Business environment specifies a number of objectives and points in order to clarify and to reach influential and reflective information to all the readers and business professionals. It is to be mentioned that all the macro and micro factors regarding environment are highly significant and essential in order to justify factors and to reach information to the readers. In this report study, every business organizations and their purposes are chiefly discussed and evaluated. The problem statement of this report is to analyze business objectives, their micro and macro environmental factors, and the internal and external analysis of business organizations and so on. Internal and external factors help to specify and to declare strengths and weaknesses of a respective business organization. All these information help the readers and other respective business professionals to get a clear conceptual idea regarding business and business environment.

Task 1

P1 Explaining the functions, their interrelation and their link to the organisational objectives and structure

Functions of John Lewis Partnership

John Lewis Partnership is a respective business organization, which has great functions and responsibilities to increase and enlarge their business prospects and economic growth. However, it is to be signified that production, marketing, purchasing, researching and developing, accounting and finance are the chiefest functions of this business management. However, all these functions help the organization to grow its economic growth and to satisfy their customers significantly.

Production: Production is one of the significant functions of this organization (Devor et al. 2013, p.270). This company sales different types of products to the customers and if these products are not produced fruitfully and rewardingly, the customers will never be attracted towards the company and its products. Therefore, the employees need to produce with extra care and awareness so that they can be able to produce significant and high quality products.

Research and development: The employers should also be careful regarding research and development. They need to research and observe working styles and roles of each individual employee. After observing, the managers need to highlight and involve highlighted and significant steps or procedures regarding development and improvement of business management and projects (Li and Whalley, 2014, p.169). The managers should train their employees significantly regarding the researched topics and steps of development accordingly.

Marketing and costing: Marketing is a significant process of attracting customers and capturing their attention. In this respect, it is to be highlighted that the management needs to advertise their products and services through television, mobile messages, email and websites and also in journals, magazines, newspapers and so on (Cartwright et al. 2016, p.82). It is to be specified that if the customers get reflecting information regarding offers on products, high quality products in low costs, they will rush to the stores to buy those offered products significantly. This is a chief way to attract customers. Moreover, it is to be specified that finance and accounting manager should be careful while fixing up budget rates and prices of different products.

Links between functions and organizational structure

Figure: Organizational Structure of John Lewis Partnership
(Source: Thompson, 2015, p.132)

It must be highlighted that the functions of this respective organization are highly intertwined and interrelated with the organizational structure. This is because, finance manager, marketing manager, production manager hold respective post and position within the organizational structure of this organization. In this respect, it is to be evaluated that if these managers work significantly and forcefully, they can be able to perform their roles and functions of the company fruitfully and reflectively (Van Engelen et al. 2015, p.7). However, it should be signified that every role or position of respective persons of a specific organization need to perform for the development of management. If they do not work actively, the organization will be surely fall down economically.

Task 2

P2 Identifying and discussing various macro environmental factors with specific examples

Pestel analysis of John Lewis

Regarding the macro environmental factors of this organization, one must evaluate the pestle analysis in order to identify and specify the effects or affect of these macro environmental factors upon the business management.

Political forces: Political forces help the organization to provide assurance and to secure each one of the employers and employees significantly. This is because; legal activities and governmental roles are highlighted upon the working prospects and projects of this organization. Moreover, it should be defined that the managers and the other employees must follow all the effective rules and regulations of the company and government. Otherwise they cannot be able to influence their business perspectives and significance (Baer et al. 2014, p.363). Other than this, maintenance of infrastructure is also included within the political factors of this company.

For example, it has been observed before few years that the management of John Lewis failed to approve a respective land from the UK court, in which they step to build one more store. As a result, the owner of that land obstructed them to start up the building and they faced problems and had to buy one more land for the building. In this regard, their time, specific amount of money etc. everything has become useless.

Economic forces: Economic forces should be influential within this company in order to develop and improve their business aspects. It is to be mentioned that they need to increase their capital through loans, personal investments ad so on. Capital helps to secure the business segments and aspects during loss (Turpin et al. 2016, p.104).

Social: The business and stakeholders of the company are highly included as social factors significantly. This has been signified that the management needs to observe and identify customers’ needs and requirements and they should highlight their business production accordingly in order to satisfy the customers. Other than this, they must pay back payment of the investors and other financial organizations in order to build trust and believe.

Technological: Business segmentations and prospects of a respective organization highly require technological development and significance. This is because, in the most recent days, CCTV, mobile, computer are chiefly required in every organization in order to be connected with customers and partners (Hancock et al. 2014, p.300).
At once, it has been observed in John Lewis that an employee admitted some illegal activities within the organization. The employee misbehaved with a respective customer and as there was no CCTV camera, management blamed that customer. As a result, proper judgment did not make by the management and other respective customers also get hampered and started to distrust the company.

Environmental: Environment of a respective organization must be pleasant and fruitful so that the employees are able to get a significant atmosphere of working. It is also to be specified that if the customers do not get significant and influential buying and choosing environment, they never visit the stores of John Lewis (Harrison et al. 2016, p.149). However, in this respect, it should be highlighted that employees need to be trained effectively and appropriately by the managers so that they can behave politely with the respective customers.

