Business Strategy for Morrison: PESTLE, SWOT and Porter's Five Analysis

This report analyses the business strategy of Morrison, one of the largest supermarket chains in the UK. It includes PESTLE, SWOT and Porter's Five analysis, identifying competitive advantages and potential growth platforms.

BUSINESS STRATEGY

Table of Contents
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAINBODY....................................................................................................................................3
PART 1............................................................................................................................................3
1.1 Analysing PESTLE and SWOT for Morrison and evaluating Morrison's resources and
capabilities...................................................................................................................................3
PESTLE ANALYSIS-.................................................................................................................3
1.2. Analysing and critical evaluating of the competitive environment using Porter’s Five
Forces model................................................................................................................................5
1.3. Identifying and justifying Morrison's existing and/or potential competitive advantage......7
1.4. Devising valid strategies and tactical objectives to achieve overall strategic objectives of
Morrison's. ..................................................................................................................................7
PART B............................................................................................................................................9
Evaluating the different types of strategic directions available to the organization....................9
Justifying and recommending the most appropriate growth platforms and strategies...............10
Evaluating some ways which can be monitored in order to......................................................11
ensure success...........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy defines clear set of activities and plans that are needed to be performed
in order to achieve goal of the business. This is basically known as a leader plan that helps
organization to achieve its mission. There are various types of business strategy like
organizational, business, operational and functional. Business chooses strategies according to its
own requirements. Business strategy is centred around the goal of the company as it give
instructions regarding what should be done and in how much time and at last who is responsible
to perform that instruction. Morrison one of the largest supermarket chain in United Kingdom
that sale consumer products. As of 2021 Morrison has 497 supermarkets across England, Wales
and Scotland. Company operates in global environment with good marketing strategy. This
report will address two parts in which one part will be discussing PESTLE, SWOT and porter's
five analysis for Morrison's while the part 2 will be addressing different type of strategic
direction available to Morrison. At last the report will be recommending most suitable business
strategic direction that will ultimately help company to achieve objective of the organization.
MAINBODY
PART 1
1.1 Analysing PESTLE and SWOT for Morrison and evaluating Morrison's resources and
capabilities.
PESTLE ANALYSIS-
PESTLE analysis helps company to understand macro-environmental factors that can
affect company. PESTLE analysis involves political, economical, social, technological and
environmental factors (Kabakova and Plaksenkov, 2018). This factors either have positive or
negative impact upon the performance of the company. The PESTLE analysis of Morrison's is as
follows-
POLITICAL-
Political factors are all those factors that are related with the political environment of the
country. Morrison's had severe impact upon its performance after BREXIT exist as it totally
change the environment where company was working. Rules-regulation were changed that had
negative impact upon company. Another factor of multiple government legislations also had
negative impact.

ECONOMICAL-
Economic factors are related with the economic problem that any country is facing. This
economic problem includes interest rate, labour rate, fluctuation in GDP etc. BREXIT caused
fluctuation in the currency of Britain that created pressure on revenue of the company. High oil
prices resulted in tighter budgets (Magasi, 2016). The tighter budgets stops revenue for the
Morrison's.
SOCIAL-
Social factors are all those factors that are related with the social values of the country.
Raising population all over the world gives business opportunity to the Morrison's. The growth
in education and health of consumer also offer a chance to grow to Morrison's.
TECHNOLOGICAL-
Technological factors are all those factors that are related with the technologies. Morrison
has started using artificial intelligence in their stores to drive sales. Investment in technologies
has helped companies to be more efficient and serve better to the consumer.
LEGAL-
Legal factors includes all those factors that are related with the legal laws of a country.
Morrison is complying all the food safety and legal standards that are set by the British
government. Company is also taking measure of different trade audits for ensuring integrity of
the food that it provide in the market.
ENVIRONMENTAL-
Environmental factors are all those factors that are related with the environment of a
particular country. Morrison is trying to reduce carbon emission and is also trying to use to poly
boxes in its supply chain. Company is also offering plastic free fruit and vegetable options to its
consumer in the market.
SWOT ANALYSIS-
SWOT analysis of company helps company to find strength, weakness, opportunity and
threats for the company (Puyt and et.al., 2020). This helps company to grab all the opportunity
that come in their way. This also helps to identify the possible consumer target that ultimately
will give profits to the company (Benzaghta, and et.al., 2021). SWOT analysis of Morrison's is
as follows-
STRENGTHS-

