Applying Macro Environment Frameworks on Morrisons

This assignment analyzes the macro environment frameworks on Morrisons, a famous supermarket chain in the UK, and evaluates its internal environmental capabilities using appropriate frameworks.

Strategic Management
Plan

INTRODUCTION
The term “Strategic Management Plan” (SMP) is referred to an approach that helps in
communicating different elements like strengthen operations, set priorities, goals, configure
resources, focuses on energy, ensures that employees and other stakeholders are working toward
common goals in order to attain it in specified time frame (Eskerod, Huemann and Savage,
2015). Along with this, the term business strategy is specifically referred to different statistics
developed by a business company, which helps them in performing effectively at marketplace
and to attain number of small and long term goals.
In present assignment, the firm named as Wm Morrison Supermarkets PLC is chosen,
which is a brand that is having United Kingdom. Company is having headquarters at Bradford,
West Yorkshire, England. On the other hand, there are approximately 110,000 number of staff
members within the business organisation that are performing effectively at Morrison's
workstation. Away with this, report is going to be enclosed with macro environment frameworks
on Morrisons and internal environmental capabilities of Morrisons. Lastly, application in regards
to models, theories and concepts will be taken into consideration of strategic planning.
TASK 1
P1 Applying macro environment frameworks on a organisation
Morrisons, a famous and fourth largest chain of supermarkets within United Kingdom,
and it is serving customers with grocery and other products from 1899. Over the years, company
has survived with meeting the goals and requirements of consumers through bringing effective
modifications within the products and services offered by them (Sadgrove, 2016). On the other
hand, in order to apply the macro environment framework over Morrisons, it will be first
required to look into different elements like mission, vision and objectives that this organisation
is having and these are given underneath:
 Mission: Morrison's mission is to deliver customers with the products and services that
are meeting best to the money that they are paying.
 Vision: Morrison's vision statement is to become the leading largest chain of
supermarkets at International business market.
 Objectives: In present time, company is holding with number of objectives and primal
one is that Morrisons is looking forward to become more competitive. In other way,
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development of useful services and they also have a major objective that they want to
earn high profits and boost the productivity through offering customers with the best
what they have (Meredith and et. al., 2017).
PESTLE Analysis:
In present time, PESTLE analytical tool can be considered as a device which helps in
building up knowledge in regards to different external elements, which stays directly connected
with a company. Main considerations are political, social, economic, legal, technological and
environmental (Kerzner, 2018). This aides in assurance of the different business procedures
which can be framed by the Morrison. Beneath referenced is the large scale investigation done of
Morrisons which will help in pulling out favourable information and these are :
 Political: This factor is identified as one of the crucial element, which may impact
negatively and positively upon both Morrisons. This could be understood with a good
example of Brexit, as it is a significant world of politics factor which had an impact on
Morrisons because this term brought uncertainties within the business environment of
United Kingdom and there were number of employees that belongs to EU has started
fearing of loosing their jobs.
 Economical: Another crucial factor of macro environment of United Kingdom, where
change among economy or any updates majorly impacts on firm. If it is talked about
Morrisons, where most of the alterations that were coming was in personal disposable
income and this made people to boost their buying power. This directly impacted
positively over performance level and sales of Morrisons.
 Social: In present time, there are various social variables which stays connected with the
general public and these could be anything from developing instruction and well-being
related elements of buyers will consider both negative or positive impact over the
business organisation named as Morrisons. The buying tendency for purchasers within
United Kingdom stays majorly influenced with numerous social elements which may
help Morrisons in working with number of ethics and other elements as well
(Jarzabkowski and Kaplan, 2015).
 Technological: There are numerous technological elements that are available for the
business organisations like Morrisons, which may lead to enhance the viability of the
company and at same time this can promptly lead company to invest high amount as well,
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in order to bring modifications among products and services offered by them. Use of data
considering the updated technology as primal operation, a company like Morrisons could
easily gather data to make clients satisfied of different offerings given by business
organisation.
 Legal: This is being considered as another factor, which may lead to different elements
like legal standards along with the safety that stays connected with and are issued by FSA
and this is specifically compulsory for every single business companies to adopt in order
to perform the business in ethical manner. This could be understood with a good example
where in 2016th year, specifically there are thousand ethical trade audits that has
developed number of procedures for business organisations like Morrisons (Mueller and
Naffziger, 2015).
 Environmental: This incorporates different components which are assurance for the
outside condition in which the organization is working. This could be understood with a
good example where, Corporate social responsibility along with the economical
improvement are the two different elements that are needed by a business organisation
like Morrisons so that to secure the environmental conditions that are getting negative
regularly.
TASK 2
P2 Analysing the internal environmental capabilities of organisation using appropriate
frameworks
In present time, SWOT analysis can be defined as an effective and efficient tool that can
be employed by Morrisons when it comes to focus on strengths, opportunities, weaknesses and
threats. As this may lead firm to bring modifications among strategies, goals and objectives as
per the requirements of customers (Hitt, Ireland and Hoskisson, 2016). This is said to be one of
the crucial tool that aid a business organisation in developing much effective and efficient results
as it aid in understanding the number of internal elements, that majorly impacts on Morrison. In
present context, SWOT analysis is being performed underneath:
Strength weakness
 If it is talked about the primal strength
of Morrisons then it is having strong
 In present time, Morrisons is not having
a huge presence in all over the world
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distribution network, and this directly
aid company in hitting their targets in
regards to sales.
