Report: Morrison's Business Environment Analysis - SWOT & PESTEL

This report critically examines the business environment of Morrison's, a major UK supermarket chain. It begins with an introduction highlighting the importance of understanding business environments and their rapid changes. The report then delves into Morrison's internal factors through a SWOT analysis, evaluating its strengths, weaknesses, opportunities, and threats. Subsequently, it explores the external environment using a PESTEL analysis, considering political, economic, social, technological, environmental, and legal factors impacting the company. The analysis includes the impact of Brexit, economic factors like inflation, consumer preferences, and technological adaptations. The report also discusses how the company influences its external context, touching on political, economic, financial, and ecological elements. The conclusion emphasizes the need to clearly focus on the business environment for effective decision-making and future problem prevention.

Introduction
Business environment is a wider and broader term which consists of
different types of organisations and people. The market size and
business environment is changing at rapid scale which makes it
essential for organisation to focus on most efficient manner so that
goals are achieved (Arun, 2018). Main Purpose of this report is to
critically understand the importance of business environment.
Morrison’s, a large supermarket chain headquartered in United
Kingdom. This organisation deals in daily consumable items and
other related products. This report comprises of external and internal
factors that impact upon business and different ways in which the
organisation can impact on external environment.
Morrison’s Its Environment
Name of the Student
External Environment
PESTEL Analysis
It is a kind of a tool used by enterprises to analyse external factor which impact
upon organisational structure. Main benefit of using this analysis is that it critically
helps in making effective decisions and business and also Morrison is able to
analyse element due to which they are unable to accomplish their goals in time
period (Guo, 2019).
Political factors- It is a type of effective which consists of different types of
elements like trade policy, tax policy, labour Law etc. In relevance of Morrison’s,
they have been majorly affected by brexit which makes it difficult for them to
accept the policies and regulations.
Economic factors- It consists of elements which include inflation and deflation
rates, foreign exchange policies etc. In context of selected enterprise, due to the
increase in oil price customers and consumers were mostly affected by the low
income. These economic factors are important to be focused so that at what level
government intervention in the economy is being determined appropriately which is
beneficial for business (Halbert, 2020).
Social element- Social factors consist of different types of components like taste
preference, attitude and behaviour of different income age group people. In
viewpoint of chosen enterprise, consumer patient preference and retail sector
changes periodically which make it necessary for them to focus on market changing
analysis so that decisions are done accordingly.
Technological factors- Technology and business is used at every aspect due to the
use of internet and other applications as well as tools. In relation of Morrison’s, it
has become critically necessary to adapt different technologies in business so
organisation need to enlarge their investment in technology in order to provide
more battery services and products to the consumer which is a difficult process
How the company impact its context External Environment
There are various types of external element that impose positive effect o
activity of organisation that is given below:
Political variable there are various law connected to organisation
different country. Every element aids assistance to organisation
assessing level of efficiency in which government interfering. It
important for governing bodies to assess both future and present situatio
of organisation in context of advertisement technique that effect a
organisation. This political variable has a deeper impact on enterpri
activities and also it is necessary for enterprises to focus on these politic
factors so that better relations are maintained.
Financial component the economic factors imposes direct effect on pro
margin of organisation that determine trade price, loan, cost & many mor
It is important to separate variable so that it is helpful in achieving goal
timely manner. Financial factors effects overall structure of organisation
it is medically necessary for manager of company to higher skille
employees who can easily maintain and manage the financial statements
business.
Mechanical- This is also another factor which directly affects overa
functions of company as because Morrison’s deals in consumable items
it is important for them to have a higher advanced machines and tools
order to distribute the products to consumers of higher quality and whic
also results in profit margin.
Lawful firm- In this element, it also impact upon organisation and extern
environment as because laws and regulations are being maintained b
government and further they are imposed on organisational activities whic
includes different types of securities legal considerations etc. It direct
impact upon workflow of business (Jones, 2020).
Ecological, there are various elements & factor of government that assis
in increasing efficiency of organisation. It is important to follow rules th
increases brand image of organisation in front of customer at marketplace
So it has been analysed that external environment affec
the organisational workflow structure at deeper level and it is becomin
necessary to clearly focus on business environment so that positiv
decisions are being made and problem do not occur in future interv
(Kumarasiri, 2020).
Internal Factors
SWOT Analysis
It is a tool which is used by individuals or
organisations in order to analyse and determine their internals
capabilities by accessing to strength, weakness, opportunities and threats.
It has also become important in business to use these tools so that
analysis is made properly. So Morrison’s SWOT analysis discussed as
below-
Strength
Main strength of Morrison’s is that it is located at a global scale and it