Strategic Management: Analysis of John Lewis' Strategies

This report provides a comprehensive analysis of strategic management, focusing on the case of John Lewis, a major UK retailer. It begins with a definition of strategic management and explores the strategic management process used by organizations, emphasizing the importance of planning and objective setting. The report then delves into the application of models and tools, specifically PESTEL analysis, to assess the external environment and its impact on the organization. Furthermore, it examines the significance of change management, highlighting its role in adapting to external factors and ensuring business growth. The report concludes by emphasizing the importance of adapting to market changes and internal processes to achieve the set goals. This report covers all the necessary aspects to create an effective business strategy.

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................3
Define strategic management......................................................................................................3
Process used by organisations to determine their strategy..........................................................4
Application of models and tools used by organisations to determine their strategy...................5
Importance of change management based on the complexity of the transformation process, its
costs, risks and sustainability.......................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is considered as the ongoing plan monitoring analysis and overall
assessment of the requirement of the organisation and their needs to fulfil the objectives and
goals (Simandan, 2019).The field of strategic management deals with the major intended and
emergent initiatives taken by managers on behalf of owners and stakeholders, involving the
utilization of resources, to enhance the performance of organizations in their external
environment and thereby add value to the organization (Lynch (2021). Changes in the business
environment will need organisations to assess their strategies and ensure their successful
implementation. The strategic management process is helpful for company to maintain the
effective report of the present situation analyse the suitable strategies and deploy them
considering the effectiveness of executed management strategies (Banabakova and Georgiev,
2018). Strategic management strategies undertake the five basic strategies that leads to make
difference within the execution and appending over the surrounding environment. The strategic
management applies on both the promises and mobile platforms.
For the purposes of this purpose the retailer John Lewis is considered. This is Department
Store within the Great Britain and also situated in in Australia and Republic of Ireland. The
brand deals in general merchandise and also considered as the largest cooperative in UK. The
report covers a detailed analysis of its strategic management and the suitable process which is
used by company to determine their strategy and effective application of models. Finally, report
cover the significance of Change management considering the transformation process in the
organisation.
MAIN BODY
Define strategic management
Strategic management is considered as the overall management of the resources of an
organisation and also leads to achieve prominent objectives and goals. Strategic management
undertakes the effective development of objectives analysis of competitive environment,
evaluate strategies and makes sure that the management implement strategies across the
organisation (Simandan, 2019). Strategic management undertake the effective implementation
and formulation of the suitable initiatives and goals which are taken by company on the behalf of
their stakeholders and these are based on the consideration of resources by accessing the external

and internal environment of an organisation. Strategic management needs to provide the overall
direction to the enterprise and also engage the particular objectives of company in order to
develop plans and policies. Very well done!
Strategic management is essential because it permit an organisation to analyse the suitable
areas for the operational development. For this company tends to follow effective analytical
process, in order to identify the opportunities and threats. Strategic management prominently
focuses on effectively deploying resources and staff members to accomplish their objectives as it
includes the strategy evaluation and execution and environmental analysis throughout the
company. Along with this the strategic management process is helpful for the company and their
leaders in order to think about the plan and its future existence (Barney and Mackey, 2018).
Strategic management represent the suitable set of directions for the employees and Organisation
because it is based on the clear understanding of mission and vision values and objectives of the
company that will guide it forwards. This process needs a proper commitment to the strategic
planning that involves the ability of Organisation to set both long term and short-term objectives.
Process used by organisations to determine their strategy
Strategic planning is considered as an important tool for business as it provides measurable
objectives to John Lewis in order to help in the decision making. This planning process is helpful
to prevent organisations from performing aimlessly their business functions. Strategic planning is
the process of effectively planning a company's vision, purpose, and principles in order to
achieve the organization's most important goals. In this regard, a well-crafted strategic plan is
critical to an organization’s continued development. This process includes various steps which
are discussed below: Well, done!
Determine the strategic position: This stage is helpful in preparing the suitable strategy
planning process in order to achieve the long-term goals and objectives and also helpful for John
Lewis to develop their clear vision. This is an important step as it helps the company set both
short-term and long-term objectives like what they need to achieve and what are the steps which
they are taken to achieve the objective (Wunder, 2016). At the time of identifying the strategic
position John Lewis need to remember that their goals and objectives should be measurable and
realistic.
Gather people and information: When company establishes strategic position, they will
need to bring people who are involved in the planning process. They also need to bring the

