MOD003319 Strategic Managment Assignment Anglia Ruskin University

TASK 1

Internal and External Strengths of John Lewis

The business environment of a company consists of various internal and external factors that impact the operational activities of the company in a large manner. Therefore, in order to achieve objectives and goals of a business, it is necessary for firms to measure impact of these factors. It includes various attributes like employees, stakeholders, technologies and more. In context with John Lewis, it deals in retail business by selling household products (Strategic Management, 2018). Currently it has more than 38100 employees working in 50 stores in the UK, including 12 at-home stores and remaining flexible stores in Exeter and York. The main mission of this company is to produce high-quality products as well as give effective services to its customers. This would aid in providing high satisfaction to customers according to their demands. For attainment of this aim, John Lewis has employed highly qualified staff members at stores and provides them with a healthy working environment so that they can work in a better way. For analyzing the strengths and weaknesses of this firm at the marketplace, its management has used Porter's 5 forces model and PEST, which are explained below:

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External environment analysis of John Lewis

Porter Five force model is used to analyse internal strengths and weaknesses of a company. Management of John Lewis use this technique to examine the potential of marketplace to enhance profitability.

Threat of Competition: Since the business of John Lewis is based on the retail sector, it has many competitors present at the marketplace (Freeman, 2010). Therefore, its management is required to consider on threats of rivals and formulate effective strategies accordingly. Along with this, in order to gain competition, this firm also needs to make differentiation strategies that show its products are better and different from those of other rivals.

Threat of substitution: Due to the large number of competitors, the threat of substitution also arises at the marketplace in a high manner. It results in giving so many options to customers in purchasing products or services available at different prices from various companies. Therefore, it produces a threat for John Lewis deals in retention of customers.

Threats of New Entrants: The Government of the UK supports entrepreneurs to open their new outlets at marketplaces on minimum finance. This would generate threats of new entrants to establish companies having same products (Hodgkinson and Healey, 2011). Since John Lewis is one of the leading retailer organizations, it has made its impressive brand image in the marketplace. So, the emergence of new entrants does not much affect the business of this company as compared to others.

Bargaining power of buyer: As in a marketplace, a wide range of products are given on various rates, which gives many options to customers to avail as per choice. This would arise from their bargaining power, which forced companies to offer their products at low cost.

Bargaining power of the Supplier: It is also an important factor which impacts directly on production and cost of a company. A high rate of raw materials affects the quality of products in a large manner.

Internal environment analysis of John Lewis:

Growth Plan: The internal strength of John Lewis is that it is one of the leading firms in the UK and has an effective brand image from the customer's point of view. In order to expand its business and increase growth, this firm aims to set up 20 new stores in other cities of this country (Evans, Stonehouse, and Campbell, 2012). Along with this, to gain more profit, it needs to open new outlets in the international marketplace and also digitalize the business. Its other objectives, which show advantages, are that this firm wants to increase sales by 25%, which will increase profit share at the marketplace by 40%.

Business Ethics: John Lewis has promoted its business as more ethical and traditional. This can be seen throughout its business, like transparency by using social media as well as conducting operations according to a code of ethics and more. Along with this, it has provided healthy working environment to staff as well as treated them equally. This process radiates positive brand image and effective services of John Lewis.

A Strategic Business Process Model

John Lewis has proved successful in acquiring large number of competitors. It has effective brand image as well as impressive goodwill. Its department store sells homeware, electrical, toys, and clothing products. But to arise competitors, its sales performance has much affected. Along with its poor strategies and high prices of products, they also impact the sales and production of this company. In addition to this, lack of knowledge of trends in the marketplace as well as usage of old techniques shows major weaknesses of John Lewis. Therefore, its management is required to formulate new strategies and policies in order to achieve competition in the marketplace. A strategic business model for this company is given as below:

Vision of the company: John Lewis Company wants to open its new outlets in other locations of the UK as well as in the international market through digitalisation (David, 2011). For the achievement of this business, it needs to make an action plan that includes various activities of organising the firm at the international level. Along with this, managers need to measure the resources required for carrying out these operations in an appropriate way.

View of the opportunities space: After making new vision and strategies, managers of John Lewis need to grab opportunities present at the marketplace where it wants to expand the business (Keupp, Palmié, and Gassmann, 2012). They are required to analyze the latest trends, choice of people, their lifestyle, and more. This would help in providing services to customers according to their wants and needs.

Future strategic intent: It gives an idea to John Lewis to attain its future desires in a profitable way. Globalizing the business will prove beneficial for this firm to increase the number of national and international customers in a profitable way. This firm needs to adopt new marketing techniques to promote its products or services in foreign markets.

Assessment of Current Business Design: It means when a company is examining their current procedure and functionality in order to check whether the firm is dealing with changes that are occurring in the business environment because this type of behaviour is necessary in maintaining the current market position. John Louise Company is doing their business in the garment industry, and it is required for corporations that all current trends and fashion should be followed by associations so that customer retention could happen and a larger number of buyers could get attracted by serving products of the company (Poister, 2010). There are some questions that are to be answered while assessing business design:

Q1) How much switching cost is the customer paying in the market?

• If the switching cost is high and the customer is ready to pay this, then this action is showing that the corporation needs to change their business structure.

Q2) How is the business model scalable?

• It means how flexible the business model is in context to expanding business activities in the market. If it is scalable, then it is a profitable situation for the association.

Q3) Earning before spending?

If the marketing activities of associations are good and prominent, then it is required from corporations that they should analyse their market position to get information about how people are waiting for John Louis's products.

