Supply Chain Management of Morrison Supermarket
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AI Summary
This report discusses the strategic supply chain management of Morrison Supermarket, including its history, profit, geographic market, and supply chain strategy. It also analyzes the key environmental challenges using Porter's Five Forces, PESTLE, SWOT, and Ansoff Matrix.
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Running head: SUPPLY CHAIN MANAGEMENT
Supply chain management
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Supply chain management
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SUPPLY CHAIN MANAGEMENT
Executive Summary
Morrison’s is one of the oldest retail markets of United Kingdom. The company is facing
difficulties in recent times due to different kind of losses in the financial grounds and due to
losses in the financial grounds and also due to a number of product recalls. Apart from this the
BREXIT deal has badly affected the economy of the country and has had a major impact on the
organization. The use of Porter’s five forces and the macro and micro environmental analysis has
been the main highlight of this report. The report ends with a proper recommendation about the
future course of action that can be implemented by the organization to ensure success in the
future.
SUPPLY CHAIN MANAGEMENT
Executive Summary
Morrison’s is one of the oldest retail markets of United Kingdom. The company is facing
difficulties in recent times due to different kind of losses in the financial grounds and due to
losses in the financial grounds and also due to a number of product recalls. Apart from this the
BREXIT deal has badly affected the economy of the country and has had a major impact on the
organization. The use of Porter’s five forces and the macro and micro environmental analysis has
been the main highlight of this report. The report ends with a proper recommendation about the
future course of action that can be implemented by the organization to ensure success in the
future.
3
SUPPLY CHAIN MANAGEMENT
Table of Contents
1. Introduction..................................................................................................................................5
History and activities of the Company........................................................................................5
Profit of the Company.................................................................................................................6
Geographic Market of the Company...........................................................................................6
Supply Chain Strategy of the Company......................................................................................6
Intended Strategy.........................................................................................................................8
Current Strategy...........................................................................................................................9
2. Key Environmental Challenges.................................................................................................10
Porter’s Five Forces...................................................................................................................10
PESTLE Analysis......................................................................................................................13
SWOT Analysis.........................................................................................................................15
Ansoff Matrix............................................................................................................................18
3. Critical Discussion of the present condition..............................................................................19
Market Share of UK Supermarkets............................................................................................19
Figure 1: Market Share of UK Supermarkets............................................................................19
Discussion of the present strategy...................................................................20_Toc536445781
4. Strategic Supply Chain options.................................................................................................21
Critical Analysis of 3 Strategic Chain Supply Options.............................................................21
SUPPLY CHAIN MANAGEMENT
Table of Contents
1. Introduction..................................................................................................................................5
History and activities of the Company........................................................................................5
Profit of the Company.................................................................................................................6
Geographic Market of the Company...........................................................................................6
Supply Chain Strategy of the Company......................................................................................6
Intended Strategy.........................................................................................................................8
Current Strategy...........................................................................................................................9
2. Key Environmental Challenges.................................................................................................10
Porter’s Five Forces...................................................................................................................10
PESTLE Analysis......................................................................................................................13
SWOT Analysis.........................................................................................................................15
Ansoff Matrix............................................................................................................................18
3. Critical Discussion of the present condition..............................................................................19
Market Share of UK Supermarkets............................................................................................19
Figure 1: Market Share of UK Supermarkets............................................................................19
Discussion of the present strategy...................................................................20_Toc536445781
4. Strategic Supply Chain options.................................................................................................21
Critical Analysis of 3 Strategic Chain Supply Options.............................................................21
4
SUPPLY CHAIN MANAGEMENT
Most Appropriate Strategic Chain option..................................................................................22
5. Range of Implementation Issues............................................................................................23
Convenience Stores...................................................................................................................23
International Implementation.....................................................................................................23
Impact on the market.................................................................................................................24
Table No 2: Timeline Table.......................................................................................................25
Figure No 3: Gantt chart............................................................................................................25
Conclusion.....................................................................................................................................26
References......................................................................................................................................27
Appendices....................................................................................................................................29
Appendix 1.................................................................................................................................29
Table No 1: SWOT Analysis.....................................................................................................29
Appendix 2.................................................................................................................................30
Figure 2: Market Share of UK Grocery Supermarkets..............................................................30
Appendix 3.................................................................................................................................31
Figure No 3: Ansoff Matrix.......................................................................................................31
Appendix 4.................................................................................................................................32
Figure No 4: Framework of Service Supply Chain Sustainability............................................32
SUPPLY CHAIN MANAGEMENT
Most Appropriate Strategic Chain option..................................................................................22
5. Range of Implementation Issues............................................................................................23
Convenience Stores...................................................................................................................23
International Implementation.....................................................................................................23
Impact on the market.................................................................................................................24
Table No 2: Timeline Table.......................................................................................................25
Figure No 3: Gantt chart............................................................................................................25
Conclusion.....................................................................................................................................26
References......................................................................................................................................27
Appendices....................................................................................................................................29
Appendix 1.................................................................................................................................29
Table No 1: SWOT Analysis.....................................................................................................29
Appendix 2.................................................................................................................................30
Figure 2: Market Share of UK Grocery Supermarkets..............................................................30
Appendix 3.................................................................................................................................31
Figure No 3: Ansoff Matrix.......................................................................................................31
Appendix 4.................................................................................................................................32
Figure No 4: Framework of Service Supply Chain Sustainability............................................32
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SUPPLY CHAIN MANAGEMENT
1. Introduction
History and activities of the Company
The following report deals with the strategic supply chain management of Morrison
Supermarket. The company was founded by William Morison in the same year. The company
started off as an egg and butter stall in Rawson Market, Bradford, England. The company was
mainly concentrated in the Northern part of England. The following report deals with the
strategic supply chain of Morrison supermarket (morrisons.com 2019). The company was
founded by William Morrison in the year 1899. After the takeover of Safeway in 2004 the
company increased its presence in the south of England including Wales and Scotland. It has
more than 500 Super Stores across Great Britain and solo Store in Gibraltar. After William
Morrison his son Ken Morrison took over the company in 1952 at the age of just 21 years. After
6 years the company opened the small shop in the City Centre which was the first of its kind self-
service store in Bradford (morrisons.com 2019). The store was unique and because it was the
first store that had its prices written over the products and had three different checkouts. After
this the company opened its first Supermarket named Victoria in the Willington district of
Bradford in the year 1961.
The company became a public limited enterprise listed under the London stock exchange
in the year 1967 (morrisons.com 2019). As mentioned earlier the company took over the reins of
Safeway in the year 2004 for which they spelled out around pound 3.3 billion. However the
acquisition was not too satisfactory in the first part as it rain in two difficulties because of the
outgoing management changing the change accounting system weeks after the transaction was
totally completed (morrisons.com 2019). The result was a series of profit warnings been issued
by Morrison and poor financial results. The company then started converting the stores from safe
SUPPLY CHAIN MANAGEMENT
1. Introduction
History and activities of the Company
The following report deals with the strategic supply chain management of Morrison
Supermarket. The company was founded by William Morison in the same year. The company
started off as an egg and butter stall in Rawson Market, Bradford, England. The company was
mainly concentrated in the Northern part of England. The following report deals with the
strategic supply chain of Morrison supermarket (morrisons.com 2019). The company was
founded by William Morrison in the year 1899. After the takeover of Safeway in 2004 the
company increased its presence in the south of England including Wales and Scotland. It has
more than 500 Super Stores across Great Britain and solo Store in Gibraltar. After William
Morrison his son Ken Morrison took over the company in 1952 at the age of just 21 years. After
6 years the company opened the small shop in the City Centre which was the first of its kind self-
service store in Bradford (morrisons.com 2019). The store was unique and because it was the
first store that had its prices written over the products and had three different checkouts. After
this the company opened its first Supermarket named Victoria in the Willington district of
Bradford in the year 1961.
The company became a public limited enterprise listed under the London stock exchange
in the year 1967 (morrisons.com 2019). As mentioned earlier the company took over the reins of
Safeway in the year 2004 for which they spelled out around pound 3.3 billion. However the
acquisition was not too satisfactory in the first part as it rain in two difficulties because of the
outgoing management changing the change accounting system weeks after the transaction was
totally completed (morrisons.com 2019). The result was a series of profit warnings been issued
by Morrison and poor financial results. The company then started converting the stores from safe
6
SUPPLY CHAIN MANAGEMENT
way to Morrison’s and it was one of the greatest transformations in the history of British retail
market. The company slowly grew in size asset purchased different stores of Waitrose. After the
acquisition of Safeway, the company acquired the takeover of Somerfield Supermarket chain in
March 2009. The company also purchased 35 different stores from the combined group of
Competition Commission and Somerfield in the same year as a deal to trade under the
Somerfield fascia (morrisons.com 2019).
