Business Consulting for Morrison's: Industry Analysis and Recommendations

This study provides an industry analysis of Morrison's, a UK supermarket chain, using STP and Porter's Five Forces model. It identifies client issues and offers recommendations for improving competitiveness and meeting market needs.

BUSINESS CONSULTING

Executive summary-
The current study is based on Morrison’s which is located in UK and delivers their
service and products across country with the help of skilled applicants who are able to work
effectively within company. Furthermore, it analyzed that by using STP and porter’s five forces
model organization gain many benefits.

Table of Contents
INTRODCUTION.......................................................................................................................................3
Main body...................................................................................................................................................3
Problem statement...................................................................................................................................3
Industry analysis by using appropriate framework..................................................................................4
Clients issues...........................................................................................................................................6
Recommendations...................................................................................................................................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODCUTION
Business consulting is one of the best services that focus on their consumers most critical
problems and provide suitable as well as most appropriate suggestions to get the opportunities
accessible within marketplace, which is quite beneficial for business in term of gaining
competitive advantages.
The current assignment is based on Morrison’s which is one of the biggest supermarkets
chain in the UK. It will describe summary of client issues that they are facing while operating
business within retail sector. This study will also justify industry analysis, issues statement and
clarify appropriate suggestions based on further analysis in context of company.
Main body
Problem statement
Morrison’s is the fourth biggest chain of supermarkets in UK they provide groceries and
fresh food products to consumers (Filimonau and Gherbin, 2017). They feel proud to be
Yorkshire food retailer serving buyers across United Kingdom over almost 500 outlets and an
online home delivery services. Every week, 11 Million people pass through firm doors and over
110,000 workers across business work hard each day to deliver the best quality services and
products to target market. Organization had more than 498 outlets across England. It process
and source wider range of food goods in their own production facilities, which make its
management able to control over source as well as products quality. Along with this information,
firm have more applicants preparing food in outlets than any other supermarket.
The aim of this retailer is to offer buyers a one stop shop and offer them more of what
they desired on a shopping journey. In additional, the mission of firm is to always deliver very
best services for less consumer dissatisfaction. It analyzed that while operating and managing
business within retail industry Morrison face several challenges and issues that directly affects its
sales and productivity as well in short term period.

Industry analysis by using appropriate framework
In order to conduct retain industry analysis here porter five forces model and PESTLE is
used to analyze external business environment.
Porter’s five forces model-
Bargaining power of suppliers-
The degree of this force is low because Morrison’s have their own productions places and
manufacturing factories, which can aid to reduce bargaining power of suppliers (Noton
Norambuena and Elberg, 2018). By building strong relationship with distributors to assure costs
lower, however this threat is low. It can be said that this force does not put negative impact on
business success.
Bargaining power of buyers-
Extent of this force is high because consumers can compare prices with other
supermarket chains products, which makes it easy for them to switch (Dertwinkel-Kalt and Wey,
2020). Customers always look for value and focus on quality of items as well along with price.
They hold power to decrease price of groceries and other products offered by Morrison’s.
Threat of substitute products or services-
Degree of this force is high because there are many products accessible in market that
meets a similar market needs in varied ways (Brancoli and et.al., 2019). It put negative impact on
Morrison’s profitability and productivity that is not appropriate for business success and growth.
It may be decrease their sales rather than before within retail industry.
Threat of new entrance-
Level of this threat is high because retail sector gain the attention of new firms towards
them by providing chance to sustain for long (González-Benito, Martos-Partal and Garrido-
Morgado, 2018). They do not create barriers and boundation to enter into market. New
companies will enter into market with varied strategies that may be impact on Morrison’s sales
negatively.