relevant comprehensive information because it is useful for the growth and achievement of
prominent objectives. The company also needs to make sure that every letter which they use is
accurate and allows to make informed decisions by considering the facts and numbers.
Prioritize the objectives: When company promptly identifies the current position in the
market then it needs to determine a suitable objective which is helpful for them to achieve their
goals. Along with this John Lewis also need to make their objectives in line by which the
mission and vision of company is clearly visible. The manager of John Lewis needs to make
objectives by considering the initiatives to enhance the position in the market impact of the
external factors and measurement of progress.
Develop a plan: In this factor company needs to create a strategic plan effectively to reach
their goals. This step is useful in effectively determining the tactics which are important to
achieve the objectives and clear timelines by having effective communication. Strategy mapping
is considered as an effective tool to visualize the overall plan. Strategic choice needs to
undertake the trade of in the opportunity cost (Akhtar and et. al., 2016). For instance, John Lewis
can decide not to put much funding behind the customer support as it can put more funding to
create the intuitive User experience.
Execute and manage the plan: When the strategic plan is being developed than company
to implement it by communicating the overall plan within the organization by sharing the
relevant documentations. In terms of John Lewis their manager needs to turn the product strategy
into the concrete plan by mapping the overall process. With the help of key performance
indicators dashboards, they need to effectively communicate the responsibilities of team.
Therefore, this approach represents the effective completion of process and ownership
considering every step and consistently views with the individual contributors in order to
determine the checklist to make sure that the plan is on the track.
Review and revise the plan: It is considered as the final state in which a plan should be
reviewed and revised in order to exploit the suitable opportunities and evaluate the priorities on
the correct manner. This step needs constant monitoring and observation of the overall
performance and also analyzing the components which are not leading towards the satisfactory
result (Koseoglu, 2016). In relation with John Lewis, it is important for them to hold and include
the strategic planning process as it is responsible for the assigned task. It is also important to

repeat the strategic management process if any corrective actions are taken and continuously
collect the new and relevant data in order to help any future strategic planning that arises.
Application of models and tools used by organisations to determine their strategy
PESTEL Analysis: This approach is used to analyse external variables and can be used to
monitor those that have an impact on the organization's overall success. It is beneficial when
starting a new company or entering a new market. This method is used in marketing, and it is
often used by businesses to monitor the world in which they operate.
Political: As a result of this aspect, the government has the potential to encourage John
Lewis to purchase fabrics, especially when other countries’ taxes rise. People choose to buy from
companies that manufacture their clothes in the United States rather than those that export their
fabrics (Pröllochs and Feuerriegel, 2020). The political influence of Brexit has had a major
impact on John Lewis' organisational activities. For example, with the United Kingdom leaving
the European Union, it would lose numerous opportunities with European suppliers, resulting in
higher costs for end- consumers.
Economic: Although the UK economy is still recovering from the 2008 recession, people
are seeking ways to save money in order to invest in fashion and accessories. Rates have always
been a major factor in the retail industry, but new rivals, ranging from discount clothing stores to
budget supermarkets, are stealing market share from luxury brands, prompting John Lewis to
charge premium prices for their offerings. Furthermore, economic uncertainty has an effect on
revenue and earnings. However, although the Chinese economy slowed in 2016, the situation has
improved since then, and global employment has increased. Consumer purchasing power has
improved, which is good news for the group.
Social: Recently, there was no new name for John Lewis in the United Kingdom.
Because of the company's long-standing brand, customers have begun to associate it with it, and
as a result, a new trend chain emerges every year. Furthermore, in the last ten years, a number of
developments have arisen that have influenced the market for fashion items (Ferreira, Fernandes
and Ratten, 2016). The global population’s demographic composition has shifted dramatically in
recent years. As of now, the business caters to a variety of needs, so they do not need to drive
promotions to draw and engage customers.
Technological: Many people prefer online shopping to physically searching for clothing,
and this is due to the internet, which has sparked the opportunity to open one's own shop and sell

