Analysis of Impact and Influence of Macro Environment on Business Strategies of Morrison

BUSINESS-
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Analysis of impact and influence of macro environment on an organisation and its business
strategies.................................................................................................................................1
LO2..................................................................................................................................................6
Assessment of internal environment and capabilities............................................................6
LO3..................................................................................................................................................9
Evaluation of a given organisation with the help of Porter's Five Force Model....................9
LO 4...............................................................................................................................................10
Applying of theories, concepts, models to understand and interpret strategic directions
available to a company.........................................................................................................10
CONCLUSION..............................................................................................................................13
References......................................................................................................................................14
Books & Journal............................................................................................................................14

INTRODUCTION
A set of rules and regulations in a business organisation in order to attract customers,
achieve competitive advantage, strengthen performance of business and then achieve all the
objectives and goals are said to be business strategies (Ritte and Andersen, 2014). It makes a
roadmap for future steps of company; it also provides with an outline of planning. In the
following report analysis of business strategies of Morrison is conducted. It is one of the largest
supermarket chains in United Kingdom. It comes on number four when considering all the big
supermarkets in UK. With it headquarter located in Bradfort, England, William Morrison found
this chain in year 1899. In this report analysis is done on all the factors of macro environment on
business as well as its stakeholder analysis is done. Other than this different models of Morrisons
are also discussed in this report. These models include Porters Model, SWOT Analysis, VRIO
Analysis, Pestle, Ansoff’s Matrix etc.
LO 1
Analysis of impact and influence of macro environment on an organisation and its business
strategies
 Mission- Mission of Morrisons is to provide their customers with its good quality
products in best possible prices on their weekly shopping. To provide customers and
clients valuable products by best value for money on weekly shopping.
 Vision- Vision of Morrisons is to become specialist in food industry for all its consumers.
 Objectives- Company aims at providing good quality of products to their customers in
order to attain maximum market share.
PESTLE analysis:
PESTLE analysis is a tool used to analyse the impact of external factors on a
business. It includes macro factors present in external environment. Below mentioned are
all those external factors analysed for Morrisons-
 Political- Political elements such as future legislation, government policies,
international legislation etc. present in a nation have impact on functioning of a
business. Morrisons is also facing impact of such factors on its business. Below
mentioned are positive as well as negative impact of this factor on Morrisons:
1

Positive impact: Business operations in Morrisons is affected by various custom duties levied on
it. Company benefits from exports as they give more profits to business. Morrisons exports its
products to countries in Asia (Rowlinson, Hassard and Decker, 2014).
Negative impact: There are some regulations to have negative effect on operations of Morrisons
as well. Due to changing political parties in Asia and democratic rule of China doing business in
those regions have become difficult.
 Economic- Economic factors include monetary issues, taxation, overseas
economies etc. Below mentioned are positive as well as negative impact of this
factor on Morrisons:
Positive impact: Diversification strategy is used by Morrisons to introduce new products in new
markets increasing its presence in foreign as well as domestic economy.
Negative impact: Labour cost in UK are too high. This is causing a hike in expenses of
Morrisons. 4.4% of expenses of wages for Morrisons have increased in past year(Morrison's
SWOT and PESTLE analysis, 2019).
 Social- This set of external factors is concerned with lifestyle, trends,
demographics, consumer opinions etc. Below mentioned are positive as well as
negative impact of this factor on Morrisons:
Positive impact: Morrison is diversifying in its products in order to satisfy needs of all its
customers. This is helping in company to increase its market share and customer base. This also
increases revenues and profits of this firm.
Negative impact: There are disadvantages to company due to these social factors as consumers
perceptions and wants keep on changing. Due to this company needs to change its business
strategies from time to time.
Technological- Technological factors include technological replacements, research funding,
information and technology, advancement in science etc (Storey, 2016). Below mentioned are
positive as well as negative impact of this factor on Morrisons:
2