Strategic Management Plan for Morrison: Internal and External Analysis

ID
Unit Number and Title Unit 32 – Business
Strategy
4
April 20
Title Strategic
Management Plan
Statement of
Authenticity:
I certify that the work
submitted for this unit
is my own and the
research sources are
fully acknowledged.
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Table of Content
Introduction p
Part A: An internal and external analysis that provides a platform
for strategic decision making: p-
p
1. PESTLE and SWOT of the organisation and an evaluation of the
organisation’s resources and capabilities p
2. Competitive environment analysis using Porter’s Five Forces model
p
3. Identification and justification of the organisation’s existing and/or potential
competitive advantage p
4. Valid strategies and tactical objectives to achieve overall strategic
objectives p
Part B: On the basis of this analysis critically evaluate and justify
strategic options for the organisation: p-p
1. Critical evaluation of the different types of strategic directions available to
the organisation p
2. Justification and recommendation of the most appropriate growth platform/s
and strategies p
3. Evaluate ways and means by which the chosen strategy/ies can be
monitored in order to ensure success p
5.0 Conclusions p
References p
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Introduction
The business strategy refers to the strategic planning that assist to help and grow
the business in a proper manner and method (Ukko and et. al., 2019). In this process
the organization use to make different plans and goal which have to achieve by the
business in the market. There are different types of business strategies which help to
achieve the end goal of the company in effective manner. Morrison is one of the
largest chain of supermarket having fourth rank in the Britain having its main brand in
Braford, UK (Islam and Mamun, 2017). The company is offering healthy food products
in the market at affordable prices. They are having more than 494 stores all over in
UK and earning almost 17,536 million annually. This report will evaluate the internal
and external analysis of Morrison and its porter five forces knowing competitor
environment. Further identification and justification of competitive advantages are
explained with a strategies planning and tactical objectives. Moreover, the different
strategies directions are determined for the Morrison and recommendation is also
presented and ways of monitoring the success are discussed.
Part A: An internal and external analysis that provides a platform
for strategic decision making:
1. PESTLE and SWOT of the organisation and an evaluation of the
organisation’s resources and capabilities
Morrison is one of the largest chain in the supermarket of Britain having four poistion
in the market. There are number of different external and internal factor who are
affecting the company from different sides (Anand and Mantovani, 2021). PESTLE
analysis assist to know about the macro-environment as retailing sector is highly
influenced by the change in its extrinsic environment. So with the help of its external
environment analysis Morrison can find the best way to deal with and make effective
change.
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Political factors: The retail industry is highly influenced by the political factor of the
country because all the companies of retail have to follow the instruction which are
developed by the political party. In the Britain the main political change is caused
due to Britain exit from EU market it causes number of issues for the retailing
companies. With this there are different changes in the policies and rules for
operating in UK market (AKMAN, 2020). In the market of food retail the laws of
government are higher and multiple so Morrison is highly influenced in the Britain
market. According to the guidelines of government they have to change the functions
so that they can sustain in the market. By adopting to the change within the
organization they can grab the opportunity to present the brand in-front of
government in positive manner.
Economical factors: The food retailing companies of Britain are highly influenced
when the economy condition changes. As Britain economy after Brexit is being more
complex and organization have face issues of economy (Abdel-Basset, Mohamed and
Smarandache, 2018). The inflation rate is also being raised after the Brexit people are
not having disposable income to invest more on food supplements. Morrison is
offering high quality in the food products and the customers base of the company is
not having the income to buy the products after the higher rate of inflation in the
economy. This is a big threat for the company because I they are selling their
products in the market at higher price then their demand reduced immediately.
Social factors: As the society is also being totally changed people preference is
changing on regular basis, and they are buying the products as per their choice.
Retail industry influenced by this factor very much because when people change
their buying habit then retailing companies have to change al of its products. The
education and healthcare sector are more expanding in the UK market so people are
also engaging in having higher education, so they are investing their income over
their. When the Morrison will produce its goods as per the UK people then their sale
will automatically enhance.
Technological factors: In any industry technology is becoming the main element
which assist to impact the business very much (Simões, 2020). Every organization to
gain competitive advantage need to change and modify its technologies on regular
basis. If the Morrison will not use innovative technologies then their wastage can not
be minimized and customers are also not attract with the brand. In the current
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