Business Strategy for Morrison: Internal and External Analysis

UNIT 32 - BUSINESS
STRATEGY
Table of Contents

INTRODUCTION...........................................................................................................................3
Part A: An internal and external analysis that provides a platform for strategic decision making: 3
1. PESTLE and SWOT of the organisation and an evaluation of the organisation’s resources
and capabilities............................................................................................................................3
2. Competitive environment analysis using Porter’s Five Forces model....................................6
3. Identification and justification of the organisation’s existing and/or potential competitive
advantage.....................................................................................................................................8
4. Valid strategies and tactical objectives to achieve overall strategic objectives.......................9
Part B: On the basis of this analysis critically evaluate and justify strategic options for the
organisation:..................................................................................................................................10
1. Critical evaluation of the different types of strategic directions available to the organisation
...................................................................................................................................................10
2. Justification and recommendation of the most appropriate growth platform/s and strategies
...................................................................................................................................................13
3. Evaluate ways and means by which the chosen strategy/ies can be monitored in order to
ensure success............................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

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.
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 market digital technologies are expanded in the market so
Morrison also need to change its selling and promoting style to digital manner to gain
competitive advantages in the market. This is one of the best opportunity for the company to
compete in the international market. When the technology upgraded in the market and Morrison

changes its technologies accordingly then they will grab more customer’s in the existing and new
market.
Legal factors: there are number of laws which are made by the government for the retailing
sectors so the organization in the retail sector need to follow all of these laws. Morrison have to
undertake the safety laws for the food and laws of integrity to check the products are good and
there is no illegal practises are being done (Grassi and Vallati, 2019). This laws are also changed
so Morrison need to change the policies of its organization keeping in mind the legal laws. By
following all the rules and laws Morrison can grab the opportunity to become more effective in
dynamic environment.
Environment factors: The area where the business practises are done is also being influencing
the company with different directions. When the climate condition changes then company have
to change their process of production and distribution in the market place. They have to reduce
the emission of carbon so that they can able to sustain in the market for long-term. When any
change take place in environment where morrison operate then it can be bigger threat for the
organization and its functions as well.
SWOT analysis
The SWOT analysis of Morrison assist to know about the strength, weaknesses, opportunity and
threats. Morrison is one of the largest chain of supermarket in food product over market of UK.
Strength: Morrison is having effective food and beverage production skill which they used to
produce, and they are having a strong and more efficient distribution network by which they can
easily reach to their targeted people. Their supply chain is also very wider (Pesce and et. al.,
2018). They are also having my-view feature and more card programmes for the existing and the
new customers of Morrison. They are having large number of products which are being offered
to the customers and also operating in customized food products range. The company always
make use of innovative marketing approach in the market, and they avoid middle man while
distributing their products (Haleem and Jehangir, 2017). They are also trained the employees and
academics manner through which they are regularly improving their services.

Weaknesses: Morrison is not yet cover the global market they are operating in only limited
market and having limited market presence. When there is change in external environment then
they are not able to take immediate actions for that change and lack behind in the market
(Shatskaya, Komaristaya and Kafian, 2017). The customer of Morrison are less loyal they use to
change their product brand at any time when they feel the Morrison is not offering the right
products according to them. The customers are having less positive image of Morrison in their
mind because they feel there are more brands better than this in market (RASHID, 2020).
Morrison is having less online presence only limited products are available online. Their
employee turnover is also high and overall they are having less revenue in the market.
Opportunities: the Morrison is the international brand, yet they are not able to expand its
business internationally so it is opportunity for the Morrison to expand globally (Wee, 2017).
Morrison need to expand internationally to become the leading brand in the market. They also
sell its products more through online market and provide related discount to attract more and
more customers towards the brand. They also enter the non-food retailing sector so that they can
offer large variety off products in the market (Křupka, Kantorová and Haile, 2018). In the
COVID-19 pandemic situation people preferring online buying of all type of products so by
providing the goods and services to them at affordable price can help to attract more customers.
They can also sale their products in third party applications which use to supply the products
internationally.
Threats: The retailing sectors is having more risk than any other sector or field and Morrison
also exist in retailing. The rules and regulation are regularly changing so the company have to
follow them and if they are not able to do then Morrison not able to sustain in the market
(AlMarwani, 2020.). Further the competition is also enhanced in the market as new and new
companies are entering the market and trying to the best so this is one of the biggest threat for
Morrison. The online retailing is become the threat for Morrison’s because there are large
number of people who are not using internet.
2. Competitive environment analysis using Porter’s Five Forces model
The analysis help to identify the competitive landscape of the retail industry each forces
in the model is present a strength that assist the strategic planner. The structure of the industry
uses to change regularly as per the customers preferences. The five forces of porter are as under: