Comprehensive Business Environment Analysis of John Lewis Retail Store

This report provides a comprehensive analysis of the business environment, focusing on the retail store John Lewis. It begins with an introduction to the business environment, explaining its internal and external factors and their impact on companies. The report then delves into various aspects of organizational structure, including different types of organizations (public, private, and voluntary), their objectives, sizes, and scopes. It explores the interrelation of various functions within an organization, using John Lewis as a case study to illustrate how different departments like research and development, human resources, and finance interact to achieve organizational goals. Furthermore, the report examines the positive and negative impacts of the macro environment (political, economic, social, technological, legal, and environmental factors) on business operations. It also discusses internal and external analysis to identify strengths and weaknesses, providing specific examples related to external macro factors affecting John Lewis. The report concludes by summarizing the key findings and implications of the analysis.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P.1 Various types and objectives of organization ......................................................................1
P.2 Size and scope of organizations ...........................................................................................2
TASK 2 ...........................................................................................................................................5
P.3 Interrelation of various functions to achieve various objectives .........................................5
TASK 3............................................................................................................................................6
P.4 Positive and negative impact of macro environment on business operations ......................6
P.5 Internal and external analysis to identify strengths and weakness ......................................7
TASK 4............................................................................................................................................9
P.6 Strengths and weakness related to external macro factors ...................................................9
CONCLUSION ............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment consists of various factors that are internal as well as external.
Both these factors can easily impact the society (Añón Higón and Driffield, 2011). Thus
company has to create strong policies and plans so that they can maintain unique position in the
market and thus they can earn more profits. Through this firm can easily enhance their services
and they can easily improve their performance. Report explains about John Lewis which is retail
store. It was found in U.K. Assignment describes about the different types, size and scope of the
organization. It also explains about the interrelationship of various functions in organization and
their relation with organizational structure. It further describes about the various examples to
show the positive and negative impact of macro environment on business operations. It further
explains about the determining the internal strengths and weakness of specific business and their
relations with the external macro factors.
TASK 1
P.1 Various types and objectives of organization
Business consists of various factors that can easily affect the company in a great manner.
It can involve various factors that can affect company in a drastic manner (Bar-Isaac and
Shapiro, 2013). All organizations have a different purpose. Thus objective of various firm's are
described below:
Types Overview Purpose
There is a public company
which do not runs and work
for the purpose of profits.
They only serve the society.
These are the public
companies which are directly
controlled by the government
and they interfere on many
activities of public companies.
There is a company called
BBC which is mass media
company. It recruits and
selects around 35402 staff
members. Thus it can recruit
and select many staff
members. It provides various
services through television,
radio and through any other
medium. Thus as a result they
can directly earn more
Their main purpose is to
enhance the earnings through
creating a high class content. It
has also a objective that that is
to offer different and unique
content through using of more
media. Through thus it can
easily attract many users. Thus
form can enhance their
revenues.
1

revenues.
Second is the private company
whose main objective is to
earn more profits and thus they
can directly enhance the
market share. These firms are
linked by shares and any other
liability. Thus they have less
power and these companies
can perform better.
John Lewis is a departmental
store and it has expanded their
operations in around 50
countries approximately. Thus
as a result they can easily
enhance their revenues.
Through this they can easily
enhance their earnings.
It is the strongest brand and
thus it can easily maintain
good position in minds of the
market. It has a objective that
it can increase their market
share. It can offer various
products at a lesser costs.
Their main goal is to give
different offers to various
customers and thus they can
directly enhance their
revenues.
Third is the voluntary
organization whose main
objective is to provide
different benefits to society
and thus they can maintain
good image in minds of all
public. It can be like charity
etc.
There is a example that
Wellcome trust and it is a
company which performs
research and they directly
improves the health of human
s and animals. Thus they can
directly improve the quality of
work and can serve to the
society. Thus it can give many
advantages to many people.
Their main purpose is to
improve the health and thus
they can directly support the
people and can improve the
health of all humans and
animals. Thus it can directly
earn more revenues and can
enhance the market share.
Thus they can maintain good
image in the market and in the
industry.
P.2 Size and scope of organizations
There is different size and scope of various organizations so that they can maintain good
image in market and they can directly enhance their revenues (Bhaduri and Ha-Brookshire,
2011). Thus the firm has to maintain good image and unique position in the market. Thus the
size and scope of various organization are described below:
2

BBC
Background Products and
services
Vision and
mission
Size and
objectives
Legal structure
It is a special firm
which proves
media services to
many people.
Thus as a result
they can maintain
unique position in
the market
It do not have a
special product
but it provides a
special service
and thus it can
provide services it
Television, radio
and through
internet medium.
It also offers
music services to
many people.
Thus they can
easily maintain
good and unique
image in the
market.
Their main
mission is to
provide good
quality of services
to all people. It
tries to reduce the
poverty from the
country and thus
it can maintain
good image in the
market and they
can earn more
revenues.
In this there is a
chairman and a
non executive
director who can
directly manage
the activities of
business. Thus as
a result they can
directly enhance
the activities and
operations of the
company. There
are various
members of
England and
Scotland. It has a
special objective
that they can
inform to various
people and can
connect with
various people in
the country.
It has a particular
structure in which
here are board
members and thus
they can easily
work and manage
all operations and
task of the
business. Hence
as a result they
can easily
enhance and
maintain good
image in the
market.
John Lewis
Background Products and
services
Vision and
mission
Size and
objectives
Legal structure
3

