Marketing Audit Report

This marketing audit report provides a detailed analysis of Morrisons, including its background, macro and micro analysis, competitive analysis, and more. It offers insights into the company's strengths, weaknesses, and strategies to improve sales. The report also includes a competitive analysis of Tesco and Sainsbury's.

Marketing Audit Report

Table of Contents
EXECUTIVE SUMMARY..................................................................................................................3
INTRODUCTION................................................................................................................................5
BACKGROUND: ................................................................................................................................5
MACRO ANALYSIS...........................................................................................................................5
MICRO ANALYSIS.............................................................................................................................6
COMPETITIVE ANALYSIS...............................................................................................................8
CONCLUSION..................................................................................................................................10
REFERENCE.....................................................................................................................................11

EXECUTIVE SUMMARY
In the respective project all the discussion is done in context to the organisation Morrisons.
In this description of the company with regards to their size, scope, mission , strategy are
done. Who are are directors, chief executive officer, it is also mentioned under it. Analysis
of business environment are also perform. For that PESTLE and SWOT are perform.
Competitors strength and weakness also done so that important strategies are frame by
Morrisons to improve their sales.

INTRODUCTION
Auditing is the mode of an activity in which independent examination of financial
information of an entity, whether profit oriented or not , irrespective of its size or legal form when
such an examination is conducted with a view to express an opinion there on. The main objective
of the audit is to form an opinion on information, it means that auditors are on the look out for
signs of potential material fraud ,it is not possible to be certain that frauds will be identified. In the
organisation different types of audit are perform such as internal audit, statutory audit, compliance
audit etc. In all of these the responsive persons are different like statuatory audit are done by
practicing chartered accountant and compliance audit is perform by practicing company secretary .
The name of the organisation that was selected under this assignment is Morrisons as it is a most
famous supermarket. It deals in various products such as food, clothing, cosmetics, books etc. In the
United Kingdom market, Morrisons audit has been conducted.The few name of their subsidiaries
are farmer's boy ltd, Neerock Limited, Rathbone kear ltd, safeway stores ltd, ,last mile development
Ltd,Wm Morrison produce limited etc.It hire approx one lakh ten thousand people as their
employees. To sale their products Morrisons use both the mode online as well as offline. In the city
centre it opened their shops. As their man business is relates to food and groceries , Morrisons
source as well as process most of the fresh food (Berkowitz, 2021)
BACKGROUND:
Morrisons is fourth largest supermarket that deals in huge variety of items. It was
incorporated in the year 1899,Bradford , Unite Kingdom. The brand has its headquarters in
Bradford, UK. It has various stores in different locations of countries. The Chief Executive officer
of the Morrisons is David Pots and the founder of the brand is William Morrisons. The few name of
their subsidiaries are farmer's boy ltd, Neerock Limited, Rathbone kear ltd, safeway stores ltd, ,last
mile development Ltd,Wm Morrison produce limited etc.It hire approx one lakh ten thousand
people as their employees. To sale their products Morrisons use both the mode online as well as
offline. In the city centre it opened their shops. As their man business is relates to food and
groceries , Morrisons source as well as process most of the fresh food. It prove lose control
regarding quality. It involve trained professional in their stores. The company also produce many
items of their own. Ken approach the grocer's trade with a new perspective. In the year 1967
Morrisons backed their expansions with great public offering on London stock exchange (Coe,
2021)
MACRO ANALYSIS
Political: In includes various factors such as political stability, government policy, trade

policy, Brexit, Current tax policies, etc. As Morrisons supermarket run their business in various
different countries. Therefore different countries have different tax policies so it affects the business
in both favourable or unfavourable manner. If specific country has low tax rate than it tends to make
positive impact on business because small part of income is paid by person as tax so it tends to
increase profit as well as improves the purchasing power. On the other in some locations tax rate is
high than large amount is paid as tax which reduces the income of people and also purchasing
power become low. There it make negative impact on Morrisons business (Davenhill, 2021)
Economic: These involves various factors such as economic growth, unemployment rate,
disposable income, inflation rate, exchange rate, and so on. Due to the reason of high inflation rate
in the country it tends to increase the cost of every product but on the other it lowers the purchasing
power also. Due to high inflation rate it make negative impact on Morrisons business because it
tends to reduce the sales.
Social: Few examples of such factors cultural barrier, target demographics, health
consciousness, population age, lifestyle attitudes etc. With increment in the population rate,
indirectly affects the sales of Morrisons also. As it offer the products of different brands for all the
age people whether for newly born, children, adults, old-age people. But it affects negatively if
population rate tends to become low.
Technology: Include the factors such as innovation, automation, cyber security,
technological change etc. As Morrisons deals with advanced automation technology so it tends to
perform the activity very fast and also it tends to reduce the chances of mistakes. As application of
innovative technology at supermarket it tends to attract large audience which leads to increase large
customer base. But if Morrisons fails to adapt new technology than it can destroy the market of
Morrisons because customer attract more towards those supermarket who follows advanced
technology for billing purpose. It help to eliminate long queues and also save the time of customers.
Legal: It cover various different laws like discrimination law, consumer safety, copyright
protection, health & Safety, employment law etc. As Morrisons is largest supermarket, their stores
are also covers large area and it involve large number of people as their staff member so there is
need to concentrate on health and safety measures. Morrisons are tends to be very neat and clean
and it also have proper facility of canteen, toilets, water as it gives satisfaction to staff members and
helps to retain their employees for long term and also attracts experienced, skilled employees.
Environmental: These factors are relates to sustainability, pollution, climate change,
variation in weather, environmental policies, pressure from NGO's etc. Due to unfavourable climate
change also tends to reduce the sales of Morrisons which make negative impact on revenues of
business and improves the chances of business failure also. But if the variation if favourable it raise
the sales and improves profitability level. Also well as improves chances of business growth and

