Business Strategy

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examining the Impact macro environment over organisation ..............................................1
TASK 2............................................................................................................................................3
P2 Analyse internal environment of firm ..................................................................................3
TASK 3............................................................................................................................................7
P3 Evaluating competitive force of an organisation .................................................................7
TASK 4............................................................................................................................................9
P4 Application of concepts, models and develop strategic plan ................................................9
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy is a course of action which provide proper guidance and direction to
organisation in order to cope up with all current or emerging market trend for obtaining profit
maximisation in an efficacious and expeditious manner. Along with this, it enable an
establishment to determine its internal and external capabilities that lead them to implement best
strategic decision in order to place their bran in a better position in a productive style. In addition
to this, business strategy assist company to examine its competitive forces which aid them to
allocate required resources into functional areas for attaining increased level of productivity and
profitability (Jones and Comfort, 2018). In regard of this report, Waitrose company has been
advised which is one of the well known supermarket chain and subsidiary of John Lewis
Partnership. It is headquartered in UK and established in the year of 1908. In this study, it
includes application of PESTLE , SWOT and VRIO for determining internal and external
business environment, application of Porter's five force model to examine competitive force.
Finally, implication of appropriate theories or models as well as developing strategic plan for
accomplishing business goal in a better manner.
TASK 1
P1 Examining the Impact macro environment over organisation
Business environment is a combination of micro and macro factors that help firm to gain
sustainable profitability and productivity ratio in an effective style. Due to dynamic nature of
business environment, it directly influence over company's decision making ability as well as its
proficiency rate. Therefore, PESTLE analysis is regraded as one of the best tool which help
organisation to survive competitively among competitors. Hence, PESTLE analysis is a
framework that empower establishment to examine its external factors like competitors,
suppliers, customers and many more and also lead enterprise to take corrective course of action .
Due to this, it aid them to adopt best position in existing marketplace in a better mode. However,
in context of Waitrose, the industry where it operate is highly competitive which impose huge
challenges or threat over firm's profit margin ratio and sustainability (Jocovic and et. al., 2014).
Thus, Waitose manager make an effort to imply the PESTLE analysis into its business unit
which is explained below:

Political: In this phase. It encompasses political stability, government policies,
procedures, rules, regulation and so on that effect company's proficiency ratio. In context of
Wairose, it undergoes with a issue of Brexit which impose intense level of challenge over
company's working culture as it require to adopt modification in its current policies that impose
negative effect over enterprise proficiency. The foremost impact which Waitrose undergoes
because of introduction of Brexit is that there company find risk in maintaining the choice,
quality and durability of food because of inevitable pressure on food prices from higher transport
costs, currency devaluation and tariffs form government (No-deal Brexit puts UK food security at
risk, warn Sainsbury’s, Asda, Waitrose and M&S, 2019). However, Waitrose manager takes an
initiative to overcome its negative influence by adopting Brexit procedures and regulation
within its functional areas that lead them to cope up with market challenge in a better manner.
Moreover, Waitrose is also benefit from political stability of UK government which enable firm
to impose all sort of modification in its business unit effectively that empower Waitrose's
manager to accomplish its organisational objective in an effective mode (Jeston, 2014).
Economical: Under this determinant, it comprises economic growth, interest rate,
inflation or deflation rate, GDP or GNP ratio and many more that impact enterprise brand value.
In relation to Waitrose, recently it face major recession which occurred in UK and that effect
company's Food stores sales performance as it has been decreased by 0.7%, as well as clothing
and footwear retailers had a tough situation because it bring down its sales by 1.3%. This is
because, Waitrose find difficulty in managing its import and export of products or service with
European countries as UK desires to leave EU that directly impact its profit margin and
sustainability (John Lewis store profits crash 50%, 2019). Henceforth, organisation makes an
attempt to decrease its price of product and also launched upmarket line which help them to
retain its existing customers as well as aid firm to capture the attention of new customer toward
brand. With the help of such action, organisation can attain sustainable profitability as well as aid
them to survive productively during recession period in a better manner.
Social: This phase includes demographic elements like population growth, income level,
age, customer taste and preference and etc. which influence establishments decision making
process. In addition to this, there was a huge demand among the population of UK regarding
quality of foods which challenged Waitrose to manage its brand value within competing
industry (Corporate Responsibility Report, 2018). Thus, organisation takes an initiative to