Strategic Management Practices for Morrisons: An Analysis

Strategic management

Contents
INTRODUCTION...........................................................................................................................1
MAIN ANALYSIS .........................................................................................................................1
Case study approach ...................................................................................................................3
A recovery plan ...........................................................................................................................5
Risk management strategy ..........................................................................................................6
CONCLUSION ...............................................................................................................................7
RECOMMENDATIONS ................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management can be understood as a continuous planning, monitoring, analysis
as well as assessment in relation to suitable necessities which are required by an organisation for
attaining their goals and objectives (Akyuz and Gursoy, 2020). It provides overall direction to
employees through developing their plans as well as policies which are formulated to accomplish
pre-determined objectives. It also covers allocation of resources for successful implementation of
plans and policies. Main purpose of strategic management practices is to identify as well as
understand specified organisational objectives. In order to have better understanding of strategic
management practices, Morrisons is taken into consideration. Morrisons is fourth largest chain of
supermarket in UK which was established in 1899.
This project report highlights an understanding of strategic management practices that are
considered relevant for organisations for accomplishing their objectives. This project report also
demonstrates an understanding of Porter five forces model and its practice with real world
examples.
MAIN ANALYSIS
Strategic management is considered as important as it aid decision-makers into getting
equipped with management tools as well as anticipate changes which helps in directing
organisational activities in a strategic manner (Alieinykov and Et. Al., 2019). It is essential for
businesses to maintain a long-term success and essentially involves formulating a business
strategy which is streamlined for achievement of pre-determined objectives. It principally
enables business outcomes, creation of customer value and competitive differentiation. It is
imperative for business organisations to assess their strengths and weaknesses in order to
formulate as well as execute the strategies in an effective manner.
Porter five forces can be understood as a strategic tool which is used by business
organisations to assess their market competitiveness as well as attractiveness in a strategic
manner (Barbosa, Castañeda-Ayarza and Ferreira, 2020). This practice aid organisational
managers to assess competition which is presented by varied establishments in relation to
specified industry. By ascertaining market competitiveness, organisational managers can frame
strategies accordingly and willing to secure a competitive advantage. Managers of Morrisons use
this model for identifying the location of power holding company or organisations who are
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raising competition for them. It also aid them in identifying and understanding the corporate risk
in an effective manner. Varied elements of Porter five forces model in accordance with
Morrisons are mentioned below:
Competitive rivalry- This force is concerned with number of competitors and level of
competition organisations can present in respect to specified industry (Barca, 2017). It is
considered as major determining force for measuring competitiveness in market. It is imperative
for business organisations to assess their competitors especially who are offering similar product
range for same type of customers. In regards with operating business activities in an effective
manner, organisational managers needs to consider their practices in relation to marketing,
advertising as well as diversity of products of competitors. In relation to Morrisons, managers are
required to assess their competitive rivalry in respect to big brands who presents competition for
them such as Tesco, Sainsbury's and Walmart. Managers of Morrisons working on their strategy
that is to invest their resources for improvising their product specification and securing a
competitive advantage.
Threat of new entrants- This force is concerned with obstructions which are acting as a
barrier of new competitors in a new market (Gans and Ryall, 2017). These new competitors can
also effect the operations of established organisations by engaging their customers towards them.
These barriers to entry in respect with a new industry essentially encompasses of large
investment at initial level, government regulations as well as difficulty in regards with
distribution channels. In relevance with grocery industry, this threat is high as initial investment
is not so large for new companies. There are few legislations which are needed to be followed in
entering into this industry. However, in relevance with Morrisons, they are established
corporation and should strategise their policies which will help them to present tough
competition to new entrants as well as existing ones.
Bargaining power of suppliers- This force is concerned with number of suppliers in
respect to market inputs present in industry. Bargaining power of suppliers can dominate the
market as well as can create a problematic relationships in regards with dependency (Henry,
2021). It is imperative for business organisations to assess the influence and power of suppliers
in an adequate manner while negotiating with them in relation to prices. In relevance with UK
grocery industry, bargaining power of suppliers is low as there are large number of providers in
market. In context to Morrisons, they look for new suppliers with distinctive as well as
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