John Lewis: Comprehensive Analysis of Business Environment Factors

This report provides an analysis of John Lewis's business environment, examining both internal and external factors. It begins with an introduction defining the business environment and introduces John Lewis as a leading UK-based company. The core of the report consists of a SWOT analysis, detailing the company's strengths, weaknesses, opportunities, and threats. Following this, a PESTLE analysis evaluates the political, economic, social, technological, legal, and environmental factors affecting John Lewis. The report concludes by discussing how the company is impacted by these external factors, highlighting both challenges and opportunities related to trade restrictions, currency fluctuations, increasing demand for personal care products, online channels, sustainable technologies, and changing laws and regulations. The analysis is supported by relevant academic references.

Introduction
Business environment can be defined as the examining the internal
and external factors of an organization which directly or indirectly
affects the working of the company and so as it's operations as well
(Hamilton and Webster, 2018). Organization chosen here is John
Lewis, it is one of the leading international company based in UK in
1864. It mainly deals with the products like clothing, electricals,
beauty and personal care and home care products. The following
discussions are made on internal factors that is SWOT analysis,
external factors that is PESTLE analysis and company impacts on it's
external environment in context of John Lewis.
John Lewis And Its Environment
External Environment
PESTLE Analysis
It is defined as the determination of external factors of an
organization which affects the firm in it's internal management
(Shtal, Buriak, Ukubassova and Tlegen, 2018).
Political factors
 Government has imposed the strict trade protectionist policies in a
country
Economical factors
 Facing the conflicts with distributors due to rise in prices because of
impact of currency on Brexit
 Dynamic fluctuations in the markets especially in currency markets
Social factors
 Growth in market and individual demand for personal care products
and healthy foods
Technological factors
 Increment of the sustainable technologies for the firm
 They are accelerating the online channels for marketing and product
servicing
Legal factors
 Frequent change in environmental regulations
 Frequent change in tax laws and regulations
Environment factors
 Steps taken by an organization to address the global climate change
within the value chain
 Sustainable practices are adopted by the firm
How the company impact its context External Environment
 Company is facing threats in terms of political factors
due to trade restrictions
 Company is facing threats in terms of economical
factors due to conflicts with distributors and
fluctuations in currency
 Company has growth opportunities in it's social
factors due to increasing demand for the personal
care products
 Company has growth opportunities in it's
technological factors due to online channels and
sustainable technologies
 Company is facing threats in terms of legal factors
due to change in laws and regulations
 Company has growth opportunities in it's
environmental factors due to contributing in climate
change and sustainable practices (Akpoviroro and
Owotutu, 2018).
Internal Factors
SWOT Analysis
It is defined as the determination of internal factors of an
organization which involves the firm's strengths, weaknesses,
opportunities and threats (Stoyanova and Angelova, 2018).
Strengths
Powerful performance growth strategies
It contains powerful brands that are mostly popular
It has the portfolio which is evolving and channels which are
developing
Investments are strategic to substantial drive growth
It has supply chain which is integrated and focus on research and
development function
It has strong online presence in the market place
Weaknesses
 It is facing the lack of international presence
 It is facing the inconsistent profitability
Opportunities
 It has a good potential in emerging markets
 Demand is growing personal care products and healthy foods
Threats
 High competition regionally and globally as well
 facing low diversification
 There are very strict laws and regulations they are facing for their
products
References
 Akpoviroro, K.S. and Owotutu, S.O., 2018. Impact of
external business environment on organizational
Performance. IJARIIE. 4(3). pp.498-506.
 Hamilton, L. and Webster, P., 2018. The
international business environment. Oxford
University Press.
 Shtal, T., Buriak, M., Ukubassova, G. and Tlegen, T.,
2018. Methods of analysis of the external
environment of business activities.
 Stoyanova, T. and Angelova, M., 2018, June. Impact
of the Internal Factors on the Competitiveness of
Business Organizations. In 2018 International
Conference on High Technology for Sustainable
Development (HiTech) (pp. 1-3). IEEE.