Global Strategic Management of Morrison's: Analysis and Recommendations

This report analyses the current strategy used by Morrison's, a leading UK supermarket, to retail with competitors and conducts an internal and external environment analysis. It also provides recommendations for improvements in the existing strategies using Porter’s five forces model.

GLOBAL STRATEGIC
MANAGEMENT

Executive summary-
The current assessment is based on Morrison's, which falls under the list of leading
supermarkets, UK. From current study, it has been analysed that firm has reached desire
outcomes by analysing and conducting internal as well as external market research, which drive
the attention toward effective and useful strategic formulation. Furthermore, from current report,
it has been determined that implication of blue ocean and read ocean along with other strategic
models, that pleasure firm take to grow.

Table of Contents
INTRODUCTION...........................................................................................................................4
Purpose of the assessment............................................................................................................4
Background of the company........................................................................................................4
MAIN BODY...................................................................................................................................4
Existing strategy of the company.................................................................................................4
Analysing the internal environment of Morrison's including with SWOT analysis....................5
Analysing external environment of organization which need to be included with PESTLE
analysis.........................................................................................................................................6
Pros and cons of existing strategy................................................................................................8
Improvements required to take a part of current tactics..............................................................9
Various contemporary strategic problems of Morrison's...........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Purpose of the assessment
Global strategic management refers to set of strategies which are drafted to achieve
organizational aims and objectives. Each strategy that encompasses in the term enables
organizations to take advantage of running venture from national to international level. The
purpose of current report is to explain the current strategy used by the company to retail with the
competitors, and internal environment analysis in the context of chosen organization. It will also
specify the external environment using PESTLE as strategic model that help to define
opportunities and threats available in the market. Furthermore, the report will analyse the pros
and cons of the tactics utilized by the firm and recommendation related to improvements in the
existing strategies using Porter’s five forces model. The study will justify strategical issues faced
by the company and to overcome these issues what tactics can firm used to expand its business
and increase profit margin.
Background of the company.
Morrison is one of those companies in the United Kingdom that operates and runs its
venture worldwide or in many nations, where it may establish brand image excellently and gain a
lot of profit throughout this journey. Supermarket aim is to make health food accessible and
affordable for everyone, which contribute to enhance customers satisfaction level that in turn
lead to increase organizational profitability and productivity. Along with current aim statement,
organization tend to achieve some key objectives as well such as it seek to increase profitability
and gain competitive advantages, which is not that easy for firm to do that strategically, without
having and using key resources (About Us, 2022). For purpose of aim achievements,
organization may focus on managing ventures or its outlets as it may have more than 497
supermarkets across Wales, England and Scotland, where firm plan to sustain for longer time
period in order to reach desire outcomes.
MAIN BODY
Existing strategy of the company.
In the recent time, organizations are focusing of achieving or gaining competitive
advantages, For purpose of conducting the similar practice, Morrison's may focus on gaining the

attention of new customers, which drive the attention of management toward conducting
appropriate investigation and practices related to customer retention and business growth.
It may drive their attention toward formulation and using the best tactic and that is global
expansion, as firm may have limited physical and online existence that affect its growth. In
today's era, this tactic play vital role in organizational success and growth (Morrison's strategy,
2022). It may lead to increase business performance and profits margin, even better than last few
years or months, that is essential for its continuous growth and aim achievement such as business
expansion. It is one of those current tactics that Morrison's utilize and plan to continue with the
same, which in return provide unpredictable results to firm and stakeholders who are engaged
with brand from long time ago, because of taking pleasure and providing the same to target
audience.
Analysing the internal environment of Morrison's including with SWOT analysis.
There are several strategic models and frameworks available in the world of business,
that apply in the context of each company, either small or large. In case of Morrison's, SWOT
analysis as strategic model may apply, which specify the organizational capabilities that help to
obtain opportunities and overcome the adverse impact of threats.
Strengths-
In an organization, employees are always considered as key strength of a venture along
with a good financial background and other assets (Bruijl, 2018). In case of Morrison's, it
happens the same as company may consider its skilled candidates as key resource, which
management may tend to utilize, for purpose of making their current strategy such as global
expansion successful, which is important for them to do that effectively and appropriately. Along
with the current strength. Firm may have more capabilities such as good financial background,
which it may utilize to expand venture appropriately, after conduct a good research. It helps to
gain competitive benefits and also contribute to achieve target goals, for which a company work
harder than the expectation.
Weaknesses-
The biggest weakness that Morrison's have is limited venture existence or geographical
reach, which lead to decrease its profitability and performance as well as productivity level
(Xiao, Chen and Yu, 2021). It is fact that without expanding brand or venture, firm is unable to
enlarge its customer base, which it may expect to do so. Lack of planning and strategic

