BM461: External Environment Research and Analysis of Morrison's PESTEL

This report presents a PESTEL analysis of Morrison, a UK-based supermarket chain, examining the external factors impacting its global business environment. The introduction provides background information on Morrison, highlighting its position as the fourth-largest supermarket chain in the UK. The main body of the report delves into the PESTEL framework, analyzing political, economic, social, technological, environmental, and legal factors. The political factors discuss the UK's stable political conditions and low-interest rates. Economic factors explore the UK's GDP, growth, and inflation rates, as well as the impact of the COVID-19 pandemic on employment. Social factors address consumer behavior, cultural aspects, and social issues. Technological factors highlight the UK's advanced technology adoption. Environmental factors consider the climate, tourism, and pollution. Legal factors examine the impact of employment and safety laws. The conclusion summarizes the importance of PESTEL analysis for understanding external environments and their impact on business operations. The report is supported by references using the Harvard format.

Global business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTEL analysis.........................................................................................................................1
CONCLUSION................................................................................................................................2
References:.......................................................................................................................................3

INTRODUCTION
Global business environment are those factors and forces which impact a business internationally
(Akram and et. al., 2019). These factors identifies threats and opportunities for business to grow
at global level. Morrison is an supermarket chain in UK which is headquartered in Bradford, UK.
It was founded in 1899 by William Morrison. It is the forth largest supermarket chain in UK. The
following report cover PESTEL analysis of Morrison company.
MAIN BODY
PESTEL analysis
Political factors- This are those factors which cover tax rates, trade restrictions, exchange
rates, political stability, interest rates and many others. In context of UK, they have stable
political conditions. Their interest rates are also very law which is 0.10% which help companies
to take loan on low interest rates. There is no trade restrictions for UK based companies in UK.
Hence, most of the political factors are suitable for Morrison to survive globally.
Economical factors- It includes economical conditions of a company, GDP, growth rate,
inflation rate, unemployment rate and etc (Pan, Chen and Zhan, 2019). UK is developed country
which is having good economical conditions. Their growth rate is high and inflation rate is low
which help their companies to grow well without currency fluctuations. But due to Covid 19
Pandemic their employment rate increases which is not good for any organisation because it
indicated the lack of employees and skills within the company. Hence, Morrison has advantage
in this element.
Social factor- It includes behaviour and attitude of population, religions and culture
factors, life standards and etc. in UK, population is more focused on high standard of living and
they are ready to pay high amount to develop their living standards. On the other hand there are
many strikes took place related to skin colour, discrimination, religion and etc. Hence, Morrison
is require to take decisions carefully related to social factor.
Technological factor- It involve how advance technology is opted by a country and what
is the rate of adoption of new technology(Turkyilmaz and et. al., 2019). In context of UK, they
are known for their technology. Hence, they have most advanced and updated technology in the
world. This help the Morrison to grow fast in context of technology.
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Environmental factors- This factors covers climate, weather, tourism status, pollution
control and many others. In United Kingdom, they have advantage of their appropriate weather
and climate and due to their good and hygienic environment tourism status is high. On the other
hand their their air pollution is uncontrollable and cause many deaths in UK due to lungs
diseases. Hence, environmental factor of UK is moderate for Morrison and did not effect much
on their functioning areas.
Legal factors- It include all legal laws and restrictions made by government within an
country to enhance discipline living life (Marinović-Matović and Arsić, 2020). In context of UK,
their legal laws like employment law, employees safety law and others are made for the benefit
of employees to save their rights while doing job in companies. Hence, UK's legal laws impacts
positive upon Morrison.
CONCLUSION
From the above information it is concluded that PESTEL is used for external analysis of
business. The factors of PESTEL like political, economical, social, technological, environmental
and legal factors impacts differently upon different operational activities of any company. For
future growth of companies it is necessary to analyse external environment and their impacts
upon business.
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References:
Books and Journals
Akram, R. and et. al., 2019. Trends of electronic waste pollution and its impact on the global
environment and ecosystem. Environmental Science and Pollution Research. 26(17).
pp.16923-16938.
Marinović-Matović, I. and Arsić, L., 2020. Ecological dimension of PESTEL analysis in small
enterprises in the Republic of Serbia. Recycling and Sustainable Development. 13(1).
pp.63-71.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering. 35(1). p.05018013.
Turkyilmaz, A. and et. al., 2019. A comprehensive construction and demolition waste
management model using PESTEL and 3R for construction companies operating in
Central Asia. Sustainability. 11(6). p.1593.
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