
Yes - - -
Supply chain
network
Yes Yes - -
Talented
personnel
Yes Yes Yes -
Monetary power Yes Yes Yes Yes
Valuable: The first issue kingdom approximately that if assets provides fee via way of means of
supporting corporation via way of means of exploiting possibilities or via way of means of shield
towards threats. In context of John Lewis Partnership the maximum precious elements for
organization are as follows: Design of products: Design of services and products is one in every
of maximum precious belongings for the organization because it help in gaining purchaser
loyalty. Supply chain community: Supply chain community proved very lots useful for
organization in imparting services and products to closing purchaser base. Talented employees:
Talented employees is one in every of maximum precious belongings in the front of
organization, via way of means of presenting improve degree of schooling to personnel
organization may be capable of benefit proper outcomes(Danso and et.al, 2019). Monetary
electricity: Monetary electricity may be very capability because it help them to increase their
enterprise in different spheres that facilitates in accomplishing boom and possibilities. Rare: Rare
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assets that may be received via way of means of most effective one or few organization because
it presents brief aggressive gain. In context of John Lewis Partnership the uncommon assets of
the organization are as follows: Supply chain community: Respective issue is uncommon for
respective organization as they broaden their personal community to deliver services and
products. Talented employees: In context of John Lewis Partnership, they via way of means of
presenting the satisfactory operating situations and rewards to their personnel if you want to
preserve them for lengthy time. Monetary electricity: Monetary electricity may be very lots
uncommon for respective organization because it now no longer copied via way of means of
others effortlessly. Imitability: A useful resource is proved high priced to mimic if different
organization does now no longer replica it at an inexpensive charge range. Here are the elements
that organization recall now no longer effortlessly imitable in nature. Talented employees:
Respective organization via way of means of presenting numerous styles of engagement centers
that facilitates to construct loyalty and sustainability in marketplace. Monetary electricity: They
own the robust economic electricity this is very worth ful to expand enterprise possibilities
potentially. Organized: In an organization assets does now no longer confer any form of gain
itself however had to prepared in right way with the intention to attain blessings out of it.
Monetary electricity: Respective characteristic may be very vital for organization and that they
had to well set up it and spend on capability spheres.
TASK 3
P3 Apply Porter' five force model to analyse competitiveness of market in organisation.
Respective version facilitates to examine the aggressive aspect to construct techniques and
methods in a unique enterprise. Here are the assessment of retail enterprise in context of John
Lewis partnership Plc which are as follows:
 Bargaining power of supplier power: By the use of respective issue an enterprise may
be capable of apprehend the extent of opposition in a unique enterprise. In context of
John Lewis Partnership Plc they operated within the particularly aggressive marketplace
as big no. of fierce competition already existed in marketplace including M&S, ASOS,
Topshop and Primark.
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 Bargaining power of buyers: Respective issue of opposition states the bargaining
energy of providers if it's miles excessive in nature because of this that providers offers
low pleasant fabric at excessive rate and if it's miles bargaining energy is low because of
this that they offer quality pleasant merchandise at low prices(Clemons and et.al., 2019).
In context of John Lewis Partnership Plc that operates within the UK market, bargaining
energy of providers is low as there are big no. of providers already offer comparable sort
of merchandise to organisations.
 Threat of New entry: Respective issue determines how lots smooth for enterprise to go
into into the specific enterprise, if the enterprise is sufficient worthwhile in
nature(Cusumano, Gawer and Yoffie, 2019). In context of John Lewis Partnership Plc the
hazard of input into the marketplace is excessive because of in retail region there are
much less obstacles via way of means of which an enterprise can without problems input
into the market. Respective characteristic without delay effect at the organisational
profitability and sustainability in market.
 Threat of substitution: Respective pressure is majorly threatening even as consumers
can without problems discover replacement services and products in appealing rate and in
higher pleasant. By comparing respective issue man or woman can without problems
transfer closer to the every other product that have an effect on profitability of enterprise
adversely. In context of John Lewis Partnership Plc there are large of groups operated
within the market and that they competitively offer quality merchandise at low rate that
paintings as hazard for respective enterprise.
TASK 4
P4 Apply various theories and practices to interpret strategic planning of organisation.
This is based upon understanding about various strengths that has been possessed by
organization making potential developed for examine tools, devices and strategies(Carp and
et.al., 2019). The analysis is based over Porter generic strategies that has been discussed as
follows:
Porter's Generic strategy:
Porter's Generic method is primarily based totally upon distinct diverse that leads upon
growing organizational method for gaining appropriate outcomes
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 Cost leadership: In respective method, an corporation units outs to come to be the only
of low price manufacturer of services and products within the marketplace. The supply of
price benefit rely upon the shape of enterprise that allows you to appeal to massive no. of
client base. In context of John Lewis Partnership Plc via way of means of buying
merchandise in bulk they could lessen the price in their very last services and products.