gain competitive advantage(Garibaldi, 2021)
MICRO ANALYSIS
Company: The organisation that was selected under the this report is Morrisons. It is largest
supermarket in united Kingdom. Their business mostly operate in the food and grocery with
procurement mainly through its owned manufacturing facilities that helps the organisation in
ensuring quality and develop trust with their customers. The founder William Morrisons
incorporate the company as an egg and butter stall in Bradford, England in 1899. Until the year
2004, it was restricted to Northern United Kingdom and after achieving safe way in 2004 the
organisation expand their business operations across Wales, Scotland, England. Morrisons sparkles
with 8.5% increment in sales during festive timed. Morrisons offer dividend at the rate 127%.
(Hartt, 2021)
Mission: The main purpose of Morrisons is to provide quality product and service and
capture the large customer base. The mission of Morrison is to increase the sales by 20 percent
anyhow in the upcoming next three months. Introduce new latest advance technology in their stores
is their another mission (Hackley, 2021)
Strategy: Morrisons adopt price skimming strategy for business and various other strategies are
create and implement by staff members to attain the set objectives as well as to achieve the mission
on time in most effective manner(Kagermann, 2021)
Strengthening distribution in existing market: Morrisons offer large variety of products and the
organisation structure are also very big. Different effective method of distribution are adopted by it
so that product can easily reach to customers easily. For smooth running of business it is necessary
to follow appropriate distribution channel. Through travelling sales man, through mail order
business., on opening retail shop it sale the product. Indirect channel of distribution are adopted by
Morrison(Kumar,2021)
Extension of company promotion strategy with one industry brand: cutting edge technology are
adopted by Morrisons. For promotion purpose there is need to analyse the market first, for this
marketing mix are tends to be analyse. Various different types of promotional tool are adopted by
smart managers or marketing team so that brand awareness are tends to be creates which help to

attain or attract large audience and convert them into a customers. For promotion they give
advertisement on Televisions, radio, social media, magazines, On English newspaper as well as
vernacular news paper. Social media platform is most effective because large part of public are
connected to these. On Instagram, Facebook, twitter, etc Morrison make advertisement and attract
customers (Mackintosh, 2021)
Board of Directors: It include both executive or non executive director who make control over the
affairs of the business. To control day to day activities executive directors are appointed. Salaries
are given to such directors but the non executive directors rarely come to office as sitting fees are
given to them for their services. Chief executive officer as well as chief financial officer are also
appointed whose function is to analyse the financial statement and on the basis of that important
investment related decision making is done. Michael Gleeson is the CFO of Morrisons, David Potts
is the CEO. Andrew Higginson is the chairman. And the role of chief operating officer is played by
Trevor Strain ( Nugroho, 2021)
Suppliers: The brand arrange the suppliers from the local market of the specific country. As
Morrisons set supplier ambition as to sale or purchase simply. Achieve profitable growth,
concentrate on quality etc. Morrisons supplier Portal offer suppliers with best effective way of
working. In retail organisation all the organisation make arrangement of their raw material from
various supplier. As powerful supplier use their negotiating power to extract higher prices from the
firm in retail field. Through experimenting with product design different material are tends to be
used so if raw material cost are increase than Morrison can shift to another. Therefore bargaining
power of suppliers are high (Thabit, 2021)
Marketing intermediaries: It involves various Intermediaries such as agents, whole sellers,
marketers etc. these are the mediator who charge commission or add some addition margin in the
value.
Customers: For all age people they offer products. They generally capture those people who
belongs to middle class because the ratio of middle class people is high so the product or services
which is easily affordable by audience are tends to be offer and attract large number of people as
clients and improve the customer base (Thumann, 2021)
Consumer market: It has around 494 stores in different locations so their customer base is high.