Profit of the Company
A surge in the sales of the local foods like that of Plumgarth sausages and Voakes pies
has helped the company to fight off competition from the discounters and deliver a rise of 17%
in profit. The UK’s fourth largest supermarket chain said and the underlying profits rose to
around 11% to pound 374 million in the last year (morrisons.com 2019). The company
announced that the local suppliers have rose by more than 50% in the past 2 years. The signing
of agreements in between 200 farmers and other local food producers, the wholesale deals with
the likes of Amazon and Mc’Colls convenience store chain has also led to a sprout of around
5.8% in the total sales in the last year (morrisons.com 2019).
Geographic Market of the Company
The geographic market of the company is located across the United Kingdom including
Wales and Scotland and the Gibraltar where the company owns only one single store.
Supply Chain Strategy of the Company
The intensity of price competition in the market has forced the management of Morison’s
Supermarket to change the supply chain strategy of the company over the period of time.
ASDA’s over reliance on price clearly indicates that large supermarkets like that of Morison’s,
SUPPLY CHAIN MANAGEMENT
way to Morrison’s and it was one of the greatest transformations in the history of British retail
market. The company slowly grew in size asset purchased different stores of Waitrose. After the
acquisition of Safeway, the company acquired the takeover of Somerfield Supermarket chain in
March 2009. The company also purchased 35 different stores from the combined group of
Competition Commission and Somerfield in the same year as a deal to trade under the
Somerfield fascia (morrisons.com 2019).
Profit of the Company
A surge in the sales of the local foods like that of Plumgarth sausages and Voakes pies
has helped the company to fight off competition from the discounters and deliver a rise of 17%
in profit. The UK’s fourth largest supermarket chain said and the underlying profits rose to
around 11% to pound 374 million in the last year (morrisons.com 2019). The company
announced that the local suppliers have rose by more than 50% in the past 2 years. The signing
of agreements in between 200 farmers and other local food producers, the wholesale deals with
the likes of Amazon and Mc’Colls convenience store chain has also led to a sprout of around
5.8% in the total sales in the last year (morrisons.com 2019).
Geographic Market of the Company
The geographic market of the company is located across the United Kingdom including
Wales and Scotland and the Gibraltar where the company owns only one single store.
Supply Chain Strategy of the Company
The intensity of price competition in the market has forced the management of Morison’s
Supermarket to change the supply chain strategy of the company over the period of time.
ASDA’s over reliance on price clearly indicates that large supermarkets like that of Morison’s,
7
SUPPLY CHAIN MANAGEMENT
ASDA and others have to spend a large time to gather the required momentum in the market.
According to, Chen et al. (2018) the goal of the supply chain management of Morison’s is to
provide the best quality products and support the customers at the least possible cost
(morrisons.com 2019). The company in the last five years stopped all the different kinds of in-
house projects. The implementation of a new and smart IT system in the business was the main
achievement of the supply chain strategy of the company. The reduction in the cost of the IT
systems after implementing a new and advanced IT technology has helped the organization to
ensure success in the supply chain strategy. The main characteristics of the Supply chain
management of Morison’s Supermarket have been discussed differently by different studies of
different authors. According to, Wang et al. (2016) the implementation of SMART hardware and
SMART IT system helped the company to reduce the cost of ownership (Chen et al. 2018). The
earlier servers were replaced with the most advanced servers that were helpful to manage the
supermarket in the easiest manner. The study of Wang et al. (2016) further states that an
important change in the supply chain management was to digitalize the entire process and make
it much more smoother for the business enterprise to carry on the business efficiently.
The company has tied up into an agreement with a leading IT firm to digitalize the
supply chain process. The application of new software, a new business approach and a new
systematic approach has been essential for the success of the organization in the market. On the
other hand the study of Swink et al. (2017) suggests that the organization follows the partner led
business model as different companies supplies different goods and services to the organization
that in turn are provided to the end users for their use. The presence of a large number of
suppliers and their collaboration in the field helps the business to run smoothly. Perez-Franco et
al. (2016) suggests that the digitalization of the supply system and the tracking and monitoring of
SUPPLY CHAIN MANAGEMENT
ASDA and others have to spend a large time to gather the required momentum in the market.
According to, Chen et al. (2018) the goal of the supply chain management of Morison’s is to
provide the best quality products and support the customers at the least possible cost
(morrisons.com 2019). The company in the last five years stopped all the different kinds of in-
house projects. The implementation of a new and smart IT system in the business was the main
achievement of the supply chain strategy of the company. The reduction in the cost of the IT
systems after implementing a new and advanced IT technology has helped the organization to
ensure success in the supply chain strategy. The main characteristics of the Supply chain
management of Morison’s Supermarket have been discussed differently by different studies of
different authors. According to, Wang et al. (2016) the implementation of SMART hardware and
SMART IT system helped the company to reduce the cost of ownership (Chen et al. 2018). The
earlier servers were replaced with the most advanced servers that were helpful to manage the
supermarket in the easiest manner. The study of Wang et al. (2016) further states that an
important change in the supply chain management was to digitalize the entire process and make
it much more smoother for the business enterprise to carry on the business efficiently.
The company has tied up into an agreement with a leading IT firm to digitalize the
supply chain process. The application of new software, a new business approach and a new
systematic approach has been essential for the success of the organization in the market. On the
other hand the study of Swink et al. (2017) suggests that the organization follows the partner led
business model as different companies supplies different goods and services to the organization
that in turn are provided to the end users for their use. The presence of a large number of
suppliers and their collaboration in the field helps the business to run smoothly. Perez-Franco et
al. (2016) suggests that the digitalization of the supply system and the tracking and monitoring of
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SUPPLY CHAIN MANAGEMENT
the suppliers helps the management of the supermarket to ensure a robust and tight security for
the company. Stevens and Johnson (2016) supports the statement and adds that the presence of
open systems in between the suppliers and the management of the company is one of the greatest
advantages for the organization. The digitalization of the total supply chain has helped to set out
open standards in the business.
Intended Strategy
Morrison’s Supermarkets has been pushing for a overall structural change in the
organization. The urgency for environmental action that has been growing among the consumers
and most of the governments around the world, has been putting extreme pressure in order to
operate the organization in a sustainable manner (Stevens and Johnson 2016). Apart from this the
growing conviction that challenges the environmental sustainability will require direct as well as
indirect actions from the management of the organization to have an impact on the different
kinds of supply chain practices of the organization. The management of Morrison’s intended to
apply the supply chain by performing a number of different steps. This includes the likes of;
a. Mapping the Supply Chain- The mapping of the supply chain is one of the earliest
processes to identify the different changes and challenges in the environmental front. The
company had initial ideas to increase the number of suppliers to increase their options to
negotiate and easily carry out expansion activities. However, the problems due to the
acquisition of Sainsbury have made it difficult for the organization to do so.
b. Communication of different Expectations- The communication of the corporate values
and culture to the suppliers of the organization through the supplier code of conduct
could have led to the proper application of sustainability efforts in the business. Such a
SUPPLY CHAIN MANAGEMENT
the suppliers helps the management of the supermarket to ensure a robust and tight security for
the company. Stevens and Johnson (2016) supports the statement and adds that the presence of
open systems in between the suppliers and the management of the company is one of the greatest
advantages for the organization. The digitalization of the total supply chain has helped to set out
open standards in the business.
Intended Strategy
Morrison’s Supermarkets has been pushing for a overall structural change in the
organization. The urgency for environmental action that has been growing among the consumers
and most of the governments around the world, has been putting extreme pressure in order to
operate the organization in a sustainable manner (Stevens and Johnson 2016). Apart from this the
growing conviction that challenges the environmental sustainability will require direct as well as
indirect actions from the management of the organization to have an impact on the different
kinds of supply chain practices of the organization. The management of Morrison’s intended to
apply the supply chain by performing a number of different steps. This includes the likes of;
a. Mapping the Supply Chain- The mapping of the supply chain is one of the earliest
processes to identify the different changes and challenges in the environmental front. The
company had initial ideas to increase the number of suppliers to increase their options to
negotiate and easily carry out expansion activities. However, the problems due to the
acquisition of Sainsbury have made it difficult for the organization to do so.
b. Communication of different Expectations- The communication of the corporate values
and culture to the suppliers of the organization through the supplier code of conduct
could have led to the proper application of sustainability efforts in the business. Such a
9
SUPPLY CHAIN MANAGEMENT
communication could have helped the organization to easily attain sustainability in the
organization.
c. Development of training programs- According to, Hajiesmaeili et al. (2016) the
introduction of training programs to let the employees get a proper and effective
knowledge on sustainability and tailor the specific needs of the organization was the
primary target of the Morisson’s Supermarket. However the organization could not
implement it properly and a basic training program was all that the management was able
to implement.
d. Drive performance improvement- The audit program is not carried out in the
organization currently and the presence of such an audit program can easily change the
performance of the company positively (Hald and Thrane 2016).
