Strategic Growth Plan for John Lewis: A Case Study

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Strategic Management Plan
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Table of Contents
Introduction......................................................................................................................................3
Assignment 1...................................................................................................................................4
LO1 Analyse the impact and influence which the macro environment has on an organisation..4
LO2 Assess an organisation’s internal environment and capabilities.........................................8
Assignment 2.................................................................................................................................11
LO3 Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a
given market sector....................................................................................................................11
LO4 Apply models, theories and concepts to assist with the understanding and interpretation
of strategic directions available to an organisation....................................................................14
Conclusion.....................................................................................................................................21
Reference List................................................................................................................................22
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Introduction
It is extremely vital for an organisation to evaluate environment where the business is operating
and the devise strategic growth plan. The study shall be depicting an environmental analysis as
well as a strategic growth plan for John Lewis in their existing markets of UK (John Lewis &
Partners. 2019). Furthermore, the study shall be portraying the a competitive analysis through a
porter’s five forces model and devise suitable strategies that has to be followed by John Lewis in
order to develop their place in the existing markets of UK. Several theories as well as concepts
shall be validating the opportunities that are present for John Lewis in the markets of UK.
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Assignment 1
Introduction
In this context, the chosen company is John Lewis Ltd, which is one of the proficient names
among the garment department. Now it is dealing in different other segment and the market is
getting diverse from them as well. It is highly necessary to make sure that the services are
adequate and for that reason, the PESTLE analysis is going to be conducted.
LO1 Analyse the impact and influence which the macro environment has on an
organisation
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies.
Factors Analysis
Political The services associated with a developing
country is always better than one person can
think of and it is seen that the political
ambience is going to good and in the long run
it is delivering a proficient result as well. the
management process is depending on the
political ambience and Brexit related positive
and negative sides have affected the business
development of John Lewis, but there have
been no issues in setting a fashion statement to
the world. Hence, it can be stated that the
political relaxation has managed to get the job
done in a proficient manner. The corporation
tax related matters has to be adhered by any
company making business in Britain (GOV.UK,
2019)
Economic The economic condition of UK is in a
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flourishing state and there is a need to proper
management policy to keep the growth intact.
The GDP rate is going up and it is the fifth
largest country in the world in terms of GDP.
The current minimum wage of people aged 25
is £7.50 per hour. The key interest rate has
going up in the recent period and this is very
good news for the people who are living and
earning in British provenance (BBC News,
2019). From the given data it is evident that the
organisations might have prominence in the
sector as it is seen that the service providers are
capitalising the opportunity proficiently. From
the context of John Lewis, it is important to
have a better kind of rational approach in order
to make a significant impact on the business
process management. Rates of employee wage
can be higher but in the end, it will have a
significant impact on the return on investment.
Social From the social context, the acceptance of
people regarding new modifications is high and
it is seen that the business management process
is associated with the demand analysis. There
are many cultures and races living in the region
but it is seen that the business management is
not being done in accordance with the
requirement. The UK is one of the top 10
companies, which have the most number of
educated people, and it is a major factor to be
considered for implementing something to the
market.
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Technological From the technical perspective, it is important
to make sure that the service providers have to
think of proper kind of proficient knowledge as
well. The technical segment has developed and
UK government has invested a huge amount in
the technical management process and it is
found that the service providers have
acknowledged the opportunity for them in the
market (McGoogan, 2017). It is seen that the
business development process is associated
with proper kind of logical understanding and
in the long run, this is going to help in making
a prosperous impact as well. John Lewis has to
make changes in accordance with the demand
and in the future, this is going to have a
proficient change in the R&D, productions
department and other aspects as well.
Legal From the legal perspectives, the management
of the entire situation from the business
development context is dependent on the
decisions making and proficiency
management. It is seen that the service-
providing segment is going to be ensured with
proper kind of recruitment and work place rights
related aspect. The management of John Lewis
has to make sure that they are taking proper
care of the business management process by
giving priorities to the recruitment related
laws, work place rights and many other things
that are associated with proper business issue
settlement. The company adheres acts like
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Equality act where it is stated that the business
development process must be obliged to the
ethical aspects and every employee should be
provided with equal opportunity
(Legislation.gov.uk, 2019).
Environmental From the environmental aspects, it is seen that
the business management process is associated
with the environmental rights protection and it
is seen that the organisation John Lewis has
never intended to make any harm to the
environment. The organisation is abided by the
Climate Change Act 2008 and apart from that,
they use the best machineries that are
associated with providing a quality service
without harming the surroundings
(Legislation.gov.uk, 2019). This makes the
entire service process management easier as
well.
Table 1: PESTLE analysis of UK and effects on John Lewis
Strength
 It has a global presence and high
demand.
 The management has a set of skilled
workforce.
 The organisation has a good reputation
in the market.
Weakness
 There are some internal conflicts.
 The management process is not aligned
with the demand of the employees,
causing high attrition in some cases
(Johnson et al., 2018).
Opportunities
 Conflict management and giving proper
support to the employees
 Including better technical support for
service management
Threats
 The possibility of new entrant is a
major factor.
