Strategic Management Plan for Morrisons Supermarket

unit 32

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART-A...........................................................................................................................................3
P1 Impact and influence of macro environment .........................................................................3
P2 Internal environment and capabilities of Morrisons Supermarket.........................................5
P3 Explaining the competitive forces for Morrison super market...............................................6
P4 Strategic Planning...................................................................................................................8
PART-B ........................................................................................................................................10
Critical evaluation of the strategies ...........................................................................................10
Justification and recommendation for growth strategies...........................................................11
Monitoring the Strategies...........................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
A strategic management is required to plan about the necessities of an organization that is
essential to achieve its goals and objectives (Fatima and Elbanna, 2020). It is an ongoing process
in which a proper planning, monitoring, analysis and assessment is done, because this is very
important for any organization. The strategic management helps the organization to analyse
about the present situation, outlining the strategies and apply them and evaluate the effectiveness
of the management strategies in the company. This type of management have both financial and
non financial advantages. It also helps the management and their leaders to analyse about the
future goals of the company (Schawel and Billing, 2018). This sets a direction for the companies.
Morrisons Supermarket is a trading company that has a large chain of supermarkets. The report
includes some information about the influence of macro and internal environment on the
company. The report will include the strategic management plan of Morrisons Supermarket
company.
PART-A
P1 Impact and influence of macro environment
A macro environment is a set of conditions that exists in the organization. Macro environment
consists of some forces that shapes the opportunities for the company. There are different types
of forces that are demographical, economic, ecological, socio-cultural, technological and
political forces. The macro environment is the broader conditions of economy macro
environments affects business decisions. Macro environment of company can be analysed
through PESTEL as it includes six factors that are political, economical, social, technological,
legal and environmental (Perera, 2017).
PESTEL Analysis of Morrisons Super market is as follows:
Political factors that impacts Morrisons Supermarket
Political factors plays an important role that impacts the Morrisons Supermarket's long term
profitability in the country (Marrison Family History, 2021). From the analysis it can be said that
the political factors that can influence the decisions and strategies of the company are, Political
stability and importance of retail sector in economy, risk of military invasion, level of corruption
and taxations and price regulations.

It is analysed that when the Brexit report was released that warned that the UK had been
withdrew from the European union. This was a major political event and that created a lot of
uncertainties due to change in policies and regulations influenced many decisions of Morrisons
Supermarkets. Also it is analysed that Morrisons Supermarket faced a huge impact of multiple
government legislation on UK food retailers.
Impact of Economic Factors on Morrisons Supermarket
The macro environment factors such as inflation rate, saving rates, foreign exchange rate and
economic cycle determines the aggregate demand and it influences decisions of the company.
Morrisons Supermarkets also uses country's economic factors such as growth rates, inflation,
retail industry growth rates etc. to forecast the growth.
It can be analysed that Brexit has caused remarkable fluctuations in the currency and generated
inflationary pressure on the company. Also the analysis explains that the rise in oil prices has
also huge impact on the functioning of the Morrisons Supermarkets because it has resulted in
tighter budgets of their customers.
Impacts of Social Factors on Morrisons Supermarket
Culture of society and their ways of executing things impacts the culture and working process of
the company. Social factors that are analysed for Morrisons Supermarket are hierarchy of class
structure in the society, education level of their consumers, the culture of the population etc.
It is analysed that rising age populations are providing various business opportunities for the
Morrisons Supermarket company is impacting the organization positively. It is analysed that
growing interest of education and health of customers in UK has also influenced the market for
the company.
Impacts of Technological Factors on Morrisons Supermarket
Technology is developing in a very fast pace and has influence on almost every field.
Technological analysis involves an understanding for some impacts such as, recent technological
developments by Morrisons Supermarkets, it has also impacted the product offering and it has
impact on the cost structure also.
It is analysed that Morrison Supermarkets are using Artificial Intelligence to stock its stores that
drives sales. Also technology has influenced them in positive ways and helped them reducing the
wasted efforts and costs off making and made the business more efficient.
Impacts of Environmental Factors on Morrisons Supermarket