Strategic Management and Change in Morrison Supermarket

This report discusses the strategic aspect of Morrison Supermarket, including a strategic audit, PESTEL analysis, Porter's Five Forces model, and the 7S Framework. It also provides recommendations and discusses Kurt Lewin's change management model.

Strategic Management and change
Morrison- supermarket
Student’s Name

Strategic management and change 1
Executive summary
This particular report majorly discuss about the strategic aspect of Morrisons which states
that in economic aspect, increment in the energy cost, transport cost, raw substantial charges
also having a massive influence over the supermarket and their supply chain critical profits
limits. However, other than this Morrisons also having strong manufacturing capabilities,
their own strong brand portfolio and ultimately the higher customers satisfaction. Other than
this, opportunities such as diversification, merger, cost efficiencies are to be maintained in
order to generate more of success in the coming years while mergers and acquisition.
Through Kurt, lewin change model highlights that Morrison has made changes in the
structure in order to gain effectiveness, further changes which are made down the line has to
be implemented in order to improve the overall conduct and the organization operations.

Strategic management and change 2
Contents
Executive summary........................................................................................................1
Company’s background.................................................................................................3
Section1:.....................................................................................................................4
Evaluation through a strategic audit-.........................................................................4
PESTEL analysis........................................................................................................4
Porters five force model.............................................................................................6
7’S Framework of Morrisons.....................................................................................7
Section2:.....................................................................................................................9
SWOT ANALYSIS....................................................................................................9
Section3:...................................................................................................................11
Recommendations:...................................................................................................11
Section4:...................................................................................................................12
Kurt Lewin’s change management model................................................................12
Conclusion....................................................................................................................13
References....................................................................................................................15

Strategic management and change 3
Company’s background
(Source: Clarke, Kirkup, and Oppewal, 2012)
Morrison supermarket is one of the leading chains in the United Kingdom. The major focus
of this supermarket is on food and grocery items in their own manufacturing facilities. All
this leads to their close control over the maintenance of the quality of the product. Moreover,
they have numerous lines of stock items ranging from food eatables, various drinks to
toiletries and much more. Other than these, the kitchen items such as sauces, ready meals,
higher range in order to carter many diverse sorts of clienteles (Clarke, Kirkup, and Oppewal,
2012).
The major focus and their vision highlights about being “different from others and better than
ever”, moreover, they also look for many aspects which gives their company a competitive
advantage over others and grasp as many as opportunities for the further growth and the
greater results. Other than this the difference, which the company highlights, are on the basis
of relations with the farmers and the other food retailers. The form of purity lies in the
company, which attracts more of customers in comparison to the other supermarket's
companies. By being at first from the other companies, Morrisons thinks of doing different
likewise, focusing on the freshness of food, broader the range of the products, food range,
more of different packaging styles makes the company stand different from the other
supermarket companies.
Morrison by doing such activities has targeted and captured a large market of united states
with their major focus on customers services, maintenance of good relations with them and
having a unique and focused strategy to retain their customers by offering best products as

Strategic management and change 4
per the customer's affordable prices. Hence, by performing all such activities Morrison has
set themselves in the mind of the customers by their quality efforts, which displays their
competitive advantage over their competitors and highlights surety of long-run advantage to
the company (Clarke, Kirkup, and Oppewal, 2012).
Section1:
Evaluation through a strategic audit-
PESTEL analysis
(Source: Caritte, Acha, and Shah, 2015)
PESTEL Analysis highlights the political, economic, social, technological, environmental
and legal factors, which has majorly affected the macro environment of Morrison’s
supermarket.

