Environmental Analysis for Morrisons: PESTLE and SWOT Analysis

This presentation provides an in-depth analysis of the environmental factors affecting Morrisons organization. It covers the micro and macro environment, PESTLE analysis, SWOT analysis, competitor information, and concludes with recommendations.

Business Analysis

Content
 Introduction
 Environmental Analysis
 Competitor Information
 Conclusion
 References

INTRODUCTION
Environmental analysis is the process to determine micro
and macro environment of an organisation. In this project,
Morrisons has been selected for environmental analysis of
organisation. It is very essential for strategic decision
making process by managers through PESTLE and
SWOT analysis of an organisation.

Environmental Analysis
Environmental analysis is described as to examine internal
and external factors of an organisation which affects its
stability and growth. This is a strategic tool used to identify
the level of threat which is to be controlled by strength and
opportunities of an organisation. The business environment
is further classified on the basis of micro and macro
environment which are as follows:-

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Macro Environment:- This is the outside or external
surroundings of an organisation which involves
political, economical, sociological, technological, legal
and environmental elements.
 PESTEL Analysis
 SWOT Analysis

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Micro Environment:- It is the inside surroundings of an
organisation which includes strategic decision-making process,
suppliers, business strategy, competitors, performance,
customers, etc.
Product issues:- The internal surrounding have great impact
through product issues by utilising the scarce resources in an
effective and efficient manner.

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Product issues:
 Plastic packaged product
 Lack of stock
 Product quality
Marketing Issues:
 Decrease in sales
 Lack in distribution channel
 Worse sales performance

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Management issues: These issues are explained as issues
underlying in Contract of Employment consists of employee
action through investigation. The factors which affect
management issues are policies and procedures,
organisational hierarchy and politics, etc.
 Politics and procedures
 Organisational hierarchy
 Organisational politics

PESTLE Analysis
 Political
 Economical
 Sociological
 Technological
 Legal
 Environmental

SWOT Analysis
It is a strategic planing used to identify the internal strength
over weakness and external opportunities over threats to
achieve success with maximisation of profits. It is the
abbreviation form of strength, weakness, opportunities
and threats. Managers of Morrisons use this decision-
making analysis for improvement in profitability ratios.

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Strength
 Strong brand portfolio
 Big supermarket company
Weakness
 Lack in motivation
 Decrease in sales

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Opportunities
 New environmental policies
 New market for online channel
Threats
 Intense competition
 Adoption of new technology

Competitor Information
The competitors of Morrisons organisation are Sainsbury's
organisation, Waitrose Ltd, Argos, TESCO plc, Amazon,
etc. They compete with Morrisons with competitive
advantage by expanding their deliveries which attracts
large number of customers. They also focus on cost-
effective leadership which helps in more consumption of
their products with good quality.

Conclusion and
Recommendations
From the above discussion it has been concluded that
environmental analysis plays a very important role in
determining the capability of organisation to achieve
desired result. The environmental analysis is further
classified as micro and macro environment.

References
Castellet, L. and Molinos-Senante, M., 2016. Efficiency
assessment of wastewater treatment plants: A data
envelopment analysis approach integrating technical,
economic, and environmental issues. Journal of
environmental management. 167. pp.160-166.
Júnior, C. D. S. M., Juen, L. and Hamada, N., 2015. Analysis of
urban impacts on aquatic habitats in the central Amazon
basin: adult odonates as bioindicators of environmental
quality. Ecological Indicators. 48. pp.303-311.

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