It is a private
company which is
a retail store and
it provides many
retail items to
various users.
Thus they can
maintain good
and unique image
in the minds of
people and in the
industry.
It provides many
retail products
such as consumer
goods and
shopping goods.
It sells food and
unique clothes to
various
customers. Thus
it can capture
many users in
minimum time.
Hence they can
Their main vision
is to enhance the
market share.
Their main
mission is to
enhance the
satisfaction of all
users.
Their objective is
to deliver superior
quality of
products to all
people and thus
they can enhance
their revenues.
They have a
proper and legal
structure in which
there can be
effective
management of
all resources and
thus they can
easily maintain
good image in
market.
Wellcome trust
Background Products and
services
Vision and
mission
Size and
objectives
Legal structure
Wellcome trust is
the company
which performs a
charity firm and it
performs research
and thus it can
easily enhance
services.
It delivers various
services to all
people and thus it
can perform the
research and can
fund research so
that it can
improve health of
human and
animals.
Their main vision
is to spend more
money in the
various activities
so that they can
improve the
health of many
people. Thus they
can easily
maintain good
and unique image
in industry.
It has
approximately
2057 million
employees
working in
various parts of
world. It has
revenues of
around 23.2
billion. It has a
special objective
that it can earn
more revenues
It has a suitable
and simple
structure. It has
done various
investment in
many fields and it
selects qualified
employees.
4

and through this
it has to improve
the health of
many people .
TASK 2
P.3 Interrelation of various functions to achieve various objectives
There are various functions through which company can easily relate the different
functions and thus they can easily accomplish the goals (Briscoe, Tarique and Schuler, 2012).
Thus they can directly assists other departments and hence firm can enhance their revenues.
Interrelationship of various functions in John Lewis are (Typical business organisation
departments and functions, 2018):
Research and development: In this company tries to enhance the market and then it can
directly helps the other departments. This sections can easily searches of advanced technologies
and can also help marketing department in promoting various products through unique and
different manner. (Wallace, 2017)Thus as a result they can directly enhance the profits and hence
they can maintain good image in market. They can also give various ideas and suggestions
related to various products so that their quality can be improved. They can also help production
department so that they can directly enhance improve their performance. Thus it can maintain
good image in the market.
Human resource division: This department assists other department so that they can
maintain unique and good position in the market and in the industry. They tries to recruit and
select qualified and competent employees so that they can directly help other department. They
also assists the marketing department in promoting various products as there are qualified
employees are working in the firm (Trevino and Nelson, 2016). Human resource department can
easily select talented applicants so that they can give superior results. Through this John Lewis
can directly earn more revenues. Thus they can directly enhance the market share and hence they
can maintain good and unique position in the market (Yayla and Hu, 2012).
Finance department: In this department they can directly enhances the profits by various
methods. Finance department creates budget and cash flow statement in which there are inflow
and outflow of various funds. Thus they can directly invest in tasks through which they can earn
more money. They can also give advices and suggestion to other departments regarding the
5

investment of money in profitable activities (Bryman and Bell, 2015). Thus marketing and other
sections can invest in those activities so that they can earn more profits. Hence through this
section it can directly helps other departments and can also helps other departments and thus it
can directly enhance the market share.
TASK 3
P.4 Positive and negative impact of macro environment on business operations
The macro environment can impact the company in a drastic manner (Chadee and Roxas,
2013). Thus as a result company has to create various strategies so that they can easily survive in
industry and can attract many people.
Basis Strength Weakness
Political: In this there re rules
and regulations that can impact
the environment. Thus
company have to follow these
rules and regulations so that
they can give competition to
other companies.
Positive impact is that Govt.
has reduced the cooperation
tax from 30 to 20%. Thus they
can easily enhance their
revenues and hence company
can easily perform the
operations.
Govt is continuously changing
their plans and policies so
hence company has to modify
their plans and policies and
thus they have to create new
policies from time to time.
Economical: It incudes the
long term policies and plans of
company to reduce deflation
and increase the growth rate
Positive impact is that
company is facing recession
and thus it has to sell products
at lesser costs so that they can
attract many users in less time.
Negative impact is that it
cannot change policies for
future period. If there is
inflation then company
sometimes do not sell products
at lower rate and thus it cannot
earn more revenues.
Social: In this it consists of
society's needs and wants and
thus company has to cremate
effective and strong policies so
that they can maintain good
and unique position in market.
It sell good quality of products
and clothes to all users and
thus it can easily earn more
revenues. Hence it can easily
capture many people in less
time.
As people's demand is
changing so thus they have to
create various products and
clothes according to choice
and preferences of many
people. They have to sell latest
6

