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

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