one's own clothes. As technology has changed different aspects, it has also increased
manufacturing and supply chains, resulting in greater efficiency in their distribution and
marketing of fashion goods, as e-commerce has aided in selling their products and services to a
wider consumer segment.
Legal: This industry must adhere to a number of laws and regulations, including tax
restrictions, export restrictions, and inflation costs. The legislations uphold worker’s rights and
as a result of this, it becomes more difficult as businesses have better opportunities and good
offerings in other countries. Many fashion retailers employ Asian staff to manufacture their
goods at a low cost, but many consumers are boycotting these brands.
Environmental: They should keep their high-end image, which has included pledges to be
a more environmentally friendly retailer on occasion. As John Lewis strives to become a more
sustainable retailer, there isn't anything that sets them apart. Furthermore, Fair Trade is an
initiative that was developed to compensate for international procedures that have an
environmental impact (Manyaeva, Piskunov and Fomin, 2016). As a result of this initiative,
small producers benefit from fair trade and adopt more sustainable business practises than their
rivals. As a consequence, it is advantageous to market environmentally friendly fair-trade goods.
Importance of change management based on the complexity of the transformation process, its
costs, risks and sustainability
Change is considered as the fundamental part in the growth and success of the businesses.
It is important to execute changes in order to move the process effectively. Prominent Change
management is helpful for employees to achieve their objectives and also boosts forward the
development of company. Change management is the broad term which is covers its planning,
preparation and implementation. (White and et. al., 2016). Most of the Change management
implications tends to focus on the acceptance of new ways and effective technologies. The basic
aim is to make sure the execution regarding the movement of company towards the objectives. In
this context the importance of Change management which is based on the transformation process
is mentioned below
External factors: These factors play an important role regarding the change of an
organization and globalization considered the rapid development for the new digital solutions
which are forcing companies to respond. Ignoring the external factors leads to negatively impact
the success of company. In terms of John Lewis, it is important for the respective company to

consider external factors before implementing and executing change within the organization and
for this they need to conduct market survey and research to have proper knowledge regarding the
trends.
Making ideas succeed: Most of the organizations use Change management technologies
in order to enable their ideas towards the growth and success (Wudhikarn, 2016). In terms of
John Lewis company need to work with project managers and their team to deliver new
capabilities and competencies towards the growth of company and also heap change agents and
managers as they are helpful to make short the proper availability of staff and effectively utilize
their new capabilities.
Engaging people with change process: It is considered as effective part of managing
change within an organization in order to engage people who are affected by the change
initiatives. In the context of John Lewis, the staff members are effectively involved in the change
process and they are engaged in the change plan that leads to work from the ground level for the
future growth and success.
Decreasing resistance to change initiative: At the time of executing change resistance is
inevitable due to the change initiatives because the people need to move out from your comfort
zone in order to accept change and also ask to work in the different and new way (Carroll, Primo
and Richter, 2016). The change managers of John Lewis lead to accept a denial reaction from
their staff members and it takes time to work come from this reaction. In order to overcome from
this Factor, The Change managers need to maintain transparency at the workplace in order to
face less resistance. Very well!
Improving performance and productivity: when an organization adapts changes, it leads
to improve their ways of working and enhance productivity as it helps in moving company
towards innovation (Karlik and et. al., 2017). In terms of John Lewis after implementing the
change it guarantees the overall improvement of the performance towards the better and healthy
environment which is able to achieve success.
Reducing costs: when the positive change is applied in correct manner it is helpful in
eliminating the waste and also reduces cost. In terms of John Lewis effective Change
management is useful for the company in order to make smart choice is it leads to increase the
productivity helps in improving profitability and decrease risk for the growth of company (Wan
and et. al., 2019).

CONCLUSION
The analysis shows that strategic management is a continuous process needed for
monitoring, assessment and planning the objectives of the company on the basis of the business
requirements and stakeholders’ expectations. Strategic management provides the overall
direction in order to develop policies and plans which are designed to accomplish the goals and
also locates resources needed for the execution of their plans. Therefore, strategic management is
helpful for companies to gain competitive advantage over the competitors and also and to ensure
that the organisation runs their business efficiently and effectively.

REFERENCES
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