Comprehensive Business Environment Analysis: John Lewis and Tesco

This report provides a detailed analysis of the business environment, focusing on John Lewis and Tesco. It begins with an introduction to the importance of monitoring the external environment and the impact of internal factors. The report then explores the positive and negative impacts of the macro environment using PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors. An internal analysis using the SWOT model identifies the strengths, weaknesses, opportunities, and threats for both John Lewis and Tesco. The report also discusses the relationship between internal strengths and weaknesses and external environmental factors such as globalization, Brexit, and economic conditions. The conclusion summarizes the key findings, highlighting the interconnectedness of internal and external factors in business operations. References to relevant academic sources are included.

UNDERSTANDING THE
BUSINESS ENVIRONMENT IN
VARIOUS ORGANISATIONS

TABLE OF CONTENT
 INTRODUCTION
 POSITIVE AND NEGATIVE IMPACT OF MACRO ENVIRONMENT ON
BUSINESS OPERATIONS
 INTERNAL ANALYSIS OF SPECIFIC ORGANIZATION IN ORDER TO
IDENTIFY ITS STRENGTH AND WEAKNESSES
 THE MANNER IN WHICH STRENGTH AND WEAKNESS IS RELATED TO
EXTERNAL ENVIRONMENT FACTORS
 CONCLUSION
 REFERENCES

INTRODUCTION
 Company while operating its different business function
needs to continuously monitor and evaluate changes that are
happening in external environment to grow and sustain
business for longer time frame.
 Internal factors such as company strength and weaknesses
impact on effectively operations of businesses and
achievement of goals.
 Therefore, this presentation has included key information
related to internal and external analysis of John Lewis and
the way internal and external factor are related to external
environment.

POSITIVE AND NEGATIVE IMPACT OF MACRO
ENVIRONMENT ON BUSINESS OPERATIONS
 Pestle analysis is model that is used to identified, analysis and evaluates changes that are happening in external
environment that have both positive and negative impact on business operations. It helps in understanding of factors
such as political, social, economic, technological and environmental having impact on growth and development of firm.
Therefore, the way macro environment influence on business operations of John Lewis can be illustrated as follows:
 Political factors: The policy of government keep on changing such as recently Brexit has been imposed that resulted in
decreasing overall sales volume and profitability of company. As maximum number of sales of products and services is
with European member countries.
 Economic factors: Moreover, it can be stated that economic factor has also impact on firm likewise, in recent scenario,
UK is suffering from economic slowdown or recession. That is high unemployment ratio, decrease in disposable income
of people and GDP has negatively impacted on John Lewis.

CONT.
 Social factor: Another factor that has impact or influence company operations is
social factors as taste and preference of people are every changing in nature.
Such as, in recent scenario, they are demanding more organic and healthy food
products due to impact of covid-19 for fulfilment of their desired. Thus, the
company have planned to more focused on hygiene, safety and quality of
products and services that need to be rendered to customer's.
 Technological factor: Furthermore, it can be stated that technology is another
external factor that influence on company operations. Likewise, with
development in technology, customers are more interested and motivated to
make use of innovative technology to fulfil their respective desired. Therefore,
John Lewis through understanding changing taste and preference of customer's
that is use of social media or more preference to online shopping has forced
company to provide them online services to meet customer's expectancy.

CONT.
 Environment factor: Moreover, it has been identified that John Lewis has also
been affected because of environment factor as government as well as people are
forcing company to undertake CSR activities and making optimum use of
available resources.
 Legal factors: The another factor that has impacted on company is legal as legal
law and regulation keeps on changing therefore they need to be abided by firm to
sustain its market positioning.