Current Strategy
Though the intended strategy was to develop a new range of environmentally sustainable
and open standard supply chain management, the organization has failed to address the issue
(morrisons.com 2019). The absence of proper finance and the problem with Sainsbury’s
acquisition along with the lack in the number of warehouses owned has led to the loss of the
business and has threatened the sustainability of the supply chain of Morrison’s Supermarket
(morrisons.com 2019). Currently the organization depends on modern range of technologies and
a data integrated supply chain model to carry on the supply chain activities.
SUPPLY CHAIN MANAGEMENT
communication could have helped the organization to easily attain sustainability in the
organization.
c. Development of training programs- According to, Hajiesmaeili et al. (2016) the
introduction of training programs to let the employees get a proper and effective
knowledge on sustainability and tailor the specific needs of the organization was the
primary target of the Morisson’s Supermarket. However the organization could not
implement it properly and a basic training program was all that the management was able
to implement.
d. Drive performance improvement- The audit program is not carried out in the
organization currently and the presence of such an audit program can easily change the
performance of the company positively (Hald and Thrane 2016).
Current Strategy
Though the intended strategy was to develop a new range of environmentally sustainable
and open standard supply chain management, the organization has failed to address the issue
(morrisons.com 2019). The absence of proper finance and the problem with Sainsbury’s
acquisition along with the lack in the number of warehouses owned has led to the loss of the
business and has threatened the sustainability of the supply chain of Morrison’s Supermarket
(morrisons.com 2019). Currently the organization depends on modern range of technologies and
a data integrated supply chain model to carry on the supply chain activities.
10
SUPPLY CHAIN MANAGEMENT
2. Key Environmental Challenges
Porter’s Five Forces
The five forces factor was developed by Michael Porter for assessing the attractiveness of
the different kinds of the industries. However, the five forces framework in this report has been
used to determine the supply chain strategies of Morrison’s.
Threats of New Entrants
Christopher (2016) has said that the new entrants in Retail brings innovation, new ways
of doing things and put pressure on Morrison (Wm) Supermarkets Plc through lower pricing
strategy, reducing costs, and providing new value propositions to the customers. Morrison (Wm)
Supermarkets Plc has to manage all these challenges and build effective barriers to safeguard its
competitive edge.
How Morrison (Wm) Supermarkets Plc can tackle the Threats of New Entrants
By innovating new products and services. New products not only brings new customers
to the fold but also give old customer a reason to buy Morrison (Wm) Supermarkets Plc
‘s products.
By building economies of scale so that it can lower the fixed cost per unit.
Building capacities and spending money on research and development. New entrants are
less likely to enter a dynamic industry where the established players such as Morrison
(Wm) Supermarkets Plc keep defining the standards regularly. It significantly reduces the
window of extraordinary profits for the new firms thus discourage new players in the
industry.
SUPPLY CHAIN MANAGEMENT
2. Key Environmental Challenges
Porter’s Five Forces
The five forces factor was developed by Michael Porter for assessing the attractiveness of
the different kinds of the industries. However, the five forces framework in this report has been
used to determine the supply chain strategies of Morrison’s.
Threats of New Entrants
Christopher (2016) has said that the new entrants in Retail brings innovation, new ways
of doing things and put pressure on Morrison (Wm) Supermarkets Plc through lower pricing
strategy, reducing costs, and providing new value propositions to the customers. Morrison (Wm)
Supermarkets Plc has to manage all these challenges and build effective barriers to safeguard its
competitive edge.
How Morrison (Wm) Supermarkets Plc can tackle the Threats of New Entrants
By innovating new products and services. New products not only brings new customers
to the fold but also give old customer a reason to buy Morrison (Wm) Supermarkets Plc
‘s products.
By building economies of scale so that it can lower the fixed cost per unit.
Building capacities and spending money on research and development. New entrants are
less likely to enter a dynamic industry where the established players such as Morrison
(Wm) Supermarkets Plc keep defining the standards regularly. It significantly reduces the
window of extraordinary profits for the new firms thus discourage new players in the
industry.
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SUPPLY CHAIN MANAGEMENT
Bargaining Power of Suppliers
All most all the companies in the Retail industry buy their raw material from numerous
suppliers. According to, Christopher (2016) the suppliers in dominant position can decrease the
margins Morrison (Wm) Supermarkets Plc can earn in the market. Powerful suppliers in
Consumer Services sector use their negotiating power to extract higher prices from the firms in
Retail field. The overall impact of higher supplier bargaining power is that it lowers the overall
profitability of Retail.
How Morrison (Wm) Supermarkets Plc can tackle Bargaining Power of the Suppliers
By building efficient supply chain with multiple suppliers.
By experimenting with product designs using different materials so that if the prices go
up of one raw material then company can shift to another.
Developing dedicated suppliers whose business depends upon the firm. One of the
lessons Morrison (Wm) Supermarkets Plc can learn from Wal-Mart and Nike is how
these companies developed third party manufacturers whose business solely depends on
them thus creating a scenario where these third party manufacturers have significantly
less bargaining power compare to Wal-Mart and Nike.
Bargaining Power of Buyers
Buyers are often a demanding lot. They want to buy the best offerings available by
paying the minimum price as possible. This put pressure on Morrison (Wm) Supermarkets Plc
profitability in the long run (Elgazzar Tipi and Hubbard 2016). The smaller and more powerful
the customer base is of Morrison (Wm) Supermarkets Plc the higher the bargaining power of the
customers and higher their ability to seek increasing discounts and offers.
SUPPLY CHAIN MANAGEMENT
Bargaining Power of Suppliers
All most all the companies in the Retail industry buy their raw material from numerous
suppliers. According to, Christopher (2016) the suppliers in dominant position can decrease the
margins Morrison (Wm) Supermarkets Plc can earn in the market. Powerful suppliers in
Consumer Services sector use their negotiating power to extract higher prices from the firms in
Retail field. The overall impact of higher supplier bargaining power is that it lowers the overall
profitability of Retail.
How Morrison (Wm) Supermarkets Plc can tackle Bargaining Power of the Suppliers
By building efficient supply chain with multiple suppliers.
By experimenting with product designs using different materials so that if the prices go
up of one raw material then company can shift to another.
Developing dedicated suppliers whose business depends upon the firm. One of the
lessons Morrison (Wm) Supermarkets Plc can learn from Wal-Mart and Nike is how
these companies developed third party manufacturers whose business solely depends on
them thus creating a scenario where these third party manufacturers have significantly
less bargaining power compare to Wal-Mart and Nike.
Bargaining Power of Buyers
Buyers are often a demanding lot. They want to buy the best offerings available by
paying the minimum price as possible. This put pressure on Morrison (Wm) Supermarkets Plc
profitability in the long run (Elgazzar Tipi and Hubbard 2016). The smaller and more powerful
the customer base is of Morrison (Wm) Supermarkets Plc the higher the bargaining power of the
customers and higher their ability to seek increasing discounts and offers.
12
SUPPLY CHAIN MANAGEMENT
How Morrison (Wm) Supermarkets Plc can tackle the Bargaining Power of Buyers
By building a large base of customers. This will be helpful in two ways. It will reduce the
bargaining power of the buyers plus it will provide an opportunity to the firm to
streamline its sales and production process.
By rapidly innovating new products. Customers often seek discounts and offerings on
established products so if Morrison (Wm) Supermarkets Plc keep on coming up with new
products then it can limit the bargaining power of buyers.
New products will also reduce the defection of existing customers of Morrison (Wm)
Supermarkets Plc to its competitors.
Threats of Substitute Products or Services
When a new product or service meets a similar customer needs in different ways,
industry profitability suffers. For example services like Drop box and Google Drive are
substitute to storage hardware drives. The threat of a substitute product or service is high if it
offers a value proposition that is uniquely different from present offerings of the industry.
How Morrison (Wm) Supermarkets Plc can tackle the Treat of Substitute Products /
Services
By being service oriented rather than just product oriented.
By understanding the core need of the customer rather than what the customer is buying.
By increasing the switching cost for the customers.
SUPPLY CHAIN MANAGEMENT
How Morrison (Wm) Supermarkets Plc can tackle the Bargaining Power of Buyers
By building a large base of customers. This will be helpful in two ways. It will reduce the
bargaining power of the buyers plus it will provide an opportunity to the firm to
streamline its sales and production process.
