BMP3002 - Morrison's: Impact of Internal & External Factors

This report provides an analysis of the internal and external factors that influence Morrison's, a British multinational retailing chain. It explores the impact of internal factors such as strengths (strong brand image, efficient distribution) and weaknesses (high training costs, demand forecasting issues) alongside external factors like political (Brexit), economic (oil prices), social (health awareness), technological, environmental (CSR activities), and legal considerations. The report concludes that understanding both internal and external environments is crucial for a company's growth and resilience, particularly in the face of threats like competition and global events. It also highlights Morrison's efforts in CSR activities and legal compliance.

Morrison
INTRODUCTION
Internal factors are those factors which affect a business from inside or which is
affected by its operations. On the other hand external business environment factors
occur outside the business. They both have impacts upon business. Morrison is British
multinational retailing chain company which is founded in 1899 by William Morrison.
The following file covers impact of internal and external factors upon Morrison.
SWOT analysis
External analysis
•Political factors- Brexit in UK was major political issue which impacted
political condition of UK. Due to this Morrison's get affected and their profit
earning ratio declined.
•Economical factors- Recently oil prices are raising which forces households to
tighter their budget as an customers. Due to this reason, Morrison's customers
purchase products in less quantity which is not good for them.
•Social factors- Education and health conditions are growing in UK which help
the Morrison to offer good quality of products and gain the trust of their
customers.
•Technological factors- Morrison's investment in technology help them to
manage their waste management and their data transformation takes place
through digitally which further help them to save their time.
•Environmental factors- Morrison is offering paper or cloth bags instead of
plastic bags which is hazardous for environment.
•Legal factors- Morrison has a team who focus that all legal laws and
regulations are followed by them or not. Food safety and legal standards laws
are strictly followed by them.
CONCLUSION
It is concluded that business environment has great
impact upon every company. Analyzing internal and
external business environment helps the company to
defend with some harmful effects of business
environment.
REFERENCES
•Cepel, M., 2019. Social and Cultural Factors and their Impact on the Quality of
Business Environment in the SME Segment.
•Newman, C. and et. al., 2020. Corporate social responsibility in a competitive business
Morrison's impact upon external environment
•CSR activities- Morrison is focusing to perform some good CSR activities which protect their environment. They supposed to provide
paper bags instead of plastic bags which is easily biodegradable. Secondly they makes sure that their manufacturing sites will not release
any harmful chemical in near rivers. This is how they manage their environmental factor of external environment.
•Staff diversion- Morrison is having a different department and staff for checking that all legal laws must be followed by them properly
and the same department is responsible to handle all external political impacts in a effective manner. This is how they manage their
political and legal factors.
Strength
•They perform effectively in new
markets.
•They are having strong brand image,
distribution channel and gain high level
of customer satisfaction.
Weakness
•They spend a high rate on the training
and development of their employees as
compared to their requirement.
•They are not performing well in
forecasting their product's demand in the
market.
Opportunity
•expanding their business in more
countries especially in Asian countries
will help them to grow well.
•Better promotional strategies to aware
their customers is also good opportunity
for them.
Threats
•Their competitors like Sainsburry, Tesco
and many others are biggest threat for
Morrison.
•Covid-19 pandemic is another threat for
them where customer's purchasing power
decline.