clothes to users so that it can
attract many people.
Technological: It make us of
various tools and techniques so
that they can create latest and
superior products
Company sells products
through online applications so
thus it can attract many people.
Hence as a result they can
easily gain more revenues.
They have to sue every
technology and tools in a
careful manner so that they can
maintain good image and
position in the market. Thus as
a result they can directly
enhance their operations in a
unique manner.
Environmental: It involves
those rules that firm has to
follow and it is crucial to
survive in market.
Positive impact is that
company put more focus on
reducing the level of carbon
print and thus it can directly
protects the environment and
thus it can maintain good and
unique position in the market.
Negative impact is that they
have to reduce this level and
they have to take steps to
protect environment otherwise
company can face many
problems and issues.
Legal: It includes the
legislations and other rules that
firm can follow
Positive impact is that
company is following the rules
and they are using the
renewable sources of energy
and thus they can produce
good quality of clothes
Negative impact is that
sometimes company can loose
the user and market share as it
is following the legal rules and
regulations.
P.5 Internal and external analysis to identify strengths and weakness
Company has to perform internal and external analysis so that they can determine the
strengths and weakness (Krell, 2013). Thus as a result they can directly improve their
performance and can enhance their position. Thus form has to perform the SWOT analysis so
that they can convert their weakness into their strengths. Thus the SWOT analysis of John Lewis
are:
7

Strengths
 It offers different variety of clothes to
all users and thus they can maintain
unique position in the market and hence
they can easily enhance their
performance.
 John Lewis have many employees so
thus it can handle and manage all
operations and tasks in a unique
manner.
 It is the largest and famous retail store
and thus it has a good image in minds
of all people and thus it can earn more
revenues.
 It is known with a popular name and
through this all products are sold and
this is the biggest strength for the
company. Hence it can earn more
revenues. Hence they can directly
enhance satisfaction level among
various people.
Weakness
 It has various weakness. Firstly it offers
less variety of products to all users.
Thus it cannot earn more revenues and
hence it directly limits various options
which are provided to all users.
 It charges higher prices for all products
as compare to other supermarkets so
thus it cannot attract many users. Thus
as a result they cannot maintain unique
and good position in the market.
Opportunities
 As more and more people are becoming
the brand conscious then it can directly
increase the target group and can
enhance their profits.
 Through increasing their network and
as it can reach to many people thus it
can directly expand their operations. It
can directly increase the sales.
Threats
 Various threats are faced by company
employees. This includes the robbery
attempts and loss of property can be
there as staff members are working for
late nights.
 John Lewis is facing huge competition
from other retail stores and other
supermarket chains. Thus company has
8

 It can open various stores in many
countries and through this it can easily
enhance their reputation in many
countries.
to create various plans and policies so
that they can beat the competition.
 Due to many rules and regulations there
is merger of many companies on a
larger scale. Thus as a result they have
to create strong and effective policies
so that they can easily survive in the
market.
TASK 4
P.6 Strengths and weakness related to external macro factors
There are strengths and weakness of the company. In some way or other company can
easily attract many users and thus they can create unique position in market (Luo and Zhao,
2013). The relation of strengths and weakness with macro factors of John Lewis are: Political: There are various political factors and there is reduction in corporation tax so
thus company can easily increase their profits and they can take variety of clothes from
various manufacturers and thus they can easily sell variety of clothes and other products
to many users. Thus company can directly enhance their profits and can increase the
market share. Economic: It includes the economic rules and regulations so that they can affect easily
increases the revenues. If there is inflation then company can directly handle this
situation. Company have many employees and it can offer products at lower costs. Thus
it can create unique position in the market and thus it can easily enhance the market
share. Hence as a result company can handle any situation and can maintain good and
unique position in the market (Sekaran and Bougie, 2016). Social: In this people needs and wants are changing. Thus they can offer wide variety of
products and clothes to many users in minimum time. Thus as a result they can directly
enhance fulfil the demand and requirement of all people. Thus they can easily increase
their earnings. Hence they can easily enhance their reputation among various people.
Thus they can easily expand their operations in many countries (Vaiman, Sigurjonsson
and Davidsson, 2011).
9

 Technological: It consists of using of various tools so that company can easily run their
operations. Company can use various advanced techniques and tools so that they can
create unique and good position in the market as well as in industry. Hence firm have
many employees who can easily adopt latest tools and techniques. Thus they can create
various products in good quality. Hence they can easily deliver superior quality of
products. It is crucial so that they can enhance their revenues (Morrell, 2017).
 Environmental: Company can follow the environment rules and regulations so that they
can directly protects environment. Company have to create good policies and plans so
that it can protect the environment. It has many staff members and thus it can directly
leads to enactment of profits (Reddick and Roy, 2013). Hence it leads to enhancing of
market share. Thus they can directly improve their performance.
CONCLUSION
It can be concluded from above report that business environment is very essential for
every company. Through this company can identify factors and can create strategies to deal with
the factors. Various types of organization are used and each has different purpose. Size and
scope of various firms are very essential. Various functions are related and their relation with
organization culture. Internal strength and weakness and their relation with macro factors.
10