Legal: Legal factors are included as governmental rules and regulations and acts which help John Lewis to avoid troubles and problems of customers and employees and also the business products and services. It is to be signified that Employment Act, Human Rights Act, Equal Remuneration Act etc. are highly signified in order to continue a business management (Rigdon et al. 2015, p.8). All the employees and employers are free to express their thoughts and suggestions regarding a particular project and they must get same amount of remuneration according to the posts.

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P3 Conducting internal and external analysis and their influence upon decision-making process

Internal and external analysis

Internal and external analysis of a respective organization specifies all the strengths and weaknesses of the management significantly. Internal analysis is significantly done by Porter’s five forces which denote all strengths and weaknesses adequately (Huguet et al. 2017, p.14).

Porter’s five forces: Porter’s five forces help to define every strength and weakness of a respective business organization. In this respect, it needs to be specified that all these forces help the organization to identify problems and strengths and also to rectify those issues significantly.

Supplier: Supplier bargaining power is decreasing in this respective company. This is because; the company is paying back their suppliers in time or before time. Therefore, the suppliers have started trusting this company significantly.

Buyer: Buyer power is increasing in respect of this company (McEwan, 2016, p.99). This is because, if management gives value to the customers and produce high quality products according to the customers’ choice, taste and style, they will be able to highlight their business perspectives. It is to be mentioned that John Lewis has therefore, a huge number of customers.

Threats: China is highly responsible regarding the threats as here is presented a store of this respective company. Moreover, it should be highlighted that as this company has so many threats, customers are really attracted towards the business products and the services significantly. This is because, competition brings attractiveness among customers.

New entrants: There are some significant new entrants which obstruct the path of John Lewis in order to take entry into its market place. In this respect, it is to be highlighted that these new entrants are trying to reach in higher position and therefore, the management of this respective company fails to secure their management.

Competition: Competition is chiefly high in this respective organization of John Lewis. China is significantly raising its market and value in order to grab the opportunities and customers of John Lewis. Moreover, this respective company is significant in order to struggle in this competitive situation (Lance et al. 2014, p.100).

External forces are also designated regarding the identification of strengths and weaknesses of John Lewis significantly (De Silva et al. 2015, p.2604). It is to be highlighted that if the political, social, economic, technological forces are not involves influentially, and the organization will fail to rise up their business aspects and significance.

Influencing decision-making process: Decision-making process should be highlighted and reflective in order to increase value and reputation regarding John Lewis Partnership. This is because, managers need to observe the strengths and weaknesses while deciding and structuring plans for the company. However, they have to take positive steps for the fields that are weak and have to evaluate those steps that are already strong. Therefore, it is to be specified that internal and external analysis is highly influencing and reflecting regarding decision-making process.

P4 Applying a SWOT or TOWS analysis of external macro factors

Strengths: The Company has huge strengths regarding its macro environmental factors. Its economic aspects are highly strengthened through personal investments, bank loans and other financial loans etc. Other than this, the company also holds a huge number of customers and as a result, those customers buy products from this organization (Levitt, 2014, p.120). As a matter of fact, profit of this company is also increasing in day to day terms. Other than this, technological aspects and factors are also respective strength of this company.

Weaknesses: The Company is quite weak regarding its political factors. Sometimes, it fails to meet the essentialities or requirements of infrastructure development. Moreover, its social factors also affect the company irrespectively (Dahlén et al. 2016, p.119). As a matter of fact, the company needs to justify all these aspects and factors in order to strengthen all these weaker sides.

Opportunities: As the company has significant strengths, it is to be highlighted that it has larger opportunities to enlarge their business prospects and lands and also to enforce the working styles and activities. As it has so many employees, they can increase their production and supply those products to the customers in order to increase profit and valuation in the marketplace influentially. However, as its technological factors are highly strong, the management can be able to adequate their marketing strategies which definitely help the company to justify their business functions and aspects (Schram, 2014, p.24).

Threats: Threats are specifically for the social and political factors. As these factors are weak in this company, the management is in great danger accordingly. It needs to be signified that the management fails to identify customers’ styles, tastes and choices and therefore, customers are distracting their attraction from this respective company (Dahab, 2015, p.112). As a result, the company will lose its buyer power formatively.
However, from the above discussion of SWOT analysis of macro environmental factors of John Lewis Partnership, the managers need to discuss and evaluate their planning regarding business aspects and development. Moreover, they also need to evaluate all these factors and should develop these external factors influentially.


At the end of this report study, it must be involved that every internal and external factor is significant and influential in order to clarify and justify business and business environment. It is to be defined that SWOT, PESTEL of John Lewis Partnership provides detailed context and perspectives of their business prospects. Moreover, it is to be defined that if all the objectives are not defined clearly, researchers cannot be able to define business environment to the readers. Along with this, researchers also have to clarify and direct the business analysts that how they should manage and control negative aspects of a respective business organization and how they should create a significant business environment within a respective company as well.

Reference List

  • Baer, C.E., Ippolito, D.L., Hussainzada, N., Lewis, J.A., Jackson, D.A. and Stallings, J.D., 2014. Genome-wide gene expression profiling of acute metal exposures in male zebrafish. Genomics data, 2, pp.363-365.
  • (2017). Children’s charities | UK's leading children’s charity | Barnardo’s. Available from: [Accessed 5 Feb. 2017].
  • Dahab, S., 2015. INTERNATIONALIZATION STRATEGY OF RELANCE TO BRAZIL (Doctoral dissertation, NOVA School of Business and Economics). 



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