Strategic management and change 5
(Source: Jenkins, and Williamson, 2015)
Political factors: political environment plays a significant role, which has affected
Morrison’s supermarket for long-term profitability. In edict to attain achievement in this
active retail trade sector and various nations is to expand the organized risks of the party-
political situation. In this particular aspect, political steadiness and the prominence of the
retail sector, the lawful outline for agreement implementation, intellectual possessions
protection are taken into considerations. Moreover, nutriment sanitization is also monitored
by the conservational fitness by the ecological health section, which is the chief issue for all
the food stores in the business (Caritte, Acha, and Shah, 2015).
Economic factors: this factor is also one of the main elements of the analysis. Increment in
the energy cost, transport cost, raw substantial charges also having a massive influence over
the supermarket and their supply chain critical profits limits. In the UK most of the
supermarket are vertically integrated and having own manufacturing capacity with less
reliance on the external suppliers from Europe which are the main key strength because of the
products in the UK.
Social
Sustainable
equitable
ecomomic
bearable
Environment

Strategic management and change 6
Social Factors: Social factor majorly highlights the demographic aspect of the UK. The UK
aging populace presents the commercial chances for the supermarket, which Morrisons can
majorly bang into. Annuity age customers are having more generating income as they stayed
in full-time service for the elongated period, hence this highlights that they earn higher
disposable revenue, which makes them even more profitable for the goods and the services,
which are personalized to them. Moreover, the shared beliefs and the attitude of the
population also play a greater role for the company and as accordingly, they design the
message for the retail industry customers. Other than this, in culture- gender role, social
conversations, entrepreneurial spirit and the broader nature of the society also plays a major
role in this factor (Annabel Dixon, 2013).
Technological factors: Machinery is one of the fast troublemaking aspects for numerous
businesses across the panel. In the last 5 years, Morrison food business has changed a lot.
This has majorly influenced the product offering, also affected the cost structure, affected the
value chain structure in the customer's service sector are the major changes have been seen in
the Morrisons brand. Tesco us one of the leading competitor of the Morrisons which has
apprehended the online advertising and the circulation in the higher method profile (Caritte,
Acha, and Shah, 2015).
Legal factors: Legal factor includes the change in the legal factor likewise; the new
workplace pension’s legislation, compulsory deductions of the pension’s contributions from
the worker's account. Other than this some other legal factors such as discrimination law,
copyright, patent, employment law, health and safety law, and the data protection are also the
factors that need to be considered. In concern of the supermarket, Morrisons being is the key
local administrative and the lawful significance such as reaction of the authorization of the
local council to open shops, working with the local specialist in order to improve the
employability, ecological and the medical standards Wood, et al, 2012).
Environmental factors: In this aspect, environmental friendliness and ethical problems are
the major points for the supermarket business. As nowadays, additional customers are
concern about moral purchasing. The major notion of going green is in trend and this is all
done by the adoption of environmentally friendly activities and much more. Moreover, the
supermarket business also evaluates the environmental standards, which are needed to be
considered important. Other than this, weather, climate change, attitude towards while

Strategic management and change 7
supporting the renewable energy, attitude towards green or the maintenance of the ecological
products and lastly the recycling aspect (Jenkins, and Williamson, 2015).
Porters five force model
(Source: Blueocean, 2017)
The threat of New Entrants: In this company, the major threat is because of the innovation.
The other company by innovating new products attracts new customers is one of the major
threat to the company. Other than this, the building of economies of scale also reduces the
static cost per unit. Moreover, the edifice of dimensions and disbursements of money majorly
on examination and expansion by the new applicants are a tough task. Hence, other
companies in this sector are a difficult condition as in comparison with the dynamic industry
in front of the established players (Blueocean, 2017).
Bargaining power of the suppliers: Suppliers are at the dominant position, which decreases
the margins. For the same, Morrisons thinks of building an efficient supply chain with
numerous suppliers. Likewise, Morrisons has focused on developing the third party
manufacturers whose entire business depends on the main company. Moreover, Morrisons
has also experimented with the different product designs by application of different material

