Inquiry Project on Morrisons: Retail Trends, Analysis, Recommendations

This inquiry project focuses on the retail trends in the UK market, analysis of Morrisons, and recommendations for enhancing its business operations. It covers topics such as personalization in retail experiences, attending to immediate customer demands, and the use of digital mobile wallets. The report also includes an action plan for implementing the recommendations.

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INQUIRY PROJECT
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Table of Content
INTRODUCTION...........................................................................................................................3
RETAIL TRENDS...........................................................................................................................3
ANALYSIS OF MORRISONS.......................................................................................................5
RECOMMENDATION...................................................................................................................7
ACTION PLAN...............................................................................................................................8
CONCLUSION................................................................................................................................9
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INTRODUCTION
Inquiry based learning can be identified as an approach which is concerned with
addressing and resolving problems in an effective manner (Habbash, 2017). The present report is
conducted to execute inquiry into the operations of Morrisons, one of the top market players in
UK retail market. It was founded in the year 1899 and has been engaged in provision of wide
array of products to customers. The report includes retail industry trends along with industry
data. Further, it covers background of retailer along with its SWOT analysis. Additionally, the
project throws light upon some recommendation through which entity can enhance its business
operations. Lastly, an action plan is discussed consisting of the strategies and tactics that will be
applied by the entity in accordance with the recommendations and SWOT analysis.
RETAIL TRENDS
Retail industry trends
With the passage of time, the retail sector has been changing with high speed within UK.
There are different types of trends prevailing in current retail segment that it causes shift of
retailers towards digital prospective and re invention of business strategies. In this companies in
retailing segment are becoming more digitalised as to serve their customers with enhanced
experience (He and Balmer, 2017). Along with this, it has been evaluated that there is a
sustainability shift in which retailers have sustainable agenda which is to lower down carbon
emission. Along with this by increasing transparent supply chain organisations dealing in this
have more responsive and understanding nature towards offering transparent services to
consumers. With new digital experiences organisation take advantage of different measures to
provide their customers. There are number of trends in this industry is changing on dynamic
basis such as Augmented Reality, Virtual Reality, IoT, AI, cognitive computing and many more.
Some of the most important trends among these are explained beneath:-
 Personalisation in retail experiences: One of the most prominent retail industry trends
is acknowledged to be provision of personalised shopping experiences to customers. In
context of retail sector, personalisation encompasses provision of suggestions to
consumers by the retailers regarding location, order history, preferences, tastes, previous
search and many more (Top 5 Emerging Retail Industry Trends, 2020). Further, retail
corporations also generate personalised experiences via the usage of chat bots, text
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messages, online as well as telephonic communication and many more such facilities.
Further, it has given rise to usage of advanced techniques as well as technologies like AI.
 Attending to immediate customer demands: The evolution of technology over the
course of time has provided assistance to the retail industry in encountering the impatient
customers. In the present time, customers are in need of immediate responses and thus,
retail corporations across the globe have to pace up their operations to meet such
demands (Top 5 Emerging Retail Industry Trends, 2020). In this relation, some of the
services through which the companies prevailing in retail market attend to immediacy of
customers encompass updating inventories within real time, restock of stores rapidly,
same day deliveries, setup of delivery lockers, provision of scheduled deliveries and
many more.
 Digital Mobile Wallet: This is regarded as yet another retail industry trend whereby
mobiles are being used as payment method. A large number of retailers across the globe
at present are making use of this technology by adoption of APIs (Top 5 Emerging Retail
Industry Trends, 2020). This trend is largely aimed at provision of convenience, comfort
and ease to the customers whereby they can make payment as and when they want in just
some fraction of seconds by one click of hand. This has largely driven the growth and
development of retail industry in last some years.
Thus, the companies operating within this sector gain successful advantage by
undertaking all these trends to serve their customers in an effective manner and ensuring its long
term sustainability at market place.