 The chances of having issues associated
with the new product and reputation
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damage are something to be worried.
Table 2: SWOT analysis of John Lewis Ltd, UK
M1 Critically analyse the macro environment to determine and inform strategic
management decisions.
The macro environment of an organisation is associated some intangible factors that are not in
control of the organising body. The factors that should make some change in the business
management process and are found that the changes are being implemented as well. From the
view point of De Villa et al. (2015), it is evident that the business management process is
associated with the political demand of the segment and in this context, it is essential to enhance
proper political relation. John Lewis is doing this and that is why they are getting proper benefits.
According to Pan et al. (2018), the technical modification can have a major effect on the strength
factors of the organisation and in the long run, this will help in enhancing the proficiency rate as
well. therefore, John Lewis should enhance the political relationship and focus on technical
factors as well n order to make a significant change in the service development context as well.
LO2 Assess an organisation’s internal environment and capabilities
P2 Analyse the internal environment and capabilities of a given organisation using
appropriate frameworks
1. Competition in the industry
The number of competitors is a major thing to be worried about and it is necessary for John
Lewis to make an analysis when there are companies like Zara, Burberry and many other names.
The current market analysis says that the chances of having a proficient share is dominant for
John Lewis, but they have to capitalise the opportunity properly (Gerard, 2018).
2. Potential of new entrants into the industry
The chances of getting a new competitor in the market is high because of the segment it is
dealing is. John Lewis is dealing in different segments and that is why the chances of having
more competitors are increasing as well. It is evident that the service providers work in
accordance with the demand in the market and if the demand is too high then the possibility of
having a high amount of competitors will rise.
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3. Power of suppliers
The suppliers of the organisation are high in number as John Lewis is dealing in diverse
segments in a proficient manner (Meyer and Cohen, 2018). The possibility of having a set of
suppliers’ related issue is high. The service providers are product developers but they are service
providers as well. The suppliers will be different for them and there will be mixture of supplying
authority. Hence, John Lewis is a big brand then the possibility of having issues related to
suppliers end will be low and this is a positive thing for them.
4. Power of customers
The customer concentration of John Lewis is high and that is why from the customers’ end there
will be no issues in terms of business management. The customers’ demand is getting fulfilled
and hence they have a dense customer concentration. It is a good thing for John Lewis and in the
long run, this is going to make a significant impact as well.
5. Threat of substitute products
In order to conduct a research on the market it is important to have an idea of market situation.
The business management process is depending on the environmental analysis form internal and
external ends. Giving substitutes to the market is easier for the competitors and the management
has to be worried about this aspect.
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set.
From the given detail, it is evident that the business management process is associated with
proper kind of business settlement and for that, the internal aspects have to be strong as well. The
conflict management process of John Lewis has to be polished to ensure proper service to keep
the reputation intact in the market, which is a major strength of the organisation. According to
Awatara et al. (2018), it is seen that the internal issue settlement is an important aspect to be
checked and with the help of the process, a better kind of assessment can be found as well. On
the other hand, Rydehell (2019), opined that, the analysis should be rational and multi-directional
to make a significant change in the business development system, otherwise it will not succeed.
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Conclusion
From the given data, it is evident that the business management is going to face threats but with
the strengths of the organisation, John Lewis is going to have some potential benefits as well.
Apart from that, it can be further concluded that the competitors have opportunity in the market
and the management needs to think of proper kind of approach process as well.
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Assignment 2
Introduction
The report shall be depicting different opportunities as well as directions that are available to
John Lewis in their existing markets of UK (John Lewis & Partners. 2019). Various strategic
directions that are available for the organisation shall be depicted in this report. Apart from this,
the several theories and models shall be applied in order to verify the available strategic direction
of John Lewis in the form of a strategic management plan. The report shall also be
recommending various growth platforms and strategies that has to be taken into consideration by
the management of John Lewis.
LO3 Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a
given market sector.
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation.
Porter’s five forces shall allow John Lewis Ltd UK to measure the competition in the existing
markets. The five forces allows an organisation to verify the possible threats in the existing
markets and devise appropriate strategies in order to mitigate the impacts from the threats. The
following depicts the five forces of Porter:
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Figure 1: Porter’s Five Forces
(Source: Jenkins and Williamson 2015)
Threat of new entry: The retail industry in the markets of UK faces a fierce competition, as
there are several other giant retailers in the markets. In addition to this, markets of UK have
several discount stores as well as that offers customers with branded products in a cheap cost.
However, John Lewis has strong grip over the existing markets that allow them to gain the trust
of the customers as well as suppliers and new entry will not be affecting the trade and commerce
of John Lewis catastrophically. Therefore, it can be concluded that the threat of new entry for
John Lewis in the markets of UK ranges between high to medium.
Threat of substitutes: The markets of UK have several other retailers that provide the customers
with the same products as well as brands at subsidised prices. Moreover, the discount stores such
as Aldi as well as Lidl are highly preferred by the customer as they have huge discounts on the
products as well as services compared to other large-scale retailers in UK such as Tesco, M&S
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