Strategic management and change 8
so that the prices can be at hike position and the company can easily shift over the next
supplier (Blueocean, 2017).
Bargaining power of the buyers: Buyers are the most important player in this industry, in
which they choose the best offerings by paying the most minimum prices as possible.
Morrisons thinks of smaller and the most powerful base leads to the higher bargaining power
of the customers and finally leads to the high ability to seek discounts and the offers.
Moreover, the Company also leads to the continuous innovation of the products, which also
helps in limiting the bargaining power of the buyers. Lastly, continuous innovation also
reduces the defection of older customers towards the company competitors (Blueocean,
2017).
The threat of substitute products: In this, Threat of substitute is higher as a customer can
only switch to the other brand when pricing is high of the original product or the change in
the current services majorly hampers the growth and the profitability of the firm. With these
issues, Morrisons having a major focus over the services rather than being just product
oriented. Moreover, concentrating on the needs of the ultimate customers rather than being
just seeing what the customers are buying. Hence, this will help the company to track down
the customers and the company status (Axtell, 2016).
Rivalry among the existing competitors: In this, if the rivalry is intense with the
competitors then it affects the complete productivity of the company. Similarly, Morrison’s
functions in a very competitive trade business as the major threat of the competitor of the
Morrison of Tesco company, which is also UK, based. Hence, Morrisons has to do to
outperform in comparative to the other firms likewise, the company should focus on building
a sustainable differentiation, building up the strategic targets to compete better lastly,
collaborating with the competitors in order to increase the market size (Anon, 2012).
7’S Framework of Morrisons
Staff
Morrison’s staff
members are the life
and the soul of the
business. Hence,
every employee is
Shared values
Morrisons believes in
strong competition.
They also have a
strong focus over the
freshness, quality,
Style
Morrison's style of
working is different
in comparison to the
other firms likewise,
they continuously
Strategies
The recent strategy
of Morrisons is to
majorly focus on
serving best
customers services,

Strategic management and change 9
valued, trusted and
treated with respect
and are happier as
every day they enjoy
the great rewards and
fair day pay.
Other than this,
Morrisons is having a
friendly team of the
Foodmaker’s and the
shopkeepers
(Morrisons, 2013d).
and cost of the
products.
Moreover, they also
believe in offering
the best price across
all the food range to
their ultimate
customers with great
service from their
employees (Seely,
2012).
seek and exploit
opportunities in order
to develop larger
stores and the attract
more of customers’.
Moreover, they are
also tapping a lot
more sources in
comparison to their
competitors so that
they can tap more of
customers and can
become Uk’s best
food specialist for
everyone.
becoming multi-
channel,
strengthening the
brand reputation.
Moreover, they also
working over making
the core supermarket
stronger again,
simplifying and
speeding up,
construction the
culture based on
fellowship with a
strong and reliable
way of functioning
(Morrison’s, 2013b).
System
The internal system
comprises of the
retail sector,
manufacturing,
logistics,
engineering, and the
head offices, which
manages the entire
organization.
Recently, Morrisons
has developed new
customer relationship
management in order
to strengthen its
Skills
In terms of skills and
the competencies
comprises of the
offering into the
market street
experience is of fresh
food and the
industry-leading
deals.
Moreover, the
application of “let's
grow” campaign,
flexibility and media
promotion is also one
Structure
In terms of structure,
it’s a single format
superstore and the
has a hierarchical
structure. All the
formation of the
strategies is
presented by the top
management or the
board
In addition, they
monitor the progress
towards achieving
the set objectives.

Strategic management and change 10
customer's focus and
compete more
effectively with other
supermarket rivals
(Glenday, 2013).
of the ways to
present their skills
(Morrison’s, 2011a).
Morrison’s
organization
structure is a set
structure, which
helps them in
evaluating and
monitoring the
financial
performances, critical
operational issues
and risks (Morrisons,
2013c).
Section2:
In drivers of internationalization, Morrisons need to diverse their business other than UK. In
order to grow and expand its market operations, Morrisons need to consider Asian companies
through mergers, joint ventures and acquisitions as this helps in maintaining cost advantage
and the higher disposable income and leads the economy to grow at the faster pace. Hence,
company should try to explore their activities in an international market, which is highly
affected in terms of cost drivers and market drivers. Through all this, Morrisons will have the
greater number of international presence and helps in increasing the international market
shares and revenues.
SWOT ANALYSIS
Strength
 Effective supply chain management
 Strong financial management
(Disraeli, 2016)
 High service standards
 Strong manufacturing capabilities
 Having a strong unique selling point
 Dealing in numerous grocery items
Weaknesses
 No online platform
 No Convenience particular store
 UK Dependence
 Not much explored to the other
countries
 Labour intensive model
 Price sensitivity is the major

