Business Strategy for Morrisons: SWOT, PESTLE, VRIO and Porter's Five Forces Analysis

This report analyzes Morrisons' business strategy using various models and outlines strategies and tactical objectives for achieving overall objectives. It also evaluates different types of strategic options and ways to monitor success.

Unit 32 Business Strategy

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART A...........................................................................................................................................3
PESTLE and SWOT of an organization for evaluating the resources and capabilities...............3
Swot analysis...............................................................................................................................4
VRIO model for analysing the resources and capabilities of the Morrisons...............................5
Analysing and critically evaluating the competitive environment using porter five forces .......6
Justifying the organization existing and potential competitive advantage..................................7
PART B............................................................................................................................................8
Devising strategies and tactical objectives to achieve strategic overall objectives.....................8
Critically evaluating different types of strategic options for the organization..........................10
Justifying and recommending the most appropriate growth strategy........................................13
Evaluating the ways for monitoring strategies for achieving success.......................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business strategy is mainly defined as forming the plan which outline goals and
objectives of the business while operating in the competitive market for establishing its
competitiveness. It plays key role which results in creating vision which directs the business as
for attaining and establishing the brad name. Morrisons, recognized for selling wide range of
food and non-food products to wide range of consumers by forming strategies which helps in
attaining profits by satisfying consumers needs and wants. The company mainly accounts for
around 9.5% market share while operating in dynamic market. This report provide details about,
analysing the external and internal business environment with using SWOT and PESTLE model.
Also, defining the competitiveness of the company by using porter five forces framework.
Further more, this report also outlines the strategies and designing tactical objectives as for being
competitive in the market. More over, this helps in providing details about different type s of
strategic directions and the growth platforms available with the company. Lastly evaluating the
ways for monitoring the strategies for attaining success.
MAIN BODY
PART A
PESTLE and SWOT of an organization for evaluating the resources and capabilities
PESTLE ANALYSIS
Political factors
Morrison is mainly recognised as the global retailers mainly aims in serving wide range
of food and non food products to large number of consumers. As various political factors and
unstable political environment impact the company operations. The rules and restrictions
imposed by the government for limiting the impact of virus result in shifting the company
operations from offline stores to online (Morrisons SWOT& PESTLE analysis, 2022). Also,
Brexit impacted in importing various fresh food products to be sold in stores.
Economical factors
Different economic factors impact the Morrisons and its internal operations, due to Brexit
and rise in the fuel prices results in reducing the profits (Agbaeze and et.al., 2020). The wage

rates and rise in expectation in the employees wages results in reduce the revenue earning
capacity.
Social factor
Wide range of societal factors impact the supermarket operations, as due to covid
changes in the taste and preferences as for obtaining more organic products in nature results in
reducing profits by arising cost for producing and manufacturing the products. Diverse
Individual in the economy and different cultures impact for producing the products as per the
different attitude and behaviour.
Technical factors
The retailing business mainly operates in the highly dynamic market, with the changing
and new introduction of the technologies resulted in operating business by using online channels.
Further more, the company is mainly using and accepting diversified payment options for
limiting the queuing line with scanning the bar code just after purchasing various products from
stores.
Legal factors
As for operating in highly dynamic market, the company must comply with all the legal
laws and rules for attaining competitiveness. Various legal laws including consumer protection
act, fair wages, equality act (Baker and Robinson, 2020). As the legal factors mainly impact the
Morrisons when it does not comply with its legal laws and rules for operating the business at
global level.
Environmental factors
Environmental factors mainly includes the uncertain climatic conditions and the gas
emission which impact the operations of supermarket. With this the different rules and
regulations imposed by the government as for limiting the impact and reducing the carbon
emissions (Mutinda and Mwasiaji, 2018). With this the Morrisons is mainly using sustainable
packaging for promoting recycling as for reducing the environment pollution.
Swot analysis
Strengths
 Morrisons is mainly recognized for
Selling wide range of food and non-
food products to large number of
Weakness
 Present in limited geographical and
emerging market results in limiting the
benefit of growing economies for