formulation is another weaknesses that chosen company may have, which lead to decrease the
organizational opportunity or chances to reach desire outcomes. It is quite essential for
Morrison's and its management to focus on current issues or weaknesses, because each weakness
impact on its venture and plan it tends to implement into practical; manner. It may lead to
decrease operational efficiency or effectiveness.
Opportunities-
In the recent time, individual person prefer to utilize advanced technologies for varied
reasons, especially to search something new, valuable and cost effective in from of products and
services (Agnihotri, 2016). This situation or environment may provide Morrison's chance to
make current strategy successful by developing a business profile online, along with creating
offline image in the retail industry. Another opportunity that firm may gain is skilled workforce
or accessibility of talented people in the job market, who tend to work with those companies
where management may consider their hard work and attempt to fulfil their needs. By grabbing
both opportunities, firm may grow rapidly and expand venture successful, without facing major
issues as may already consider each and then make plan accordingly.
Threats-
Along with some positive aspects, it is also essential for Morrison's to consider some
negative aspect as well. For example, it may take approach to identify and analyse the major
threats such as competitive environment and pandemic. These two threats may put negative
impact on company in term of decreasing its effectiveness and performance level. Pandemic and
intense competition in the market, may drive the attention of management toward formulation
effective plans and making potential changes that enable to overcome the negative impact of
each threat. Pandemic may impact the way management take decision and high extent
competition in the market among companies affect the process which firm may follow to develop
global expansion strategy, for which everyone in the workplace are accountable to implement
appropriately, and successfully.
Analysing external environment of organization which need to be included with PESTLE
analysis.
The PESTLE analysis the Brand's tactics and investigates about the external factors
which affects Morrison's.

1. Political factor- This brand sells one of the best qualified products which provide
customers satisfaction. The political factors have a major impact on this brand which
includes governance system and regulations. The political factor help to find out the
brand's long term profitability (Christodoulou and Cullinane, 2019). Political factor has
a taxation policies and trade regulations which have a major impact on Morrison's. In the
recent time, political factors such as political stability, tax rate and trade policy may put
positive impact on firm in term of providing chance to expand venture appropriately, by
follow legal terms and conducting practices in the context of same.
2. Economic factor- Economic factors makes a direct impact on brand which presents the
attractiveness to this market (Beard and et.al., 2021). The high financial market has a
positive relationship rate with the economic growth, which helps this brand to make a
capital growth and production of new products simple. Hence, it is important for the
brand to choose those countries who have efficient financial conditions. So it can make
easy for them to increase capital and finances. Economic growth in some nations may
enable firm to expand venture and gain profit by conducting the similar practice.
3. Social factor- Social factors includes the new trends and advertising which helps in
increase the consumer demands. This brand has a big line over celebrities which helps to
attract more consumers (Teoli, Sanvictores and An, 2019). The modern customers are
more demanding for this brand nowadays, which makes easier for this brand to increase
its growth. This brand carefully analyses their disbursement patterns so that they can
adapt marketing strategies properly. The knowledge towards the health and safety
frequently reflected the quality of the products and its costs which are determined in
manufacturing processes.
4. Technological factor- Nowadays technologies are changing very fast, in every
businesses and they are investing very largely to move forward from their competitors. It
is important for this brand to study and evaluate the current and future trends which are
related to technology (Perera, 2017). To survive in the business they need to adapt every
technological trend which can increase their brand's growth. Morrison's should prefer the
well-developed and better infrastructural country where they can have a major growth.
Technological factor helps to determine the new technologies which they can use to beat
the competition.

