Impact of International Trade, Global Factors and EU Policies on Morrison's Supermarkets

This presentation outlines the impact of international trade, global factors and the policies of European union on the Morrison's supermarkets.

Business Environment

Introduction
This presentation outlines the impact of
international trade, global factors and the
policies of European union on the
Morrison's supermarkets.

Impact of International trade
The chosen organization Morrison is evolving its market place in the very significant
manner. With the best use of inner capabilities and strategic initiatives, the fourth largest
retail chain of UK, Morrison's is expanding its business by increasing the number of stores
and convenience beyond the borders. This brings lucrative results to the organization in the
revenue generation and widening of the customer base. International trade has benefited the
organization considerably in these aspects:
Comparative advantage: Trading products and services in another country has the
inclination of profits in the favour of organization. Morrison has the comparative advantage
over the other firms due to its customer centred approach towards food, craft skills, own
food farms and the vertical integration through manufacturing business.
Balance of Trade and payment: The success of the financial performance and operational
excellence of the Multinational organization increases the credits of the country's
merchandise trade and balance of payments in the considerable way. It also improves the
transaction of invisible and improves the capital account of the nation by attracting
investments.
Competitiveness: By revamping the systems and introducing the Morrison's supermarkets
in the multi-format and multichannel stores and the products at affordable prices, the group
experiences the low degree of competitiveness on international ground that increases its
sales and profit generation.

Impact of global factors
In the fierce competitive economic climate, the grocery market is the challenging
environment to operate in, with the influence of global factors. Some factors that imparts
large influence on the working of Morrison's supermarkets are:
Protectionism: Protectionism is the kind of economic policy adopted by the International
organizations to promote the fair trading between states through tariffs, import quotas
and variety of other regulations. Such measures adopted by the organization affects the
pricing of the Morrison's offerings, the quantity of imports, the logistic and distribution
channel, smoothness of the operational management and its profitability.
WTO(World Trade Organization): The purpose of WTO is to regulate the trade between
states and ensures the smoothness and legality of the agreement. It embodies certain
rules and regulations for that. Morrison's Supermarkets comply with all the laws laid
down with respect to trade.
Emerging markets: The organizations operating in the markets of China, Brazil, India
and Russia are significantly increasing their share in the global markets. Their presence
challenges the established predominance of the developed nations. The increasing
competition from theses nations makes the Retail Chain to enter with distinguished
products and strategies to have a strong hold in the market.

Impact of EU's policies
European union has laid down certain rules and regulations for the member
countries for the proper functioning of the countries in economic, social and
environmental aspects. Two such policies are explained below:
Labour policies: The supply chain management of Europe is significantly
increasing. The employees in the supply chain individually hold the share of
11.3% in the total employees. For the protection and improvement of their
conditions, EU has laid rules for logistic management and distribution channel.
Morrison's supermarkets take care of the convenience facility given to them, the
wages and other incentives provided to them and other related areas.
Food and Beverages: EU has the prime concern over the organization operating
in food and beverages industry. Morrison's supermarket chain has the wide range
of products. One of the core area it is working is the Food section. It complies
with the policy of providing fresh meal, quality of edible colors and
preservatives and other related issues.

CONCLUSION
 The chosen retail chain group Morrison's
supermarkets experience the significant impact of
International Trade in increasing their profitability
and in global market share. Further, the organisation
comply with the rules and regulations laid down by
WTO and EU with respect to fair trading and
consumer protection.

REFERENCES
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business environment: the case of Albania. Journal of Small Business and
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 Bitzenis, A. and Nito, E., 2005. Obstacles to entrepreneurship in a transition
business environment: the case of Albania. Journal of Small Business and
Enterprise Development. 12(4). pp.564-578.
 Iskanius, P., Page, T. and Anbuudayasankar, S. P., 2010. The traditional
industry sector in the changing business environment-a case study of the
Finnish steel product industry. International Journal of Electronic Customer
Relationship Management. 4(4). pp.395-414.

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