John Lewis Essay examples

972 WordsOct 17, 20124 Pages
Essay on the External Business Environment In this essay, the organisation that I will be looking at is John Lewis. The outcome of the essay is to analyse how John Lewis is affected by the macro environment, analyse John Lewis using PESTLE and evaluate the strengths and limitations of using PESTLE as a strategic diagnostic tool. To discuss the market system and apply a range of market theories to John Lewis and to understand the organisational environment. There are many factors in the macro environment that will affect the decisions that John Lewis make, as well as any other company. The macro environment includes tax changes, new laws, demographic and government policy changes. PESTLE stands for Political, Economic, Social,…show more content…
There is a high rise in unemployment within the UK and because of this John Lewis will be affected as people have fewer wages. The minimum wage has been increased as from the 1st of October 2012. The amount you get paid depends on your age and if you are an apprentice or not. The current rates from the 1st October 2012 are: • £6.19 - The main rate for workers aged 21 and over • £4.98 - For 18-20 year olds • £3.68 – The rate for 16-17 year old workers above school leaving age but under 18 • £2.65 – This is the apprentice rate, for apprentices under 19 or 19 and over and in the first year of their apprenticeship. This is bad for John Lewis becasue of the rise in costs and this rise will happen every year. Social factors include health consciousness, population growth rate, age distribution, career attitudes and global warming. John Lewis could be left with unsold clothes because of the changing styles within the fashion industry. To avoid this from happening, John Lewis needs to keep ahead of fashion industry. As the population in the UK is rising, it will bring in more customers for John Lewis. Also more people are living over the age of 65 and by having an older customer base could be good for John Lewis. Technological factors include what is happening technology wise, how will this impacts on products or services, things that were not possible five years ago are now mainstream. Online shopping is getting increasingly
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