5. Legal factors- This legal factor frequently govern the conditions to enter the new market
with their laws to run that market and some procedure to resolve the conflicts. If the legal
system of that country will not be that much strong then this brand has to face some
challenges. They need to know about the laws which are uniformly impacting every
organization or not. This brand has to be strong legally to survive in the different country.
There are few laws which included in the legal factor which are employment law,
property laws and consumer protection law. Every country has its different type of laws,
this brand needs to know about all laws before entering the new market.
6. Environmental factor- The environmental conditions have an impact on the brand.
Climate change can affect this brand if their supply chain is not that much flexible. The
sudden change in climate lead them to delayed in their shipments for the part of the
world. Environmental regulations pressurized business with different kind to reduce the
environmental harm (Vieira and Ferreira, 2018). The environmental policies can different
in both international market and national market. This can help this brand to make a
better decisions towards the planting the location, production and their price strategy.
Pros and cons of existing strategy
Pros:
1. The pros refer to the product strategy where this brand may know about the future
planning and preparing about that strategy accordingly. With global expansion strategy,
brand may increase profitability or profit margin, more than rivals.
2. This strategy helps Morrison's to align the structural activity to achieve its objectives.
Expansion helps to increase functional ratio, to guides its management for the discussions
and decision-making for determine the resources and their budget will need to
accomplish their goals.
3. Through a better strategy for the products in this brand that helps to increase the
profitability and its market share. The strategy has a lot of benefits which this brand gain
to make in term of conducting a lot of efforts to turn better sales and marketing which can
offer a better outcome which can create a better profits.
Cons-
1. The disadvantage of the expansion includes the complexes in the productions and many
critical process. This strategy can have a major issue on the return of investment where

they have been bigger association of inability to recognize the whole value of the strategy
preparation process.
2. The business expansion strategy is designed to give the long term benefits. Sometimes
lacking of capabilities of handler are a common cause of strategy of production fails. This
brand's member should have decent skills and abilities to utilize the strategy.
3. There are no guarantees of the success of the expansion that it may have a success or not.
If the cost price is also high then that majorly affect the business's completion of the goal.
The future has no guarantee of success so that product strategy can have ideas and
options success rate.
Improvements required to take a part of current tactics.
1. Competitive rivalry- The competitive rivalry for this brand is high. They have many
competitions in the market like L'Oreal, ponds and so on (Alanzi, 2018). They also
manufacture the best products in the market though it gives major competition to
Morrison's. This brand need to improve their business productivity to beat their
competitors. Most of the company knows their customers but sometimes that is not
enough for them to be in a competition. They need to know more about their consumer
need so the brand can use more effective ingredients to improve their products.
2. Threat of new entrants- The retail industry always have a medium of threat level from
new entrants. But the threat of substitute product can improve the strategy by identifying
the problems which is occurred by the new entrants and the solutions of that problems...
A company's power is also affected by the force of new entrants into its market. The less
time and money it costs for a competitor to enter a company's market and be an effective
competitor, the a more established company's position could be significantly weak.
3. Bargaining power of suppliers- This refers to the ability of the buyers to influence the
prices of the products. In the industry, the raw material for the production process are
procured from a number of suppliers (Shantia, Aflaki and Masini, 2021). The cost
switching from one supplier to the other is almost negligible if any supplier tries to
influence the prices. A number of large manufacturers of have acquired their suppliers
through backward vertical integration reducing the impact of the supplier to zero. This
power is low.

4. Bargaining power of buyers- The bargaining power of buyers are high. This is due to
increasing the competition and availability of similar retail from a variety of
manufactures. For every product there are number of manufacturers that make a similar
product. They can force the manufacturers to reduce the prices through decreased
purchasing. However, there is another angle to this. In the retail industry a number of
buyer focus on quality and take products of a particular brand like Morrison's be more
profitable and successful brand in the market because of its products.
5. Threat of substitute- Due to the wide variety of products that are available in the
market, any unsatisfied user of Morrison's products can easily switch to a product o
another brand that will satisfy the needs of consumers (Christanti, 2022). The high level
of innovation in the retail industry has made it difficult for any particular brand to
overcome this threat. Thus, the threat of substitute is high for Morrison's.
Various contemporary strategic problems of Morrison's.
Customer service
There are several issues which organization may lack it can occur due to poor service and
issues in the operating functions of business. Customer retention measures not only the growth
of company in acquiring the new customers but also how successfully it fulfils the demands. In
Morrisons the main aspects which will affect the retention of customer will quality of service,
level of satisfaction, trust and commitment. It survives when the company can fulfil the
requirements and develop the long term relationships which can leads to long term buying
decisions in the favour of organization.
Operation management
These issues rise when the organization unable to plan, manage and supervise the
manufacturing and production process with service delivery (Martinussen and Davidsen, 2021).
Morrisons can face such issues by which it impacts negatively towards their business operations
to run effective and enhance their overall productivity. The impact of this can be social
responsibility, global competition, business ethics, expansion of new technology advancements
etc. By effective managing and looking over to the business concerns it essential for organization
to implement the changes. Poor supply chain management also impact over operations and
further proceeding the valuable service to customers and reduces the customer care and less
availability of products in marketplace.

