Business Strategy for Morrisons: PESTLE and SWOT Analysis, Competitive Environment, and Valid Strategies

This article provides a comprehensive analysis of Morrisons' business strategy, including PESTLE and SWOT analysis, evaluation of competitive environment, existing and potential competitive advantage, and valid strategies and tactical objectives. It also discusses the strategic directions available for the company to achieve its visions in the future.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART – A........................................................................................................................................3
PESTLE and SWOT of Morrisons..............................................................................................3
Evaluation of Competitive Environment.....................................................................................6
Organisation’s Existing and/or Potential Competitive Advantage..............................................7
Valid Strategies and Tactical Objectives.....................................................................................8
PART – B........................................................................................................................................9
Strategic Directions Available.....................................................................................................9
Most Appropriate Growth Platforms & Strategies....................................................................10
Evaluating the means and ways to monitor the strategies for ensuring success:.......................12
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategies can be simply put as a set of clear plans, actions, and objectives that
will help a business determine the area of competition in the marketing industry with each and
every products and services they have. The area of business strategy is very wide with these set
and values they offer and provide a way of organizing every activity to ensure better utilization
of the organizational resources.
The brief to be discussed will involve the analysis of the internal and external factors of
Morrisons, a UK based supermarket, that will help the firm in forming better policies and
programme for the attainment of the organizational objectives and also helps in identifying the
lacking and the possessing areas of the operational activities. To measure the growth and overall
performance of the organization, it is very effective to us these analytical techniques for better
optimization of the resources. Being the largest supermarket in the UK, it is important for
Morrisons to analyse its competitive sector which can help them identify their competitive
advantage in the long run.
Further it will also be mentioned that how can the firm identify and justify their growth
potential and also it will be stated as to how the firm or an organization can form relevant
strategies to achieve the overall organizational success and the objectives as well.
MAIN BODY
PART – A
PESTLE and SWOT of Morrisons
Morrisons is a supermarket chain headquartered in the UK and is also the fourth largest
supermarket chain in the UK. It mainly focusses on the food and grocery (Flett, Wilson and
Gover, 2020). It also provides services of online delivery. The detailed and comprehensive
PESTLE analysis of Morrisons is as follows:
POLITICAL ECONOMIC
 There were numerous uncertainties as a
result of Brexit which brought extensive
changes in the regulations and policies.
 UK food retailers are under purview of
 Significant pressures related to the
inflation were created and also there were
extensive fluctuations in the currency of
the nation due to Brexit.

various legislation of the government
which impacts this organisation
extensively.
 Increase in the prices of the oil led to
tightening of various budgets of the
households of the customers.
SOCIO-CULTURAL TECHNOLOGICAL
 Significant increase in the population leads
to generation of various opportunities for
the business.
 Various opportunities are also generated
for the business there is extensive growth
in the education and health of the
consumers in the UK.
 A new brand positioning was also
launched by the Morrisons via television
campaigning.
 For stocking of its stores and driving its
sales, Morrisons utilizes the technology of
artificial intelligence.
 The business was made more efficient and
responsive towards the customers by
investing in the technologies which
assisted and helped in the reduction of
efforts and cost that were earlier wasted.
 The emerging trends in the market can be
identified effectively by using the digital
data and it also allows better serving of
customers.
 There was continued focus on building the
in-house software as well as system
through effective research and
development.
LEGAL ENVIRONMENTAL
 It has to comply with standards of legality
and food safety like FSA which assesses
the levels of campylobacter.
 The company also devises various policies
and guidelines for the compliance of
various regulations.
 It is aimed by the company to reduce the
emissions of operational carbon by 30% by
2025.
 launch the returnable bins for fish products
for reduction in the use of poly boxes in
chain of supply.
 To direct zero waste in the landfills at the
sites of manufacturing.

 To offer fruits that are free of plastic and
veg options.
The detailed and comprehensive SWOT analysis of Morrisons is as follows:
STRENGTHS WEAKNESSES
 The skills it possesses relates to the
making of food along with strong network
of distribution and a very efficient and
effective chain of supply.
 Company is highly oriented towards the
customers and has the features of ‘my
view’ and more card in its programmer.
 It possesses a very large and substantive
portfolio of products and very creative
customization options.
 The company is said to have limited
presence geographically.
 It is also said to respond in delay to any
changes.
 Low recall rate of the customers of the
products of Morrisons and its private label
along with weak loyalty program which
naturally sparks concerns in the company
(Chow and et.al., 2020).
OPPORTUNITIES THREATS
 To establish its presence globally and to be
the largest retailer in grocery segment in
the UK.
 Channels of online, convenience and
discount are the sectors which are the
fastest growing in the UK.
 To also move the sector of non-food
retailing in the UK.
 The growth of the e-commerce is boosting
in the conditions of pandemic.
 Expansion its partnership with Amazon as
the sales are soaring.
 Ever changing nature of the rules and
regulations.
 Growing competition.
 Risks in the technology which are ever-
increasing.
 Chances of sparking the war of bidding
due to the rejection of 5.5bn GBP by
Morrisons.
 Cutting of the wholesale supply to the
independent retailers due to shortages of
drivers.
 Reduction of profits due to costs of the

Covid.
Evaluation of Competitive Environment
The competitive environment of the Morrisons can be evaluated by analysing its Porter's
5 Forces Model which is as follows:
THREATS OF NEW ENTRANTS
New entrants will naturally bring better innovation and more creative way of doing things and
thus will create pressure on the Morrisons by using the policies of lower pricing, reduced costs
and bring new value propositions for the consumers.
BARGAINING POWER OF SUPPLIERS
It shall be noted that the suppliers of the raw materials who are in the dominating position are
able to influence the company and thus company is forced to decrease its margins which it can
earn in the markets (RASHID, 2020). Such suppliers tend to charge elevated prices for the raw
materials which will affect the profitability of the company adversely.
BARGAINING POWER OF BUYERS
Customers or buyers are always meant to be demanding i.e., they want the best quality products
and services at the lowest possible prices as possible. This will in the long run will affect the
profitability of Morrisons. The bargaining power of the customers will depend upon the power
of the buyers in the market and their ability in seeking the elevated offers and discounts.
THREATS OF SUBTITUTE PRODUCTS OR SERVICES
It is natural that whenever a new product or service enters the market, it is able to meet the
needs and requirements of the customers in a different way which automatically affects the
profitability of the industry. Therefore, if a new product or a service has unique value
proposition to offer, the threat of such product or service will be high.
RIVALRY AMONG THE COMPETITORS
The overall profitability of the industry will be adversely affected by the existing rivalry among
the existing companies in the industry and it will also result into reduction of the overall prices.
And it can be confirmed that the Morrisons (Wm) Supermarkets Plc does operate in the retail

industry which is very intensely competitive which will also affect the profitability of the
company in the long run.
Organisation’s Existing and/or Potential Competitive Advantage
The aspect of the Morrisons’ operations which always makes it stand on top of all the
other competitors is it’s in – store experience. It’s concept of Market Street and the expert staff
has made the reputation of the Morrisons stand out from others and made it lead among other
UK supermarkets on the basis of the experience of the in – store shoppers (Hordern, 2020). It
employs various expert professionals for the operations of its stores like butchers who are fully
trained, craftily skilled fishmongers, etc. for offering wide variety of value – added services. The
production department of the Morrisons is particularly strong as it showcases vibrantly its food
products like herbs and avocados.
Such offline offerings of the Morrisons enhances the authenticity of the company which
truly justifies its motto or strapline. This way it will be able to differentiate its products and
services from other supermarkets by maintaining the momentum that it has already built and
resultantly, win the customer loyalty (Vander Weyer, 2021). Visiting the supermarkets locally,
will also enhance the experience of the customers in – store and make them realize the difference
in the experience from other competitors.
Another very innovative strategy introduced by Morrisons which moulded its image as a
family – friendly supermarket is by providing free fruits for kids in the store, feeding a family of
four members for £10, provisioning the chillers which are health – oriented for the and making
available free books of colouring in store cafes (Yeung and Bae, 2021). This will help the parents
who take their children with them for shopping to shop in peace. All these extra gestures assist
Morrisons in gaining the loyalty from its customers more than it can gain from any cuts in price
it can allow its customers. It shall also be noted that only the cuts in price in the short term will
not allow Morrisons to gain loyalty of its customer. But, its efficient supply chain which is
integrated vertically, concept of market street and very efficient, effective and skilled staff are
some of its unique propositions that provides Morrisons a competitive edge over the other
supermarkets. Thus, it is needed to work and build up its strengths for protection of its share in
the market from the threats from the discounters which will be growing forever (Bentham, 2018).

Therefore, the above mentioned characteristics which are identified are effectively justified to
support the existing and/or competitive edge of Morrisons.
Valid Strategies and Tactical Objectives
For achievement of the overall strategic objectives, Morrisons has devised various valid
strategies and tactical objectives (Purpose, 2022). For strengthening and broadening of the brand
and the business, Morrisons has set 7 priorities to supervise the strategies of fixing, rebuilding,
growing and sustaining. These priorities are explained as below:
Be More Competitive – This can be achieved through assisting customers to save money on
their daily wants and needs by investing in prices and improving specifications of the products.
Better Serving of Customers – This can be achieved through effective listening to the
customers for making improvements across the business with the help of the colleagues for
improving the offers provided.
Local Integration and Community Serving – This can be achieved through contribution to the
society and community that it is part of through providing jobs locally and going the extra mile
for the customers.
Speeding and Simplifying Organisation – This speeding and simplifying can be achieved
through maintenance of work culture which is based on the teamwork. The entity is conscious
towards the cost as well.
Naturally Digital – This can be achieved through utilization of the digital tech which will help
the organisation in providing services to the customers which are accessible, convenient and
easy.
Pride in Hygiene – Hygiene is the most important aspect of the business of Morrisons as food
makers as well as shopkeepers (Guo and Wang, 2019). It will include maximizing hours of
cleaning along with sanitizing and dispensing.
Create and Scale Profitable Growth – This can be achieved through inculcating spirit and
hunger of ownership so as to act fast and therefore, scaling the ideas that will actually work and
are realistic.
Now, to support these priorities the working of Morrisons can be explained as below:
Customers First – To prioritize the needs and wants of the customers.
Teamwork – To prioritize the role of teamwork through colleagues playing their respective roles
in the team effectively. The managers need to be supportive, helpful, open and honest.

Listening Hard and Quick Response – To prioritize focussing on the colleagues and customers
by listening to them intently and talking to them responsively.
Freedom in Framework – To prioritize and allow the colleagues to make their own independent
decisions for the plan that Morrisons have developed and encouraging them for improvement of
aspects of the business for customers and such colleagues (Strategy, 2022). Through this, the
colleagues can be motivated to be adventurous, curious and embrace newer ways of operating in
the organisation.
Sales Driven and Cost Saving – To prioritize the value of every penny and every drop of effort.
Care – It is the policy of Morrisons that everybody is welcomed and celebrated there i.e., the
customers, colleagues and everybody are cared for. It cares for its communities and the impact it
has on the environment.
PART – B
Strategic Directions Available
Strategic directions which are needed to be implemented for progressing towards the
achievement of visions in the future of the organisation focusses on the actions and plans to be
executed (Pulker and et.al., 2018). It contains various steps like considering the visions for the
company, reflecting on the missions of the company, developing a plan, setting goals which need
to be periodic, setting goals which need to be quantifiable, etc. Such strategic directions in the
organisation will be providing consistency to the strategies which are planned and implemented
over a period of time. Thus, uniting the strategies of any organisation and providing the long
term stability that it requires. There are various types of strategic directions some of which are
explained as below:
Mission – It simply means the purpose of the organisation i.e., Morrisons. Its purpose is making
of healthy and affordable food and making it available for everyone through having low prices
and selling fruits and vegetables in plenty. It also aims at offering the options to the customers
which are healthier and thus, reducing the levels of salt, fat, sugar and calories in the products
offered. And to ensure the safety of the food being offered by the entity, meeting the standards is
strictly provided for.
Vision – Morrisons has the slogan of providing fresh choices for the customers. And for this, the
entity tends to be caring more and trying harder for the customers, for each other in the

organisation and for all the ones working and living around the organisation. It aims at
celebrating, nurturing and attracting excellent talent.
Culture – Culture can be simply explained as the behaviour, norm and expectation evolving in a
society, organisation or a city which evolves through the shared experiences of the members of
the organisation. It shall be noted that the culture cannot be significantly moulded or changed
and as a result, it drives the strategic directions. Morrisons has a service culture in its stores
which is deeply inscribed to allow the customers to experience the efficient and effective
customer services when compared to the other competitive organisations.
Ideology – Ideology of an organisation is the system that entails the values and ideas of such an
organisation to direct it socially, economically, politically and morally. Through a stable
ideology, the organisations like Morrisons need to constantly monitor its ideologies with the
ideologies of the society in which it is functioning to render these ideologies consistent and
stable over a period of time.
Principles – The rules or regulations that direct the future strategies and decisions can be called
as the principles of the organisation. Morrisons has various principles and priorities which it
focusses on like keeping the customers first, emphasizing on teamwork, allowing freedom in the
framework, listen and respond effectively to the customers and colleagues, being cost effective
and sales driven, caring genuinely for the needs and wants of the customers and colleagues, etc.
Values – Values are nothing but the principles as mentioned above but which relates to the
morality of being right or wrong. The principles of Morrisons are such that they address the
values and morality of those working in and around. Morrisons states that its success depends
upon the right things. This will involve working with the farmers, making food which is healthy
and affordable, food which is low priced, food having lesser fat, sugar, salt and calories, animal
welfare by never conducting or commissioning any tests on animals.
Grand Strategy – It is the ultimate long term strategy in which every relevant tool and
technique is considered. It is possible that the current strategy may seem to be irrelevant but
when viewed in respect of the broader future prospects, it will appear to be very effective.
Most Appropriate Growth Platforms & Strategies
There are various strategies implementing which the organisation can grow. This aim of
organisational growth can be due to personal ambitions or any opportunity which has come to
the door step of the organisation or even just to increase the turnover of the organisation (Bozic,

Siebert and Martin, 2019). Now, there are various ways to achieve such a growth one of which
can be discussed through:
The Ansoff Model
Strategic tools which can be used to develop the growth strategy of an organisation which is a
good basis to consider the strategic development of the organisation. Such a model consists of
two axes:
1. Products – Products currently offered and new products wished to be offered in the future.
2. Markets – Markets that are being currently served and catered to and new markets wished to
be catered and served in the future.
Therefore, four types of growth strategies explained and proposed in this models are explained as
follows:
1. Market Penetration – This strategy under the Ansoff Model aims at improving and
increasing the market share by aiming to increase the sales and turnover of the existing
products and services in the existing markets (THE ANSOFF MODEL, 2022). It will involve
attraction of the customers away from the rival competitors in the market and ensuring that
the existing customer is definitely purchasing the existing product of the organisation.
2. Market Development – This strategy under the Ansoff Model aims at expanding the
markets of the organisation by increasing and enhancing the sales of the existing products in
the new markets that were previously unexplored by the organisation. Such a strategy can be
achieved through targeting of the different segments of the customers like new regions of the
country like foreign markets, etc.
3. Product Development – This strategy under the Ansoff Model aims at launching the new
products and services in the existing markets. Thus it includes increasing and improving the
turnover of the business through extension of the offer to the existing customers (Kim, Lan
and Dobson, 2021). Such a development of the product and service is done through investing
additionally in the research and development of the new product and service, acquiring the
rights for production of any product and service, buy and brand the product and service,
working jointly with other organisations who are in need of the channels of distribution or
brands of the organisation under consideration.
4. Diversification – This strategy under the Ansoff Model aims at launching the new products
and services in the new markets that were previously unexplored by the organisation. Since it

