Unit 32 Business Strategy Report: John Lewis and Partners Analysis

This report delves into the business strategy of John Lewis and Partners, a prominent UK retailer. It begins with an introduction highlighting the importance of strategic planning in a competitive business environment. The report then examines the external business environment using PESTEL analysis, evaluating political, economic, social, technological, environmental, and legal factors impacting the company. Following this, the internal business environment is analyzed through a SWOT analysis, identifying John Lewis's strengths, weaknesses, opportunities, and threats. The report also incorporates Porter’s Five Forces model to assess the competitive intensity within the retail sector. Finally, it concludes with a summary of strategic planning considerations for John Lewis, emphasizing the need to adapt to changing market conditions and maintain a competitive edge. The report provides a comprehensive overview of the factors influencing John Lewis's business strategy and offers insights into its operational and strategic approaches.

Unit 32 Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
EXTERNAL BUSINESS ENVIRONMEMT.................................................................................3
INTERNAL BUSINESS ENVIRONMENT...................................................................................6
PORTER’S FIVE FORCES MODEL.............................................................................................8
STRATEGIC PLANNING............................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
There are set of entities that are required to move ahead with the circumstances in a business
atmosphere. Business is defined to be the most probable approach in order to gain a profitable
approach in maintaining the standard of an organisation in which the company is making growth.
Businesses in the entire world will work towards the strategies that will uplift their choices in the
marketing race. The world is full of competition and it is not until when the entire business in
corporate strategies that are required to monitor the circumstances that are prevailing in the field
in which the company is operating (Kumar and et.al, 2021). Strategies are defined to be the
references for a pathway which will help an organisation to win over the objectives and to make
probable measures to understand the purpose after which it can go to fulfil its standard. A good
business will move ahead with a plan orientation and the strengths and weaknesses are also
identified at every stage of its growth. The efficiency of the organisation will be directly
proportional to the amount of profit that it will gain within the stipulated period of time.
Competitive advantage plays a crucial role in determining the standards of an organisation and
also has the organisation to focus upon capitalising different strengths that are oriented with
business. The entire report will reflect upon the business strategies that are incorporated in the
organisation and the components that play a major role in identifying the choices of business.
The organisation that is chosen in this regard is John Lewis and partners. This organisation is
established in the year 1864 and is moving ahead with a greater contribution towards making its
best approach as a Merchandise and it business environment is a chain of supply which will
acknowledge the largest Cooperative which is operating in United Kingdom. The retailer is
bound to be one of the best in providing different availability is of trends which include that of
home wear furniture and fashion. The different components that will constitutes the business
strategy are being entitled in the report with a feasible approach towards maintaining the
standards.
LO1: EXTERNAL BUSINESS ENVIRONMEMT
External analysis is important in order to determine the standard of the organisation. the external
analysis will bring about the required components that are essential for the organisation to ensure
a good business atmosphere (Yuan and et.al, 2020). There are different frameworks that are
usually being employed by the organisation such that the external factors that are greater
contributor for the organisational growth can be analysed. External analysis and the factors that

