Environmental Analysis and SWOT Analysis of Morrisons

This report covers the environmental analysis including internal and external factors and SWOT analysis that have great influence on Morrisons, a food retail industry in UK. The report provides recommendations to overcome the weaknesses and threats of the organization.

Principles of
marketing

Table of Contents
INTRODUCTION.............................................................................................................................3
Overview of the chosen organization.......................................................................................3
Environmental analysis based on internal factors....................................................................3
Environmental analysis based on external factors....................................................................4
SWOT analysis of chosen firm.................................................................................................5
Recommendations.....................................................................................................................7
CONCLUSION..................................................................................................................................8
REFERENCES...................................................................................................................................9

INTRODUCTION
In a business, the environmental analysis assist the organization to identify external and
internal components that can either positively or negatively influence or impact the business. By
looking at elements such as technology, economy, business can anticipate the available potential
opportunities or threats (Daniels, 2019). The considered firm in this report is Morrisons which
deals in food retail industry. This report will cover the environmental analysis including internal
and external factors and SWOT analysis that have great influence on that organization.
Overview of the chosen organization
Morrison is relating organization that deals in clothing, Petrol, food and drink, home ware,
books and magazines. This company was founded by William Morrison in 1899. it is oldest
supermarket chain within food retail industry in UK. It fourth largest chain of the supermarket in
United Kingdom. Main purpose of this company is to make healthy food product at reasonable
price. Its mission is to utilize their experience and also design innovation so that it can provide
responsive and flexible solution for packaging industry. Vision of Morrison is to make and offer
food all proud of, when their efforts is worthwhile, so more people can afford and enjoy eating
well.
Environmental analysis based on internal factors
 Product issues- It refers to failure of a program for performing properly including failure
of any program to function as per the documentation (Díaz-Corona and et. al., 2019).
(Giriviriyose, 2019). Morrison's need to focus that its product dos not contain any issues
in term of unsafe condition and safety hazard.
 Marketing issues- These issues mainly centred on misuse of the marketing strategies in a
business. It is related to the existing inefficiencies. Morrison's should practice to overcome
form any kind of the ethical issue in its marketing and also focus on its pricing strategy.
 Management issues- These issues are related with the decision or investigation by
employer including in specific appraisals, pay reviews, performance management and
benefits under the employee's employment contract and any more. Morrison's should

work to improve its management system by considering all required actions that facilitate a
good positioning strategy.
Environmental analysis based on external factors
 Political factors- it exert very strong impact on a business and also play a significant role
in determining the organisational long term sustainability. It include uncertain political
environment that lead to frequency of the change in government laws and polices
(Maroun, 2018). Morrison's need actively scan the political environment in order to ensure
a quick adaption with the changing policies. It should also consider these political element
to enhance readiness for changing the political environment dynamics.
 Economics factors- this factor comprise with multifaceted variables that has direct impact
on organisational ability to accomplish their economic objectives. It include economic
growth rate, inflation, interest rate and many more. Morrison's need to review economic
growth rate of different countries when making as international expansion decision. Rising
of inflation rate can also have negative impact on revenue growth of the Morrison's as it
decline purchasing power of the money that discourage customer spending on the goods
and services.
 Social factors- it represent key demographic characteristic, customer of a society, social
value, consumption behaviour etc. (Pattnaik, 2020). Positive attitude towards the
migration reflect that Morrison's can easily hire employees form the diversified cultural
background. Consumer behaviour also impact the respective organisational performance is
degree of ethnocentrism. A high ethnocentrism can make the entire business environment
more complex of challenging for Morrison's when operating within international markets.
 Technological factors- in business worlds, technical development pace is accelerating due
to which business organisational investing highly within emerging technology in order to
stay ahead. This factor include technical infrastructure, research and development,
technological innovation and many more. Morrison's need to prefer the nation with a well
developed technological infrastructure that make it very easy for respective firm to
accomplish their cost reduction, and value creation objectives. It is very essential for