 On the other hand, there is another
strength that came in front i.e.
Morrisons is holding a strong and large
portfolio of grocery and other products,
which helps company in gaining ample
number of competitive advantages.
and most of it's supermarkets are in
United Kingdom only. Therefore, this
can be be considered as one of the
weakness that this firm is holding.
 Morrisons in present time, is not
holding a pretty much adaptable
strategy to adopt updates and bring
them among products and services that
they are offering.
Opportunities Threats
 Business expansions among different
areas in which Morrisons has not
expanded yet can be considered as a
crucial opportunity for this company.
 Along with this, another opportunity
that came in front is Morrisons could
effectively become a manufacturer or
start business in a whole new sector as
well.
 If it is talked about Morrisons, then the
competitiveness within retail sector is
fast in nature as it is effectively
growing, because of four other
supermarkets like TESCO PLC, ASDA,
LIDL and so on (Austin and Pinkleton,
2015).
VRIO Analysis: This type of analysis directly helps a business organisation in evaluating
number of strengths along with the weaknesses. On the other hand, there are basically four
aspects that consists with different element and these are rarity, value, organization and
inimitable. Different resources that Morrisons will take into consideration are global presence,
differentiation, competent workforce, cost strategy and so on.
 Valuable: It is said that each and every organisation have some resources which are quite
valuable for the accomplishment of goals as well as objectives of the company. With the
help of having capable workforce it will help in attaining objectives within stipulated
time frame which is decided by the higher authorities of the organisation. On the other
hand, it is also said that global presence is something, which is having effective parts in
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all over the world, and aid a company like Morrisons in taking right decisions in regards
to improvising the coverage area (increase in the area of targeted market). Along with
this, cost strategy is also something that would help Morrisons in looking at strengths
and differentiate it with other business organisations that are dealing within the same
industry. Through this, right decisions can easily be taken by business organisation i.e.
Morrisons like selling products and services at reasonable cost in order to gain
competitive advantages. On the other hand, Differentiation Strategy can also be
effectively utilised by Morrisons to hit their targets.
 Rare: It is required for a business organisation to have presence worldwide level among
certain level and not an uncommon marvel as it is embraced by numerous organizations
who need to have arrive at all clients over the world. Every single other element of
Morrisons, for example, differentiation Strategy is something uncommon that cannot be
seen in other comparable brands. Skilful workforce is additionally an uncommon
element which is being created by Morrison which is created as a result of sufficient
preparing being given to them. Cost technique can be considered as something that may
lead to catching a decent piece of market and this is additionally an uncommon idea
(Vokoun and et. al., 2018).
 Imitable: If an organisation that consists with competent workforce and global presence
then this is said to be something that needs proper revert. Separation Strategy along with
the cost methodology are specifically the primal most highlights that would consider
different elements which can't be effectively imitated by different organizations.
 Organization: Every one of the components must be kept sorted out so that there is
smooth working occurring and there is no obstructions in accomplishment of different
short and long term goals and objectives. Worldwide presence, Skilful workforce, cost
system and more are said to be some of the fundamental components which must be
sorted out by organizations however separation technique is a perspective which must be
necessarily received by the organizations (Ugonna, Matipa and Shah, 2017).
Resource valuable Rare Inimitable Organized
Competent
workforce
Yes Yes
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Global presence Yes
Cost strategy Yes Yes yes
Differentiation
strategy
Yes Yes yes Yes
This is specifically being considered can be used by companies to asses which resources
can be adopted by companies sop that they can make evaluation which resources are necessary
for companies.
TASK 3
P3 Application of Porter's five force model to evaluate competitive forces of a given market
Porter's Five Forces is a model that identifies number of five competitive forces, where
the industry is directly determining the weaknesses along with the strengths of industry in which
a company is performing. On the other hand, it is also said that this model can effectively be
applied on any segment of an economic country, and this is basically be done to analysed the
competitive level within the company.
On the other hand, this can also be considered as one of the crucial model, which can
effectively be adopted and utilised for making strategic decisions. Including this, it is said to be
one of the crucial model that helps in making strategic decisions in regards to Morrisons and
these are presented underneath:
 Threat of new entrants: Within an industry like retail of United Kingdom it is said that
new entrance brings innovations with it. Therefore, it is pretty much fruitful for a
country, but if it is thought in a different way then this impacts negatively upon a
company like Morrisons. Here, low pricing strategy if adopted by a company like
Morrisons within the retail industry of United Kingdom, then it is clearly be considered
as a competitive advantage that firm will gain considering the prices of products and
services offered by them to customers (Kozlenkova and et. al., 2015).
