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Strategic management plan assignment

   

Added on  2021-01-02

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STRATEGICMANAGEMENT PLAN

ContentsINTRODUCTION...........................................................................................................................................3TASK 1..........................................................................................................................................................3P1: Applying appropriate frameworks analyze the impact and influence of the macro environment on a given organization and its strategies...................................................................................................3M1: Critically analyze the macro environment to determine and inform strategic management decisions.................................................................................................................................................6TASK 2..........................................................................................................................................................6P2: Analyze internal environment and capabilities of business..............................................................6M2: Critically evaluate internal environment to identify strength and weakness..................................8TASK 3..........................................................................................................................................................9P3: Application of five factor force model..............................................................................................9M3: Devise appropriate strategies to improve competitive edge and market position based on the outcomes..............................................................................................................................................10TASK 4........................................................................................................................................................10P4: Applying a range of theories, concepts and models, interpret and devise strategic planning for a given organization................................................................................................................................10M4: Produce a strategic management plan that has tangible and tactical strategic priorities and objectives.............................................................................................................................................12CONCLUSION ............................................................................................................................................13REFRENCES................................................................................................................................................14

INTRODUCTIONStrategic management plan is a used to set priorities as well as strengthen the operationsof business that helps in maintaining long term relationship with stakeholders. It is basically aframework which emphasis on achieve long term business goals by gaining competitiveadvantage over its rivalries. For the better understanding of research, john Lewis ltd companyhas been selected which is one of the leading companies in UK. It basically deals in food itemshousehold product as well as apparel. This report covers following topics such as impact as wellas influence of macro environment and internal environment. Moreover, it carries application ofporters five factor model as well as application of theories, concept and models to interpretstrategic planning (Hill, Jones and Schilling, 2014). TASK 1P1: Applying appropriate frameworks analyze the impact and influence of the macro environment on a given organization and its strategiesMacro environment is external as well as uncontrollable environment in an economy. Themacro environment has a dynamic nature and it is very complex, that helps in survival andgrowth of the organization (Baker, 2014). Macro environment includes social, legal,technological, economic and political environment. Proper understanding of these factors helps abusiness to do well in a long run. There is various importance of macro environment like itanalyses opportunities and Threats as well as help in Growth of an organization.John Lewis has various department stores around UK it should take care of macroenvironment around it as it’s a big factor which can affect the company productivity. Macroenvironment shape opportunities for the business but at the same time it also pose threats to thecompany. Macro environment consist of six forces which are defined below:Political factor: It include trade policy, tax policy, labor law and so on that directlyaffect the profitability of firm. Positive impact: Herein, John Lewis ltd operates in stable market due to which thepolicies of legal authority does not changes much. For instance, the corporate tax in UK was

reduced around 28% that landed up leaving a positive impact on the strategy as well asprofitability of company.Negative impact: As respective company operate in rising market so any politicalimbalance will directly restrict the profitability. Thus, while making strategic management decision top managers should have knowledgeof political factors such as existing rules and regulations.Economic factor:It include various factors such as inflation rate, income, interest rateetc. that affect the purchasing power of an individual. Positive impact: Company need to keep that into consideration and decide price of theirproduct accordingly. So, the people in the environment can come to the store and purchase theproduct offered by John Lewis. Negative impact: Selected company should only think of exporting if they know themarket in which they are exporting have purchasing power (Booth, 2015). Otherwise, they mayincur heavy losses. Therefore, analyzing economic factor significantly enhances the effectiveness of decisionmaking and leaves a positive impact of the business.Social factor: Social factor includes belief as well as attitude of people that effect thestrategy of business. Positive impact: As John Lewis mainly operates in UK, they have their outlets there.Company while operating needs make sure that they are working while keeping societies basicvalues, preferences and behavior in tag. Negative impact: John Lewis also operates internationally so they need to respect theculture of the country and do business accordingly. If they fail to do so then they survive ininternational market.Thus, proper study of social environment will help the company to eliminate any blunderand work smoothly by making sound strategic decision.

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