Industry data
There are different types of business organisations which perform their operations within
the confines of retail industry (Devins, Stewart and Iles, 2010). It is one of the largest industrial
sectors within the boundaries of United Kingdom. A number of companies function within UK
retail market, some of which have even expanded their business overseas. This industry has over
the course of time emerged out as one of the most dynamic as well as fast phased industries that
serves its customers in a well defined manner while boosting the economy of country in a
number of ways. Hereby, the supermarkets and other organisations mainly aim towards offering
high quality products and services to customers all around the world. It has been evaluated that
due to dynamic changes, retail industrial sector has been exposed to many big opportunities as
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well as challenges. Further it has been analysed that this industry also driven large amount of
uncertainty that makes retail industrial segment to restructure (He and Balmer, 2017). Along
with this, it has been evaluated that in UK, retail industrial segment provide 5% GDP of overall
UK. Different types of organisations small, medium, large are involved in this sector those who
perform their business services in retail organisational segment. Apart from that total value of
UK retail sales in 2019 is £394 Billion, while this has been identified that by employing more
than 2.9 million people this industry emerged out as a one of the most important segment that
offer employment opportunities to individual at high rate.
ANALYSIS OF MORRISONS
Background
Morrisons, one of the most well known retail corporations operating within the confines
of UK to serve the needs and wants of customer and duly fill the gap existing in market through
provision of high quality offerings. This company was established in the year 1899 by William
Morrisons, he initiated the business as an egg and butter merchant in England in the year 1952.
After that Ken Morrison took charge of the company. The first shop was opened with three
check outs while the first Supermarket was opened by Sir can Morrison in which selling of fresh
fruit vegetables fresh meat and other provisions is being undertaken along with free parking
available facilities. With more than 500 stores Morrisons currently provide online home delivery
services to their customers. Entity mainly offering food, clothing, drinking and grocery related
products. Company aim to deliver great services to their customers with low price range while
operating their services in retailing segment is company is having more than 110000 employees
who effectively conduct their services in order to provide satisfaction to more than 11 million
consumers each week (Sodano and Hingley, 2007). By providing high quality product and
services Morrisons ranks among UK Top 10 retailing organisations. In addition to this it has
been identified that company mission is to help the customers by making them save their money
every day.
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SWOT
STRENGTH
 Morrisons is having strong USP.
 Company is having healthy financial positioning in marketplace comparatively to other
rivals (Gnan, Montemerlo and Huse, 2015).
 Morrisions is having high quality products and services.
WEAKNESS
 Morrisions is having weak loyalty programme along with weak online offer.
THREATS
 Due to Brexit company is facing challenging and difficult economic conditions this
makes company to face many financial loss.
 There is high competition prevailing in retailing segment. In this existing leading entity
like Asda, TESO etc operate their functioning by providing high quality products as well
as services.
OPPORTUNITIES
 By taking advantage of the online facilities Morrisions, can gain significant opportunity
to expand their business operations in a well defined manner (Goffee and Scase, 2015).
 With the help of diversification company can effectively able to grab more market share.
STENGTH
One of the most important strength of Morrisons is that it is having a leading positioning
in retail industrial sector. The entity is having numerous strengths that effectively enable the
company to successful drive in industry (Hingley, Sodano and Lindgreen, 2008). With the help
of the strength company can not only able to ensure their high market share but also penetrates
their new markets in a best effective manner. This has been evaluated that Morrisons is having
best performance in new markets that makes company to build a new revenue system that
diversify their economic cycle in a well defined manner (FORT, 2019). Along with this company
is having strong USP and brand portfolio that aid organisation to expand into new product
categories. Further it has been analysed that company is having strong free cash flow with the
help of which company can have access to resources. With having strong distributions Network
Company have high level of customer satisfaction. Further one of the most important strength of
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it is having highly skilled workforce who perform their functions in a best effective manner in
order to aid company to reach its potential market targets in a well defined manner.
WEAKNESSES
One of the major weaknesses of company face is that they do not invest in new
technology (Taylor, 2006). Along with this with weak financial planning company face
difficulties to conduct their functions in a proper and efficient manner. Along with this it has
been evaluated that organisation structure of company is not much compatible with existing
business model that limit their growth in number of ways.
RECOMMENDATION
In accordance with the discussion done above, it has been analysed that Morrisons
conduct its business by prioritising strategies that involve becoming more competitive and
offering high satisfaction to their customers through the provision of food and other offerings.
