Business Environment Analysis of John Lewis: Macro and Micro Factors

This report examines the business environment of John Lewis, a UK-based retail department store. It employs SWOT and PESTLE analyses to evaluate the company's position within its macro environment. The PESTLE analysis assesses the political, economic, social, technological, ecological, and legal factors impacting John Lewis. The report identifies both positive and negative impacts of these factors. The SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The internal analysis highlights the company's online shopping website and brand recognition as strengths, while limited items and outdated equipment are weaknesses. Opportunities include network expansion and new product lines, while high security systems are identified as threats. The report then interrelates the strengths and weaknesses with external macroeconomic factors, emphasizing the impact of technology and market growth. The conclusion summarizes the key findings from both analyses, highlighting areas for future improvement.

Business and Business Environment

Introduction
 The present study is based on John Lewis ,it
is a retail departmental store that has its
outlets in the boundary of UK.
 Study will conduct SWOT and PESTLE
analysis in order to analyses business
environment of firm

P4 Positive and negative impact of macro environment on
a business organisation
Macro environment includes all the factors that affect business
environment politically , economically, socially, technologically,
ecologically and legally..
Political environment
 Negative impact : It will have negative impact on
the business environment of John and Lewis , if it is involved
with corrupted political parties , as there are chances of fraud
and unfair trade practices conducted by those political parties
that can affect its retail business and can decrease reputation
of John and Lewis.(Zahari, and Romli, 2018).
 Positive impact : If John and Lewis have good
relations with government and good political parties, than
political environment will have a positive impact on John and
Lewis.

Economic and socio-cultural Environment
 Negative impact : UK economy is facing downfall in prices of goods
and services that is 'recession' that can lead John and Lewis to decrease prices
of its product that ultimately cause a plenty of decrease in its revenue . Also it
will have a negative impact if there will be increase in interest rate , means
increase in the cost of loan that leads to increase in expenditure of carrying
business operation of John and Lewis.
 Positive impact : If the economy of UK is stable means supply is
equal to demand , no inflation and deflation in the economy , interest rate is
stable then country has plenty of income from gross domestic product then
John and Lewis can use this income in its retail business and can increase its
sale.(Widya Yudha, Tjahjono, and Kolios, 2018).

Technological and ecological factor
 Negative impact : It is the era of new technology and
innovation . John & Lewis should implement new methods of
doing its manual work and expand its business . So for carrying
business in long run John & Lewis have to go with these
technologies and introduce innovative products. (Hadermrod,
Crowder, and Wills, 2019).
 Positive impact : John & Lewis can have positive
impact on its business environment if it carry on IT system , that
can be access through strong servers and it can boost its online
business.

Legal Environment
 Negative impact : If John & Lewis will not follow various laws like
employment law , consumer law health and safety law , that is must for every
organisation , then court may impose penalty and the person behind it can be
subject to imprisonment.
 Positive impact : providing fair wages , creating non discriminating
culture , providing facilities for health and safety can have positive impact on
John & Lewis's legal environment , as it will build good image in front of legal
authorities.(Stavropoulou, De Vuyst, and Leroy, 2018).

P5 Internal and external analysis of a business organisation
Internal analysis of business includes identifying its
strength and weakness and external analysis includes
opportunities and threats.
Strength
• online shopping website
• recognizable brand
Weakness
• Limited Items
• it uses outdated equipment
Opportunities
• expanding its network
• add new product line
Threats
• high security systems

P6 Interrelation of Strength and Weakness with external
macro economic factors
 As the strength of John & Lewis is that it has its online business to deliver
products in other countries means it has strong base for computer technology ,
that is helping it in expanding its business in new market.
 Also it is the growing retail store in UK that will help it in increasing its growth
rate.
 Ultimately increase in growth rate and market will help in maintaining its star
position. Organization having star position generate more funds , and that funds
will improving economic position of the country.

Conclusion
 From PESTLE analysis , political, legal, social base of the organisations can
be identified , also its technical and economical benefits can be analysed.
 SWOT analysis shows negative and positive areas of a company and it also
points those areas that will be improved by the company in future

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