are contributing external analysis are necessary such that all the factors which are impacting the
business strategies as well as the evaluations can be known to the management and therefore
they can take charge over the things that are to be amended. John Lewis and partners is said to be
one of the most famous retailers that is operating in London. It is best known for its products and
people usually choose over and other (Lin and et.al, 2021). The business strategies that are
employed by the organisation are said to be the recognised factors and also the greater
contributor for economy. The Framework that is chosen in this regard in order to explain the
external analysis of the organisation is PESTEL analysis. PESTEL Framework is defined to be
one of the tool that will highlight the political, economic, social, technological, environmental
and legal factors outside the business environment. The PESTEL Framework is one of the
crucial part of every organisation that is working along the growth prospect. It will determine the
standards of the organisation and the potential up to which the company can move ahead in
employing the strategic approaches which are necessary to combat the external factors. A
detailed explanation of pastel Framework is as follows:
Political: political factors are those that are oriented with the business atmosphere and that with
regard to the country of operation (Lin and et.al, 2021). The political factors that will fall in
regard to the retailing sector and that with regard to the organisation John Lewis is said to be the
government policy. The change in government will of an impact the operational policies of the
organisation. All the there is a set of business strategies that are incorporated in the organisation
yet the change in governments and the ruling regulations will impact the probability after which
the definite set of policies are affecting the organisation. The government rule is determined by
the interaction of organisation with the choices of government. The political approach on to the
organisation is necessary in order to determine the taxation policies as well as the operational
policies of the organisation (Lin and et.al, 2021). In this regard the organisation John Lewis is set
to be having a good relation with all the governments and therefore it also satisfies the policies
that are being initiated by the government over the organisation.
Economic factors: economic factors are said to be one of the important factors that will
contribute for the external analysis of the organisation. The role of economic factors in
determining the standard of a PESTEL Framework is to maintain a good regulation towards
maintaining the economic fluctuations and the cost fluctuations. The economic factors that will
usually impact the organisation John Lewis will related to the impact of economic fluctuations

where there seems to be a heavy ongoing fluctuations that are a part of economic rise
(Yuliansyah, 2017). There is a lot of increase in the costs that are oriented with the product
which is regarded to be one of the factor that is to be taken care about. The consumer spending
and the shift in this particular aspect is also one of the greater contributor for economic factor.
These are the essential factors that are to be taken care about by the organisation John Lewis in
order to move ahead with the choices to lower the levels of external impact.
Social factors: there are different social factors that will impact the organisational framework.
every organisation is determined by how far the society of the community is accepting its
operations and how far the organisation is being able to satisfy the needs. There are certain rules
and regulations and also the competition with respect to the societal norms is increasing on a
day-to-day basis (Yuliansyah, 2017). The social factors that will fall in regard to the organisation
John Lewis is the increase in the level of labels and the growth of private labels.
Technological factors: technology is increasing on a day-to-day basis and therefore it is also
required to incorporate all the necessary technological implementations such that the operational
policies will become easier (Olson and et.al, 2021). There are a set of online channels that are
being maintained by the organisation John Lewis and when it comes to the maintenance it is said
to be little in proper and the organisation will have to focus upon accelerating the online channels
such that it can also increase its customer base with the amount of views that again.
Legal factors: legal factors of those that will fall in regard to the regulatory standards of every
organisation. When a business is operating in an atmosphere where there are certain regulations
like that of taxation policies and with regard to employees management they are to be fulfilled.
The legal practice with regard to John Lewis organisation is said to be the litigation between the
regulatory actions and that has been an impact over the entire operational standards of the
organisation (Olson and et.al, 2021).
Environmental factors: there is a greater demand for environmental factors and the concern that
is oriented with the environment is said to be immense (Suoniemi and et.al, 2020). In this
prospect the factors that are a concern for the company John Lewis is the growing concern
towards the impact of environment. The products that are oriented with the organisation as said
to be sustainable and does not much towards damaging environment. Although there is a little
litigation that is oriented with the organisation at the sustainable practices are said to be the ones