International market: It indicates foreign market. In this organisation operate their business or
provide services to various market of foreign country. Every market of different countries has
different features or characteristic. In different global market Morrisons operate their business.
COMPETITIVE ANALYSIS
The two organisation who are the tough competition to Morrisons are Tesco and Sainsbury's.
Both deals in the same industry. Also Both the organisations offer services in different location.
There both the company has strong image in the mind of audience. The strength and weakness of
competitor Tesco and Sainsbury are discuss in the below mentioned tables (Zhigir)
TESCO
STRENGTH WEAKNESS
 Tesco is known as one of the leading
grocery retailer in the UK (Argyris,
2017).
 Tesco has diversified product range all
over the world.
 Tesco had its operations in various
nations like UK,US, China, Poland etc.
 Tesco is entirely dependent on UK
market.
 Tesco is focusing on economic range of
products for mass volume.
 Its operations had been failed in US and
Japan.
 The financial profits are adversely
affected due to Tesco's credit card
liability.
SAINSBURY
STRENGTH WEAKNESS
 Sainsbury's have around 150000 people
as their workforce has their great
strength. It also sponsered various event
such as Paralympics. Excellent way to
advertise by experts are great strength to
Sainsburry.
 Morrisons has good brand image as well
as strong balancesheet and Morrisons
consistently tends to gain profitability
also.
 Differentiated food proposition with
excellent quality is their strength to
business.
 As the product prices of Sainsbury are
high as compare to their rivals. It has so
many competitors who offer the similar
product at low prices . It tends to divert
the customer.
 Sainsbury's image badly affected due to
the reason of large nuber of controversies
related to tax, price fixation etc.
 As compare to other firms it has high
attrition rate in context to workforce.
 Failure to gain opportunities due to
ineffective product demand forecasting.

SWOT
SWOT ANALYSIS in context to the organisation Morrisons
STRENGTH:  It has efficient supply chain as well as
very strong network of distribution. Also
it includes large product portfolio. As
well as great customisation is the strong
part of Morrisons.
WEAKNESS:  Take so much time to respond to change.
Also it has weak loyalty programmes.
And geographical presence are also
limited.
OPPORTUNITIES:  It has great chance to expand business
through offering free home delivery
facility. Also by providing discounts and
various other offers Morrisons become
most leading company.
THREAT:  Morrisons always face the threat of
unfavourable change in laws, rules and
regulations. Risk of rapidly change in
technology, chance in consumer
behaviour. Entry of new rivals are the
following threats face by it.
CONCLUSION
After deep study and analysis it is conclude that marketing audit is very important to
business because all the micro and macro factors can be analysed under it. With analysis of business
environment important decision making regarding launching of new product can become possible .
The proper coordination between all the departments of businesses helps in attainment of long term
objectives. The external factors affecting the organisation had both positive and negative impact on
their functioning. Morrisons follows hierarchical organisation structure which ensures smooth
operations which helps the company to earn probability and larger market share.
In all big companies it is compulsory to do audit as the objectives of all auditing are differ like cost
auditing are perform by cost accountant and its main purpose is to check that all the cost are
appropriately recorded or not. The internal audit is done by any person who has knowledge of
accounts. It is not necessarily perform by CA. The main goals to conduct is to check all the
transactions are recorded properly or not or accounting is done in appropriate manner or not.

Whereas statutory audit are compulsory for those organisation whose turnover are exceeding the
prescribed limit set as per the act / law. In this checking is done by outsider such as a person who
has a membership as well as degree of chartered accountant. In this stock valuation are done and in
case of banking NPA are tends to be check. The CS has responsible to check all the legal status.

REFERENCE
Books and Journal
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Coe, R., Waring, M., Hedges, L.V. and Ashley, L.D. eds., 2021. Research methods and
methodologies in education. Sage.
Davenhill, R. and Patrick, M. eds., 2021. Rethinking Clinical Audit: Psychotherapy Services in the
NHS. Routledge.
Garibaldi, R., Stone, M.J. and Pozzi, A., 2021. Consuming Gastronomy While Travelling: What Do
Tourists Want?. In Tourism in the Mediterranean Sea. Emerald Publishing Limited.
Hackley, C. and Hackley, R.A., 2021. Advertising and promotion. Sage.
Hartt, M. and Biglieri, S. eds., 2021. Aging people, aging places: Experiences, opportunities, and
challenges of growing older in Canada. Policy Press.
Kagermann, H., Kinney, W. and Küting, K., 2021. Internal Audit Handbook Management with
Kumar, V., 2021. Intelligent Marketing: Employing New-Age Technologies. Sage Publications Pvt.
Limited.
Mackintosh, C., 2021. Foundations of sport development. Routledge.
Nugroho, M., 2021. Corporate governance and firm performance. Accounting, 7(1), pp.13-22.
Thabit, T., Aissa, S.A.H. and Jasim, Y., 2021. The Impact of Green ICT Adoption in Organizations
of Developing Countries. Al-Riyada for Business Economics Journal, 7.
the SAP®-Audit Roadmap. Springer.
Thumann, A. and Woodroof, E., 2021. Energy project financing: resources and strategies for
success. CRC Press.
Zhigir, A.A., 2021, March. Financial and credit instruments of activation of environmental
entrepreneurship in the agrarian sphere. In IOP Conference Series: Earth and
Environmental Science (Vol. 677, No. 2, p. 022061). IOP Publishing.