By rapidly innovating new products. Customers often seek discounts and offerings on
established products so if Morrison (Wm) Supermarkets Plc keep on coming up with new
products then it can limit the bargaining power of buyers.
New products will also reduce the defection of existing customers of Morrison (Wm)
Supermarkets Plc to its competitors.
Threats of Substitute Products or Services
When a new product or service meets a similar customer needs in different ways,
industry profitability suffers. For example services like Drop box and Google Drive are
substitute to storage hardware drives. The threat of a substitute product or service is high if it
offers a value proposition that is uniquely different from present offerings of the industry.
How Morrison (Wm) Supermarkets Plc can tackle the Treat of Substitute Products /
Services
By being service oriented rather than just product oriented.
By understanding the core need of the customer rather than what the customer is buying.
By increasing the switching cost for the customers.
13
SUPPLY CHAIN MANAGEMENT
Rivalry among the Existing Competitors
If the rivalry among the existing players in an industry is intense then it will drive down
prices and decrease the overall profitability of the industry. Morrison (Wm) Supermarkets Plc
operates in a very competitive Retail industry (Elgazzar Tipi and Hubbard 2016). This
competition does take toll on the overall long term profitability of the organization.
How Morrison (Wm) Supermarkets Plc can tackle Intense Rivalry among the Existing
Competitors in Retail industry
By building a sustainable differentiation
By building scale so that it can compete better
Collaborating with competitors to increase the market size rather than just competing for
small market.
Implications of Porter Five Forces on Morrison (Wm) Supermarkets Plc
By analyzing all the five competitive forces Morrison (Wm) Supermarkets Plc strategists
can gain a complete picture of what impacts the profitability of the organization in Retail
industry (Fahimnia Sarkis and Davarzani 2015). They can identify game changing trends early
on and can swiftly respond to exploit the emerging opportunity. By understanding the Porter
Five Forces in great detail Morrison (Wm) Supermarkets Plc 's managers can shape those forces
in their favor.
PESTLE Analysis
1. Political Factors- According to, (Gattorna 2015) the decision of Britain to leave the
European Union is believed to be an uncertainty for the UK economy. The move can
SUPPLY CHAIN MANAGEMENT
Rivalry among the Existing Competitors
If the rivalry among the existing players in an industry is intense then it will drive down
prices and decrease the overall profitability of the industry. Morrison (Wm) Supermarkets Plc
operates in a very competitive Retail industry (Elgazzar Tipi and Hubbard 2016). This
competition does take toll on the overall long term profitability of the organization.
How Morrison (Wm) Supermarkets Plc can tackle Intense Rivalry among the Existing
Competitors in Retail industry
By building a sustainable differentiation
By building scale so that it can compete better
Collaborating with competitors to increase the market size rather than just competing for
small market.
Implications of Porter Five Forces on Morrison (Wm) Supermarkets Plc
By analyzing all the five competitive forces Morrison (Wm) Supermarkets Plc strategists
can gain a complete picture of what impacts the profitability of the organization in Retail
industry (Fahimnia Sarkis and Davarzani 2015). They can identify game changing trends early
on and can swiftly respond to exploit the emerging opportunity. By understanding the Porter
Five Forces in great detail Morrison (Wm) Supermarkets Plc 's managers can shape those forces
in their favor.
PESTLE Analysis
1. Political Factors- According to, (Gattorna 2015) the decision of Britain to leave the
European Union is believed to be an uncertainty for the UK economy. The move can
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cause upheaval damage to the business of the country. The BREXIT has caused a range
of protests from other associated countries like Wales and Scotland as they voted in favor
of staying within the European Union. On the other hand, the study of Fahimnia Sarkis
and Davarzani (2015) has seen that unsurprisingly BREXIT has sparked political turmoil
across the UK. The management of Morrison’s is highly concerned over the coming days
as such an exit can lead to loss of European suppliers and a sharp increase in the prices of
the products. The implications to leave the European Union can be many in number, like
decrease in the number of suppliers, increase in the import cost and many more as such.
The weakening pound has also made the situation worse in nature.
2. Economical Factors-The BREXIT vote in 2016 saw pound sterling at its lowest against
the dollar in the last 31 years. The rising depreciation of the pound since then has led to a
huge inflationary pressure by means of increased cost in transporting materials, cost of
raw materials as well as rise in the cost of the human resources. It has also increased the
cost of employment and increased pressure in the business (Gattorna 2015). Food
consumer prices have sprout up in the country and every product has seen a price rise.
Price rise have been quite common and recently Heineken and Carlsberg two major
brewers became the latest beer makers in United Kingdom to raise prices. With more
than 15 different manufacturing sites Morrison’s are the most vertically integrated
supermarket of the United Kingdom.
3. Social Factors- Gattorna (2015) has said that the Social Factors is another important
factor that has a considerable impact on the supply chain strategy of the organization. The
framework includes the demographical changes including the ageing demographic
changes of the UK. The Ageing population of the United Kingdom generally presents
SUPPLY CHAIN MANAGEMENT
cause upheaval damage to the business of the country. The BREXIT has caused a range
of protests from other associated countries like Wales and Scotland as they voted in favor
of staying within the European Union. On the other hand, the study of Fahimnia Sarkis
and Davarzani (2015) has seen that unsurprisingly BREXIT has sparked political turmoil
across the UK. The management of Morrison’s is highly concerned over the coming days
as such an exit can lead to loss of European suppliers and a sharp increase in the prices of
the products. The implications to leave the European Union can be many in number, like
decrease in the number of suppliers, increase in the import cost and many more as such.
The weakening pound has also made the situation worse in nature.
2. Economical Factors-The BREXIT vote in 2016 saw pound sterling at its lowest against
the dollar in the last 31 years. The rising depreciation of the pound since then has led to a
huge inflationary pressure by means of increased cost in transporting materials, cost of
raw materials as well as rise in the cost of the human resources. It has also increased the
cost of employment and increased pressure in the business (Gattorna 2015). Food
consumer prices have sprout up in the country and every product has seen a price rise.
Price rise have been quite common and recently Heineken and Carlsberg two major
brewers became the latest beer makers in United Kingdom to raise prices. With more
than 15 different manufacturing sites Morrison’s are the most vertically integrated
supermarket of the United Kingdom.
3. Social Factors- Gattorna (2015) has said that the Social Factors is another important
factor that has a considerable impact on the supply chain strategy of the organization. The
framework includes the demographical changes including the ageing demographic
changes of the UK. The Ageing population of the United Kingdom generally presents
15
SUPPLY CHAIN MANAGEMENT
different kinds of business opportunities for the supermarket which the management of
Morrison’s must look into (Fahimnia Sarkis and Davarzani 2015). The reason behind this
is that pension age consumers have more income since they enjoy more income because
of full time employment.
4. Technological Factors- Mackelprang et al.( 2018) suggests that technology plays a
major role in the supply chain management of the United Kingdom. The biggest shift in
the technology that has occurred in the food retailing industry is centered on different
kinds of information and computer technology that helps to lead the way. Whereas
according to, Monczka et al. (2015) the application of technology in the supply chain
helps to improve the networking and also makes the technology faster. The internet has
changed the economics of networking across the supply chain of the Morrison’s.
5. Environmental Factors- The rise in the pollution levels of the organization has been one
of the major problems of the organization. It is important for the organization to ensure
that the transportation facilities must be free from different kinds of environmental
factors.
6. Legal Factors- Legal factors include changes to legislative factors and new workplace
pension legislations requiring compulsory deduction of pension contributions from
workers pay slip. The supply chain management of the organization has undergone a sea
of changes in the organization.
SWOT Analysis
The SWOT Analysis of Morrison’s Group has provided a holistic and clear picture of the
company by pointing out the strengths, weaknesses, opportunities and the threats of the
SUPPLY CHAIN MANAGEMENT
different kinds of business opportunities for the supermarket which the management of
Morrison’s must look into (Fahimnia Sarkis and Davarzani 2015). The reason behind this
is that pension age consumers have more income since they enjoy more income because
of full time employment.
4. Technological Factors- Mackelprang et al.( 2018) suggests that technology plays a
major role in the supply chain management of the United Kingdom. The biggest shift in
the technology that has occurred in the food retailing industry is centered on different
kinds of information and computer technology that helps to lead the way. Whereas
according to, Monczka et al. (2015) the application of technology in the supply chain
helps to improve the networking and also makes the technology faster. The internet has
changed the economics of networking across the supply chain of the Morrison’s.
5. Environmental Factors- The rise in the pollution levels of the organization has been one
of the major problems of the organization. It is important for the organization to ensure
that the transportation facilities must be free from different kinds of environmental
factors.
6. Legal Factors- Legal factors include changes to legislative factors and new workplace
pension legislations requiring compulsory deduction of pension contributions from
workers pay slip. The supply chain management of the organization has undergone a sea
of changes in the organization.
SWOT Analysis
The SWOT Analysis of Morrison’s Group has provided a holistic and clear picture of the
company by pointing out the strengths, weaknesses, opportunities and the threats of the
16
SUPPLY CHAIN MANAGEMENT
organization. The analysis of the following has been provided in the form of a table below
followed by a detailed discussion.
1. Strengths- The presence of an efficient networking and distribution system across the
United Kingdom is one of the largest assets of the company. The acquisition of Safeway
has made it easier for the organization to spread its wings across a large part of the
United Kingdom including Wales and Scotland. The efficient network easily helps the
company to develop a proper supply chain. The company has a large number of stores at
its helm as the above said acquisition of Safeway along with buying different small
supermarkets have made them one of the largest regional supermarkets of the United
Kingdom (Fahimnia Sarkis and Davarzani 2015). The presence of stores at different
places of England has helped the organization to reach out to a large range of customers
in the United Kingdom. The sale of fresh fruits and vegetables has added to the portfolio
of their products. On the other hand according to the suugestion of Sindi and Roe (2017)
the company has often put focus on the quality of the products they sell. The presence of
the company in the retail market has also added up to their product portfolio as they have
added a large number of different products that they offer to the customers. Lastly the
presence of quality human assets is one of the largest strengths of the company as
because it helps the organization to maintain a quality relationship with the customers.
2. Weaknesses- The absence of the business organization globally is one of the main
weaknesses of the organization. The lack of global presence has limited the supply chain
distribution of the company and it has made the organization prone to different problems.
The problems with the products of the organization is another main problem as because
SUPPLY CHAIN MANAGEMENT
organization. The analysis of the following has been provided in the form of a table below
followed by a detailed discussion.
1. Strengths- The presence of an efficient networking and distribution system across the
United Kingdom is one of the largest assets of the company. The acquisition of Safeway
has made it easier for the organization to spread its wings across a large part of the
United Kingdom including Wales and Scotland. The efficient network easily helps the
company to develop a proper supply chain. The company has a large number of stores at
its helm as the above said acquisition of Safeway along with buying different small
supermarkets have made them one of the largest regional supermarkets of the United
Kingdom (Fahimnia Sarkis and Davarzani 2015). The presence of stores at different
places of England has helped the organization to reach out to a large range of customers
in the United Kingdom. The sale of fresh fruits and vegetables has added to the portfolio
of their products. On the other hand according to the suugestion of Sindi and Roe (2017)
the company has often put focus on the quality of the products they sell. The presence of
the company in the retail market has also added up to their product portfolio as they have
added a large number of different products that they offer to the customers. Lastly the
presence of quality human assets is one of the largest strengths of the company as
because it helps the organization to maintain a quality relationship with the customers.
2. Weaknesses- The absence of the business organization globally is one of the main
weaknesses of the organization. The lack of global presence has limited the supply chain
distribution of the company and it has made the organization prone to different problems.
The problems with the products of the organization is another main problem as because
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there has been severe complaints regarding products and the company has seen the most
number of returns of their products in the retail sector of United Kingdom. On the other
hand the study of Mackelprang et al. (2018) has shown that the the absence of aggressive
marketing is another major problem for the organization as aggressive marketing could
have made the organization much more attractive and customer friendly. In comparison
to Morrison the likes of Aldi and Sainsbury follows a proper strategic marketing that
helps them to have a competitive edge in the market.
3. Opportunities- Organic products are the latest products that have entered the market.
The different types of the products include the likes of organic foods, soap, organic
cosmetics and many more as such. As mentioned earlier the company must think of
expanding the enterprise outside Great Britain. The study of Hald and Thrane (2016) has
shown that the presence of only one single store does not help the company as because
such a presence is unable to generate a healthy income for the Organization. As said
earlier, the demand for new products and services are on a rise. On the other hand
according to, Mangan Lalwani and Lalwani (2016) the management of the company must
bring on new kind of products and services that can easily turn the heads of the customers
and generate income for the company. Lastly according to, Sindi and Roe (2017)the
management of the company can think of establishing an e-commerce site through the
help of the suppliers in United Kingdom which can further add up to their innovation and
ensure success in the market as well as increase the supply chain strategy.
4. Threats- Tax problems are one of the major issues of the organization as because it
threatens the sustainability of the business enterprise. On the other hand, the upcoming
BREXIT deal is believed to be another major problem for Morrison’s. Contrastingly the
SUPPLY CHAIN MANAGEMENT
there has been severe complaints regarding products and the company has seen the most
number of returns of their products in the retail sector of United Kingdom. On the other
hand the study of Mackelprang et al. (2018) has shown that the the absence of aggressive
marketing is another major problem for the organization as aggressive marketing could
have made the organization much more attractive and customer friendly. In comparison
to Morrison the likes of Aldi and Sainsbury follows a proper strategic marketing that
helps them to have a competitive edge in the market.
3. Opportunities- Organic products are the latest products that have entered the market.
The different types of the products include the likes of organic foods, soap, organic
cosmetics and many more as such. As mentioned earlier the company must think of
expanding the enterprise outside Great Britain. The study of Hald and Thrane (2016) has
shown that the presence of only one single store does not help the company as because
such a presence is unable to generate a healthy income for the Organization. As said
earlier, the demand for new products and services are on a rise. On the other hand
according to, Mangan Lalwani and Lalwani (2016) the management of the company must
bring on new kind of products and services that can easily turn the heads of the customers
and generate income for the company. Lastly according to, Sindi and Roe (2017)the
management of the company can think of establishing an e-commerce site through the
help of the suppliers in United Kingdom which can further add up to their innovation and
ensure success in the market as well as increase the supply chain strategy.
4. Threats- Tax problems are one of the major issues of the organization as because it
threatens the sustainability of the business enterprise. On the other hand, the upcoming
BREXIT deal is believed to be another major problem for Morrison’s. Contrastingly the
18
SUPPLY CHAIN MANAGEMENT
study of Monczka et al. (2015) has suggested that the BREXIT deal will affect the supply
chain of the company as because the company has a healthy number of European
suppliers. Apart from this the large-scale increase in the cost of the human resources has
also created problems for the industry. Lastly the innovative strategies used by other
retail firms in United Kingdom have out scaled the strategies of Morrison’s.
Ansoff Matrix
The Ansoff Matrix is a decision making tool for the corporate planning and to provide a
useful framework for analyzing arrange of different strategic options in relation to different kinds
of risks and rewards. The Ansoff Matrix of Morrison’s Supermarket is as follows;
1. Market Penetration- The growth strategy inherent in the market penetration is for the
organization as it wants to increase its market share in the retail sector of the United
Kingdom. The company has plans to open new stores all across the country and create
more than 10000 different jobs based around these stores. Apart from this the
management of the company also plans to open at least 70 different Morrison’s M Local
in the coming two years to accelerate its expansion plans in the United Kingdom and
provide tough competition to Tesco. Sainsbury’s as well as ASDA.
2. Market Development- The study of Hald and Thrane (2016) has shown that the following
strategy aims to develop new markets by using the existing products. Market
Development will include attraction of new customer segment by using a totally different
strategy into consuming an existing product. On the other hand, Perez-Franco et al.
(2016) explains that the Morison’s Supermarket can expand its business into new
uncharted territories which will help its growth of revenue.
SUPPLY CHAIN MANAGEMENT
study of Monczka et al. (2015) has suggested that the BREXIT deal will affect the supply
chain of the company as because the company has a healthy number of European
suppliers. Apart from this the large-scale increase in the cost of the human resources has
also created problems for the industry. Lastly the innovative strategies used by other
retail firms in United Kingdom have out scaled the strategies of Morrison’s.
Ansoff Matrix
The Ansoff Matrix is a decision making tool for the corporate planning and to provide a
useful framework for analyzing arrange of different strategic options in relation to different kinds
of risks and rewards. The Ansoff Matrix of Morrison’s Supermarket is as follows;
1. Market Penetration- The growth strategy inherent in the market penetration is for the
organization as it wants to increase its market share in the retail sector of the United
Kingdom. The company has plans to open new stores all across the country and create
more than 10000 different jobs based around these stores. Apart from this the
management of the company also plans to open at least 70 different Morrison’s M Local
in the coming two years to accelerate its expansion plans in the United Kingdom and
provide tough competition to Tesco. Sainsbury’s as well as ASDA.
