John Lewis Partnership: PESTEL Analysis of Global Business Environment

This report presents a PESTEL analysis of the John Lewis Partnership, examining the external factors influencing its business operations. The analysis covers six key areas: political, economic, social, technological, environmental, and legal factors. The political factors discuss political risks and regulations. Economic factors include exchange rates, interest rates, and economic indicators. Social factors explore cultural impacts and consumer behavior. Technological factors address the pace of technological change and its impact on the industry. Environmental factors consider sustainability and ecological impact. Legal factors cover employment and discrimination laws. The report concludes that understanding these macro factors is crucial for strategic decision-making and long-term business sustainability, emphasizing the need for companies to adapt to market conditions and offer satisfactory products to maintain a competitive advantage.

Global Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
TASK...............................................................................................................................................2
PESTEL ANALYSIS OF JOHN LEWIS PARTNERSHIP........................................................2
CONCLUSION................................................................................................................................4
References........................................................................................................................................5

INTRODUCTION
Company needs to take care of internal and external business environment in order to run
the business successfully. If internal positon of firm is not good or firm is unable to deal with
external factors then it may create problem in long term sustainability of the organisation.
Present study is based on John Lewis. It is the private most popular entity of UK. Current
assignment will conduct pestle analyses of John Lewis and will analyses its external
environment.
TASK
PESTEL ANALYSIS OF JOHN LEWIS PARTNERSHIP
1.Political
The political factors of John lewis has a specific and significant role to determining the
factors which effect the profitability in specific or certain market for John lewis. Political risks
are the major risks where an outside country have the risks while taking decisions. Political
environment of John lewis hugerford . The success in such a dynamic for the Personal &
Household Goods industry in the various countries so there is diversity in taking the systematic
risks of political environment. Political environment involves some steps before entering into
certain environment where they have to pick the level of corruption in the country and law for
wages whether they provide minimum wages of overtime wages.
2. Economic
the economic environment have such factors such as- foreign exchange rate, interest rate,
minimum wage rates , inflation rate, deflation rate, currency rates demand and supply in the
economy these are the factors which have direct effect on the organisation by the economy of the
country. John Lewis Of Hungerford Product life cycle is useful and they can use for other
country’s economic factors like growth rate, wage rate, inflation , demand, supply & industry’s
economic indicators which indicate the index details of such Personal & Household Goods
industry growth rate, consumer spending etc. to forecast the growth trajectory of not only by the
sector but also that of the organization.
3. Social
The social factors also played a vital role where they way of doing things impact on the
culture of an organisation in an environment. They share the beliefs, trust and integrity and also

share different attitudes of the population which play a impact role of the John Lewis Of
Hungerford which will help them to understand the customer needs and how they made their
marketing and convey their message for the personal and household goods industry consumers.
The cultures, genders roles, social conventions were playing a major role in the company
4. Technological
The technology is the fast growing industry around the world which plays a vital role in
the business environment of John Lewis Of Hungerford . A firm should not only do
technological it also know the pace at which technology is changing the environment this must
be adapt by the John Lewis Of Hungerford like others are doing in the market. This involves the
impact on the structure the cost of the in the household goods industry(Mikhaylov and Fierro
2015).
5. Environmental
The environmental factor also played a very major role in the company. The company
was recycling the waste materials which were released from the factories of the company. There
was an positive attitude of the company in supporting the renewable energies. The was
producing those products were ecological for the environment. The company was strictly
following those laws which were regulating the environmental pollution.
6. Legal
The factors of the company were that there was an employment law under which every
employee of the company were getting their all right and reserves. The company imposed the
discrimination law in which there was no discrimination made on the basis of caste, religion,
skin complexion and gender.
CONCLUSION
From the above study it can be concluded that macro factors have great impact over
business performance. Companies need to understand the political and economic situation of
nation and accordingly it has to make its strategies so that it can run business for longer duration.
Firm needs to ensure offering satisfactory products to all range of consumers so that it can gain
competitive advantage in market.

References
Mikhaylov, N.S. and Fierro, I., 2015. Social capital and global mindset. Journal of International
Education in Business. 8(1). pp.59-75.
Reiche, B.S., Bird, A., Mendenhall, M.E. and Osland, J.S. et.al 2017. Contextualizing leadership: A
typology of global leadership roles Journal of International Business Studies 48(5).
pp.552-572.