consumers, this results in attaining
competitiveness while operating in
global dynamic market (Morrisons
SWOT Analysis, Competitors & USP,
2022).
 Offering products at good quality and
at low prices retains loyal consumer
market.
 Well integrates supply chain of the
company helps in distributing its
products over large networks.
 With listing its name in FTSE and
London stock exchange results in
trading at global level.
targetting and diversifying into more
markets.
 Lack of consumer satisfaction impacts
in targetting and establishing loyal
consumer market for serving on
continuous basis in long run.
 Lack in adapting changing
environment impact the business and
its operations or serving according to
the consumer needs and demands.
Opportunities
 Entering into the emerging market
helps the company to adapt wide
range of opportunities which results in
boosting company revenues.
 With adopting the online platform for
Selling the products and services
benefits the company to increase the
consumer.
Threats
 Rise in the competitors level impact
the company operations and its
revenues which reduces the margins of
company.
 The changing rules and regulations by
the government.
VRIO model for analysing the resources and capabilities of the Morrisons
With using the viro model it helps in evaluating the company internal resources, this tools
mainly helps in analysing the resources and capabilities which helps in defining the
competitiveness while operating in the dynamic market.
Resources(R) Value(V) Rare(R) Imitable(I) Organised(O) Competitiven
ess

Global
presence
✓ ✓ x ✓ ✓
Leadership
team
✓ ✓ x ✓ ✓
Satisfaction
of consumers
✓ ✓ x ✓ Moderate
competent
As from the above table the Morrisons is globally recognized company and establishing
for seeing wide range of food and non-food products in the global market. its presence is rare and
valuable in nature. Also, the leadership team of the company is valuable and setting goals by
guiding all the employees for serving the best products in nature with satisfying the needs and
wants of costumer (VRIO Framework: What it is, Tips & Advantages, 2022). Further, company
serving at ow cost with the best quality helps in satisfying the consumers needs as with providing
the appropriate quality products with charging low prices. These all resources of the company
indicates that the company is attaining competitiveness while operating in the dynamic market
with serving wide range of costumer. Thus, with using the Vrio model it is being analysed that
the company internal resources indicates its competitiveness while operating in the dynamic
environment. With This results in sustaining its position for long term.
Analysing and critically evaluating the competitive environment using porter five forces
With using the porter five forces helps in analysing the company competitiveness while
examining the external environment. With using this it helps in adopting wide range of strategies
for attaining competitiveness for sustaining and operating in the dynamic market.
Thereat of new entrants
The threat of new entrants is mainly defining about, new entrants affecting the company
and its operations. As by having strong barriers to entry and this cause the new entrants with
highly fixed and operating cost to establish the new supermarket (Jack, Florez-Lopez and
Ramon-Jeronimo, 2018). For the Morrison is mainly recognized and operating at global level so
the company is less effect the new entrants which helps in retaining the loyal consumers market.
Bargaining power of buyers

The bargaining power of buyers are high, this impact the company and its operations for
serving wide range of consumers. With high consumers bargaining power induces the company
for gaining more profitability as for serving wide range of consumers with greater margin (The
Morrison Company Porter's Five Forces Analysis, 2022). As for this the company is adopting
the strategy for serving at low prices with the best quality this retains the large consumers
market.
Bargaining power of suppliers
The bargaining power of supplier impact the form to obtain the raw materials with good
quality and at right time. For operating in the retail market the company is having low suppliers
and for this the Morrisons is selecting the supplier which is providing raw materials at low prices
in order to maintaining its low prices with serving at best quality. This helps the company in
operating and serving in long run.
Competitive rivalry
While operating in highly competitive market, it impacts the company and its operations
for adopting and reducing the prices in order th retain the loyal consumers. As with high
competition mainly includes Tesco, Sainsbury, ASA are the man competitors of the form which
reduces the profits an impact the company operations or serving the similar products.
Threat of substitute
Morrisons is mainly operating in the highly competitive environment where large number
of substitute products being sold by others. This greatly impact the company for serving the
products by fulfilling the needs and wants of the consumer. As for instance the consumers try to
shift to the another company to purchase the product which are offering the same product at lo
prices. Thus, for limiting the threat of substitutes the company is adopting to serve and sell the
product at low cost. This helps in limiting the impact on the company by serving same products
at low prices in order to sustain and retain the loyal consumers for the longer time.
Justifying the organization existing and potential competitive advantage
With using the porter five forces model helps in defining the Morrisons attaining
competitiveness while operating in the dynamic environment. The company is serving wide
range of products at low prices with good quality helps in attracting wide range of products. As
for attaining growth the company is mainly adopting and serving the differentiated products at
low prices with good quality in nature helps in retaining the loyal consumers market. As for

