Strategic Analysis of John Lewis: Macro Environmental Analysis, Internal Analysis, Porter Five Force Analysis, Strategic Planning

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
P1. Macro environmental analysis.........................................................................................3
P2. Internal analysis................................................................................................................5
P3 Porter Five Force analysis.................................................................................................6
P4 Strategic planning..............................................................................................................7
CONCLUSION.............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy constitutes a number of activities attempted by any entity so as to
direct the organisation to accomplishment of corporate objective and goal. The moves
undertaken hereby endeavour to render aid for businesses while embracing effectual measure
and technique for attainment of competitive edge at market place (Drobyazko and et. al., 2019).
Business strategy guides in aligning the moves of company with the stipulated targets and
thereby turning into a pioneer within the confines of the corporate sector to which it pertains.
The following project is based upon strategic analysis of John Lewis, a retail firm functioning
within the boundaries of UK. This entity carries out its operations within a number of sectors
like furniture, watch, food, accessory, jewellery and many more. The assignment contains
PESTLE analysis done for the purpose of external environment as well as SWOT for micro
environmental comprehensibility. In addition to this, the project includes industrial analysis
which consists of 5 elements. Lastly, strategic options accessible to an entity are evaluated by
the assistance of Ansoff Growth vector as well as Bowman’s strategic clock.
P1. Macro environmental analysis
For effectively doing business activities effectually, an association needs to continually
evaluate its outside conditions as the associated elements have a huge impact n the working of
an organization. With respect to this, the administration team within John Lewis is utilizing
PESTLE factors for examination of the effect of external condition upon the operations of firm.
This analysis is thus presented as underneath:-
Political: The business activities of the respective retail firm take place within the
peripheral boundaries of Britain that pertains to Europe. Further, the political arrangement of
this mainland is steady which encourages organizations, for example, John Lewis to ensure their
sustenance in market for quite a while. Besides this, the legislature of Britain has reduced
corporation tax from 30 to approx. 28 % that gives chances to respective retail firm to essentially
develop its existing level of income from sales (Drobyazko and et. al., 2019). A case of a
political unrest inside Britain would tend to serve as a challenge for the respective retailer.
Hence, association should keep adequate stock consistently to guarantee no adversities arising
out of political difficulties.

Economical: The economic state of Britain is quite effective. Thereby it facilitates
development of organizations that emerge in market place with creative items, technologies and
market disruptive systems. In this relation, Innovate UK Smart Grants has been acknowledged to
be a program begun by R&D branch of Britain govt. for providing assistance to associations
such as John Lewis. In any case, Brexit has been affecting the British economy in an unfriendly
way prompting immense economic instability and distress within the confines of retail market
place (Drobyazko and et. al., 2019). In order to effectually deal with this threat, the respective
retail organisation should make its items accessible to customers at moderate costs. This will aid
the organisation in management of mindsets of clientele post Brexit. Likewise, the firm also has
an option to offer excessive discounts or loyalty benefits to customers so that all sections of
society can be effectively appealed to.
Social: John Lewis is a well renowned firm that has been operating within the confines
of retail sector for quite a long time and this is why the management of this firm is aware of the
need to stay aligned with the latest trends of market. This company comes up with new offerings
subsequent to executing market examination upon the life patterns of shoppers and market. This
helps the entity in coming up with such products which combine the present needs and
necessities of individuals (Kotusev and et. al., 2020). However, the biggest threat associated
with this macro environmental aspect is that if any of the recent patterns of market are
considered by rivals before John Lewis, at that point it can prompt substitution of the brand by
clients. To handle this situation, it is crucial for John Lewis to continually conduct market
research in order to anticipate market trends before competitors and thereby provide products
which are capable of meeting customer needs.
Technological: With the passage of time, fast progressions happen related to
technologies and techniques used by companies across the globe. Such advancements must be
timely taken into consideration by organizations to guarantee existence in market for long run.
With respect to this, it is identified that the respective retail firm went into online business with
the purpose of diminishing the utilization of paper and to altogether grab the consideration of
individuals towards the socially desirable activities taken by John Lewis. In any case, heavy
investment needs to be done by the respective retail firm for implementation of such
technologies and systems in organisational premises as per the requirements of company. This