Strategic Management Plan: John Lewis Ltd Case Study

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Strategic Management Plan
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Contents
INTRODUCTION...........................................................................................................................3
ASSIGNMENT 1.............................................................................................................................4
LO1 THE EFFECT AND ENCOURAGEMENT WHICH THE MACRO ENVIRONMENT
HAS ON AN ENVIRONMENT.....................................................................................................4
LO2 ORGANIZATION’S INTERNAL ENVIRONMENT AND CAPABILITIES......................6
ASSIGNMENT 2.............................................................................................................................9
LO3 PORTER’S FIVE FORCES MODE.......................................................................................9
LO4 THE DIFFERENT TYPES OF STRATEGIC DIRECTIONS AVAILABLE TO THE
ORGANISATION.........................................................................................................................12
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
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INTRODUCTION
Based on the marketing environment there are variours different types of latest strategy which
will be explained in this assignment. Most of the corporation are using the different type of
strategy in there organization through which they will achieve their goal and objective and they
will also satisfy the customer need and wants (Android, and Waddock, 2017). John Lewis Ltd is
on the companies which have launched their empire the entire world of marketing. This
company is the employees owned Company. On behalf of all there employee, the corporation is
kept by the trust which will also know as partners. This is the topmost retailer companies in the
entire world .
The main motive of this assignment is to investigate all the different type of strategy and analyze
the impact of all these strategies in the business organization. John Lewis is the second largest
UK private company by sale (Android, and Waddock, 2017). For the growth of the corporation,
they change many strategies in their business organization. Many latest theories have been
classified to increase the market share in the entire world . In term of business strategy, they have
many various types of models used such as Porter’s five force model (Android, and Waddock,
2017). On the other hand for the appropriate growth of the corporation, the impact of the internal
and external environment PESTLE and SWOT also analyzed.
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ASSIGNMENT 1
LO1 THE EFFECT AND ENCOURAGEMENT WHICH THE MACRO
ENVIRONMENT HAS ON AN ENVIRONMENT
This is the largest retailer companies in the entire world .
MISSION OF THE ORGANIZATION
The mission of the corporation is to satisfy more and more customer by providing them with a
good quality of goods and services (Armstrong et al., 2015). For the commercial success and
ownership structure, the John Lewis status was founded. On the other hand, They also give their
efforts to satisfy their employee in a successful business.
VISION OF THE ORGANIZATION
The main vision statements of the corporation are to motivate there customer and serve
something different from others (Armstrong et al., 2015). The motivation line will set its
marketing strategy and on the other hand, the performance of the corporation will increase by
using some policy in the organization. They will also try to capture all area under the marketing
share (Armstrong et al., 2015). They will also try to provide good services to their customer and
they will also build loyalty and trust among them.
STAKEHOLDER ANALYSIS
A stakeholder plays a very important role in every organization. They will conduct many
different types of analysis through which they will easily identify the supportable progress of the
business organization (Armstrong et al., 2015). The growth and development of the corporation
will be decided by the link between the stakeholder and few powerful services of the corporation
As per previously said that the stakeholder is more powerful so they are also the backbone of the
john Lewis LTD. They will support the company on a good time and in there bad time
(Armstrong et al., 2015). They also help to the organization to become one of the most famed
companies in the entire world in relations of the retailer with achieving the all satisfaction of the
customer with the surety of the product at every level of the competition (Armstrong et al.,
2015).
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STRATEGIC PLANNING SERVICES
By using many different types of strategy in the organization, the company will easily target
something big and this is compulsory to target big because of the development of the strength
(Bowie et al., 2016). Few different types of factors will influence in the business environment
which will more effectively in the marketplace. That factor is internal and the external
environment (Bowie et al., 2016). For the analysing the macro environment of the John Lewis ltd
SWOT and PESTEL analysis is compulsory.
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LO2 ORGANIZATION’S INTERNAL ENVIRONMENT AND
CAPABILITIES
PESTLE ANALYSIS
POLITICAL ECONOMICAL SOCIAL
 In the rising market,
the john Lewis is
entering which is a part
of the European Union
(Bowie et al., 2016)
 In the UK all the
corporation is facing a
collapse and on the
other hand, they are
more sensitive to make
some change in the
interest rate of the
organization.
 There are variours
different types of
factors which will
affect John Lewis but
the main factor of the
corporation is the
trend of fashion.
 Without any limitation
or limit, their
competitors will enter
the UK market.
 Due to Rigid
competition in every
retail sector, the
retailer of the
corporation will
provide lots of
incentive to their
customer (Bowie et al.,
2016).
 For the opportunity for
the company, most of
the consumers are
shifting their
preference and
lifestyle.
 The UK government
decrease the cost of the
corporation tax from
30% to 28% which
will more help to the
John Lewis Company
because this will easily
growth their profit in
 Most of the time the
price of the product
will go down because
of john Lewis
influence mostly.
 In John Lewis, the
economical factor will
 To please the customer
they have to introduce
more and more brands
and few latest fashion
product in the
marketplace.
 They make sure that
there product and
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future. impact extremely. services will satisfy the
need and wants of the
customer (Bowie et al.,
2016).
TECHNOLOGICAL ENVIRONMENTAL LEGAL
 In the retailing
industry Internet
shopping is the most
important trends in
the marketplace.
