The beginning of John Lewis Company took with the establishment a shop in London Oxford Street in 1864. At present, the successful voyage of the brand has won the place of largest departmental Store of UK with the mass of 35 shops. The company possesses a unique strategy to invoke enthusiasm in the work force by offering partnership to the employees to cultivate ownership in their attitude. The culture and spirit of the business is embedded in this very strategy that steer business operation with a common shared vision. In particular, the business strategy revolves around the establishment and strengthening of three elements that includes partners, customers and profit.
Impact of Macro Environment in retailing;
As mentioned above, macro environment plays a vital role in retail industry. Hence, a rational evaluation of the relevant factors to turn and cultivate positive opportunities is essential part of operations management.
PESTEL Analysis of Macro Environment of UK Retail Industry;
• Political; political implications are always crucial for retail industry as they are the grounds of legislation with negative or positive side effects. In the previous era of recession, UK retail industry was greatly affected in terms of finance and operation
• Forecasted political Impact on retail activity; The year 2012 is expected to bring in positive changes with the new prospected coalition government. The most prominent impact is expected to be drawn with the budget statement that plans to drop the borrowing requirement from 11.0% (2009/10) to 1.1% by 2015/16. Although it is expected that the target will be attained through a rise in VAT and Capital Gains Tax but the impact on UK retail industry is not expected as dramatic because of the reason that the very implication was expected since long. Economical; The economy of a country directly influences not only the buying patterns of consumer but also the production to meet demand. However, it is the most critical a role of operations management in retail industry to determine the demand with a functional supply chain to uphold the goodwill of an organization. Forecasted economical Impact on retail activity; although is quiet an evident fact that there is no standard formula to forecast economical viability. However, due evaluation of stressors can constructively aid the operations management to plan the strategical objectives. Concerning the previous era of recession, a sudden uplift of economy is not expected. Even though a minor improvement in the situation is expected. This may be utilized by retail industry of UK to bring in new opportunities to the sector. Social; The impact of social status can be identified in terms of ageing population, attitude to work and income distribution etc.. It determines the social trend of a country towards consumption, likeness and vice versa. Impact on retail activity; The previous era of recession have globally altered the social conditioning with massive consequences. In order to conjure them positively in the coming period minute observation with practical solutions to turn away threats and opportunities into strengths is a necessary element for effective operations