that are being adopted by the organisation. Organisation is also moving ahead to implement the
choices that will no longer harm the environment and it is focusing on zero carbon emissions.
PESTEL analysis will highlight the external approach of the circumstances that are mostly the
ones which will act as a barrier towards the organisational performance. These are to be
identified and will have to be incorporated at all the times by the organisation.
LO2: INTERNAL BUSINESS ENVIRONMENT
The internal strength of an organisation is said to be one of the major phenomena that will have
to be taken care about because it is the internal activities that will portray the external
performance of the organisation. Every business in its term of operation will focus on how far
the internal atmosphere is maintained. The management of the organisation will emphasize upon
the task to that are important to be incorporated such that all the employees in the organisation
will follow their norms and policies in order to lift of the choices of the organisation (Nadeem
and et.al, 2018). In order to bring about a good working atmosphere and to also promise the
growth of the organisation it is necessary that the internal factors will have to be identified and
will have to be regularly monitored. It is a mandatory aspect in order to identify the strengths
weaknesses opportunities and threats such that the statistical data with regard to the prospect of
achieving objectives in no time will therefore be gratified (Nadeem and et.al, 2018). Going deep
into the swot analysis will help to analyse certain factors and they are as follows:
Strengths: the strength of the organisation is another word known to be the achievements that
are created in no time. John Lewis and partners is considered to be one of the biggest retailing
services that is operating in United Kingdom. The strength of this organisation will depend upon
how far its growth strategy is being depicted and that is what is calculated by the robust growth
performance. The organisation has created a strong online presence and that has been one of the
biggest bone for the organisation (Nadeem and et.al, 2018). Innovation and creativity at its best
in this organisation and the employees as well as management will aim for a good brand strength
which is an essential aspect for every retailer.
Weaknesses: there will be times when the organisation or business will have to face some
difficulties in terms of its strategies. The weaknesses of the organisations will depend upon the
lack of facilities for the kind of work that is absent in certain areas of the organisation (Agustia
and et.al, 2020). The weaknesses will have to be identified every now and then such that all the
policies that can be incorporated in order to win over the weakness and can therefore be

implemented. The weaknesses that will fall in regard to John Lewis will revolve around its
International presence. It can be stated that John Lewis has a very low International presence and
that is what made it one of the weakest organisation. It is termed to be one of the effective
Organisation in the market presence of London but still its International presence is said to be
weak (Agustia and et.al, 2020).
Opportunities: there will be lot of opportunities for every organisation that has been able to
reach the mark of being the best (Rehman and Anwar, 2019). In this regard John Lewis is said to
be one of the potent and powerful organisation that is working upon all the possibilities in order
to portray the means of a very good business strategy. In this regard the opportunities that will
revolve around the organisation will be the ones that will lie in the private label criteria. John
Lewis partnership is said to be one of the forth and form in the possibility of maintaining private
labels and this has brought about a good amount of opportunities for the organisation.
Threats: threats are the barriers or the circumstances that will act as obstruction to the floor with
which the organisation is moving ahead in the marketing race. Threats will have to be identified
at regular intervals at that the measures that are to be incorporated by the organisation can
therefore be sharpened (Kristinae and et.al, 2020). The threats are said to be a common aspect in
the marketing world and the market scenario at present is said to be of a greater competitive
advantage. The one that are dealing with the organisation John Lewis will revolve around the
laws and regulations that are imposed by rigorous governments that are ruling over the country
in which the organisation is operating. Also the biggest threat of the present times is the rays of
different business as well as organisations in the same field with which the organisation is
moving ahead (Kristinae and et.al, 2020).
LO3: PORTER’S FIVE FORCES MODEL
In order to understand the competitive atmosphere of the organisation John Lewis it is necessary
to identify the microeconomic issues that are being faced by it. This will be helpful in
determining the analysis which will portray the five forces that will bring about a complete
scenario with which the organisation is working. The John Lewis organisation is said to be one
of the well oriented retailing sector and land done and it is operating on a subtle basis and on
profitable terms. The Porter's five forces for the organisation John Lewis will explain the entire
scenario with which the macro as well as the microeconomic issues can therefore be entitled and
will be explained. They are as follows:

Threat of new entrants: new entrants are set to be immense in the country United Kingdom. It
can also be stated that United Kingdom is one of the abodes for different retailing services to be
established and also move ahead with witnessed profitable standards. In this regard the
organisation John Lewis is said to be one of the organisations which has been facing the threat of
new entrants in the field of retailing (McAdam and et.al, 2017). The store in which the
organisation is operating is said to be higher in demand and it can also be stated that the threat of
new entrants can be relatively low for this organisation because of its presence and reputation
that it has created in the minds of its customers as well as globally.
Threat of rivalry: the major reason for rivalry to take place between organisations is
competition. Competition is said to be one of the leading factor that is ruling over the entire
market. John Lewis organisation has created a greater impact in the field of retailing with its
products which include goods clothing drinks and food. The presence of various products that
are being tackled by the organisation John Lewis has led to an impact over the other
organisations and that can also result in driving rivalries. The pricing strategy of the organisation
is said to be compatible and is incorporated by many customers. With these new policies and
strategies that are being implemented by the organisation it has created a tough competition
atmosphere in the marketing race of retailing services. With its commitment and services John
Lewis has gained a good reputation and a customer base and the emerging companies can
therefore have a negative sense of dealing with its success. This might sometimes result in
rivalry aspects but that is not promised.
Bargaining power of suppliers: the organisation John Lewis has a good amount of reputation
and it has created a base with which there is a huge response by the suppliers to get into dealings
with the organisation. In this regard it can be stated that the bargaining power of suppliers with
regard to the organisation John Lewis is relatively low and there cannot be any impact that is
created by the supplier. There are handover suppliers for the organisation and in case there has
been a shortage the organisation can win over the different choices of suppliers. In this regard the
integrated strategy that is being incorporated by the organisation John Lewis will hold its
suppliers and especially the textile ones. The brand name and the brand present that it has created
is said to be oriented in a very special manner and the bond has created amidst of all the
suppliers is set to be worthy.

Bargaining power of buyers: bargaining power of buyers will depend upon how far the pricing
strategy is determined. In every organisation the pricing strategy is the one that will bring about a
good number of customers and it can also focus upon the customer base. The organisation John
Lewis is said to be entitled where to the strategy of employing a minimum pricing to premium
pricing. There are branded products that are being supplied by the organisation John Lewis and
therefore the pricing strategy will vary according to the demographics of customers. In this
regard it can be stated that the bargaining power of buyers as moderate to low since the pricing
strategy will be convenient to all types of customers. As there is a heavy competition that is
growing in the marketing in the field of retailing there for the organisations are switching their
pricing strategies into more off premium and then comes the probability of a high rate of
bargaining power of buyers. Switching cost is set to be one of the regular basis that is being
followed by the organisation and this has subjected to a good amount of lowering in the pricing
strategies as of now but in future the organisation will focus upon the entities to end title
premium products.
Threat of substitutes: the threat of substitutes is said to be relatively low with regard to the
retailing sector and that with respect to the organisation John Lewis is said to be minimum. The
threat of substitute can only happen when the organisation is not maintaining its quality of
products. When it is a clear specialised conduct that has been gained by the organisation than it
has no worry regarding the threat of substitute. People will not be able to derive formulas that are
being incorporated by the organisation because of the high level of consumer satisfaction and
interaction that has been gained by the organisation. The income and the interest rates that are
oriented with the organisation as said to be the highest probable factors and there is a flexible
pricing strategy that is being organised by the company John Lewis. The private labels as well as
a pricing strategy are said to be one of the biggest boons for the organisation. This has resulted
into making adaptable measures that will reduce the threat of substitutes.
LO4: STRATEGIC PLANNING
Strategic planning is essential in order to stay focused with the business goals and objectives. It
is an important factor that will have to be taken care about by the organisation every now and
then because strategic planning models are crucial in determining the standards of the
organisation. This will also make the organisation in a structured and an oriented manner by
implementing the planning models that are required to improve ways of making profits. The