Strategic management and change 11
and the products
 Food merchandise for cheaper prices
and also their the products are of
decent price
 Factory having their own packaging
 Strong brand portfolio
 Strong distribution network
 A higher level of customer
satisfaction
 Highly trained labour force through
effective teaching and the education
platforms
weakness
 Weak loyalty programme
 Lack of personalized couponing
 No clear unique selling proposition
 Not good at product demand
forecasting
 Limited expansion in the product
segmentation
 Financial preparation is not done
properly and effectively and
efficiently
 Need more investment in new
technologies (Acha, Du, and Shah,
2016)
Opportunities
 Organic and ethical product delivery
to the customers
 Diversification
 Suitability in store development
 Accessible store
 Ultramarine growth
 Can tap the virtual portal
 Carbon offset and the food miles
 Can familiarize more superiority of
merchandises
 They can also open small stores in
local towns and in the shopping
centers.
 Market development lead to the
dilution of the competitive advantage
 New environmental policies
 Tapping of new customers from the
online sources
Threats
 Online retailing as other brands are
also retailing
 Price competition
 Competitive environment
 More of packing products which are
against the environmental protection
 Increased number of competitors such
as Tesco, Asda
 Introduction of new rules and the
regulation by the government
 Forceful opposition by different
fooding industries in same category
 The demand for highly profitable
products is seasonal in nature and
thus has a major impact over the
company
 Liability laws to various liability
claims

Strategic management and change 12
 Introduction of the newer
technologies helps in setting
differentiated pricing technologies in
the market
 The opening of the new market
because of the new government
agreement
 New environmental regulations have
generated the threat to the existing
products categories
 No regular supply of innovative
products
 New technologies developed by the
competitors to the long term future
 Having a negative impact on
international sales
 Increasing trends towards the
isolationism (Williams, Richard,
2014)
Section3:
In terms of government, drivers and competitor’s drivers of Morrisons, this mainly highlights
about global or interdependence that makes the company stand out different in comparative
to the other supermarket companies. Likewise, Morrisons should thinking of delivering
organic products along with the general products. This will generate a competitive strategy in
terms of global expansion. Hence, through this recent market trend improves the demand for
the brands, which are developed by a retailer with some motto in order to perform better than
the existing system. Hence, through this, Morrisons have a greater chance to en-cash a trend
and will have wider number of self-owned organic product range.
While morrisons thinks of moving to Thailand certain risk which they have to face in terms
of gaining success, likewise, they think of going local in which they have taken into
consideration an own labelled products all will be visible in one place rather than sporadically
spread out across the store. Other than this, Morrisons has tried to be different so that the
brands need to enter with their eyes and mind open about different market attitude and values.
Above all, they should enter humbly and believe their own hype.

Strategic management and change 13
(Source: Haleem, and Jehangir, 2017).
Recommendations:
This particular company is ready to develop its new horizon likewise, in the international
market. Moreover, their new distribution channels and center will make it easier for the
company to push into the new market. Although their tough competition which pushes the
company into pressure. Moreover, Morrisons having larger profit margins that are offset to
some extent in terms of savings for the larger business. In terms of rivalry terms, Morrisons
are having larger rivals but in future, its success will be out breaking in the form of new
markets, which is crucial in helping them in keeping up the momentum.
 Longer queuing can leads to the lack of customers satisfaction, this is also one of the
areas in which the Morrisons can make improvements to their upcoming operations.
 Other than this, Morrison's further delays are in the checkout process, as during the
bagging process, customers get frustrated while standing for a longest time. Hence, all
these aspects need to be taken care of in the future and working on making to better
for customers in order to improve the overall satisfaction of the ultimate customers.