2. Market Development- The study of Hald and Thrane (2016) has shown that the following
strategy aims to develop new markets by using the existing products. Market
Development will include attraction of new customer segment by using a totally different
strategy into consuming an existing product. On the other hand, Perez-Franco et al.
(2016) explains that the Morison’s Supermarket can expand its business into new
uncharted territories which will help its growth of revenue.
19
SUPPLY CHAIN MANAGEMENT
3. Product Development- The Morrison’s online shopping system almost 0, the retailer
should consider online business, offer food and products through the internet which can
save consumers’ time. Build or contract a distribution network of vehicles and staff to do
food and grocery home delivery.
4. Diversification- The development of new products as well as new markets has immense
importance (Swink et al. 2017). The management of the company must offer wide range
of products which target customers who have different needs; the retailer may focus on
electronic products or clothing, build extensions to its stores to create additional space for
the non-food product range.
3. Critical Discussion of the present condition
Market Share of UK Supermarkets
Figure 1: Market Share of UK Supermarkets
Source: (Perez-Franco et al. 2016)
SUPPLY CHAIN MANAGEMENT
3. Product Development- The Morrison’s online shopping system almost 0, the retailer
should consider online business, offer food and products through the internet which can
save consumers’ time. Build or contract a distribution network of vehicles and staff to do
food and grocery home delivery.
4. Diversification- The development of new products as well as new markets has immense
importance (Swink et al. 2017). The management of the company must offer wide range
of products which target customers who have different needs; the retailer may focus on
electronic products or clothing, build extensions to its stores to create additional space for
the non-food product range.
3. Critical Discussion of the present condition
Market Share of UK Supermarkets
Figure 1: Market Share of UK Supermarkets
Source: (Perez-Franco et al. 2016)
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The market share of four different supermarkets operating in the United Kingdom has
been in the above tables. The largest share of market along with the largest number of employees
is currently in the hands of Tesco. Morrison’s supermarket owns a mere 12% share in the United
Kingdom supermarket sector and employs around 130,000 people as their employees.
Discussion of the present strategy
Considering the present supply chain strategy it can be said that it does not fulfill
the necessary requirements that are required to manage the supply chain strategy of a
supermarket. The company now owns a large number of stores including those of
Sainsbury’s. Therefore they have to ensure that they have adequate number of warehouses
at their disposal to store the goods in a proper manner. It is also important for the
organization for the organization to ensure that they create a new transportation line to
transport their goods from the warehouse to the stores in the easiest manner. Therefore it
can be concluded that the present supply chain strategy of the organization is not at all
sustainable for the future.
The projected table clearly shows that the organization has the least competitive
advantage in the United Kingdom market and therefore will struggle hard to meet the demands
of the market. According to, Monczka et al. (2015) the company has failed to make proper
utilization of the Sainsbury takeover and thus enjoys the least market share currently in the retail
market of the country. Competitive strategy consists of the actions which are generally taken to
attract the customers and withstand the competitive pressures on the market and also to help and
strengthen the market position of the business organization. On the other hand the study of
Fahimnia Sarkis and Davarzani (2015) reveals that the main objective of the competitive strategy
SUPPLY CHAIN MANAGEMENT
The market share of four different supermarkets operating in the United Kingdom has
been in the above tables. The largest share of market along with the largest number of employees
is currently in the hands of Tesco. Morrison’s supermarket owns a mere 12% share in the United
Kingdom supermarket sector and employs around 130,000 people as their employees.
Discussion of the present strategy
Considering the present supply chain strategy it can be said that it does not fulfill
the necessary requirements that are required to manage the supply chain strategy of a
supermarket. The company now owns a large number of stores including those of
Sainsbury’s. Therefore they have to ensure that they have adequate number of warehouses
at their disposal to store the goods in a proper manner. It is also important for the
organization for the organization to ensure that they create a new transportation line to
transport their goods from the warehouse to the stores in the easiest manner. Therefore it
can be concluded that the present supply chain strategy of the organization is not at all
sustainable for the future.
The projected table clearly shows that the organization has the least competitive
advantage in the United Kingdom market and therefore will struggle hard to meet the demands
of the market. According to, Monczka et al. (2015) the company has failed to make proper
utilization of the Sainsbury takeover and thus enjoys the least market share currently in the retail
market of the country. Competitive strategy consists of the actions which are generally taken to
attract the customers and withstand the competitive pressures on the market and also to help and
strengthen the market position of the business organization. On the other hand the study of
Fahimnia Sarkis and Davarzani (2015) reveals that the main objective of the competitive strategy
21
SUPPLY CHAIN MANAGEMENT
includes the actions which are taken to attract the customers and withstand the competitive
pressures of the market and also strengthen the position of the firm in the market. Thus the
objective of the competitive strategy is to earn a competitive benefit and advantage and knock
off the rivals in the market (Sindi and Roe 2017). Therefore the strategic direction of the
company will be to ensure the opening of new and small convenience stores that are more
acceptable to the customers.
According to, Perez-Franco et al. (2016) it can be said that the current strategy of supply
chain fails to meet the minimum standards of sustainability. One of the most recent frameworks
concerning sustainable supply chain strategy is the implementation of the environment
footprint, carbon footprint and economical footprint. It has been nicely supported by the study
of Monczka et al. (2015) where the authors explains that the service supply chain sustainability
implementation will be helpful for the organization as it helps to achieve a multitude of goals
that includes proper management of the customers, environmental management, behaving
responsibly and ensuring health and safety of the customers. Mangan Lalwani and Lalwani
(2016) mentions that the strategy followed by the organization currently will face problems as
because the absence of any environmental concerns and the loss of market share have hampered
the reputation of the business. The implementation of the new strategy can ensure environmental
sustainability of the business.
4. Strategic Supply Chain options
Critical Analysis of 3 Strategic Chain Supply Options
The management of the company needs to bring in a change in the supply chain
management. There are a number of options that can be suggested for the change. First and
SUPPLY CHAIN MANAGEMENT
includes the actions which are taken to attract the customers and withstand the competitive
pressures of the market and also strengthen the position of the firm in the market. Thus the
objective of the competitive strategy is to earn a competitive benefit and advantage and knock
off the rivals in the market (Sindi and Roe 2017). Therefore the strategic direction of the
company will be to ensure the opening of new and small convenience stores that are more
acceptable to the customers.
According to, Perez-Franco et al. (2016) it can be said that the current strategy of supply
chain fails to meet the minimum standards of sustainability. One of the most recent frameworks
concerning sustainable supply chain strategy is the implementation of the environment
footprint, carbon footprint and economical footprint. It has been nicely supported by the study
of Monczka et al. (2015) where the authors explains that the service supply chain sustainability
implementation will be helpful for the organization as it helps to achieve a multitude of goals
that includes proper management of the customers, environmental management, behaving
responsibly and ensuring health and safety of the customers. Mangan Lalwani and Lalwani
(2016) mentions that the strategy followed by the organization currently will face problems as
because the absence of any environmental concerns and the loss of market share have hampered
the reputation of the business. The implementation of the new strategy can ensure environmental
sustainability of the business.
4. Strategic Supply Chain options
Critical Analysis of 3 Strategic Chain Supply Options
The management of the company needs to bring in a change in the supply chain
management. There are a number of options that can be suggested for the change. First and
22
SUPPLY CHAIN MANAGEMENT
foremost, Wang et al. (2016) suggests the creation of online presence for the company is of
utmost importance as online presence in the modern days can change the total structure of the
business organization. Secondly, Sindi and Roe (2017) in their study tries to do the prediction of
the right process and contingency planning tools will help the retail market to ensure a complete
view and an effective response to different risks such as the suppliers going out of the business,
political upheaval, natural calamities and many more as such. On the other hand according to,
Fahimnia Sarkis and Davarzani (2015) the management of the organization can then adjust the
pricing and promotions accordingly to enable a smooth supply chain. On the other hand,
innovation is another new means of supply chain management (Mackelprang et al. 2018). It is
crucial to stay ahead in the competition and ensure that the successful products with the best
quality and the best price are presented for sale to the end users. The product innovation and
competitive advantage further fuels up the selection of the management and the suppliers.
Lastly, the alignment of the supply chain with the business goals of the company provides a large
number of options for the proper supply chain management of the company (Mackelprang et al.
2018). It ensures the success of the company in the market.
Most Appropriate Strategic Chain option
According to, Hajiesmaeili et al. (2016) the most appropriate option for the organization to
carry forward will be to enable its online presence and create online address so that customers
can use the online portal easily and buy products without even visiting the stores of the
organization. A world class online presence can help the organization to garner international
exposure which must be the first priority as it will help the management of the organization to
get quality suppliers. The presence of the following supply chain will also help to decrease the
operational cost and increase the revenue of the organization resulting in a healthy profit.
