Strategic Management: Analysis of Morrison's Supermarket Chain

STRATEGIC
MANAGEMENT

INTRODUCTION
Strategic management refers to the arrangement of the resources of organisation to
achieve goals and objectives. For this, it include developing objectives and determination of
competitive environment and also make sure that manageable develop and use appropriate
strategies across the organisation. It include strategies to the development of business and also
include formulation and implementation of major goals and objectives (Ansoff and et., al., 2019).
Strategic management is useful in providing overall direction of an enterprise and also specify
the objectives of organisation for the development of policies and plans to attain objectives and
then allocate these resources to execute the plan. In this report Morrison's is considered which is
a supermarket chain in UK and become the forth largest supermarket chain, headquarter in
Bradford, West Yorkshire, England. Moreover, it is going to cover the determination and
analysis of external environment of industry which company face in the existing market.
Moreover, internal analysis is conducted to examine the strategic competencies and capabilities
and lastly with the help of prominent strategies competitive position is explored for company.
TASK 1
Understand the external environment of company to determine the market conditions
PESTLE Analysis:
This framework is useful in developing the deep understanding and analysis regarding the
different macro environmental factors which have direct impact on the processing, functioning
and operations of company. For this, it major factors include political, social, technological,
economical, environmental and legal (Benischke, Martin and Glaser, 2019). As these are helpful
in determining the different business strategies which can be opted by Morrison's. Below
discussed macro environmental analysis is conducted for Morrison's that is helpful in developing
understanding regarding the impact of macro environmental factors on company. Political: This factor is concerned with the political stability that has prominent impact
on Morrison's like Brexit was the major political factor that influences company and
bring major changes in the rules and regulations of an organisation. As it tends to bring
many changes and modifications in the policies of company as unsurprisingly, Brexit has
sparked political disturbance across UK. As the implications to leave European Union is
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not least the fact that Brexit already create inflation in prices and continues to escalate. It
tends to weakening the pound that has been relatively more expensive. Economical: Frequent changing factors of company has great impact on the functioning
of company as in relation with Morrison's, changes which takes place in the personal
disposable income of nation tends to enhance and improve the buying power of people
and increases the sales of Morrison's. The retailers of British food industry is less
influenced with seasonal prevalence, only except the Christmas as here growth and
increment in sales occurs (Drobyazko and et., al., 2019). Moreover, most importantly it
influences the prediction of economic growth in the upcoming years. Sales also have
been reduces for last three years due to slowly restoration of economy. Additionally, the
GDP growth in country impacts the growth of Morrison's and also affect the interest rate
of country that impact the borrowings and investment. Social: There are many social factors that are concerned with society and other people as
it leads to increase the growth of education and health related factors of customers as it
positively and negatively impacts the functioning of Morrison's. Moreover, the buying
habits of customers is impacted by many factors that greatly influences the sales of
Morrison's. As it is important for company to offer more products to meet the
requirements of customers by providing friendly shopping environment to their
respective customers (Ferch and Roe, 2019). In relation with this, Morrison's need to be
aware about the health standards and importance of environmental protection that
prevails in the industry. Technological: There are many technical factors like investment regarding the
technological advancement that leads to improve the effectiveness of an organisation at
the same time it leads to incur huge cost by company (Hayakawa, 2019). For this, use of
digital information can become helpful for Morrison's in order to collect relevant
information regarding their target market and customers that help them in developing
future strategies of an organisation. Moreover, it describe the urgent requirements of
company that put emphasis on the research and development activities as it is helpful in
developing software system and useful for Morrison's in order to make major
innovations.
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