Analysing Strategy And Operations Management

Analysing Strategy And Operations Management Today’s business environment is complex, dynamic and uncertain and is influencing the strategies of modern enterprises (Beirnat, 2004). It is generally understood that there is a growing change in relationships between buyers and sellers which are impacting the way in which business is conducted (Buttle, 2007). Industry reports suggest that changes in today’s social and economic environment have had an impact on consumer spending behaviours. In such an unpredictable environment, the management of customer relationships becomes vital to the success of a business (Dyche, 2002). This realisation has prompted studies in the area of strategic management with the aim of gaining an understanding of a firm’s internal and external environment and developing strategies to exploit internal capabilities and external opportunities (Slack et al, 2006). The purpose of this paper is to evaluate the activities of John Lewis and explore its business operations in relation to Mich ael Porters generic strategies model. The paper will continue by examining Michael Porters value chain analysis and apply the theories practically to John Lewis. The paper will also discuss how the added value creates distinctive competences and lead to a competitive advantage for the business. Company Background John Lewis plc John Lewis is a UK retailer which comes under the umbrella name of John Lewis Partnership. The Group comprises of John Lewis department stores, Waitrose supermarkets, John Lewis Direct and the direct services company Greenbee. It is a public limited company owned by its employees (Partners) who influence the running the business and who benefit from a share of the company’s annual profits. The chain has an upmarket image which appeals strongly to a middle class core customer base. Chart 1: John Lewis Plc market share 2003 – 2007 (Mintel, 2007) The chart shows the market share growth for John Lewis from 2003 to 2007. The chart displays a steady g rowth pattern during this period. It would be fair to suggest that John Lewis has been performing well within the market as it market share has grown year on year. Mintel reports forecast that the retailer will continue to witness steady growth within its industry and states that John Lewis will be one of few retailers who will sustain growth despite changes in the economic climate and consumer spending behaviours. Activities John Lewis department stores offer a wide range of goods, including electrical, home playing fields and tennis courts; two large country estates with parklands; a sailing club with five cruising yachts and two country hotels offering holiday accommodation for partners. Partners are also enrolled in a pension scheme, given very generous holidays, and are part of a death in service insurance scheme. Additionally, upon completing twenty five years of service with the Partnership, they are given six month paid break.