 Morrison has strong distribution network with an efficient supply chain that enlarges
revenues for the company.
 Morrison also offer My view feature and more card programmer for its consumer.
 It also offers customization services in market that means consumer can order company
to make whatever product they want as per their need and requirements.
WEAKNESS-
 Morrison still has less presence in the market compare to the other competitors.
 Morrison delayed response to the changes that happens in external environment is it's
another weakness.
 Promotion techniques of Morrison has not been able to attract consumer on larger base
OPPORTUNITY-
 Morrison has vision to become largest and best supplier chain in the world.
 Morrisons is thinking to expand market by overtaking all the small local super-chain in
order to gain more profits.
 Morrison is also thinking to diversify business in non-food retailing in United Kingdom.
THREATS -
 Changing rules are impacting presence of Morrison in international market.
 Increase technological risks is the another factor that can impact revenues of the
Morrison's.
 Last years have decreased profits of the company because of the covid-19 waves.

1.2. Analysing and critical evaluating of the competitive environment using Porter’s Five Forces
model.
Porter's five forces are defines as the model that analyses five forces that shape industry.
This forces also determines weakness and the strength of the industry (Almeida and Santos,
2018). Different companies uses this model to identify structure of the industry in order to frame
corporate strategy of the company that will ultimately give direction to the company for
achieving the goal of the company (Bruijl and Gerard, 2018). Porter's five forces that determines
the competitive environment of the country are as follows-
Threat of new entrants-
New entrants are less likely to enter the market of super-chains as they are already high
competitors in this field. Morrison's has advantage to retain consumer in this force of porter.
External factors are changing every day today and it is very less chance that it won't affect the
performance of the super- chain. Moreover, this sector has high risk with high finances that
automatically reduces the chances of any new entrant in the market.
Bargaining of power of suppliers-
Raw material suppliers have power to decrease revenues of the company. Though, there
are many suppliers available with Morrison but still there are many individuals that have higher
power compare to other. Dealing with this type of suppliers becomes tough task. Morrison can
deal multiple supplier to avoid this kind of situations. By negotiating with different supplier high
prices of raw material is going to have less impact upon the products of the company.
Bargaining power of the buyer-
No doubt, consumer has high bargaining power because there are various competitors of
Morrison's present in the market today. High bargaining power brings down the revenue of the
company. The way to survive bargaining power of the consumer is to innovate unique products
and streamline those products by using different ways of promotion techniques.
Threat from substitute products-
There are various other retail stores in the market that provides almost same product to its
consumer. This decreases the profitability of the Morrison. Being in the sector of retail chain
store company has always been into providing similar products. Morrison should concentrate on

both product and service so that in substituent factor does not affect company. This also can be
done by understanding the core need rather than producing goods.
Rivalry among the existing players-
Morrison operates in high competitive environment that laid down the profits of the
company. There are many retail store that are operating in same place and are offering almost
same products and services. The rivalry demands company to reduce prices in order to retain
consumer but the low prices results in decreasing profits of the company. Morrison's must try to
produce unique goods and services in order to lower down this rivalry.
1.3. Identifying and justifying Morrison's existing and/or potential competitive advantage.
The various opportunities and competitive advantage available to Morrison's are as follows-
Online services- Morrison's is trying to expand its market by widening ranges of online
platforms. Morrison's is increasing its consumer base in order to get competitive advantage.
Morrison has already started selling products via different platforms. It has been the major
reason behind increasing sale of the company. Today, online presence has become an important
and it can see from the revenues of Morrison's. Sale has grown up to 237.1% . Company has also
started Deliveroo services In market which delivers almost 12 items of Morrison's in just 30
minutes.
Home delivery- Morrison is planning to consolidate store-pick delivery options for its
consumer. Today, this service is limited to few stores and Morrison's is trying to increase those
stores in order to gain competitive advantage over the other firms operating in market. Covid -19
has already grown the services of home delivery as there was a lock down. Morrison's is trying
to opt for same path in order to earn more profits over other retail store that operates in same
market and sale all similar products.
Wider strategy- online services and home delivery services will not give Morrison a major
advantage as there are other factors too. Offering competitive price to larger the consumer,
digital measure, ensuring healthy products are other such factors that are going to give
competitive advantage to the company. Morrison is already been building the good brand image
in order to gain competitive advantage. Store is also focusing on logistics and operations.

