D/508/3638 - Internal Strengths And Capabilities Of John Lewis & Partners

PROJECT 1

P1 Appropriate frameworks analyse the impact macro environment

Strategy can be defined as the scope and direction of a company over the longer time period which attain the advantages for enterprise by their resource configuration within a struggling environment, to attain requirements of market along with fulfilling expectation of stakeholder. Strategies exists at numerous level of organisation but initially this is required for organisation to emphasise overall operations of individual work in this. Strategic management is complementation and formulation of the key objective and goals undertaken through organisation's higher management on the owner's behalf associated with the resource consideration as well as external and internal environment in which the company's compete (Alsoboa and Aldehayyat, 2013).

The John Lewis Partnership is a British firm which operates numerous services such as Waitrose supermarket and John Lewis departmental stores along with numerous financial service, banking and other associated activities. The chain of departmental stores of John Lewis operates their business throughout the UK. It has more than 50 stores across Wales, Scotland and England involving its flexible format and at home stores in the York and Exeter. While carrying out a business strategy plan, this is fundamental for business organisation to consider the activities and proper environmental analysis in regard of achieving business objectives of John Leiws (Bentley, Omer and Sharp, 2013). Here are mentioned the external factors of environment that influence the practices of macro environment of business through conducting PESTLE and Porter's Five analysis discussed as below:

Pestle Analysis Of John Lewis

Through conducting PESTLE analysis, John Lewis can identify the macro environment of their business organisation that can aid in developing strategies and plan of organisation in better manner. This consist of major six components of external environment which has briefly explained in the beneath discussed report:

Political Factor: In order to examine macro environment, PESTLE analysis is being conducted of organisation in which the company exists. This strategy is assisting while understanding the growing market which is possible, place and way for the concern. After the Brexit this has become more complex for organisation to operate and enter the market of European Nations. Though, the government of United Kingdom is deciding to reduce the corporation tax up-to 28% which can provide numerous opportunities for Consumer shifting lifestyle and preferences correspond to business opportunities. Consumer are becoming more materialistic in United Kingdom that has carried out wide opportunities for the business of John Lewis Ltd. The company need to focus over manufacturing the trending and more branded service to please and satiate their consumer. But it is significant to undertake the healthy lifestyle, celebrity following and elements of ageing population of United Kingdom in regard of achieving business objectives and effective strategic plan.

Technological Factor: Online shopping is one of the major recent trends that is affecting the business of an organisation directly influencing over the approaches of selling services and products (Curwen, 2011). The administration, management and paperless operation of organisation can assist in carrying out the information technology framework which are accessing by operation flexibility and securing server in the business operations.

Legal Factor: Legislations of country has been stiffen after post Brexit period in order to control operations and create more healthy and safe environment in regard of consumer production and rights of company's natural renewable resources in order to manufacture clothes. This is also fundamental through the employment regulation changes along with process of guarding trading standard.

Environmental Factor: Resources sources that are renewable in the manufacturing process namely wool and cotton are environment friendly. These threats are considered in term of legislative livestock penalty in regard of managing health and safety. A major emphasis over the western organisation have been playing the major role in the large organisation in terms of decreasing the carbon footprint as well as increasing the efficiency of energy. Company follows the key approach of environment sustainability which is major key approach.

ANSOFF MATRIX

This can be considered as the product grid or market. According to this, major four elements for developing this by matching up with new and existing commodities which can direct numerous diversification and internal environment aspects.

In regard of understanding the strategy of market and compare the accomplishing market demands, this can lead to better organisational environment which can help in developing effective strategy of development in more efficient manner (D'Aveni, Dagnino and Smith, 2010).

Ansoff Matrix of John Lewis Ltd

A review of organisation's enviable status of growth discovered that they had been accurately classified under the Matrix of Ansoff Vector. In the following , the major components are categorised in context of John Lewis Ltd to assess macro environment which is discussed as below:

Market Development: Through entering new markets such as China, India etc. John Lewis can serve as major growth driver of organisation's revenues as well as expansion strategy. These markets are highly beneficial as these provide high opportunity of market. One of recommended opportunity is global or international alliance with the local Asian market retailer. This can be defined as the development methods along with exploit current competence and resources (E. Dobbs, 2014). Through entering into partnerships or joint ventures in regard of attaining large scale f economy and presence at international market, the company will seek for expertise operation and local knowledge in order to amend their supply chain, operation skills and product development in regard of delivering a effective experience of shopping to consumer. UK maturing market, this create a proper sense of John Lewis to the venture into the global context. In regard of managing proper growth of John Lewis, enterprise must venture in the international market.

Product Development: This is asserted that competitor of John Lewis Ltd such as M&S, Tesco etc..