Report on Strategic Management - Morrison Supermarkets Plc

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Literature Review...................................................................................................................1
Knowledge and Understanding..............................................................................................1
Background of the organization.............................................................................................2
Analysis..................................................................................................................................4
PESTLE framework for strategic analysis.............................................................................4
Morrison's Strategic capabilities............................................................................................7
Probable industry scenarios....................................................................................................8
Recommendations..................................................................................................................9
CONCLUSION..............................................................................................................................10
Component 1B Presentation..........................................................................................................11
REFERENCES..............................................................................................................................24

Illustration Index
Illustration 1: Market share of retail in UK.....................................................................................4

INTRODUCTION
Strategic management is to implement and initiate strategies which ultimately helps in
achieving organizational goals (Eden and Ackermann, 2013). Internal and external environment
is taken into consideration while taking these decisions for the organization. Morrison
Supermarkets Plc is a supermarket chain which is running in UK. The report discusses about
various strategies that has been adopted by the entity since last 5 years. Further, it focuses on
strategic analysis of the retail industry in order to understand political, social, economic, legal
and environmental factors. Moreover, it ponders on various strengths, weaknesses, opportunities
and threats of Morrisons based upon the activities conducted by the entity. In the end,
recommendations will be given discussing the strategies that can be adopted by Morrisons in
order to increase its sales revenue and maximize profits.
TASK 1
Literature Review
According to Eden and Ackermann (2013)Strategic management is to implement and
initiate strategies which ultimately helps in achieving organizational goals. However on the other
hand according to Goetsch and Davis (2014) it involves analysis of external and internal research
of the organization in order to make and implement various strategies in the entity. It also assures
that the strategies are implement all across the organization without failure. It is important to
assess them time to time and make changes as and when required by the internal and external
environment. Further, according to Vogel and Güttel (2013) a systematic analysis of customer
which helps in maintaining optimum business practices for the organizations.
Knowledge and Understanding
Morrisons have been chosen to conduct research on strategic management of the entity.
Secondary research will be conducted in which the data have been collected through various
journals, magazines, newspaper, website and online material that is available on the internet.
Several models will be applied based on the literature collected from varied sources. Models
such as, PESTLE framework, SWOT analysis, VRIO model, Porter's five forces models will be
applied to the data of Morrisons. It will help to analyse and give recommendations based on it.
Further, the company will be able to assess the correct position and consider internal and external
factors while implementing any strategy on different departments.
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Background of the organization
Mission statement: To provide their customers with the best value of money for their
weekly shopping, wherever they live.
Vision statement: To be food specialist for everyone as a food specialist differentiates
them from all the competitors by :
 Facilities of their own manufacturing and packing.
 More number of people for preparing food for the other retailers.
 More expert Butchers, fishmonger, bankers.
 More customers in stores in comparison to the competitors.
The mission and vision statement of The Morrison Company encourages its employees to
provide the services as per the demands of their customers to beat their competitors and to retain
more customers in the stores. The mission of the company is to provide an excellent and
unbeatable customer service by extending the working hours at all the stores, including Sundays,
extensive free car parking, petrol stations with most competitive prices and free glass of loan
services for 10 million weekly shoppers at a low price to fulfil the demands of the market place.
They provide quality products at an exciting range to their customers to receive the highest
standards of services and care, many more facilities are designed to make the customers
comfortable, convenient and visit the store as possible.
The vision of company is to become food specialist to differentiate them form their
competitors by providing the range of fresh food, groceries, household and leisure goods. Quality
fresh food is prepared in stores every day to make their customers retain and to be in the race of
country's largest supermarket chains. They have more than 450 stores in which a number of
people work to prepare food to delivery it to other retailers (Strategy, 2017). They have expert
butchers to offer prime quality meat and poultry and they were first to introduces turkey meat to
the counter in store to cut and prepare individuals requirement, fishmongers to sell fresh fish in
the store for which they won a quality award for all there seafood.
Morrisons Supermarkets Plc is a supermarket chain in UK which has its headquarters in
Bradford, West Yorkshire, England. It is also present online providing consumer products to its
customers and delivering at their homes. The company has adopted various strategies in order to
stay competitive in the market:
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 Be competitive: The entity try to provide the best possible quality products to its
customers. It has its own expert team which analyse the quality and provide at the best
price.
 Serve the customers better: Morrisons take feedback from its customers and make
changes across all the business. It helps them to improve their offerings and make sure
that all the comments are analysed that have been extended by the client.
 Find solutions on local level: The offering of the store is decided based on the
community of that geographical area in which it is situated. For instance, if Morrisons is
situated on petrol pump, than the store will contain all the food that is best suited for the
nearby traffic flow. It helps to deliver what is required by the customers.
 Develop useful services: The main of the entity is to offer one stop solution to the
customers. It keeps changing the look of the store and make available various other
services in the supermarket other than food and consumer products. For instance, mobile
phone repair stations, key cutting, pick up points in case of online order etc.
 Simplify and speed up: Speeding up their transactions and reduce Queue time is the
continuous process that has been adopted by Morrisons. The entity also keep cutting the
cost in order to provide the best at the lowest price to the customers (Goetsch and Davis,
2014).
 Make the supermarket industry strong: Morrisons is involved in refreshing its stores
by new designs. It takes suggestions from its customers and staff and implement their
ideas in their cafes as well. It helps to improve shopping trip of the customers to the
supermarket and they enjoy their shopping. It has helped the enterprise to increase their
customers and their loyalty as well.
By adopting the above mentioned strategies the company have been able to build its
brand very strong. Further, it has helped to provide the best quality products at the lowest
possible price which has increased the loyalty of the customers.
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