Along with this, the entity operates in a customer centred manner and strives to take measures
through which any demand emergent or emerged in market gets duly met by them in rapid
course of time (Van Canneyt, Schockaert and Dhoedt, 2012). This entity emphasizes upon
serving its customers in an effective manner by working in a collaborative manner with its
colleagues and devising strategies through which it can gain an edge in market place. In addition
to this, it has been identified that by offering high end products and services in marketplace, this
company effectively strengthens its brand image that provides them edge over the other retailing
organisations operating within the province of United Kingdom. However, it is also seen that
there is high competition in market place which poses threat to the continuity of this retail
company in global market place. Also, it is noted that Morrisons has been facing the issue of
high labour turnover company since a long period of time which has been hampering its
performance in global market as the company has to pay attention on training the new employees
rather than crafting an effective business strategy.
Thus, on the basis of the analysis, it can be said that the entity is capable of improving its
operations and functioning by taking into account certain suggestions. Such suggestions are
aimed at enhancing the stake of the entity in market place as well as increasing the revenues and
profitability of the retailer in the long run (Goffee and Scase, 2015). Morrisons is required to take
advantage of different strategic measures in order to leverage lucrative opportunities in
prevailing market place. Also, the retailer should engage in the process of market development in
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order to enhance its reach across the globe. With the help of this company can be effectively able
to maximize its competitiveness and gain an edge over rival firms operating within the confines
of global retail market. In addition to this, some other core recommendations have been provided
for Morrisons as follows:-
 It has been suggested that the management of Morrisons should take advantage of the
new environmental policies. This will create opportunity for the company to expand its
market share by tapping the mindsets of customers who are majorly concerned about the
environment and society within which they prevail.
 In addition to this, it has also been suggested that company should expand its online
channel lucratively so that it can gain the attention of more number of individuals and
serve them in an effective manner (Goffee and Scase, 2015). By taking advantage of this
opportunity company can ensure the elevation in its profitability in a well defined
manner.
 Yet another suggestion that has been given to Morrisons according to the evaluation of
swot is that it should make investments in taking advantage of new and advanced
technology in their organisational structure in order to increase business efficiency as
well as reach of its products services and process.
 The management of the entity should leverage cost leadership strategy in order to become
cost leader in market place. This would allow the organisation to eliminate all the
unnecessary expenses and thereby invest the amount saved thereby in productive
domains of the business.
 The entity also needs to invest in strong marketing and promotional strategies in order to
inflate the appeal of the brand within the global market place. This would provide
assistance to the organisation in ensuring its sustainability in market place for a long
period of time in future context. It would also lead to increment in its revenues as well as
profits in the long run.
ACTION PLAN
The aim of each and every organisation is to maximise its profits and ensure its continuity in
market place for a long period of time. Thus, according to the evaluation done previously, it has
been analysed that the management team of Morrisons is required to build an action plan in order
to ensure high competitiveness in the dynamic marketplace (Tracy, 2007). Hereby, the entity
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will put more emphasis upon cost cutting through adoption of cost leadership. Further, Morrisons
will effectively serve its customers by taking into account the feedbacks given by them and
making changes across the business premises. This will help them to improve what they offer to
shoppers. Offering best services to local community acts as key objective for Morrisons in order
to build their local market in a well defined manner. Further, in retail market, entities like Tesco
and Asda provide benefits to their customers in low price range (He and Balmer, 2017).
Morrisons in order to stay one step ahead from their competitors has proposed to deliver extra
services. For example company will enter into collaborations with other entities in order to
provide more services such as shoe repair. The respective retailer will also conduct faster and
efficient business. Further the respective retail corporation will work with suppliers across its
different product categories in order to provide services and products to customers in an effective
manner.
CONCLUSION
As per the above mentioned report it has been concluded that, there are wide range of
factors that are prevailing in business environment and are required to be undertaken by business
organisation as to further develop effective strategies against them and ensure more developing
growth. In this with the assistance of Swot analysis entity can effectively able to know about
their strength and weaknesses and can further take advantage from opportunities while
overcoming threat in order to increase profitability.
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REFERENCES
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FORT, E., 2019. The Role of Industry in Building Human and Social Capital. The Oxford
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Gnan, L., Montemerlo, D. and Huse, M., 2015. Governance systems in family SMEs: The
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Online
UK RETAIL STATS & FACTS. 2020. [Online]. Available
Through<https://www.retaileconomics.co.uk/library-retail-stats-and-facts>.
Top 5 Emerging Retail Industry Trends. 2020. [Online]. Available
Through<https://www.mulesoft.com/resources/api/top-retail-industry-trends>.
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