1.4. Devising valid strategies and tactical objectives to achieve overall strategic objectives of
Morrison's.
The ultimate aim of the Morrison is to become the largest supermarket chain in the world.
Today, Morrison is fourth largest super market store in UK and its ultimate goal is to be on
number 1. By following some strategies given below Morrison's can achieve its objectives-
Market development-
Market development is the process that refer to expanding market in other cities or
countries. Though, Morrison is already been operating in some countries but there is lot more
potential to strategically expands its business into the countries that have less competition and
their political laws are easily accepting international business. This will help Morrison's to
ultimately achieve its desired objectives.
Product diversification-
Morrison is already dealing in consumer products but there lies an opportunity to expand
more products in market. The wants of society is already increasing with increasing time, this is
right time to expand products according to that as it will give more revenues to the company.
Product diversification is done by investing into the research and development department of the
company.
Strategic partnerships-
Partnership help companies to more outside of their country in order to gain more profits
with less associated risk. Risk has been the major concern for the company that does not let them
to operate its business outside of the country but strategic partnership can solve this issue easily.
Partnering with already existing firm that has good reputation and higher consumer base will
solve the problem of Morrison's.
Acquisitions-
Morrison can also acquire local stores in order to get their consumer. Acquiring helps
company to widen the consumer base and ultimately earn more profits (Soundarya, Lavanya and
Hemalatha, 2018). This is the easiest way as it does not involve any kind of risk associated with
it but the process of acquisition is an lengthy process that means it will take time to actually
attain higher level of revenue.
Market disruptions-

Market disruption involves disturbing those brands that are selling their products in
market for almost a decade. Morrison can disturb market by using completely different business
model or by innovating something unique. Other techniques company can use is to provide good
quality products at an affordable rate. This will attract news consumer to their stores and at the
end company's revenue will increase.
PART B
Evaluating the different types of strategic directions available to the organization
Strategic direction term simply defined as the plan that needs to be implementation and
applied within the organization to fulfil the vision and goals of the organization in effective
manner (Spurk, Hirschi and Dries, 2019). To establish any kind of business, it is significant to
understand the different types of strategic directions which can drive the growth of the company
at successful level. Thus, Morrisons is essentially needed to evaluate the different kinds of
strategic directions which are available within the company.
Mission: A mission establishes the goal and purpose of the business which explains the
existence of the organization. It is important to understand and set the appropriate mission and
goal of the company from where only they can be able to keep their focus on the achievements.
Morrisons also consider and set a goal and mission to achieve it in successful manner.
Culture: Culture of the organization is very important to be maintained in definite manner from
where the employees of the organization can feel satisfied and can put their best efforts and hard
work. Company's culture refers the employees behaviours where the positive environment can
help and support the employees get the appropriate satisfaction and can enable them to perform
the task in successful manner.
Values: Principles and values are the important factors to be considered by the organization.
Morrisons has already implemented the proper values and principles at their workplace which
encourage the employees towards the goals and mission. For example, creating and development
of the sustainability at the workplace that states the principle and plan to be use in efficient
manner.
Forming the strategic alliance: The strategic alliance formation simply defines as an
agreement which is made between the two companies who have similar goals and objectives

(Bhimani, Mention and et.al., 2019). Morrisons uses this form where they can obtain the benefit
along with the partnered organization as per the agreements. In general, there are different kinds
of strategic alliance such as joint alliance, equity and non-equity.
Outsourcing: Outsourcing is also one of the strategic direction where organization assigns the
tasks to the third party who handle the operations and services behalf of the company. Morrisons
can also outsource its products. Thus, outsource products and goods can be sale in the name of
Morrisons.
Elimination: The important strategic direction for the company is to eliminate unnecessary
actions that are not even cost-efficient and do not contribute significant amount for achieving the
goals of the company. The Morrisons should eliminate all the task that are not in the favour of
the company's goal and the objectives like the company can eliminate the task of production and
can outsource that.
Competition: Choosing a right competition that helps in enhancing the product of the
organization which should be followed by the company (Muratovna, 2022). To identify the
competition, the company should keep their focus on the strategic approaches where the
company already facing increases and the high level of competition with other companies like
Tesco which is also a great competition for the Morrisons.
Justifying and recommending the most appropriate growth platforms and strategies
It has been identified that the Morrisons is required to understand and adopt the appropriate
growth strategy at their workplace and organization from which they can easily develop their
organization at definite level. Here, mentioning Ansoff Growth strategy which the company
should follow and practise accordingly.
Market Penetration: The first factor of the strategies defines the market penetration where the
sales can be increase in definite manner by the existing products and services into the existing
market. In this strategy, the Morrisons can adopt the successful outcome by focusing on their
current product and services into the similar current market from where they can acquire the
definite results and outcome. Along with this, using this form of strategy will help to acquire a
competitor in the same market and easily decrease the prices to attract new customer's within the
market segment.
Market Development: A market development is the second factor which is also understood and
followed by the company. It helps the company to enter a market from where they can be able to