Competitive rivalry among existing companies in same sector-
Competition level within retail industry is high each and every company gives tough
competition to each other with effective strategies and plans (Pennerstorfer, 2017). To become
global leader and gain competitive advantages organizations improve their business practices
rather than before. So it can be said that this forces put high pressure on Morrison’s.
PESTEL Analysis-
Political factor-
Low tax rate influence Morrison’s in positive manner as it help them to move towards
reaching at global market (Gao and et.al., 2019). Without paying high taxes organization can
effectively enter into new market place which is one of the best opportunities for them. By
serving the best services and quality products they can sustain for long.
Economic factor-
Unemployment rate affect Morrison’s business positively as it make them able to hire
skilled and knowledgeable applicants from talent pool (Ghulam and Hill, 2017). Brexit is the
main cause behind high rate of unemployment. In economy numbers of job seekers are
accessible who have better knowledge and skills which make them able to work in effective
manner.
Social factor-
Changes in consumers’ preferences and buying behavior put direct impact on inventory
management and production procedure negatively (Morgan, Tallontire and Foxon, 2017). In
recent time, buyers drive towards purchasing organic food products which put high pressure on
Morrison’s supermarket supply chain and other functions. It is impossible for company to deliver
products according to clients need in short term period.
Technology factor-
Technology advancement and development put positive impact on Morrison’s production
and marketing operations (Heyes and et.al., 2018). It allows company to use advanced

technology in manufacturing procedure while producing products for their consumers. It enhance
the productivity level of business as well as enhance performance rather than before. By using
digital marketing tool firm can reach at target market.
Environmental factor-
Consumer and government concern towards environmental sustainability put high
pressure on Morrison’s to drive towards reducing their carbon foot print. It put positive impact
on company because they already contribute in sustainability activities in effective manner.
Organization provides paper packaging of food items to consumers instead of plastic rapping
which is quite beneficial for them.
Legal factor-
Employment law put high pressure on Morrison to makes further and current changes
within their employment policies which makes them able to retain existing as well as new
applicants for longer period time within firm. It affects in positive manner and creates inclusive
work culture at workplace.
Clients issues
Problem 1- Intense competition
As discuss above, supermarket retailing sector is highly competitive. However, it is
dominated by only 4 major existing players like TESCO, Sainsbury’s, ASDA and Morrison’s.
Sainsbury’s and TESCO are the main competitors of chosen firm they give tough competition by
increasing competition level more than past few years. It is one of the biggest issues company
would face while managing and operating their business within retain industry. Above two
companies, posse great threat to firm due to their sizes and cost efficiencies as well as financial
strengths, due to this problem organization feels more pressure.
Problem 2- Market needs
Another issue that has been identified after conducting industry analysis is changes in
market needs. It also put negative impact on Morrison’s and forces them to change their
production and other activities according to current markets or consumers needs. In recent time,

consumers purchasing more natural and organic foods instead of chemical contaminated. People
are more conscious about their health and chose products accordingly. It create biggest problem
in front of company to provide all things according to market demand which get changed
according to trend. Without solving this problem, organization cannot move forward, which will
affect its overall business.
Problem 3- Target consumers
Every company has to target the specific group of many people to keep its products
flowing. To target the consumer, the company has to choose a specific strategy which is quite
difficult to do. It is last issue that Morrison’s face when they decide to chose the most profitable
market for its business. There are many strategies accessible in business sector that can be use by
many firms, but due to lack of planning organization is unable to select the best one for them. As
it directly decrease their operational efficiency.
Recommendations
 In context of first problem, in order to gain all competitive advantages and become
international leader Morrison’s must follows suggestions. Company must first improve
every activity in its business and implement latest technologies which make them capable
to deliver products in effective manner which in return increase sales rather than its
competitors.
 In regards to second issue, to gain attention of consumers and retain potential buyers for
longer period to time Morrison’s must identify market needs and then deliver products
accordingly which is quite beneficial for its business in term of increasing profit margin
and sales.
 It can be said that Morrison must target their consumers via using STP due to which it
can be easy to give their own services to buyers in ethical and efficient manner.
Segmentation, targeting and positioning is one of the best tool company must use to
target customers.

CONCLUSION
After conducting overall research it has been analyzed that Morrison's overcome all issue
in systematic manner by implementing suitable strategies and by using STP. They gain
competitive advantages by making changes within their existing business functions according to
situations. By targeting consumers via using segmentation, targeting and positioning strategies
Morrison's can sustain for long within market place. Furthermore, it has been summarized that
organization delivers their products after manufacturing within their own factories by focusing
on quality and quantity of each item in systematic way.

REFERENCES
Book and Journals
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Noton Norambuena, C. and Elberg, A., 2018. Are supermarkets squeezing small suppliers?
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Pennerstorfer, D., 2017. Can competition keep the restrooms clean? Price, quality and spatial
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