components that are to be embedded in the organisation will help to improve the organisational
operations and this can also enhance meeting goals in a better possible manner. There are certain
theories and models that will fall in regard to the strategic planning and they are as follows:
Alignment model: alignment model is important in order to move ahead with the functional
integration of the organisation. The business will have to align its strategies upon identifying its
key goals and the organisational objectives in such a manner that will help to analyse and to
maximize the different processes that are to be Incorporated.
Balanced scorecard model: in order to maintain clear communications about the overall
strategies as well as the priorities are to be maintained a balanced scorecard is necessary and it
will hold the choices of the organisation John Lewis and partners. This will also bring about a
greater idea about financial measurements and that will help to deal with different parts of the
organisation. It is essential to monitor financial performance every now and then and to reach
this potential the financial resources will have to be gratified (Pucheta and et.al, 2019).
Basic model: basic model is regarded to be one of the simple forms and is being inherited from
olden days. When there are not much resources that are to be used by the organisation John
Lewis and partners then the organisation will have to go with extensive strategic planning and
that will lift up the profitable standards of the decision-making policies.
TYPES OF STRATEGIC DIRECTIONS
Stakeholder Analysis
This particular analysis will start by first identifying the stakeholders that are in regard to the
organisation. Stakeholders play a major role in determining the standards of the organisation and
the analysis will revolve around their contribution towards the growth prospect (Olson and et.al,
2021). One may not be able to justify the kind of possibilities that are linked with stakeholders
unless they are prioritised. Their involvement will help the organisation to achieve the mark of
being the best as well as the objectives. Prioritising the stakeholders is an essential aspect and
comes communication.
Ansoff matrix
Market penetration: this will help to identify how far the organisation can penetrate in making its
way towards the onset of making choices. Market penetration is important to picturise the growth
prospect.

Product development: the business that is being tackled by the organisation will have to ensure
the formulation of product. The product development is emphasised by the Ansoff matrix as a
probable aspect of growth (Suoniemi and et.al, 2020).
Market Development: the market development is essential to ensure the factors of sustainability.
There is wide range of competition and everything will fall under how far the organisation is able
to win over the atrocities.
Diversification: it is of many kinds in order to move ahead with the choices of product and the
probable means of orientation. Diversification is necessary for the organisation to bring about a
distinguishing factor to categorise its business prospects.
Mckinsey 7s model
Structure: the structure of the company John Lewis is one of the formulation that will carryout all
the probable measures that are a part of retailing.
Strategy: the organisation follows rewarding strategy in order to bring enthusiasm in its
workforce.
Systems: the technology is being used by the company as a weapon to reach out the nook and
corner of the world (Yuan and et.al, 2020).
Skills: the competencies are sharpened by the organisation and the potential to introduce new
innovation is enhanced.
Style: the code of conduct of the organisation is worth describing as it follows uniformity.
Staff: the staff of the organisation are dedicated and will go above and beyond for the
organisational policies.
Shared values: the organisation stands uniform in its culture and its shared values that are a part
of uplifting the company to a very new level.
Value chain analysis
Through the value chain analysis firm infrastructure is taken care about and that is required to
move ahead with the planning and orientation (Yuliansyah, 2017). The human resource
management in the organisation is bound to conceptualise the prominence of every activity that
is a part of retailing. The supply chain that is oriented with the organisation procure quality and a
good communication that is essential to all the people that are a part of retailing. The value of the
company lies in its operations and how far the organisation is able to manage every component.

Recommendations
Maintain consistency: the organisation will have to maintain strategic consistency in order to
highlight the policies of retailing. One may not be able to justify the criteria until the consistency
is guaranteed.
Innovation: the organisation will have to come up with the probable innovation that is mandatory
to be enhanced. Much of eth competition can be won over with the innovation ideas.
Skilled workforce: the skilled workforce will bring success to all the formulations that are to be
tackled. The human resources management will have to enhance the probable measures to train
the employees according to the norms and policies of the organisation.
CONCLUSION
The entire report will conclude upon explaining the atmosphere of a business and strategies that
are oriented in the organisation. Through this report one can easily understand the organisations
in maintaining a strategic approach towards organisational activities. Through this report one can
easily understand the internal framework that are incorporated by the organisation and how far
they can be monitored and evaluated. The report explains the importance of external frameworks
as a part of good business strategy. Statistical approach is necessary in order to hold the choices
of the organisation and that will impact over a good response that is required to monitor the
objectives as well as goals of the organisation. The report explain various frameworks like that of
PESTEL analysis and its importance and how far the PESTEL framework and impact over the
organisation. The report also brings forth the importance of SWOT analysis and will also
highlight the individual factors which includes strengths weaknesses opportunities and threats.
The report also highlights the porter's five forces model in order to bring about the macro and
micro economic environment of the organisation. The organisation that is chosen in this regard is
John Lewis and this has been portrayed with respect to the business strategies that are
incorporated.