Understanding the Business Environment of Morrison: A Case Study

Module Name: Understanding the Business Environment.
Module Code: BUS4001.
Submission Deadline:
Word Count: 3000

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Overview of the company............................................................................................................3
Task 2...............................................................................................................................................5
Shareholders and Stakeholders....................................................................................................5
Task 3...............................................................................................................................................6
PESTLE analysis of Company....................................................................................................6
Porter’s five forces.......................................................................................................................8
Task 4.............................................................................................................................................10
Key performance indicators.......................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The report is on business management. It gives an insight about the company and tells about the
competitive advantage of the company. The organisation taken in the report is Morrison. It is a
retail company based in UK dealing in food and grocery products. The stakeholder, shareholder
and stakeholder analysis has been done. The PESTLE analysis of the company has been done
along with Porter’s five forces and recommendations given. Key Performance indicators of the
company to judge the ratings have been discussed.
Task 1
Overview of the company
Morrison is a British supermarket chain which is privately owned and mainly the business is for
grocery and food in which the fresh food is sourced and processed from the manufacturing stores
of the company. The company has 110,00 employees and these employees are trained and
professional providing service to around 11 million customers passing out daily from the
company’s stores. The company covers around 11 million households with their online service
Morrisons.com. The retail organisation has around 500 stores present in the country (Guo and
Wang, 2019).
Morrison is committed to provide its products to the customers at low priced rates as it is
the company’s vision to help customers make savings on purchase. This also helps give company
a niche of caring for the customer’s pocket and apart from this, company also has a sustainable
approach which accompanied by the fresh supply of products compels the customers to remain
attached with the company. The company’s concerns over sustainability by taking up of
environmental concerns are appreciable. It has an approach which helps sourcing of fresh
produce locally and then processed in Morrison’s own facilities of manufacturing. The fresh
produce is then delivered in temperature-controlled warehouses and the packing plants in the
country and abroad. The objectives of the company are:
a) Being more competitive: Being competitive means helping the customers make value for
their money and saving on items they require on daily basis.

b) Serving customers better: Listening to customers and making changes by incorporating
their feedback.
c) Finding local solutions: Delivering the solutions which benefit every store’s community.
d) Developing useful services: Aim is to offer customers everything they would need to buy
on one shopping trip.
The market structure in which Morrison operates is of retail where there is competition
present and thus companies have to innovate to bring in the customers as well as present a
display of merchandise or food products in a way that creates an attractive presentation for
customers. To gain competitive advantage, company does recruitment from universities to get a
pool of talent and recruits in a number of departments like logistics, manufacturing, marketing
and finance. Thus, company is able to use the talent in the business services and provide better
quality of customer service. The market environment in which Morrison is operating is an
oligopoly environment where the big competitors are less and there is an interdependency of the
firms who compete with each other for market share. The UK supermarket is an oligopoly
market where there are four big players namely: Tesco, Sainsbury, Asda and Morrison. The other
reasons for oligopoly being barriers for new entry is high, thirdly, non-price competition is high
and fourthly firms are interdependent.
Elements of customer service:
a) Information: It relates to the interaction of customers by the colleagues and the details
which are given on the material published on the website, packaging, catalogues, leaflets
etc. This helps in customer navigation to navigate the store of company effectively.
b) Attention of specialists: The advice has to be accurate and available when customers need
it from colleagues to help them gauge what they are talking about. At Morrison, trained
specialists give advice on cooking different menu items.
c) After sales service: This is the feedback being taken of the customer of the sales
procedure with suggestions to incorporate changes as well as providing services of
packaging, providing guarantees, registering of complaints or any refunds. Morrison team
caters a sound after sales service for its customers.
d) Convenience: It includes the store location, the ease of access and the availability of
public transport and convenient methods of payment. At Morrison, stores are strategically

located and 5% of the car parking is dedicated to the blue badge holders for enhancing
accessibility to those with disabilities.
Customer service measurement
The Morrison measure the customer service in many ways. The quantitative measurement takes
place by exit surveys in each of the store each month. The qualitative measurement takes place
through some methods as mystery shops allowing the customer opinions being gathered
(Whitelock and Ensaff, 2018).
The Morrison miles card has rewarded regular petrol station users for collection of points on fuel
purchase with vouchers of shopping to spend. This helps in retaining customers by giving them
reward for purchases which are repeated regularly.
Task 2
Shareholders and Stakeholders
Shareholder: A shareholder is someone who owns at least one share of a company’s stock or
equity, they being the essential owners of the company also reap benefits in form of dividends
(Fernandez, 2019).
Stakeholders: Stakeholders are people who have investment in a fixed percentage in the
company’s capital. They can be internal as well as external stakeholders. Internal stakeholders
are the employees, management, board of directors, suppliers etc. External stakeholders are the
government whose policies can affect the company, its customers and institutional investors who
would like to finance company’s projects or purchase a stake (Bendtsen, Clausen and Hansen,
2021).
Stakeholder analysis
A stakeholder analysis is the process of identification of the people before the beginning of the
project, grouping them according to their participation levels, interest and influence which occurs
in project and determination of how best can the involvement and communication be done for
each of the stakeholder groups (Aragonés-Beltrán, García-Melón and Montesinos-Valera, 2017).

The stakeholder analysis for the company can be performed in the following way:
a) Identification of stakeholders: Two types of stakeholders are present:
i) External stakeholders: They are individuals who are affected by the business or
project but can be affected by the business or project.
ii) Internal stakeholders: They are people working in the organisation or project.
They are the employees of the organisation, the suppliers of the company, the
board of directors etc.
b) Prioritising the stakeholders: The stakeholder analysis where metrics are prioritize and
defined and categorized as stakeholders. They can be the interest levels, influence, impact
and relative priority.
Identification of stakeholders through various analysis metrics
Basic stakeholder analysis technique
The technique is defined to evaluate stakeholder using the sentiments.
Power and interest based stakeholder analysis
This method takes in account the influence and interest based matrix for evaluation of
stakeholders and the objective of using the technique is in reviewing sentiments of the
most influential stakeholders for maximum benefits and success (Aragonés-Beltrán,
García-Melón and Montesinos-Valera, 2017).
There are basically four categories which define the stakeholders for project:
a) First category shall represent people with more power, but less of interest that should
be satisfied for ensuring that there are no obstacles in the project. At Morrison,
affiliates, customer and government are those external stakeholders.
b) The second category can be defined as people with high power and high interest who
can monitor the growth closely and can influence the project. The management of
Morrison and the owner fall under this segment as internal stakeholders.
c) The third category defines people with low power and low interest where people
should be monitored for ensuring seamless delivery of project. Speaking of Morrison,
the local community residing who generally purchase from local vendors fall under
this category.