Most of the
customers are using
digital technology to
purchases product.
 Few resources are used
for the production of
cotton and wool which
are environmentally
friendly.
 For the fitness and
security in term of
customer rights and
manufacture of own
natural renewable
resource for producing
cloths through some
national legislation
(Echchakoui, 2018).
 All the paperless
operation and few
management and
administration of the
corporation are carried
out in some technology
system.
 Threats are in relations
of some legal penalty
in the form of safety
and health
(Echchakoui, 2018).
 Different country has
different laws so they
have to follow all the
rules and regulation on
that basis.
 They try to make few
elasticity in the
operation of the
business by using the
different type of
technology in their
organization to finish
their work.
 Every firm has to show
that they are
decreasing their impact
on the business
atmosphere.
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SWOT ANALYSIS
STRENGTHS WEAKNESSES
 The company will enjoy the most
powerful brand of symbolizing
qualities
 John Lewis was the most unprotected
company.
 From 2001 the company have increased
their profit ratio.
 Their market share was fluctuating
during the year (Echchakoui, 2018).
 Their cash position is also very strong
contracditing others.
 The price ratio of the product was very
low contracditing the other competitors.
 For the promotion of their brand, the
company use few celebrities as a brand
ambassador of their company so that
more and more customer will attract
(Echchakoui, 2018).
 Based on the latest analysis this was
found that the corporation is using
cutting the price of the product through
which they will match up with every
increasing competitor.
OPPORTUNITIES THREATS
 Most of the time the company try to
Crafting of trendier clothes which will
help to attract more and more customer
toward the company
 Based on the latest analysis now the
corporation is targeting the old age of
the customer. Due to this, they have to
face many issues in there organization.
 Most of the customer is using digital
technology for purchasing some
product so this is a great opportunity
 In the marketplace there was negative
publicity due to this there revenue was
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for the business to increase their
revenue (Echchakoui, 2018).
decreased rapidly.
 The company adopt healthy lifestyles
by customers which will help to sell
their product.
 In the company, they are stated as poor
corporate governance (Echchakoui,
2018).
ASSIGNMENT 2
LO3 PORTER’S FIVE FORCES MODE
PORTER’S FIVE FORCES
Porter is the inventor of the porter five force models. This model will help the internal and the
external factor which will affect the organization highly in the marketplace . In the threat of the
substitute, the latest entry of the customer deal power of the customer and supply are involved in
this (Eskandari et al., 2015).
A THREAT FROM THE BUYERS
This factor will help to the company who will enter in this firm. The market share of the
corporation will increase due to the competitive industry to attract more and more firm. The
overall profit of the corporation also increases because of factor will increase (Eskandari et al.,
2015). The first was the huge costs of entry. To make interest in to more and more customer the
company try to make much promotional activity in their organization. Few organization thinks
that if the customer is sensitive then they will purchase the high cost of the product (Eskandari et
al., 2015). If in John Lewis the bargaining leverage is less then it will be more helpful to them.
Most of the customer prefers to purchase a good quality of product with cheap rate so they prefer
to purchase the John Lewis product from the market (Fooladvand et al., 2015).
THE INTENSITY OF COMPETITIVE RIVALRY
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In the marketplace , there are variours different types of ways the barrier quality, pricing and
market can be decreased. Most of the time firm will enter easily in the marketplace because they
are providing the good quality of product and services with some reasonable price to their target
customer in the marketplace (Fooladvand et al., 2015). Marks and Spenser, TESCO and ASDA
group limited are the main competitors of the John Lewis Company. The most powerful base for
the development of the emergent latest one is focused by them. There are variours different types
of factors which will identify the level of their competitors in the marketplace those are the john
Lewis eminent as the leader if a huge number of a competitor is there in the marketplace
(Fooladvand et al., 2015). As per the latest analysis, this was found that in the marketplace most
of the brands are depended on them.
THREATS FROM SUBSTITUTES
Most of the industries are producing a threat product for some substitute product. The changing
in demand for that product is held in the marketplace because of the sub substitute industry. Like
most of the firm prefer to deliver a good feature of product at a reasonable price so they will
change the price of the product as per the demand (Laszlo, And Zhexembayeva, 2017). They will
also focus on that the customer will purchase those products which will not harm them. In the
marketplace , most of the substitute company are very high.
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Figure 1 PORTER 5 FORCE OF MODEL
[SOURCE: Olutoyin, and Flowerday, 2016]
THREATS FROM ENTRANTS
For increasing the progress of the business organization the organization have to mainly
concentration on their promotion through which they will attract more and more customer in the
marketplace . Based on the latest analysis new enterprises are highly affecting the rising market
(Laszlo, And Zhexembayeva, 2017). There are variours different types of barriers through which
they will fix the cost. There are variours different types of barriers through which you can
differentiate your business. Those are economies of scale, Product discrimination and the power
of live brands, Capital demand, High fixed costs, Access to sharing channels, and Government
policy (Laszlo, And Zhexembayeva, 2017).
THREATS FROM SUPPLIERS
There is no limit in john Lewis related to the threat. The organization will easily identify the
change in the price of the product in the marketplace . Based on the demand and supply the need
of the customer is fully depended. In most of the country this type of strategy is not allowed
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(Olutoyin, and Flowerday, 2016). Due to a large number of supplier, most of the customer will
oppose this.
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