Strategic management and change 14
 Morrisons can also a major emphasis on the promotion of private brands and the
company should focus on making the product length diversified and should attract a
mixed number of customers.
 Franchising can also be the best option in terms of Morrisons as through this they can
gain the position of the business’s profits and may even set up their individual point
resultant to the entire loss of the commercial to the franchise.
 They should also evaluate the dissimilar arcade choices in order to safeguard the
feasibility of the nominated category. Through this, they will be specific in order to
achieve the set goals and the objectives.
 While going internationally, acceptability is high to medium risk as evidence in
TESCO, as being vesting internationally will be a new and fine experience. By this,
Morrisons will look for monetary sustenance from the foreign companies but the
widespread isolated effort and combined undertakings limit the possibility of
ultramarine growth.
 Low cost leadership strategy of Morrisons highlights that they have built their own
manufacturing factories in order of saving cost. By doing so company is generating
the direct supply to the stores through which works around the clock in order to
deliver freshest foods to all stores and to all customers
 In order to compete on the cost bases, Morrisons need to consider certain issues
regarding material, labour, designs system and other costs of associated products and
services before tapping international market.
 In terms of differentiate focus Morrisons while offering unique products need to be
different from their competitors in their of quality, pricing and offerings to the
ultimate customers. They should also concentrate on the narrow segment and within
the segment in order to achieve success nationally and internationally.
 In terms of key driver, customers’ satisfaction is one of the major aspects, which the
Morrisons need to consider whether they are working nationally or expanding
internationally. Moreover, the other key driver or point of difference of Morrisons
was playing role of vertically integrated supply chain, which works as a unique selling
point. Thus, this can be the main reason for raising sales, as there are effective ways
of communication among the various departments within Morrisons.

Strategic management and change 15
Section4:
Kurt Lewin’s change management model
The Kurt change theory ideal is the three-step process, which helps in providing a high level
of approach to the change. This theory helps the company or the management to contrivance
a change effort, which is always very sensitive and must be as seamless as possible.
(Source: Haleem, and Jehangir, 2017)
This first step highlight about “unfreeze to ready to change” states that the Morrison as
supermarket organization as a whole is going into a right direction but other than this certain
tasks which are irrelevant and still being performed by force. In basic terms, unfreezing
means in attainment people to gain outlook on a regular day to day happenings, opening up to
the new conducts for attaining the purposes and set goals.
“Change- implementation” step highlights about the change process, which probably takes
some time for the implementation to order to gain efficiency, new tasks and responsibilities
that involves slow learning at initials but later entire team open up their minds towards the
change. Moreover, the company should also focus on the change process, in terms of time
and allocation of the resources and further setting up in organization processes in order to
achieve the improved efficiency contained by the new set structure.
“Freeze or making it stick” stage highlights about the change which the organization as set
while setting the goals. In terms of Morrison's supermarket organization, changes made in the
structure in order to gain effectiveness, further changes which are made down the line has to
be implemented in order to improve the overall conduct and the organization operations. This
entire process of change is best managed and delivered well as it helps the company to make

Strategic management and change 16
the required change and adjust accordingly to order to gain overall effectiveness within and
outside the organization (Haleem, and Jehangir, 2017).
Conclusion
This above report helps in understanding and concluding that Morrisons supermarket which
is settled in the UK has outperformed and helps in understanding their macro environment.
Moreover, about their external threats, competitors, SWOT analysis highlights the current
finding of the Morrisons Company. Certain recommendations are also made for the
upcoming strategic three-year plans so that the company can grow internationally. Lastly,
with Kurt Lewin’s change model helps in best managing and delivering the changes set by
the organization.

Strategic management and change 17
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