Business in Practice: Impact of Internal and External Factors on Morrison's

BUSINESS IN PRACTICE
INTRODUCTION- In the world of business, there are different forms of
external and internal elements are accessible that put either positive or
negative impact upon a venture that has been operated in specific sector.
In order to overcome all the negative impact or forces, a business can take
better action or conduct practice. The current presentation would be based
on, Morrison’s which falls under category of leading supermarket chains
in the United Kingdom. This study will explain internal & external factors
that will effect a specific venture. This report will justify different ways in
which selected company can impact on external atmosphere.
External & internal factors that impact organization- In
corporate world there are varied models are available that can
use in context of different companies for analyzing and
determining factors either internal or external that affect
Morrison’s venture environment. Here, PESTEL analysis as
strategic framework use and mention below-
Political factor- Change in tax rate, trading restriction,
political stability or instability and trade policies are the
examples of political factors. In case of chosen company,
increasing tax rate or high taxation put negative impact on
supermarket and its trading procedure as it can lead to decrease
sales, profitability, sales and productivity. According to that
change, firm need to pay extra charge on each trade act which
is really very important for venture.
Economic factor- Inflation rate, foreign exchange rate,
unemployment and interest rate are included in category of
economic factors that directly affect the way a company act,
process and manage its venture within specific industry. In
context of Morrison, unemployment rate is one of the external
force that put positive impact on organization in term of giving
the best opportunity relate to workforce development by hiring
and recruiting new employees who are recently unemployed
and able to contribute in success of its business.
Technology factor- Emerging and developing
technologies bring a lot of benefits for Morrison’s as
it affects positively by increasing abilities and
operational efficiency of chosen supermarket in term
of developing effective and most influencing
marketing content that directly impact target market
and influence mind of each buyer. Social media is the
best digital marketing tool or technology which give
marketing team chance to reach at global level and
gain attention of profitable target market.
Environmental factor- In recent time, customers,
government and other stakeholders of a venture put
pressure on company to reduce carbon foot print
which is quite beneficial in several terms such as
build positive brand image and allow to conduct
sustainable business practices. This factor put
positive impact upon supermarket because firm has
already taken major steps towards CSR practices. For
example, company take action to reduce its food
waste by up to 12.3 percent.
Social factor- Education level, change relate to consumer preference
& need, leisure interests and environmental consciousness are
different social factors. In regard to Morrison’s, in recent time
customers instead of purchasing other products now switch to
purchase vegan food items as it can be consider as change in buying
habit of target market due to rise of vegan consumption. This factor
put negative impact on supermarket in term of managing inventory
operation according to modification.
Legal factor-
Laws relate to environment pollution, consumer and
worker’s safety law and discrimination law are all legal factors. In
case of Morrison’s, Equality Act 2010 is a legal factor that put
positive impact on firm and its human resource management
practices. Morrison’s follow all the legal principles, apply ethical
business practices and follow regulations that allow company to
sustain for longer period of time within retain industry and give
them power to be competitive by supply their products all around
the world in the future.
SWOT analysis-This concept or strategic analysis tool is use and
apply to identify internal factors that affect Morrison’s.
 Strength-
 Weakness-
 Opportunity-
 Threat