Global Business Environment

GLOBAL BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...............................................................................................................1
MAIN BODY ......................................................................................................................1
PESTLE ANAYSIS........................................................................................................1
CONCLUSION ..................................................................................................................3
REFERENCES..................................................................................................................4
APPENDIX....................................................................................................4

INTRODUCTION
Global business environment refers to that which is not easily controllable but
influence most of the companies to interact internationally. This report is based on the
Morrisons supermarket that is one of the leading supermarket chains headquartered in
England, UK. This project essay is based on the PESTLE analysis on the Morrison’s
operating environment so that firm will gain high amount of profits and sustain for a
longer period of time(Contractor and et. al., 2020).
MAIN BODY
PESTLE ANAYSIS
In context of Morrison’s, these analysis helps in overcoming the various issues
like loss in market share, changing customer perception etc.(Kotabe and Helsen,2020).
These analyses can be shown below:
 Political- In European country Brexit may impact majorly, Due to this Morrison’s
operating profit also affected as they cannot buy the raw material from another
European country on low cost due to this they sale their products on high price
and this will reduce the company profit. Due to COVID company cannot export
their products effectively because in this firm need major investment due to
health and sanitization. The first locked down impact most as it affect the dealing
in several countries due to which high loss can be faced. but in locked second
firm can effectively deal with other countires and purchase the required material
(Morrison’s sales rise but profits hit by COVID-19 costs, 2020).
 Economical- In this factor, due to Brexit in UK there was high fluctuations occur
in the currency due to which Morrison’s face high inflation pressure by raising
prices of goods and purchasing the inputs on high cost(Gaganis, Pasiouras and
Voulgari, 2019). First and second locked impact majorly on the economy of the
country and also the company profits because due to this many people loss their
jobs that will affect purchasing power of customers. In this they also follow
sanitization because of COVID this will also enhances the prices.
 Social- In case of Morrison’s, that is a leading supermarket grab the opportunity
of selling their products more because of increasing population. As they also
1