Respective characteristic make contributions in gaining better degree of profitability and
sustainability in marketplace.
 Differentiation: In respective method a organization seeks to be seize marketplace via
way of means of placed oneself uniquely in marketplace that own precious role in
marketplace. In context of John Lewis as they usually attention on presenting the precise
services and products via way of means of undertaking studies and improvement on
ordinary foundation to offer one in every of first-rate one to their purchasers.
 Focus: The commonplace method of attention on is predicated on the selection of slim
aggressive electricity of corporation(Bentley-Goode, Omer and Twedt, 2019). They via
way of means of counting on the section or institution of segments within the enterprise
that allows you to construct merchandise accordingly. In context of John Lewis
Partnership Plc they construct merchandise for children and those who usually need
innovation of their services and products. In context of John Lewis Partnership Plc via
way of means of the usage of the differentiation method which could appeal to the
massive no. of capability purchasers toward them.
Strategic Plan:
Executive Summary
Strategic plan is based upon helping within an organization that makes business done
effectively for gaining competitive advantage against competitors within market. John Lewis has
has decided to launch retail outlet within Vatican city for uplifting sales.
Organisational Structure
John Lewis is an public sector organization structure within which board of directors and
top management is highest authority (Baumgartner and Mangematin, 2019). The management
makes all important decision regarding organizations progress. This organization is based over
decentralized structure as employees within an organization.
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Mission:
The mission respective organization“Provide happiness of employees and best
employment condition in successful manner”. This has helped in measuring success with
ability to enhance position of retail organization. It has helped in making organization deal with
situations of employees.
Vision:
John Lewis partnership holds vision for operating various business activities which
makes organization to be successful. It has helped in making personnel sharing profitability
making knowledge achieved effectively. Also vision helps upon making organization achieve
personal and positive perspective that leads upon making efforts of organization recognized.
Objectives:
The main objective of respective organization is based reinventing and transformation of
shops by developing product and services by relying greatly over brand, exclusiveness and
innovation. Through over food innovation studio to boost Waitrose & Partner within product
development of eating specialists which market share.
Macro and micro environmental analysis
Macro and micro environment is based upon two important perspectives that are internal
or external elements impacting functioning of business organization. It is important to make
evaluation of such environments. It has been discussed as follows:
Macro environment analysis
It is based upon certain factors which are political, economical, social, technological that
are important for an organization. Under political factor for making expansion done within
Vaticant city the management of the organization requires to make research done for
understanding about political conditions that makes success of business organization possible
within the selected market(Auliandri and et.al., 2019). Economic factors it is important for
making expansion possible since the economy is supported by Roman Catholics. This makes
organization develop appropriate plans that make organization suitable for Waitrose & Partner.
Social this is another important factor which is used for understanding about society and needs of
customers. This makes John Lewis develop its product and services accordingly. Technology is
another important part which is used for making customers encourage purchase of product. This
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is used for boosting productivity within an organization helping in gaining competition edge
within market.
Micro environment analysis
This analysis is based upon internal factors that is related to strength, weakness,
opportunity and threat posses by John Lewis. Strength John Lewis is an popular retail store
within UK that has been offering wide range of brands which is provided to its customers. This
has helped in capturing market without any problems. It has become strength since it increases
brand value and attract customers at large. Weakness the range of product offered by brand is
comprehensively less in relation to other competitors which has made reduction of sales within
market. Opportunities increase within purchasing power of people act as opportunity for
organization making business growth possible in Vatican City. Intense competition form local
brands which poses serious competition of organization which leads upon impacting customer
base directly within new market.
Competitors analysis:
This is important for an organization to keep eye over its competitors which is done with
the helps of these analysis(Ansoff, and et.al., 2019). It is used by John Lewis toe prepare
strategies that makes them stay ahead of its competitors.
Market analysis:
For an organization market analysis is important since it leads upon developing
understanding about various perspectives which exists within market. Thus an organization is
able to achieve its goals and objectives more effectively.
CONCLUSION
By analysing above mentioned topics it can be summarised that for a company business
strategy plans an essential role because through it they can develop or create strategies and plans
in effective manner. This will also help them in attaining goal as well as objective by
understanding environmental situation and condition. In order to adopt business strategy process
it is essential for a company to conduct market evaluation properly and for that they can
implement different strategies, models or approaches such as VRIO, SWOT, PESTEL and
porter's five force model. This is essential because after evaluating micro as well as macro
environmental factors an organisation able to conduct effective analysis of competitive market
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which help in developing strategies or plans. Along with this firm can also adopt several other
model or technique for example Ansoff matrix, porter's generic model and so on. By adopting
this a company can conduct business operation properly which help in attaining objective or
target.
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