includes marketing of a new product or service in the new market it is considered one of the
riskiest strategy of all. This strategy is further categorized into following types:
a . Horizontal Diversification – It involves new product or service to be sold to the existing
customers.a . Vertical Diversification – It involves acquiring or entering the sector of the suppliers or
customers.a . Concentric Diversification – It involves developing new products or services which are
technically and/or commercially similar to the existing products or services.a . Conglomerate Diversification – It involves developing new products or services which
are not technically and/or commercially similar to the existing products or services
appealing to the new customers.
Thus, above strategies are the most appropriate growth strategies that the Morrisons can
apply along with the growth platforms that are utilized in increment and growth of the revenues
and earnings (Whitelock and Ensaff, 2018). The growth platforms thus, are of two types i.e.,
strategic and tactical. Strategic platform is the one which takes longer period of time for
implementation like 3 to 6 years whereas, tactical platform takes shorter period of time for
implementation and includes initiatives that are short term which are on the basis of the current
budget.
Evaluating the means and ways to monitor the strategies for ensuring success:
To form a strategic plan about how the company will ensure its growth rate, how the
strategic planning can forward its area of operations and can ensure success, it is essential for
Morrisons to establish and understand properly the need and wants of the customers (Iriarte. and
Bayona. 2020). The external factors such as the competitors, their behaviour towards their
products and services as well as the innovative and technical factors and how other view their
areas of operations in the marketing industry.
Morrisons as mentioned above is UK's fourth largest supermarket in the industry they are
operating in. So the question really arises as to why it is the fourth and not the first? The simple
answer to this question is their success rate is not that effective to rank at the top of all the
involved industry operators. This firm needs to revise their business strategy to improve their
areas of lacking and devise their areas of operations (BUSINESS STRATEGY OF MORRISONS.,

2022.). Below are various strategies and methods, Morrisons can opt for in order to improve the
resources and capabilities to ensure success.
Key Performance Indicator:
Key Performance Indicator is a tool to identify overall performance of the organization
over a period of time (Sutton, and et.al., 2020). If a company goes for such indicators, then they
can surely get the indication of their progress over a specified time period and also to make
better utilization of the resources for an effective decision making strategy.
Morrisons can use this effective marketing strategy to ensure success rates as it is already
providing its customers with the high quality differentiated products that can be a very big
competitive advantage for the firm. With the aim of providing healthy food at the reasonable
pricing policies, Morrisons should always stay one step ahead of its competitors since the
products they deal in are related to the health and safety of their consumers. The key details the
firm should always keep in mind while framing the strategies are:
1. Competitors:
The competition Morrisons face is of high altitude since it has to fulfil its duty of social
responsibility towards people. For this they need to focus on ensuring customer satisfaction rates
with the help of the recent trends, technology, and innovative techniques. In this way the firm
can increase the delivery rates with great efficiency.
2. The pricing policy:
The pricing policy of the firm must match with the quality of products the form offers to
ensure loyalty rates from their potential targets. To make the products available to consumers
also have a great impact on the pricing, therefore having an impact on the success and growth
rates.
3. Qualitative measures:
Measures should always be taken for the quality of the products since this factor play a
great role in the success of any business firm. The needs and wants of the customers highly
depend on the quality of the products they choose and on this basis the firm can attract more
number of their audience.
4. Alternative actions:
Life is uncertain and so is the business activities and thus formed strategies for
evaluation. Any firm operating must have an alternative plan on which it can rely at the time

when already formed plans fluctuate in the nature. These alternative chosen plans can save the
firm from termination of their business activities.
Any decision making process needs the identification of why to form such strategies and
how can these guide and assist the firm in gathering accurate and relevant information about
internal and external factors and then evaluate the results and performance thus obtained.
CONCLUSION
Conclusively, the above report included a detailed internal and external analysis of a
business for strategic decision making including comprehensive PESTLE and SWOT analysis of
Morrisons Plc and the resources & capabilities of the organisation are further evaluated. Then its
competitive environment is analysed through Porter’s Fiver Forces Model and the entity’s
existing and/or potential competitive advantage is identified. Also, strategies and objectives are
devised for achievement of the overall strategic objectives. Further, various types of strategic
directions which are available to the organisation are evaluated and then most apt growth
strategies and growth platform are recommended along with the ways through which these
strategies can be monitored for ensuring success of the organisation.

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Online
BUSINESS STRATEGY OF MORRISONS., 2022. [Online]. Available through:
<https://www.marketingweek.com/morrisons/>
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Purpose. 2022. [Online]. Available through: < https://www.morrisons-corporate.com/morrisons-
sustainability/purpose/ >
Strategy. 2022. [Online]. Available through: <
https://www.morrisons-corporate.com/about-us/strategy/#:~:text=Everyone%20is
%20welcome%20and%20celebrated,communities%20and%20our%20environmental
%20impact. >
THE ANSOFF MODEL. 2022. [Online]. Available through: <
https://1819.brussels/en/information-library/growing-your-business/which-growth-
strategy-can-i-apply-my-business >
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