Employee retention
The low employee retention in the organization can lead to decrease productivity, the
issues occur when the employee quotes extraordinary high figure beyond the budget of entity and
not willing to compromise. While failing the focus on employee retention as well as turnover
reductions could suffer essential impact not only in terms of hard cost relevant to finding, on-
boarding, recruiting. Also in terms of lost knowledge and productivity and impact the customer
and employee experiences. Morrisons can face this issue by hiring the inadequate candidates and
lack of communication in the organization.
In order to overcome the issues that supermarket in the future will face, management can
take a strategic model into its consideration, which specify the ways that they can take into their
consideration (GURL, 2017). They can take approach to consider and follow the ways that
encompasses in blue ocean strategy, which allow firm to improve current practice and also deal
with some issues that will directly put impact on its performance in the retail industry. According
to current strategy, Morrison's can take action to adopt the best pricing strategy such as low cost
pricing, which help to gain the attention of potential customers and also support to retain existing
with new target market audience.
Organization can take another tactic or strategic into its consideration as strategic
suggestion. As it can take approach retail in overall sector by developing effective strategies for
employee retention and operational improvement (Aithal, 2016). They can develop plan to retain
employees in term of fulfilling their needs and requirements, which is important for management
to do so appropriately.
CONCLUSION
On the bases of above discussion, it has been concluded that organization has gained
unpredictable outcomes in form of developing strategic plans and strategies on the bases of
external and internal business environmental analysis. It has obtained desired results in term of
achieving target aims and objectives, which is quite challenging for any company to do that
strategically and effectively as it required a lot of resources and efforts. Furthermore, by
summing up above discussion, it has been summarized that application of porter's five forces
model, blue ocean strategy and red ocean tactic, enabled firm to gain competitive advantages, as
it played significant role in the context of its growth and success in the market. The strategic
implementation of each approach and tactic has provided management chance, taken pleasure of

increasing profitability and productivity as well as performance level, even better than last few
years from rivals that are also existing in the similar industry.

REFERENCES
Books and journals
Agnihotri, A., 2016. Extending boundaries of blue ocean strategy. Journal of Strategic
Marketing, 24(6), pp.519-528.Bruijl, G.H.T., 2018Christanti, S.A., 2022Christodoulou, A.
and Cullinane, K., 2019Perera, R., 2017Alanzi, S., 2018GURL, E., 2017Teoli, D.,
Sanvictores, T. and An, J., 2019Agnihotri, A., 2016Vieira, E.R.M. and Ferreira, J.J., 2018
Aithal, P.S., 2016. The concept of ideal strategy and its realization using white ocean mixed
strategy. International Journal of Management Sciences and Business Research, 5(4),
pp.171-179.
Alanzi, S., 2018. PESTLE Analysis. Project Management.
Beard, J. H and et.al., 2021. Changes in shooting incidence in Philadelphia, Pennsylvania,
between March and November 2020. JAMA. 325(13). pp.1327-1328.
Bruijl, G.H.T., 2018. The relevance of Porter's five forces in today's innovative and changing
business environment. Available at SSRN 3192207.
Christanti, S.A., 2022. Analisis Porter’s five forces pada PT. Multidaya Lokasakti Mandiri.
Jurnal Pendidikan Tambusai. 6(1), pp.4565-6571.
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability, 11(21), p.6046.
GURL, E., 2017. SWOT analysis: A theoretical review.
Leavy, B., 2018. Value innovation and how to successfully incubate “blue ocean”
initiatives. strategy & leadership.
Martinussen, P. E. and Davidsen, T., 2021. ‘Professional-supportive’versus ‘economic-
operational’management: the relationship between leadership style and hospital
physicians’ organisational climate. BMC Health Services Research. 21(1). pp.1-11.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Shantia, A., Aflaki, S. and Masini, A., 2021. Contracting for technology improvement: The effect
of asymmetric bargaining power and investment uncertainty. European Journal of
Operational Research. 293(2). pp.481-494.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Vieira, E.R.M. and Ferreira, J.J., 2018. Strategic framework of fitness clubs based on quality
dimensions: the blue ocean strategy approach. Total Quality Management & Business
Excellence, 29(13-14), pp.1648-1667.
Xiao, B., Chen, Q. and Yu, Z., 2021, April. Research on the Investment Value of Sainsbury’s. In
2021 6th International Conference on Social Sciences and Economic Development
(ICSSED 2021) (pp. 108-115). Atlantis Press.
Online
About Us. 2022. [Online]. Available Through: <https://www.morrisons-corporate.com/about-
us/>
Morrison's strategy. 2022. [Online]. Available Through: <https://www.morrisons-
corporate.com/about-us/strategy/>

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