Strategic Management Plan for John Lewis Ltd: Analyzing Macro and Micro Environments

Business Strategy
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Table of Contents
Introduction................................................................................................................................3
LO1 Analyse the impact and influence which the macro environment has on an organisation.
....................................................................................................................................................4
LO2 Assess an organisation’s internal environment and capabilities........................................6
Assignment 2..............................................................................................................................8
Evaluation of the different types of strategic directions available to the organization..............8
Justify and recommend the most appropriate growth platform and strategies...........................9
Produce a strategic management plan with strategies, objectives and tactics..........................10
Conclusion................................................................................................................................11
List of References....................................................................................................................12
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Introduction
The success of a business depends on the business environment surrounding it. The business
environment includes components such as producers, suppliers, the relationship between the
employees and the organization, availability of raw materials and resources, socio-cultural
and technological changes, market trends and so on. This strategic management plan report
aims to study how macro environment and micro environment factors affect the organization,
with reference to John Lewis Ltd, a UK based retail company with several departmental
chains in the country. This report attempts to evaluate the current environment impacting the
company, and suitable strategic decisions that can be implemented by management.
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LO1 Analyse the impact and influence which the macro environment has on an
organisation.
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies.
The macro environment factors of an organization can be categorized under demographic,
socio-cultural, economic, political, technological and environmental factors (Babatunde and
Adebisi, 2012).
Demographic- Demographic factors include change in consumer population, age group,
consumers of different ethnicity, geographical distribution of consumers and income
background
Socio-cultural- As the social norms change, new customer trends emerge. An organization’s
marketing processes are dependent on socio-cultural forces.
Economic- A flourishing economy means that consumers have more purchasing power. The
income and purchasing power of a consumer affects the pricing decisions and the sales of an
organization (Yüksel, 2012).
Political- Times of conflict, war and uncertainty affect the way a company functions, as the
consumers, producers, labour force and other factors are also affected.
Technological- Technological innovation brings about new products and affects consumer
demand as well. The organization has to keep up with the new technology to perform
competitively.
Environmental- The availability of raw material is often dependent on environmental
resources. Environmental concern is a trend organizations have to be aware of.
In order to analyse the impact of the macro environment on John Lewis Ltd and the relevant
industry, the PESTLE analysis tool will be used here.
Political factor- Politically, UK is not in a stable position, as its separation from the
European Union has led to several negative consequences. The changes include new, stricter
trade and travel regulations, and the liquidation of several big UK businesses (Dhingra and
Sampson, 2016). Loss of employment, and reduced purchasing power have affected John
Lewis Ltd adversely- the consumers can no longer spend as much as they previously did.
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