SUPPLY CHAIN MANAGEMENT
foremost, Wang et al. (2016) suggests the creation of online presence for the company is of
utmost importance as online presence in the modern days can change the total structure of the
business organization. Secondly, Sindi and Roe (2017) in their study tries to do the prediction of
the right process and contingency planning tools will help the retail market to ensure a complete
view and an effective response to different risks such as the suppliers going out of the business,
political upheaval, natural calamities and many more as such. On the other hand according to,
Fahimnia Sarkis and Davarzani (2015) the management of the organization can then adjust the
pricing and promotions accordingly to enable a smooth supply chain. On the other hand,
innovation is another new means of supply chain management (Mackelprang et al. 2018). It is
crucial to stay ahead in the competition and ensure that the successful products with the best
quality and the best price are presented for sale to the end users. The product innovation and
competitive advantage further fuels up the selection of the management and the suppliers.
Lastly, the alignment of the supply chain with the business goals of the company provides a large
number of options for the proper supply chain management of the company (Mackelprang et al.
2018). It ensures the success of the company in the market.
Most Appropriate Strategic Chain option
According to, Hajiesmaeili et al. (2016) the most appropriate option for the organization to
carry forward will be to enable its online presence and create online address so that customers
can use the online portal easily and buy products without even visiting the stores of the
organization. A world class online presence can help the organization to garner international
exposure which must be the first priority as it will help the management of the organization to
get quality suppliers. The presence of the following supply chain will also help to decrease the
operational cost and increase the revenue of the organization resulting in a healthy profit.
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5. Range of Implementation Issues
The most important task of the management of the following organization is to ensure the
presence of a proper and effective supply chain that can be helpful for the organization to
provide quality goods and services to the customers. The whole report clearly implies the bad
shape of the company. It is clearly understandable that the organization has not been performing
well for the last few years especially after the acquisition of Sainsbury. The recommendation to
garner the online presence and ensure international presence can also be boosted by means of;
Convenience Stores
The management of the company must think of something other than supermarkets and
should focus on buying convenience stores that is slowly gaining importance as a more
considerable option than that of the supermarkets (Hajiesmaeili et al. 2016). The increase in the
number of convenience stores can also help the company to increase their brand visibility as well
as increase their market share. It will also help to increase the market presence especially
increase the depth of their presence across the country. The convenience stores must have
individual online accounts or portals that can again be accessed by the customers in order to
receive the goods and services at their preferred locations.
International Implementation
Another major idea that can be implemented by the company to increase their share in the
market as well as ensure their sustainability is by seriously considering their international
expansion. The expansion of the company in international markets can be one of the major
source of turnaround by the management of the company as because international presence will
help the company to have an international supply chain (Mackelprang et al. 2018). The presence
of an international supply chain will help the organization to increase their revenues and change
SUPPLY CHAIN MANAGEMENT
5. Range of Implementation Issues
The most important task of the management of the following organization is to ensure the
presence of a proper and effective supply chain that can be helpful for the organization to
provide quality goods and services to the customers. The whole report clearly implies the bad
shape of the company. It is clearly understandable that the organization has not been performing
well for the last few years especially after the acquisition of Sainsbury. The recommendation to
garner the online presence and ensure international presence can also be boosted by means of;
Convenience Stores
The management of the company must think of something other than supermarkets and
should focus on buying convenience stores that is slowly gaining importance as a more
considerable option than that of the supermarkets (Hajiesmaeili et al. 2016). The increase in the
number of convenience stores can also help the company to increase their brand visibility as well
as increase their market share. It will also help to increase the market presence especially
increase the depth of their presence across the country. The convenience stores must have
individual online accounts or portals that can again be accessed by the customers in order to
receive the goods and services at their preferred locations.
International Implementation
Another major idea that can be implemented by the company to increase their share in the
market as well as ensure their sustainability is by seriously considering their international
expansion. The expansion of the company in international markets can be one of the major
source of turnaround by the management of the company as because international presence will
help the company to have an international supply chain (Mackelprang et al. 2018). The presence
of an international supply chain will help the organization to increase their revenues and change
24
SUPPLY CHAIN MANAGEMENT
its current position in the market. The international expansion is certainly one of the most
feasible options for the organization to change its current status.
Impact on the market
According to, Hald and Thrane (2016) the change in the supply chain management of the
organization will at the very beginning start with the change in the business ladscape as
Morrison’s will have to be globalized and attract globalization. The increase in the number of
stores will prompt the organization to think overseas which in turn will lead to a tough time for
the management as they will have to decide on the location of the facilities, the capacity of the
facilities, the proper human resource of the facilities and the kind of operations that will be
inaugurated within the facilities. Apart from this the change in the supply chain and the increase
of global suppliers will lead to increased competition in the market and will force the company to
increase the price of the products being sold by the organization.
Timescale
Task Name Duration Start Finish
Project Morrison
Strategic Planning
277 days Mon
1/21/19
Tue
2/11/20
Preparing a
detailed plan
25 days Mon
1/21/19
Fri
2/22/19
Meeting with the
stakeholders of the
organization
5 days Mon
2/25/19
Fri 3/1/19
Taking a final
decision
1 day Mon
3/4/19
Mon
3/4/19
Creation and
appointment of a
management team
for the new plan
20 days Tue 3/5/19 Mon
4/1/19
Carrying out a
feasibility report
according to the
recommendations of
80 days Tue 4/2/19 Mon
7/22/19
SUPPLY CHAIN MANAGEMENT
its current position in the market. The international expansion is certainly one of the most
feasible options for the organization to change its current status.
Impact on the market
According to, Hald and Thrane (2016) the change in the supply chain management of the
organization will at the very beginning start with the change in the business ladscape as
Morrison’s will have to be globalized and attract globalization. The increase in the number of
stores will prompt the organization to think overseas which in turn will lead to a tough time for
the management as they will have to decide on the location of the facilities, the capacity of the
facilities, the proper human resource of the facilities and the kind of operations that will be
inaugurated within the facilities. Apart from this the change in the supply chain and the increase
of global suppliers will lead to increased competition in the market and will force the company to
increase the price of the products being sold by the organization.
Timescale
Task Name Duration Start Finish
Project Morrison
Strategic Planning
277 days Mon
1/21/19
Tue
2/11/20
Preparing a
detailed plan
25 days Mon
1/21/19
Fri
2/22/19
Meeting with the
stakeholders of the
organization
5 days Mon
2/25/19
Fri 3/1/19
Taking a final
decision
1 day Mon
3/4/19
Mon
3/4/19
Creation and
appointment of a
management team
for the new plan
20 days Tue 3/5/19 Mon
4/1/19
Carrying out a
feasibility report
according to the
recommendations of
80 days Tue 4/2/19 Mon
7/22/19
25
SUPPLY CHAIN MANAGEMENT
the plan
Carrying out a
financial feasibility
report
45 days Tue
7/23/19
Mon
9/23/19
Submission of the
plan to the
management of the
company
1 day Tue
9/24/19
Tue
9/24/19
Execution of the
plan
100 days Wed
9/25/19
Tue
2/11/20
Table No 2: Timeline Table
Source: (As created by the author)
Figure No 3: Gantt chart
Source: (As created by the author)
SUPPLY CHAIN MANAGEMENT
the plan
Carrying out a
financial feasibility
report
45 days Tue
7/23/19
Mon
9/23/19
Submission of the
plan to the
management of the
company
1 day Tue
9/24/19
Tue
9/24/19
Execution of the
plan
100 days Wed
9/25/19
Tue
2/11/20
Table No 2: Timeline Table
Source: (As created by the author)
Figure No 3: Gantt chart
Source: (As created by the author)
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SUPPLY CHAIN MANAGEMENT
The timescale and Gantt chart provided in the above report has shown that the
preparation of the strategic planning of Morrison’s Supermarket and its implementation will
consume a time of approximate 277 days.
Conclusion
The following report has presented a proper analysis of the present, intended and the
future strategic supply chain of Morrison’s Supermarket. The choice of the supermarket in
United Kingdom is quite justified because of the present turmoil, the company is going through.
The report has been able to explore a number of different options related to strategic
management and has also provided different recommendations and future strategies that can be
applied to change the current state of the organization. A thorough analysis of the report will thus
enable the readers to get the most appropriate information regarding supply chain management
and the future of supply chain that can ensure sustainability to the organization.