 Bargaining power of suppliers: In present time, retail industry of United Kingdom is
having ample number of suppliers within the market that majorly impacts upon a
company like Morrisons, which is dealing in retail sector. It can be said that if number of
suppliers have high bargaining power then it may lead to decrease in the profit margins of
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Morrisons a company dealing within retail sector. Within United Kingdom, number of
suppliers are high which means there power is also carrying higher force as well.
 Bargaining Power of Buyers: Purchasers are requesting best offers with the goal that
they can get most extreme advantages at the costs which the are paying for the items.
Morrison is moreover attempting to keep up upper hand so they can manage rivalry and
decrease the exchange related intensity of retail industry. This will help them in keeping
up their clients for a more drawn out time frame. Huge base of client will help in
expanding chances of development for retail industry in which Morrisons is performing.
 Rivalry in the Industry: If it is talked about the current brands that are performing
within the retail industry where Morrisons is also performing it's operations consists with
high rivalry (Kaiser, El Arbi and Ahlemann, 2015). This current rivalry is handled by
Morrison's by building up a manageable separation which can help them in giving good
rivalry to other businesses that are dealing in the same industry. Additionally, there is a
choice of teaming up with different rivals in the market which will help Morrisons in
having a huge portion of market.
 Threat of substitution: In present time, Morrisons is a brand which needs to tackle this
threat in a smart way so that they are bale to maintain their present sales and this can have
a growth in context of future sales also. Morrisons can also try to make attempts by
improving the quality of their services so that overall satisfaction level of customers can
increase (Valickas, Raišienė and Arimavičiūtė, 2017).
TASK 4
P4 Application of theories, models and concepts in strategic planning for organisations
Generic model of Porter: It is said to be one of the crucial model that helps a business
organisation like Morrisons in taking right decisions where different strategies are implemented
and these could be anything from differentiation, cost leadership focus strategy and so on. All of
these are presented underneath:
 Cost leadership: Considering this strategy, it can be said that Morrisons has specifically
adopts it when offering customers with grocery products in low prices. This basically
stays low then the rivals of this company as it is super market, where modifications
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among different products and services takes place. As this may lead company to hit
distinctive targets in specified time frame.
 Differentiation: This is managing having some distinction in the items and
administrations. Morrisons needs to make satisfactory research before receiving a
specific procedure with the goal that they can separate their item. There must be top
notch items ought to be offered to the clients which can help Morrisons in building up a
separation advantage when contrasted with their rivals. Morrison can likewise receive
new developments which can help them in having a separation in their items. For
example, there is an open door for Morrisons that they can add extra administrations to
their grocery store stores, for example, playing region for kids, cafeteria for the
individuals to invest some great energy for their clients (Stettina and Hörz, 2015).
 Focus: Another crucial strategy of Generic model of Porter, that can effectively be
utilised by Morrisons as this may lead company to focus on a niche marketing strategy.
Along with this, cost focus if adopted by Morrisons then this would directly lead
company to attain a good position within the market, where comparison with other
competitors could effectively be gained right on time.
In present context, Morrisons has utilised Cost focus strategy as this is directly aid them
in helping Morrisons in focussing over number of prices as with the help of this, decrease among
price of products could easily be performed in specified time frame.
Strategic Management Plan
If it is talked about strategic management plan of Morrisons, then number of employees
that this organisation is having along with top level management is effectively working together
in regards to attaining goals and objectives in specified time frame. There are number of steps
within the strategic management plan are specifically presented underneath :
 Mission: Morrisons' mission to offer customers with quality grocery products with low
cost, so that they could gain high satisfaction level after consuming them.
 Vision: Main vision of Morrisons is “ To keep their customers satisfied by providing
high quality products ”.
 Objectives: Morrisons is said to be a famous supermarket that is dealing within grocery
and among other sections as well and it is also delivering better quality as well with
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appropriate prices. Here, the main objectives is “To improve customers level of
satisfaction in much effective and in efficient manner (Schulze and et. al., 2016).
 Extensive Marketing: An effective marketing team, which is said to be developed by
Morrisons to grab a good position within the market, here, organisation has utilised a
much more effective marketing approach and this will lead firm to promote products and
services at market level.
 Market research: Morrison is leading a compelling and point by point investigate which
will help in distinguishing proof of the necessities of clients. This will help in coming to
the clients who can be an objective fragment of clients for Morrisons. Statistical
surveying is a significant capacity which helps the association in making different
determinations about the imminent conduct of their clients.
 Tactics: For accomplishment of number of common goals of Morrisons or of any other
business organisation, it specifically helps company in turning out to be extremely
important because considering this, that they can extend the incentives for clients of this
organisation.
CONCLUSION
Considering the above mentioned report, it is being concluded that effective strategies
developed by a business organisation could effectively lead the company towards success. On
the other hand, it is also needed for a business organisation to look forward to make alterations
among different strategies so that competitive advantages could easily be gained in specified
time frame. Including this, it is also summarised that there are number of analytical tools that can
be taken into consideration and these are : PESTLE, SWOT, Porter's five force model and
Generic model of porter that are continuously helping business organisations that are performing
at international and domestic level. On the other hand, a strategic management plan is also being
developed by a business company to attain different goals and objectives in regards to enhancing
both profitability and productivity.
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