Global Business Environment: Morrison PESTLE Analysis Report

This report provides a comprehensive analysis of the global business environment and its effects on businesses, with a specific focus on Morrison, a major UK supermarket chain. The report employs a PESTLE analysis to examine the external factors impacting Morrison, including political instability stemming from Brexit, economic fluctuations, changing social trends like an aging population and health consciousness, and the rapid advancements in technology. The analysis reveals that political, social, and technological factors pose the most significant threats to Morrison. The report concludes by highlighting key drivers of change, such as political shifts, technological disruptions, fluctuating fuel prices, and evolving customer preferences. The report emphasizes the importance of environmental analysis in formulating effective strategies to address future challenges and maintain business resilience.

Globally business
environment

EXECUTIVE SUMMARY
This report is about the changing global environment and its impact on the businesses.
Morrison is taken as an organization on which pestle analysis is carried to identify the factors
affecting it. It can be inferred from the analysis is that Morrison is facing major threat is from
political, social and technological factors.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Macro environmental analysis.....................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment refers to the surrounding in which the business operates which
includes both internal and external factors. These factors affect the business functioning directly
and indirectly. In this report, Morrison is taken an organization which is one of the largest
supermarket, headquartered in UK. This report presents the complete macro environmental
analysis of the organization and the key drivers of change that company should take care for
better functioning.
MAIN BODY
Macro environmental analysis
To order to identify the external factors affecting the business, PESTEL analysis is used
(Phadermrod, Crowder and Wills, 2019). A detailed description is given below.
Political factors (High): This factor refers to the political stability of the country. The
major political factor affecting the industry is the Brexit and a lot of uncertainty in respect to
changing rules and regulations and governmental policies. It will have a high impact on
Morrison.
Economic factors (Moderate): The impact of Brexit has bought currency fluctuation in
the industry and has also caused inflationary pressures (Camillus, 2016.). Also, increase in the
fuel cost has affected the price of the product. It will have a moderate impact on Morrison.
Social factors (High): The UK's pension age consumers has created more job
opportunities for Morrison to tap in. Also, the increasing health conscious consumers will affect
the industry as people are demanding more healthy and organic product. It will have a high
impact on Morrison.
Technological factors (High): Due to technological up-gradation it is essential for the
businesses to be update with the introduction of the latest technology like analytics, automation,
digitalization etc. This factor will affect the industry adversely. So, Morrison will be highly
affected by it.
Environmental factors (Low): It refers to the responsibility of business towards
environment. There is huge pressure from government and consumers to take initiative to reduce
the negative impact of business on the environment (Aithal, 2017). This factor has a huge
influence on the industry. Morrison has already taken steps like to reduce carbon emission and
reducing the use of plastic. Thus, Morrison will have less impact of it.

Legal factors (Less): It includes legal laws and regulations that the organization is
required to comply with in order to avoid the situation of government intervention (Morrisons
SWOT & PESTLE Analysis. 2019). It includes complying food and safety standards, conducting
timely audits, emergence of sugar tax etc. It highly impacts the industry but Morrison has hired
highly professional legal team which is looking after it. So, it is having less influence on
Morrison.
Based on the above analysis, is has become easy to identify the key drivers of change that
the management should take care of. These are stated below.
 Changes in the political scenario and impact of Brexit on business
 Technological disruption because of continuous change in technology
 Incinerating fuel price
 The changing taste and preference of the customers over a short period.
CONCLUSION
It can be concluded that environmental analysis is very useful in identifying the key
factors that may impact functioning so that relevant strategies can be formulated to face the
challenges and problems that may occur in the future.

REFERENCES
Books and journals
Aithal, P. S., 2017. Industry Analysis–The First Step in Business Management Scholarly
Research. International Journal of Case Studies in Business, IT and Education
(IJCSBE). 1(1). pp.1-13.
Camillus, J. C., 2016. The wicked challenge of the business environment. International Journal
of Business Environment. 8(1). pp.19-31.
Phadermrod, B., Crowder, R. M. and Wills, G. B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Online
Morrisons SWOT & PESTLE Analysis. 2019. [Online]. Available through:
<https://www.swotandpestle.com/morrisons/>.
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