obtain the definite results and outcome as well (Svagzdiene, Streimikiene and et.al., 2021).
Morrisons can implement this form of strategy at their business where they can identify the
different customer segment or target market which overall results the company to obtain the
beneficial outcome. For example, Morrisons can develop and expand their business in new
market and with new customer segmentation as well.
Product Development: The third factor of the matrix refers the product development where the
company can acquire the successful outcome. In this kind of strategy the business can introduce
the new products and services to their target market into the existing marketplace. For example,
the company is launching a new product and service for their customer into the current market
only and can reach to customer's expectation and demands which overall results in successful
manner.
Diversification: The diversification factor simply defines where the business puts their focus on
new market with new products and services which can provide the appropriate benefits and
results to the organization (Helmold, 2021). To expand any kind of business, it is important for
the individual management to understand the concept and strategy of diversification where they
can successfully obtain the definite outcome. However, Morrisons is required and needed to
expand their market in new place along with the newly manufactured product with the great
innovation which will overall deliver the appropriate growth and development to the company
and drives their performance at successful level. The Morrisons already has a great competitive
advantage over the other companies as it offers unique product and items in the market where it
has been identified that launching the unique product is the major reason behind the success of
the company.
Evaluating some ways which can be monitored in order to ensure success
Morrisons is a supermarket store or an organization which is fourth largest supermarket chain in
UK. The company has approximately 500 stores in all over the world where it is able to obtain
the definite results and outcome and can grow and expand their business at successful level.
However, each and individual organization is required to monitor their success in effective
manner which can assure them about the strategies and method they are using for the
development of their organization. It also helps the organization to identify and evaluate the
different strategies which can allow them to grow accordingly and can increase their productivity

level. However, it has been identified that Morrisons should use the KPI tool for assessing and
evaluating the success process (Ramis Ferrer, Muhammad and et.al., 2018). KPI term stands for
Key performance indicator which help the company to measure the company's success and
understand its set of goals, targets and objectives. KPI provides the targets for the employees of
the company to shoot for milestone to assess the progress and can help the people to take the
better decisions for the betterment of the Morrisons. The company is required to understand and
implement this kind of monitoring tool which can overall support the organization to evaluate
and identify the work performance along with the company's performance level and can acquire
the definite results and outcome (Calvetti, Gonçalves and et.al., 2019). However, there are
different kinds of KPI which is needed to be applied by the company such as strategic KPI,
operational, functional and even financial as well which over puts the great impact over the
Morrisons. In addition, the company can also monitor their success by using different methods
and strategies which highlights identification of the goals, defining the indicators, collection of
the data in appropriate way and analysis plan and reporting which drives the company to
evaluate and monitor the success in definite order. Therefore, using and implementation of the
KPI will deliver the different advantages such as it will improve the employee engagement and
morale, it will reduce the learning gaps, helps to take the appropriate and effective decisions and
create a set of goals and targets accordingly.
CONCLUSION
The above mentioned report has concluded the significance of the strategic planning and
management where to run a business it is important to understand the business strategies for the
better growth and development of the organization. The report has performed two tasks where in
first task it includes macro and micro environmental analysis of the selected organization and
critical evaluation of the competitive market area using the appropriate model or framework.
Along with this, it has identified and justified the organization's existing competitive advantage
and different strategies to achieve the overall strategic objectives. Furthermore, in second task of
the report it has evaluated the different types of strategic directions which is available within the
mentioned company and recommend the most appropriate growth strategy using the best growth
models. At last, it has assessed the different ways which can help the company to monitor their
success level in definite manner.

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