SUPPLY CHAIN MANAGEMENT
The timescale and Gantt chart provided in the above report has shown that the
preparation of the strategic planning of Morrison’s Supermarket and its implementation will
consume a time of approximate 277 days.
Conclusion
The following report has presented a proper analysis of the present, intended and the
future strategic supply chain of Morrison’s Supermarket. The choice of the supermarket in
United Kingdom is quite justified because of the present turmoil, the company is going through.
The report has been able to explore a number of different options related to strategic
management and has also provided different recommendations and future strategies that can be
applied to change the current state of the organization. A thorough analysis of the report will thus
enable the readers to get the most appropriate information regarding supply chain management
and the future of supply chain that can ensure sustainability to the organization.
27
SUPPLY CHAIN MANAGEMENT
References
Chen, D., Ignatius, J., Sun, D., Zhan, S., Zhou, C., Marra, M. and Demirbag, M., 2018. Reverse
logistics pricing strategy for a green supply chain: A view of customers' environmental
awareness. International Journal of Production Economics.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Elgazzar, S.H., Tipi, N.S. and Hubbard, N.J., 2016. The impact of supply chain strategy on the
financial performance: a case study of a manufacturing company.
Fahimnia, B., Sarkis, J. and Davarzani, H., 2015. Green supply chain management: A review and
bibliometric analysis. International Journal of Production Economics, 162, pp.101-114.
Gattorna, J., 2015. Dynamic supply chains. London: Pearson Education Limited.
Groceries.morrisons.com. (2019). Morrisons | Online Shopping | Food, Drink & More To Your
Door. [online] Available at: https://groceries.morrisons.com/ [Accessed 23 Jan. 2019].
Hajiesmaeili, A., Rahimi, M., Jaberi, E. and Hosseini, A.A., 2016. Studying the Influence of
Logistics on Organizational Performance through a Supply Chain Strategy: Case Study in
Goldiran Electronics Co. International Journal of Social, Behavioral, Educational, Economic,
Business and Industrial Engineering, World Academy of Science, Engineering and
Technology, 112(4), pp.1061-1069.
Hald, K.S. and Thrane, S., 2016. Management Accounting and Supply Chain Strategy. In 1st
International Competitiveness Management Conference.
SUPPLY CHAIN MANAGEMENT
References
Chen, D., Ignatius, J., Sun, D., Zhan, S., Zhou, C., Marra, M. and Demirbag, M., 2018. Reverse
logistics pricing strategy for a green supply chain: A view of customers' environmental
awareness. International Journal of Production Economics.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Elgazzar, S.H., Tipi, N.S. and Hubbard, N.J., 2016. The impact of supply chain strategy on the
financial performance: a case study of a manufacturing company.
Fahimnia, B., Sarkis, J. and Davarzani, H., 2015. Green supply chain management: A review and
bibliometric analysis. International Journal of Production Economics, 162, pp.101-114.
Gattorna, J., 2015. Dynamic supply chains. London: Pearson Education Limited.
Groceries.morrisons.com. (2019). Morrisons | Online Shopping | Food, Drink & More To Your
Door. [online] Available at: https://groceries.morrisons.com/ [Accessed 23 Jan. 2019].
Hajiesmaeili, A., Rahimi, M., Jaberi, E. and Hosseini, A.A., 2016. Studying the Influence of
Logistics on Organizational Performance through a Supply Chain Strategy: Case Study in
Goldiran Electronics Co. International Journal of Social, Behavioral, Educational, Economic,
Business and Industrial Engineering, World Academy of Science, Engineering and
Technology, 112(4), pp.1061-1069.
Hald, K.S. and Thrane, S., 2016. Management Accounting and Supply Chain Strategy. In 1st
International Competitiveness Management Conference.
28
SUPPLY CHAIN MANAGEMENT
Mackelprang, A.W., Bernardes, E., Burke, G.J. and Welter, C., 2018. Supplier Innovation
Strategy and Performance: A Matter of Supply Chain Market Positioning. Decision
Sciences, 49(4), pp.660-689.
Mangan, J., Lalwani, C. and Lalwani, C.L., 2016. Global logistics and supply chain
management. John Wiley & Sons.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and
supply chain management. Cengage Learning.
Perez-Franco, R., Phadnis, S., Caplice, C. and Sheffi, Y., 2016. Rethinking supply chain strategy
as a conceptual system. International Journal of Production Economics, 182, pp.384-396.
Sindi, S. and Roe, M., 2017. The Evolution of Supply Chains and Logistics. In Strategic Supply
Chain Management (pp. 7-25). Palgrave Macmillan, Cham.
Stevens, G.C. and Johnson, M., 2016. Integrating the supply chain… 25 years on. International
Journal of Physical Distribution & Logistics Management, 46(1), pp.19-42.
Swink, M., Melnyk, S.A., Hartley, J.L. and Cooper, M.B., 2017. Managing operations across the
supply chain. New York, NY: McGraw-Hill Education.
Wang, G., Gunasekaran, A., Ngai, E.W. and Papadopoulos, T., 2016. Big data analytics in
logistics and supply chain management: Certain investigations for research and
applications. International Journal of Production Economics, 176, pp.98-110.
SUPPLY CHAIN MANAGEMENT
Mackelprang, A.W., Bernardes, E., Burke, G.J. and Welter, C., 2018. Supplier Innovation
Strategy and Performance: A Matter of Supply Chain Market Positioning. Decision
Sciences, 49(4), pp.660-689.
Mangan, J., Lalwani, C. and Lalwani, C.L., 2016. Global logistics and supply chain
management. John Wiley & Sons.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and
supply chain management. Cengage Learning.
Perez-Franco, R., Phadnis, S., Caplice, C. and Sheffi, Y., 2016. Rethinking supply chain strategy
as a conceptual system. International Journal of Production Economics, 182, pp.384-396.
Sindi, S. and Roe, M., 2017. The Evolution of Supply Chains and Logistics. In Strategic Supply
Chain Management (pp. 7-25). Palgrave Macmillan, Cham.
Stevens, G.C. and Johnson, M., 2016. Integrating the supply chain… 25 years on. International
Journal of Physical Distribution & Logistics Management, 46(1), pp.19-42.
Swink, M., Melnyk, S.A., Hartley, J.L. and Cooper, M.B., 2017. Managing operations across the
supply chain. New York, NY: McGraw-Hill Education.
Wang, G., Gunasekaran, A., Ngai, E.W. and Papadopoulos, T., 2016. Big data analytics in
logistics and supply chain management: Certain investigations for research and
applications. International Journal of Production Economics, 176, pp.98-110.
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SUPPLY CHAIN MANAGEMENT
Appendices
Appendix 1
STRENGTHS OPPORTUNITIES Presence of efficient
distribution network
Large number of stores
Portfolio of the products
Larger Quality human asset
strategies
Organic Products can be
targeted
Must think on international
presence
Demand for new service and
products
Opening an E-Commerce site
WEAKNESSES THREATS
Lack of global presence
Problems with products
Absence of aggressive
marketing
Tax problems
BREXIT
Increase in cost of Human
resources
Better Marketing strategies by
competitors
Table No 1: SWOT Analysis
Source: (As created by the Author)
SUPPLY CHAIN MANAGEMENT
Appendices
Appendix 1
STRENGTHS OPPORTUNITIES Presence of efficient
distribution network
Large number of stores
Portfolio of the products
Larger Quality human asset
strategies
Organic Products can be
targeted
Must think on international
presence
Demand for new service and
products
Opening an E-Commerce site
WEAKNESSES THREATS
Lack of global presence
Problems with products
Absence of aggressive
marketing
Tax problems
BREXIT
Increase in cost of Human
resources
Better Marketing strategies by
competitors
Table No 1: SWOT Analysis
Source: (As created by the Author)
30
SUPPLY CHAIN MANAGEMENT
Appendix 2
Figure 2: Market Share of UK Grocery Supermarkets
Source: (Monczka et al. 2015)
SUPPLY CHAIN MANAGEMENT
Appendix 2
Figure 2: Market Share of UK Grocery Supermarkets
Source: (Monczka et al. 2015)
31
SUPPLY CHAIN MANAGEMENT
Appendix 3
Figure No 3: Ansoff Matrix
Source: (Hajiesmaeili et al. 2016)
SUPPLY CHAIN MANAGEMENT
Appendix 3
Figure No 3: Ansoff Matrix
Source: (Hajiesmaeili et al. 2016)
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Appendix 4
Figure No 4: Framework of Service Supply Chain Sustainability
Source: (Wang et al. 2016)
SUPPLY CHAIN MANAGEMENT
Appendix 4
Figure No 4: Framework of Service Supply Chain Sustainability
Source: (Wang et al. 2016)
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