Strategic Management Assignment - Morrison
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Added on 2020-02-14
Strategic Management Assignment - Morrison
Added on 2020-02-14
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STRATEGICMANAGEMENT
EXECUTIVE SUMMARYStrategic management is all about building plans for expansion of business in the newmarket with the motive to grab large number of opportunities. The present study being carriedout is based on Morrison which is one of the largest supermarkets of Britain and is linked withexpansion of company in Chinese market. In order to enter new market it is necessary to analyzethe external environment where PESTLE as one of the tools has been undertaken. For regulatingthe entire retail market various laws and regulations have been developed by government.Further, It is well known fact that economy of china is developing and the overall high growthrate in GDP has positively influenced the entire economy of China. Market of China is highlyadvanced where new systems and tools are employed for delivering products to the customers. InChinese market threat associated with new entrants is high as government of the nationencourages businesses to invest into the market. Buyers in the retail market possess capability todominate the entire retail market of China. Suppliers are easily present in the market who areoffering retail product. The range of tangible resources such as financial, physical, organization and intangibleone such as human, innovation etc are required in Chinese market. Further, for expansionpurpose different type of market entry modes are being present which can be undertaken byMorrison for its smooth function. The ranges of modes present are exporting, licensing, strategicalliance, acquisition and new wholly owned subsidiary. In case of Morrison supermarketbusiness can easily acquire existing small retail business in the Chinese market. The entire studybeing carried out has supported in knowing about significance of strategic managementespecially during business expansion in new market. Morrison expansion in the market of Chinais feasible as analyzed with the help of porter five forces and Pestle
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1TASK 2............................................................................................................................................4TASK 3............................................................................................................................................6TASK 4............................................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9APPENDIX....................................................................................................................................10
INTRODUCTIONStrategic management is all about building plans for expansion of business in the newmarket with the motive to grab large number of opportunities. Further, in the modern era largenumbers of challenges are present in the market due to which it has become difficult forcompanies to survive in the market (Ammenwerth and Winter, 2014). Competition along withother form of barriers is present in the business environment which prevents business fromaccomplishing desired goals and objectives. Moreover, at the time of expanding operations in thenew market it is required for every business to carry out proper analysis such as with the help oftool named porter and pestle. Apart from this, SWOT as a tool is also employed for internalanalysis which highlights internal strength of the company. The present study being carried out isbased on Morrison which is one of the largest supermarkets of Britain. At present organization toenter into the Chinese market for which analysis has been carried out through models such asporter, pestle etc.TASK 1In order to enter new market it is necessary to analyze the external environment wherePESTLE as one of the tools has been undertaken through which Morrison can know the range ofchallenges present in the external environment. Below shown is the PESTLE analysis of Chineseretail market:Political: For regulating the entire retail market various laws and regulations have beendeveloped by government and this is supported by stability in the regulatory authorities whichhas allowed in development (Antony and Preece, 2012). Further, foreign investment isencouraged and businesses are allowed to expand their operations. Moreover, laws are present inrelation with maintaining quality and setting prices which are affordable for customers.Economic: It is well known fact that economy of china is developing and the overall high growthrate in GDP has positively influenced the entire economy of China. Due to overall developmentskilled labor along with rise in export conditions are present (Arganona, 2014). Moreover,purchasing power of consumers is also high due to which they prefer to purchase retailcommodities.Social: In country like China constant change has been witnessed in the demographic attributessuch as age along with population growth. Further, taste and preference of target market changesrapidly and due to this reason retail firms have to modify product range accordingly. 1
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