Read the attached Case Study about John Lewis and their Management Strategy and answer the following questions:

1a. From the case study, what is John Lewis Mission Statement? 1b. What is the purpose of a Mission Statement to a retailer?

2a. From the case study, outline and discuss the style or leadership John Lewis has adopted.

2b. How does this differ to other leadership styles we see in the fashion industry today?

3. Using the case study and relevant management models and theories to underpin, how are John Lewis partners motivated and rewarded?

4. The Loyalty Loop helps us to understand how brands achieve and retain brand loyalty with their consumers.

Using examples in the case study, your commercial awareness of John Lewis and your understanding of the loyalty loop, discuss how John Lewis partnership values enhance brand loyalty with their consumers?

Our founder's vision of a successful business powered by its people and its principles defines our unique company today. The profits and benefits created by our success are shared by all our Partners.

John Lewis is one of the UKs top ten retail businesses and despite market difficulties has performed strongly with annual gross sales of over 11bn. John Lewis Partnerships owns 46 department stores, 345 Waitrose stores, an online and catalogue business, a production unit and even a farm!

What most consumers are unaware of, is John Lewis is one of the largest examples of worker co-ownership in Great Britain. All 91,500 permanent staff are actually partners in the business, which means they are able to share in John Lewis profits and help shape its future development.

The John Lewis Partnership Model

When Andy Street took over as managing director in 2007, Britain and the global economy were on the brink of recession. Yet Street who had worked for John Lewis since graduating in 1985 announced we havent just survived the recession: weve thrived.

Because of what happened in the wider economy, John Lewiss attitudes to business and its Partners became a model for others. Increasingly the company was a source of fascination and even inspiration to politicians of all three major British national parties. Could the co-operative Partnership model offer an alternative to conventional private sector companies and the delivery of public services? After all, John Lewis was not just popular, trusted by customers and a wider public alike; it was also successful. Nick Clegg, the deputy prime minister went so far as to call for a creation of a John Lewis Economy, in which employees are offered a greater stake in the companies that they work for. So why do so few companies follow the John Lewis model? Could it be that giving up control and the financial rewards that come with this is very difficult?

Mission Statement

The happiness of all our members, through their worthwhile, satisfying employment in a successful business'

When John Spedan Lewis, the founder, set up the Partnership, he was careful to create a governance system, set out by a Constitution that would be both commercial, allowing the retailer to move quickly and stay ahead in a competitive industry, and democratic giving every Partner a voice in the business they co-own.

The John Lewis Partnership is a visionary and successful way of doing business, boldly putting the happiness of Partners at the centre of everything it does. It's the embodiment of an ideal, the outcome of nearly a century of endeavor to create a different sort of company, owned by Partners dedicated to serving customers with flair and fairness.

High standards of corporate governance are at the heart of the Partnership: our structure gives our management the freedom to be entrepreneurial and competitive in the way they run the business for long-term success, while giving the company's owners, the Partners, the rights and responsibilities of ownership through active involvement in the business.

After all, as a Partnership we are a democracy open, fair and transparent. Our profits are shared, our Partners have a voice and there is a true sense of pride in belonging to something so unique and highly regarded.

JLP reaps the benefits of employee ownership by sharing knowledge, profit and power. Partners are more engaged in the business, they know that their opinion matters and they are able to feed their views to management through the formal democracy bodies and through the companys weekly magazine and they know that they will be rewarded for their effort. The Partnerships profit, after reinvestment, is distributed to Partners. In March 2013 this amounted to 15% of salary, or nine weeks pay, for every Partner. Put simply, its their business.

Our principles- The John Lewis Ps

The John Lewis Partnership's principles define how the business is run.

Partners- The Partnership's ultimate purpose is the happiness of all its members, through their worthwhile and satisfying employment in a successful business. Because the Partnership is owned in trust for its members, they share the responsibilities of ownership as well as its rewards profit, knowledge and power.

Profit- The Partnership aims to make sufficient profit from its trading operations to sustain its commercial vitality and finance its continued development, to distribute a share of those profits each year to its members and to enable it to undertake other activities consistent with its ultimate purpose.

People (Customers)- The Partnership aims to deal honestly with its customers and secure their loyalty and trust by providing outstanding choice, value and service.

'Never Knowingly Undersold' (NKU) has been John Lewis unique promise to its customers for over 75 years based on quality, service and value.

You can trust that we will always stock the best quality products, responsibly sourced. We work hard with all our suppliers to ensure they pay full attention to the well-being of their employees, their communities and the environment in which they're based. This includes using sustainable materials and methods wherever possible, and trading ethically at all times. Our staff (Partners) are highly trained to offer helpful, impartial advice on all products and we provide an excellent after-sales and a great choice of expert services from delivery to installation. We set highly competitive prices for all our products; if we find a national high street competitor offering a better nationwide price for the same individual product, sold with the same service conditions, we'll lower our price to match in all our shops and on our website, including when a competitor is having a sale.

We build relationships with our customers, suppliers and each other based on honesty, respect and encouragement

Our strategy- The Future of John Lewis

The John Lewis strategy is underpinned by three Aims.

Increase advantage of Partners

When Partners achieve their very best at work, it creates a competitive advantage for the whole Partnership more motivated and effective. To gain personal satisfaction by being members of a co-owned enterprise in which they have worthwhile and fulfilling employment, as well as a genuine sense of community.

Realise market potential

To attract new customers, and retain and deepen the relationships with those they already have. This is carried out through better understanding and quickly responding to their changing needs, whether that means more competitive pricing, flexible shopping opportunities, or peace of mind about product sourcing. Enhancing John Lewis sustainability programme is hoped to support market position.

Grow efficiently

Focusing on efficiency is becoming more important and to achieve a balanced and

profitable growth, whilst delivering enough profit to distribute to its Partners, John Lewis need to carefully prioritise its investments and further instill cost control discipline.

These aims build on the advantages of its co-ownership structure and demand an appetite for continuous improvement, innovation and enterprise to maintain the vigor of its commercial and democratic capability.

Achieving these three aims requires us to demonstrate the benefits of co-ownership and the behaviours that differentiate us. Our ability to compete against and outperform conventional companies will be the most important illustration of the effectiveness of our approach to business

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