minimizing the thereat of substitute products, with serving the low prices and at best quality
helps in minimizing this threats.
Further more establishing the store and providing at global level helps the company in
providing more convenience to th consumers for purchasing the products in the dynamic market
operations. Also the company is using various marketing and promotional strategies for retaining
the current large consumer market due to its high barging power. Morrisons adapting the
sustainable packaging strategy for serving and attracting wide range of products to the consumer
(Fernández and Roqueñí, 2018). Thus, with adopting different strategies in the company helps in
maintaining the thereat of new entrants and the competitive level helps in attaining and
maintaining competency while operating in the wide changing dynamic market.
PART B
Devising strategies and tactical objectives to achieve strategic overall objectives
Strategic plan
Background : Morrison is mainly recognized for serving wide range of food and non-food
products to wide range of costumer for attaining growth and market share.
Organizational structure : The structure followed by the company is hierarchy in nature.
Where wide range of employees working in the company and employed higher individual for
controlling all the departments.
Vision: The company vision is to make and serve healthy and quality products at affordable
prices for being most trusted retailer. As for this offering wide range of healthier options at low
prices and low caloric products in nature. Also, prioritizing safe and secure environment for
employees to work with the set standards.
Mission: Morrison mission is to utilize their experience for designing the innovative products
with packaging in sustainable for meeting consumers needs. For this the company is setting
standards by building the good working environment which results in meeting needs and wants
of costumers.
Tactical objectives: These are mainly short term objectives of the Morrisons,
 To ensure healthy living and serving good quality product at low prices.
 To produce differentiated products with adding new features.
 To adapt the sustainability packaging and hiring diverse employees.

Marketing mix : The marketing mix adopted by the company as for growing the business for
attaining competitive advantage.
 In product strategy company it is Selling wide range of food and non-food products
including vegetables, electronics, beauty, Faison .
 In pricing strategy it is using permanently low pricing for attracting and retaining loyal
consumers.
 For placing, serving products by using online and offline channels for serving wide range
of products.
 For promotion the company it is using strategy by using various social media strategies
for promoting and attracting wide range of consumers for this the company is using TV,
billboards for promoting the product and creating brand image.
Strategy formulation:
With using the bowman clock model and the porter generic model, the company must
use the differentiation strategy for operating and selling wide range of differentiated products to
retain and attract loyal consumer. This helps in attaining maximum satisfaction by adding unique
features of the products for serving wide range of costumers. Thus, with using the differentiation
strategy helps in serving wide range of products to the consumers with the varied features this
helps in offering the products different from its competitors.
Implementation:
For implementing the differentiated strategy in the company is mainly done by hiring and
training employees for producing unique and differentiated products. Also communicating and
aligning all the vision and mission of the company with this growth strategy as for adding the
new products which are differentiated in nature and serving with good quality at low prices.
Further with using the Vrio model helps in analysing the internal resources and capabilities of
the company, this results in emphasizing on the staff, leading teams, promotion strategies used
by the company. With using all its internal resources and capabilities helps in producing
successful differentiated products (Walker and et.al., 2018). As by using the potential and skilled
employees helps in working and producing more unique products by adopting sustainable
packaging. Also, by aligning the finances with marketing and production department helps in
successfully producing the products which results in attaining growth while operating in the
dynamic market.

Evaluating:
For evaluating the strategy using the KPI tool which mainly helps in analysing firm
performance and its growth by Selling the differentiated products at low prices with quality in
nature.
Thus, the company is mainly adopting and using porter generic and the bowman
differentiated strategy (Erdmann and Ponzoa, 2021). This help in growing and attaining
competency while operating in high dynamic market. Which further results in gaining more
profitability with serving wide range of unique and differentiated products.
PART B
Critically evaluating different types of strategic options for the organization
Strategic options are mainly defined as adapting strategy which helps in attaining growth
in business. These are mainly defined as plans which help the company in attaining
competitiveness with managing all the operations by communicating effective with ensuring all
the internal operations in the dynamic market.
The bowman strategic clock mainly aims in specifying the business operations, this
model mainly offers 8 strategic options for attaining competitiveness while operating in dynamic
market. This helps in positioning the company for attaining growth in the market place.
1. Low price and low value added: This strategy mainly aims in specifying about keeping
low prices for competing and attaining competitiveness while operation in the dynamic
market. In this the product and services offered at very low prices and Selling in high
quantity. Hence, keeping prices at the lowest can be used by the companies as for
attaining competitiveness while operating in the dynamic market as to attain growth.
2. Low price: This strategy mainly aims in keeping the prices at the lowest, this results in
attaining low margins by producing high volume of products. The companies adopting
this strategy aims in working with the process of efficiency and reducing of cost. Thus, in
this the companies attain competitiveness by selling products at lowest prices and attain
low profit margins this helps in generating profits.
3. Hybrid: In this strategy, it mainly specifies about the combination of the differentiated
and the low prices which aims in selling the products in differentiated and in good quality

in nature by adopting at low prices. With this strategy it helps in adopting and attaining
competitiveness by Selling unique featured products at low prices in reasonable quality.
4. Differentiation: This strategic direction mainly aims in specifying about Selling the
products in differentiated manner. The gaol of using this strategy is to provide the
maximum level of valued products. With using this strategy helps in creating unique
products than the competitors (Introduction to Bowman’s Strategy Clock, 2022). This
helps in attaining competitiveness which results in attracting wide range of consumers to
buy products. Thus, in this the consumers are attracted for purchasing differentiated and
uniquely featured products willingly pay high prices with attaining high quality products
than the competitors.
5. Focused differentiation: In this strategy it mainly aims in specifying about charging
high prices for providing high value of products. With attaining high profit margins by
charging high prices helps in attaining competitiveness while operating in the dynamic
market. But with adopting this strategy it is difficult to manage and sustain in highly
competitive market by charging only high prices by the conquers for attaining
competitiveness.
6. Risky high margins: Adopting this strategy mainly defined abut taking risk by charging
very high prices from the consumers in order to sustain and attain competitiveness while
operating in the dynamic market. In this companies charging high prices with not offering
any extra benefits this helps in attaining higher profits to achieve competitiveness. Thus,
with adopting this strategy aims in attracting high number of competitors and the
substitute products for Selling non differentiated products in the market.
7. Monopoly pricing : This strategic direction mainly aims in specifying about the single
company and business is controlling the prices and product with serving wide range of
consumers in market. This results in reducing the substitute product in nature, as by
adopting this strategy by the business this results in reducing the competition in the
market.
8. Loss of market share: This strategy mainly aims in specifying about Selling the lowest
value of product at the set prices. This means the company is unable to sell the desirable
product by charging the standard prices. But with offering low value and low quality
products with the highly set standards prices result in losing the market share.

Source: (Introduction to Bowman’s Strategy Clock, 2022)
Furthermore, another growth strategic options based on the porter generic growth
strategies model is defined as:
 Cost leadership: This strategy mainly aims in emphasizing as the businesses adopt this
strategy for reducing the cost for delivering the product and service at good quality for
being more profitable while serving in dynamic market. With this the company aims in
cutting the cost by reducing its operating cost as by aggressively Selling the products
with sing economies of scale (RASHID, 2020). Thus, with adopting this strategy
businesses aims in attracting large consumers Market offering product at low prices to
gain more profit which results in increasing revenues.

 Differentiation: It is the type of growth strategy which aims in specifying and attaining
competitive advantage by distinguishing the products with unique selling as to attain
competitiveness by adopting creative promotional methods, high quality and offering
distinctive products with providing their services helps in attaining competitive advantage
to the company with charging higher prices with offering unique feature products than
the competitors.
 Cost focus: With adopting this strategy targeting the niche market for providing the
products at lowest prices by targeting the large market for gaining competitiveness.
 Differentiation focus: In this strategy, the business mainly targets the niche market and
serving differentiated products. This mainly aims in establishing the brand loyalty by
Selling unique featured products to the consumers.
Source:(Michael Porter’s 4 Generic Strategies, 2022)
Justifying and recommending the most appropriate growth strategy
With the above two models, the porter generic model and the bowman clock model.
Different directions options are available for attaining growth while operating in the dynamic
market. The Morrison must adopt the differentiation strategy from both the models. With using