INTERNAL ANALYSIS OF SPECIFIC ORGANIZATION
IN ORDER TO IDENTIFY ITS STRENGTH AND
WEAKNESSES
 Internal factors also impact on growth and development of company such
as its strength and weakness so they need to be considered by firm while operating
different functions. SWOT model has been used to understand and identified
strength, weaknesses, threat and opportunities that company have and the way it
impacts on it such as:

JOHN LEWIS TESCO
STRENGTH The biggest strength of John Lewis is that it offer wide range of
fashionable brands to customer's to select among for fulfilment
of their desired.
Moreover, it is most upmarket retail store in UK thus is able to
attract and retained maximum number of customer's within the
firm.
Tesco have leading market share in retail sector
that is 27% that helps in driving new and new
customer's within organisation.
Company offer qualitative products and services
at reasonable prices so that wants of customer's
can be fulfilled in the best possible manner.
WEAKNESS The range of items that are offered by John lewis are limited as
compared to other supermarket operating in UK. Such as
Tesco, ASDA and Sainsbury.
At the same time, the company have set higher price of is
products and services in comparison with other firms. Thus, it
has resulted in reducing overall sales volume and customer's of
firm.
On the other hand it can be stated that Fraud trial
and accounting Scandal. Tesco has been involved
in fraud practices that has resulted in loss of
customer's confidence and strong brand image of
company in market.
Secondly, Tesco have limited operations across
worldwide, moreover it has been failed in US and
Japan. That has lead in creating barriers in
effective achievement of end goals.

BASIS JOHN LEWIS TESCO
THREAT Increase competition level in the retail sector is one of the
greatest threat for the John Lewis. As there are range of
companies operating that are providing different services
to retained customer's satisfaction for longer time frame.
Another threat is covid-19, because due to it company
actual sales and profitability has been decreased to
maximum extend.
It has been identified that Tesco has been
accused of misleading customer's with
fake farm. So It has resulted in several
legal threat to the organization.
Moreover, it can be stated that Brexit is
also threat for Tesco as it reduce the
overall sales volume of organisation.
OPPORTUNIT
IES
The company have numerous opportunities such as it can
make use of social media platform to connect with wide
range of people. Thereby add new and retained existing
customer's base for benefits of organisation.
While, Tesco have operating to expand its
businesses in international market through
offering qualitative products at reasonable
prices possible.

THE MANNER IN WHICH STRENGTH AND
WEAKNESS IS RELATED TO EXTERNAL
ENVIRONMENT FACTORS
POLITICAL AND LEGAL FACTOR
 Strength: Globalisation and brexit are two policies that are
impacting on company so firm by making use of its strength
of wide range of products can expand business in
international market.
 Weaknesses: Globalisation has lead in increasing
competition level for John lewis as it is not able to provide
product at lower price.
ECONOMICAL FACTOR
 Strength: John lewis is large company so it by recruiting
range of customer's within the firm is able to contribute in
improving economic condition of UK.

CONT.
SOCIAL FACTOR
 Strength: Company have strength of strong brand image that
means it has emphasized on meeting customer's expectancy for
better outcome.
 Weaknesses: High price charged by the company has resulted
in reducing overall sales and profitability of firm.
TECHNOLOGY FACTOR
 Strength: Company have good financial condition thereby it is
able to effectively adapted to new technology for fulfilling
customer's requirements.
 Weaknesses: On the other hand weaknesses is that it offered
limited services to customer's.

CONCLUSION
 From the above presentation it can be summarized that John Lewis has
been affected by external environment but it has effectively cope up to grow and
sustain its businesses for many years.
 At last, it can be concluded that external and internal factors of John Lewis are
related to each other that helped in smooth functioning of firm.

REFERENCES
 Chahal, H., Jyoti, J. and Wirtz, J., 2019. Understanding the Role of Business Analytics. Springer.
 Gogokhia, T. and Berulava, G., 2021. Business environment reforms, innovation and firm
productivity in transition economies. Eurasian Business Review, 11(2). pp.221-245.
 Maroun, W., 2020. A conceptual model for understanding corporate social responsibility
assurance practice. Journal of Business Ethics, 161(1). pp.187-209.
 Ordonez-Ponce, E., Clarke, A. C. and Colbert, B. A ., 2021. Collaborative sustainable business
models: Understanding organizations partnering for community sustainability. Business &
Society, 60(5). pp.1174-1215.
 Saura, J. R., Palos-Sánchez, P. and Cerdá Suárez, L. M., 2017. Understanding the digital
marketing environment with KPIs and web analytics. Future Internet, 9(4). p.76.
 Sinha, A .S., 2019. What is Strategic Management?-Understanding through Role-Play.
 Sun, S and et.al., 2018. Understanding the factors affecting the organizational adoption of big
data. Journal of Computer Information Systems, 58(3). pp.193-203.