Business Environment: Analysis of Morrison with PESTLE and Porter Five Force
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This presentation provides an analysis of Morrison, one of the largest supermarkets in the UK, with a focus on PESTLE and Porter Five Force. It discusses the impact of political, economic, social, technological, environmental, and legal factors on the company's performance.
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BUSINESS ENVIRONMENT
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TABLE OF CONTENTS INTRODUCTION BUSINESS ENVIRONMENT PORTER FIVE FORCE PESTLE REFERENCES
INTRODUCTION The presentation will be based on Morrison which is one of the largest supermarket of UKthatprovideretailservicetotheir customer. Alongwiththis,thepresentationwill discussaboutPestle and porter five force.
BUSINESS ENVIRONMENT Business environment is sum or collection of all externalandinternalfactorslikeemployees, customer, supply and demand, management as well as innovative technology. In simple words it can be define as market that is consist of all the factors that can affect firm abilities and customer relationships.
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PESTLE Political: This factor is consisting of policies that has been made by the government which is followed by all organization as well as people. Economical:The company should operate in country that have good GDP rate as it will allow the firm to increase their sales. Social:This factor is consist of market trend that has been going in the market that will affect the company in both positive and negative way. Technology: The organization making use of advance technology so that it can improve their performance as well as provide quality service to their customer. Environmental:Everycompanyhavetheirdifferentnormsand environmentalstandardsthatcanimpactoverallprofitabilityofthe company. Alongwiththis,beforeenteringintonewmarketareathe company should evaluate environmental standard that need be followed by company. Legal:It is consisting of factors like law that has been implemented the government in order to maintain peace in the society.
PORTER FIVE FORCE Bargaining power of suppliers:The company can buy product form various suppliers and build good relation with the so that it can get item at low cost. Buying power of customer:The organization can build large customer base as it will help in reducing the bargaining power of the buyer and also increase the sales of the company. Threat of substitute: When customer have more subacute of the product then profitability of the company suffers. Rivalry among the existing competitors: The organization can meet with the competition by building a sustainable differentiationas well as to collaborate with competitor as it will increase the market size.
CONCLUSION From the presentation it has been summarized that company before making strategy need to analyse internal as well as external market factors. It has also concluded that business environment is collection of various activities like innovation and customer.
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REFRENCE Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity enhancement strategies: A case study of three economies. Journal of Management in Engineering. 35(1). p.05018013. Kara, E., 2018. A contemporary approach for strategic management in tourism sector: pestel analysis on the city Muğla, Turkey. İşletme Araştırmaları Dergisi. 10(2). pp.598- 608. Nurmi, J. and Niemelä, M. S., 2018, November. PESTEL analysis of hacktivism campaign motivations. In Nordic Conference on Secure IT Systems (pp. 323-335). Springer, Cham.