this strategy it helps the company In attaining growth by Selling differentiated and uniquely
featured product to the large target market which (How to Apply Porter’s Generic Strategies to
Your Business, 2022). With using this strategy helps in attaining growth by serving quality and
unique product at low price to the consumers which helps in attaining competitiveness. The
Morrisons is mainly leading with serving its products by setting standards this helps in adapting
good market share with reducing its prices. This results in attracting wide rang of consumers to
purchase the unique products than that of competitors this attracts the consumers to purchase
unique product at the low prices.
Further more, adapting this strategy helps the company to increase the target consumers
by attracting and retaining loyal consumers which results in increasing profits and the growth by
improving performance and profit margins of the company. The benefit of adopting and
operating with this growth strategy is it helps in providing differentiated products which helps
company in attaining good consumer market which result in attaining competitiveness while
operating in dynamic market (Subrahmanyam and Azad, 2019). Further more, with using this
strategy it helps in reducing the impact of competition and result in gaining large market share by
serving product for satisfying consumers needs and wants with the unique products at low prices
and good quality.
Evaluating the ways for monitoring strategies for achieving success
Monitoring strategies mainly includes the plan and different tools used to analyse the
performance of the stares implemented in the business for attaining success. Using the ways
helps in reviewing the performance by understanding the growth of the business operations (10
Tips for an Effective Monitoring Strategy, 2022). The importance of monitoring the strategies
helps in analysing the bottlenecks and the functioning of the strategies which helps in analysing
the issues while implementing and attaining growth. As by using the KPI tools helps in
monitoring and reviewing the performance of implemented strategy, as it helps in analysing the
company is attaining growth or not by applying the strategy (Pajić, Radivojević and Kilibarda,
2021). With using this it helps in measuring the profits earned in the company after applying the
differentiated strategy. Further more, by using this monitoring framework helps in making better
decisions for the company by reviewing its performance which helps in measuring success of the
adopted strategy. It is very important to monitor and review the strategy implemented which

aims in specifying about the growth process and the success while operating in the dynamic
market.
More over, the Morrisons must adopt the variance analysis which helps in analysing the
gap and hindrances in the planned results and the actual results with adopting strategy. As with
using this it helps the company in forming plans and taking actions for attaining the success after
implementing the strategy in the company for attaining growth and gaining competitiveness.
Thus, with using these two ways of using different tools helps the company in analysing an
indicting the firm performance while operating in dynamic competitive environment. Which
provides the actual and planned results. With using these helps in investigating and controlling
the actions of the company Also other ways adopted by the company for analysing and
monitoring the strategies implement for attaining growth as by comparing the current
performance with the past year. Also, analysing all the transactions that takes place in the
business for ensuring the financial details and the growth in earning by analysing profits.
CONCLUSION
From the above report it can be concluded that, forming the business strategy mainly
helps in attaining and establishing competency which mainly set gaols with the vision as to
achieve the set target and objectives while working the competent and potential employees.
Morrisons is mainly recognized and aim for serving wide range of food and non-food products to
large number of costumers while operating in the dynamic market. As by analysing the company
external and internal environment with using SWOT and pestle model it helps in evaluating the
competitiveness of the company. Also, by using the VRIO model results in defining the internal
resources and its capabilities while operating in the large target market. Further, with using the
porter five forces model helps in evaluating the competitiveness with forming different strategies
which helps in minimize the impact of new entrants, competitors, buyers and suppliers
bargaining power. For Morrison adapting the differentiated strategy helps the company to grow
and diverse its products by adding new features for serving and attracting its large target
consumers this results in earning more revenues. Also, with setting the tactical objectives for the
company helps in attaining the goals set for growing he business. Lastly with using the bowman
and porter generic strategies helps in adopting the growth strategy for the company which results
in diversifying and attain growth while working in long run.

REFERENCES
Books and Journals
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sustainability of supermarkets in the urban area of Enugu State,
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performance of grocery e-commerce in Europe and the USA. Technological forecasting
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Fernández, J. C. R. and Roqueñí, N., 2018. Analysis of the potential of Spanish supermarkets to
contribute to the mitigation of climate change. Sustainable Production and
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Jack, L., Florez-Lopez, R. and Ramon-Jeronimo, J. M., 2018. Accounting, performance
measurement and fairness in UK fresh produce supply networks. Accounting,
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Evaluate Morrison’s Performance. Journal of Global Economics and Business. 1(3).
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Subrahmanyam, S. and Azad, S., 2019. Carrefour’s Competitive Strategy-Cost Leadership and
Differentiation: A Case Study. Pacific Business Review International. 11(8). pp.137-45.
Walker, K. F and et.al., 2018. Monitoring performance of sites within multicentre randomised
trials: a systematic review of performance metrics. Trials. 19(1). pp.1-9.
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