Morrison's that it adopt long term horizon and also do not expect short term return from
their research and the development efforts.
 Legal factors- it offer a broader view that provide more specific and detailed information
related to the different laws, mainly including health and safety laws, consumer protection
laws, intellectual property and employment laws. Morrison's should make sure a proper
environment safety. Effective compliance with employment laws help the respective
company in strengthening their employer brand image. This company also need to study
different laws related to discount, misleading advertisement, refund, credit items and many
more.
 Environmental factors- the environmental analysis is very significant in contemporary
business environment because of increased vigilance of the stakeholders towards
environment protection and sustainability. This factor include environmental regulation,
weather and many more. The weather condition shape customer behaviour due to which
Morrisons need to integrate flexibility within their supply chain operations. The respective
company should adopt practices of responsible production, make efforts to improve their
brand image on the sustainability ground and encourage the responsible consumption
practices.
SWOT analysis of chosen firm
Strength
 It provide the value for price to customers which is its major strength. By offering goods
quality and fresh food product at a low cost, Morrisons earn a positive point that ha
significant role in the customer retention.
 In provide different variety of good and fresh quality food in which it also promote
concept of the market street. This practice of respective firm make its customer satisfy
providing a different environment as well reduction of cost.
 The respective firm has invested much to build a strong brand portfolio which is extremely
useful to expand in to the new product line (Xiong and et. al., 2019).

Weakness
 The network an infrastructure in relation to information technology of Morrisons is not so
good due to which it can not grab some opportunities.
 The respective firm need to invest more amount in the employee's training so that workers
performance can be improve in to to make company's service better.
 Outbound logistic and checking out facility are not so impressive of the considered firm in
comparison with other competitors.
Opportunities
 Adaption of new technology is a great opportunity for Morrisons to practices the
differentiated pricing strategy within new market that help the company to maintain loyal
customers.
 New environmental polices will create good opportunity for respective firm to drive home
their benefits in the new technology.
 New trend in customer behaviour help the company by opening new market that build
diversity in to the new product and revenue streams
Threats
 Technical development by competitors could be major threat to Morrisons in medium to
long term future.
 Liability laws within different nation are very different and respective firm may be
exposed to several liability claims changes in the polices in such markets.
 Increasing the market share of Morrison's rivals can impact margin for the respective firm
(Yadav and et. al., 2020).

Recommendations
On the basis of above discussion there are some recommendation or Morrison so that it
can overcome form its weakness and threats.
 It is suggest to Morrisons that its should invest a large amount in research and automation
as it is lacking in providing service with new technological instrument. It also should
improve its Outbound logistic and checking out facility that help the company to compete
with its rivals.
 It should make effort to improve its information technology so that the respective firm
become able to take the available opportunities.
 Morrison should provide a better training facilities so that its workforce can work with
new software by enhancing their knowledge and skill in latest working software.
 The company should bring innovation in its organisational structure that can compete with
the future business model that also help the firm to expand its business.
In future the organisation could be much better and could earn up to more than £100 billion if
worked on the above recommendations. Because it has earned about £ 96 billion in the year 2021.
The salary of the employees which the company distributes 5% of the salary in the lieu of the
contributions of the group.

CONCLUSION
From the above report it is concluded that business environment include external and
internal environment. It is very important for the organisations it help them to identify those
element that may impact company's strategy and success. An organisation is get impacted by
different internal issues including marketing issues, management issues and many more The
PESTEL analysis provide such framework that help to understand general environment in
business. The company conation some strong point that help them to survive in market and also
conation some negative points that restrict the organisation to expand its limit. There are some
threads also in the organisation way of organisational success. By using the organisational
strength a company can overcome from their weakness and threats. Therefore, it is essential for a
business that its should conduct the environmental analysis to determine the favourable and
unfavourable elements efficiently.

REFERENCES
Books and Journals
Daniels, M., 2019. A brief one-to-one session using role analysis and role theory in a corporate
organisation. One-to-one psychodrama psychotherapy: Applications and technique,
pp.169-181.
Díaz-Corona, D. and et. al., 2019. Profiling of knowledge organisation systems for the annotation
of Linked Data cultural resources. Information Systems, 84, pp.17-28.
Giriviriyose, J.C., 2019. An Organisation Study Report on SAFETEX GROUP, UAE. Journal of
Commerce and Management Thought, 10(3), pp.263-269.
Maroun, W., 2018. Modifying assurance practices to meet the needs of integrated reporting: The
case for “interpretive assurance”. Accounting, Auditing & Accountability Journal.
Pattnaik, P., 2020. Validation of the World Health Organisation 5-Item Well-Being Index (WHO-
5) among the Adult Population Living in a Chronically Arsenic Affected Area of Rural
West Bengal in India. Indian Journal of Public Health Research & Development, 11(3).
Xiong, W. and et. al., 2019. Biological consequences of environmental pollution in running water
ecosystems: A case study in zooplankton. Environmental Pollution, 252, pp.1483-1490.
Yadav, G. and et. al., 2020. A framework to overcome sustainable supply chain challenges
through solution measures of industry 4.0 and circular economy: An automotive
case. Journal of Cleaner Production, 254, p.120112.