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Choice of Business Design: It is very important for organizations to analyze their own strengths and weaknesses, capabilities, employee abilities, and many more in order to design business effectively (Barney and Hesterly, 2010). For this, they develop strategies and plans that help to find an improvement area. There are various fields that want improvement, like finance, marketing, human resources, operations, research and development, or many more. To manage all these departments, enterprises want to develop plans that help to achieve goals and objectives in an effective manner. So that, management of an organisation selects business design according to their needs and wants. For this, they want to identify their own demand and develop effective business design in a limited period of time.

Business Design Prototypes: It is a kind of project work in which a new firm prepares a design related to whole business activities that are being completed in order to achieve set goals and objectives. Firstly, people are thinking about what kind of prototypes should be created for their business. Mostly three types of prototypes are used by organizations, which are explained as follows:

• Low in cost, quick, and rough to build: In this kind of prototype, organizations do not want to spend a lot of money on business design. They only focus on the implementation of strategies that provide high sales and profitability. Low-cost prototypes have not provided effective design; through this, individuals are not able to achieve their aim.
• Give more detail but still rough and closer to the solution: In this, the company develops a plan of entire business activities in detail, which helps to achieve goals in an effective manner. But it is still rough and cannot provide full information about each one of the activities. Rather than this, individuals are much closer to their aim as compared to first-method business design (Schilling, 2010). Most companies use this method to design business effectively. Thus, create a positive environment for all companies in effective ways in a specific period of time.
• Much closer to final: I is a focus strategy; in this management of an organisation has developed strategies in order to achieve goals and objectives in a limited period of time in an effective way. Thus, help to gain the final outcome effectively. In this, firms gain competitive advantages as compared to their competitors in the market. Through this, enterprises are able to enhance employee productivity as well as performance because this method helps to manage all working environments effectively.

Planning of execution: It is the last step that is an essential part so that end products can be delivered to all their clients (Ackermann and Eden, 2011). Therefore, it is important that proper strategies are implemented for getting effective results. Further, there are some of the points that they can consider before executing the plan in a better way, and these are as follows:

• Set clear priorities: To remain in the market area for a longer period of time, it is important that a set of visions be formulated so that employees have an idea of what task they have to perform for gaining better outcomes.
• Collecting and analysing data: In this information are collected so that it can be analysed so that valid conclusion can be evaluated.

Reflection on strategic process model of John Lewis

A strategic process model enables and defines all major things of a company so that better and more effective working could be done. The strategy and process model of a firm will be assessed by me in order to determine which better and more effective working could be promoted. For attaining a better position, I will first formulate the vision of the organisation so that an overview or draft can be formulated through which I can evaluate what all things are to be achieved for sustaining themselves in the market area for a longer period of time. To accomplish the task, I will be required skilled employees who can help me out in completing the task, so my next step will be viewing appropriate opportunities so that eligible candidates can be selected. For an organization, it is important to analyse the strengths and weaknesses so that, based on this, strategies can be made. Therefore, I will look out for various business designs that have been implemented by other organizations too in order to get effective results. Further, I will see what kind of marketing segmentation can be done so as to set a target area where maximum benefits can be gained.

Economical condition is also an important criteria, which I will consider so that I can deliver the products of best quality to its customers. For this, future strategic intent will come into being. It is not possible that all the strategies that have been implemented can give appropriate results to an organization; thus, it is necessary that I make a backup plan that will be a business design prototype. This will help me out in choosing alternative activities so that effective results can be gained. According to the present market situation, there are various business designs available in the market that a company can choose in order to increase their sales and profitability in a given time period. Now it is my duty to choose an appropriate business design, and in choosing a functional structure, it will help me out in dividing the task according to the capabilities and skills that they acquire so that an individual can help the organisation in giving better outcomes. Other than this, I will see all the criteria that will assist me in getting appropriate results in a specific period of time. For this, all the latest tools and technologies are taken into consideration so as to manufacture goods and products according to the choices and preferences of customers. Planning and execution is the last step, which I will look out for in order to make sure that all the resources that are used are implemented in a better manner so that the products that are produced are as per the satisfaction level of the consumers. Therefore, I will check whether the commodities are executed in a proper manner to its end clients.

CONCLUSION

It has concluded from this report that strategic management is used in making improvements in a company. It provides various frameworks from which a company can choose the best one to make changes to the system. Along with this, it is responsibility of management to analyse business environment along with strengths and weaknesses. Managers should make a proper strategic plan as well as implement it in proper order. It includes design the practices and policies and develop business process as well.

REFERENCES

• Ackermann, F., and Eden, C., 2011. Strategic management of stakeholders: theory and practice. Long-range planning. 44(3). pp. 179-196.
• Barney, J.B., and Hesterly, W.S., 2010. Strategic management and competitive advantage: concepts. Prentice hall.
• David, F. R., 2011. Strategic management: concepts and cases. Peaeson/Prentice Hall.
• Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism. Taylor & Francis.
• Freeman, R. E., 2010. Strategic management: A stakeholder approach. Cambridge University Press.
• Hair, J. F., and et. al., 2012. The use of partial least squares structural equation modeling in strategic management research: a review of past practices and recommendations for future applications. Long range planning. 45(5-6). pp. 320-340.
• Hodgkinson, G.P., and Healey, M.P., 2011. Psychological foundations of dynamic capabilities: reflexion and reflection in strategic management. Strategic Management Journal. 32(13). pp. 1500-1516.
• Keupp, M. M., Palmié, M., and Gassmann, O., 2012. The strategic management of innovation: A systematic review and paths for future research. International Journal of Management Reviews. 14(4). pp. 367-390.
• Poister, T.H., 2010. The future of strategic planning in the public sector: Linking strategic management and performance. Public Administration Review. 70(s1).
• Schilling, M.A., 2010. Strategic management of technological innovation. Tata McGraw-Hill Education.

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