International Business: Analysis of Risks and Opportunities for Morrison in Japan

Running head: INTERNATIONAL BUSINESS
International Business
Name of the Student
Name of the University
Author note

1INTERNATIONAL BUSINESS
Executive Summary
The report has thrown light on the overall analysis of the international expansion of the
business of Morrison in Japan from England. The different kinds of threats, risks along with
opportunities have been discussed which helped in receiving and generating a brief overview
on the different kinds of political along with social and ethical risks which can affect the
growth of the company in a negative manner. The business environment of Japan has been
analyzed with the help of Porter’s Five Forces Model Analysis which provided a brief
overview on the threats and the rivalry from the existing firms as well.
In the Porter’s Five Forces Model Analysis, this has been noticed and analyzed that there are
no such kind of rivalry among the existing competitors in the market as there are no such
competition which will be beneficial for the overall success of the firm in the respective kind
of environment. The few instances of the market entry strategy have been taken into
consideration which helped in managing the overall aspects properly along with
understanding the advantages of adopting the same in the respective business environment as
well.
With the help of the Direct Investment Strategy, this will be beneficial for the company to
understand and gain knowledge on the local market aspects which will be appropriate for the
increase in sales of the company. Lastly, recommendations have been provided which helped
in managing and analyzing the overall aspects of growth in international market effectively.
The advantages of adopting the direct investment entry mode strategy with the Japanese local
store can be helpful in becoming more effective in the different operations.

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Table of Contents
Introduction................................................................................................................................2
Overview of Morrison............................................................................................................2
Overview of Japan......................................................................................................................3
Analysis of Political, Economic, Ethical and Cultural Risks.....................................................5
Political Risks.........................................................................................................................5
Economic Risks......................................................................................................................5
Cultural Risks.........................................................................................................................7
Ethical Risks...........................................................................................................................7
Identification and evaluation of business opportunities...........................................................10
Macroeconomics of Japan........................................................................................................10
Analysis of Business Environment of Japan with Porter’s Five Forces Model.......................12
Instances of Market Entry in Japan..........................................................................................13
Recommendations....................................................................................................................13
References................................................................................................................................15

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Introduction
The report helps in the overall analysis of the different kinds of political, economic,
cultural and ethical risks which can be faced by Morrison which is one of the British
Supermarket chains. The different kinds of identification along with the evaluation of the
business opportunities are required to be addressed with the analysis of the different
examples which will be beneficial for the overall success of the firm in an appropriate
manner. Finally, the recommendations are required to be provided which plays a major role
in expanding the business operations of Morrison in Japan.
Overview of Morrison
Morrison Supermarkets plc is the fourth largest chain of the supermarkets in the
United Kingdom wherein it is headquartered in Bradford, England. The company was
founded in the year 1899 by William Morrison who started their business as the bread and
egg butter stall in Rawson market (Groceries.morrisons.com., 2018). The market share of
Morrison till August 2017 was 10.14% which has proved that the company is ahead of Aldi
which has the score of 7%. The number of locations wherein Morrison is located is 498 stores
and the products which are being sold by Morrison supermarket are clothing, food, and
drinks, magazines along with DVDs. The number of employees working in the organization
is 132,000 till the year 2017.

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Figure 1: Morrison in Bradford, England
(Source: Groceries.morrisons.com., 2018)
Presently, this has been noticed that Morrison is trying to expand their business
operations in Japan which is situated in Asia. As the guidance of the consulting agency, the
potential investments are required to be analyzed in such a manner which will be beneficial
for their success in Japan. The mission of the entire report is to review the different kinds of
the attractiveness of Japan which will be beneficial for Morrison to expand in the respective
country regarding the return on investment which is potential in nature (Ahmadjian, 2016).
The entire report will be discussing the overview of the country Japan wherein the
major investigation of the different kinds of risks which are associated with the economy of
Japan. Furthermore, there will be a discussion of the different opportunities for Morrison to
enter into Japan market. Furthermore, the last part will be dealing with proper discussing the
overall balance of the different opportunities over the different risks along with providing
recommendations of the strategy related to the market entry strategy and techniques for the
respective company in Japan.

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Overview of Japan
Japan is one of the island countries which is situated in East Asia located in the
Pacific Ocean which is 350 kilometers from China. Japan is one of the stratovolcanic
archipelago which consists of more than 6850 islands and the entire country is subdivided
into more than 48 prefectures within eight regions. The population of more than 129 million
in Japan is the tenth largest aspect and Japanese makes more than 98%of the total population
of Japan as well (Alden & Nariswari, 2017). The capital of Japan is Tokyo wherein there are
more than 13.8 million individuals staying and the entire country is benefitted from the
highly skilled kind of workforce and this is one of the most highly educated countries in the
entire world as well.
Figure 2: Flag of Japan
(Source: Bartlett & Beamish, 2018)