Morrison PLC: Business Environment, PESTEL and SWOT Analysis Report

This report examines the business environment of Morrison PLC, a major UK supermarket chain, founded in 1899. It delves into how business, cultural, and natural environments shape the organization's behavior, emphasizing the impact of internal and external factors like employees, suppliers, and economic changes. The report analyzes the company's operations, including its structure and communication strategies, within the context of economic, social, political, technological, and environmental influences. It also provides a PESTEL analysis, exploring political, economic, social, technological, environmental, and legal factors affecting Morrison PLC. The report further includes a SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats, offering insights into its market position and strategic considerations. The analysis considers the dynamic nature of the business environment and its influence on Morrison PLC's performance and strategic decisions.

Organisation
and business
environment

INTRODUCTION....................................................................................................................................3
MAIN BODY...........................................................................................................................................4
How do the business, cultural, natural environment shape behaviour of selected organisation?........4
PESTEL and SWOT analysis...............................................................................................................6
CONCLUSION........................................................................................................................................8
REFERENCES.........................................................................................................................................8

INTRODUCTION
Business environment is classified within two section i.e., internal and external such as
employees, suppliers, customers needs, employees expectations, suppliers, innovation in technology,
activities of government, social trends and economical changes. In other words, business environment
is dynamic in nature as all these internal as well as external factors have wide impact on working of
business firm (Ahmed, 2016). For a business firm most vital aspect is its business environment. In
addition to this, there are several forces which collectively constitutes business environment such as
customers, suppliers, competitors, media, investors and many more. Furthermore, competitive as well
as dynamic situation needed contemporary business environment which provide assistance to business
firm in coping up with pressure and also provide as assistance in building productive and efficient
product that are cheap in price as well as high with accessibility. Thus, potential contemporary
business environment assist in analysing business opportunities which will further provide assistance
in designing business plan with available resources. Later on such type of opportunities result in
enhancing profitability and growth of business firm. Apart from this, micro environment and macro
environment are two major type of business environment which play essential role within
development as well as implementation of better plans and strategies which provide assistance in
enhancing productivity. For an organisation it is important to conduct internal as well as external
analysis within effective manner. Because business environment is dynamic in nature and several
modification take place that may result in negative as well as positive impact on the working of
company. Thus, in this analysing business environment provide assistance and there are several tools
of determining external and internal factors.
This report is based on Morrison plc supermarket which is part of retail industry founded in
1899 and its founder was William Morrison. In United Kingdom, Morrison is fourth biggest
supermarket chain which is headquartered at Bradford, England. Respective company is serving large
number of customers with their variety of products such as clothing, food and beverages, drinks,
books, CD's, magazines and so on. Furthermore, there are several important part of retailing industry
such as clients, suppliers, employees, customers taste and preferences etc.. Respective report will
focus on understanding behaviour of Morrison plc due to cultural, business and natural environment
which will be followed by PESTEL and SWOT analysis of respective organisation.

MAIN BODY
How do the business, cultural, natural environment shape behaviour of selected organisation?
Business firm operation get highly affair through culture as well as natural environment in
which business is conducting their operations. The structure of Mauritius is legally organised by your
diction as well as it is running from last 121 years. Is there is smooth functioning , sound flow of
communication as well as enhance supply chain management is result of contemporary business
environment (Barr and et.al., 2018). In addition to this, structure of respective business firm focus on
several areas such as regional, operation and centralized operations which provide assistance to
company in understanding their potential customers as well as identify ways by that more and more
customers get attracted. Furthermore, effective communication within manager as well as other
corporate recruiters is also essential for recruiting lower staff and also for enhancing productivity of
other employees. Economic environment is comprised of several external factors that have capacity of
purchasing customer and Enterprise. Along with this it also influence the performance of entire
business and also assist in shaping organisation behaviour. Factor related to respective environment
are macro are micro in nature. Here macro factor include income, inflation, tax rate, saving rate,
recession, employability and many more. On the other hand, micro factors involve competition,
resources availability, market size and several more.
Through economic system several number of government dispense, societies and many more
coordinate availability of resources, their goods as well as services within geographical region. In
addition to this, economic system mainly regulates production that involves capital, labour,
entrepreneurs and so on. Moreover, there are several type of economic system which have their own
unique concepts as well as assumptions. Morrison utilise market economic system that confers
strategies related to distribution of services as well as products. Moreover, market economy is that on
which major focus is given on demand and supply that observed for regulating the production of
services as well as products. Here, supply comprises of capital, labour as well as available resources in
which demand includes purchase of business as well as government (Blahová, Haghirian and Pálka,
2015). Thus, competition pressure force Morrison to slow down their rates for making sure that their
products are getting purchased at higher rate in comparison of competitors. Economic policies include
some actions that are taken by government within the Dominion of economy that cover system related
to budget, inflation interest rate and several intervention related to improving company economy.
Through inflation Morrison that affected which result in slowing down the growth of organisation.
After sometime company dealt with the issue effectively and also observed that Supermarket are
evidently getting benefit from higher inflation because it result in increasing price that ultimately pass
on the consumers and revenue of company that increases. Despite of inflation and cost pressure

Morrison stay ahead of their competition and focusing continuously on giving string competition to
their revelries due to their customer’s loyalty. Respective organisation economic condition was
observed which reflect underperformed revenue expectation because of unexpected lower rate of
income. In addition to this, there are two major factors leads to Organisation in such situation and also
in shaping their actions these are political and economical instability. So low economic status of
Morrison get improved through investing on such kind of product that are more in demand (De Vita
and Case, 2016). As it will result in increasing sale of respective company as well as also have
positive impact on the revenue by selling their product to customers.
Non economical environment includes social, political, demographic, legal and technological
environment which have wide impact on the operations of business firm. Moreover, social
environment involves society beliefs, values, perceptions and several more which come under both
internal and external social environments. Thus, for every business organisation it is important to
conduct their business operations as per the external environment which must include perception as
well as desire of society. A change in belief system may include promoting more organic product in
Morrison can alter the way society look towards the business and this will highly influences success
rate of respective company. Political environment of business firm refers to governmental actions
which have a wide effect on management as well as working of business. Political factors have huge
capacity and major gives impact on cultural, economical as well as social environment. Along with
this, rate of corruption, tax rate, government stability and so on are also involved within such factors.
Furthermore, level of corruption may hamper growth of business by providing more power to corrupt
population, Morrison also get affect by these type of variables in situation when their success rate get
low through volatile trading environment (Eke, 2018). Moreover, demographic environments lay
emphasis on people who like to purchase their offerings. Segment factors like age and sexual
orientation are explicitly focused on and larger part of items just as administrations are elevated with
setting to a specific age gathering and sex for improving their procuring and productivity. Such
condition obviously determines minute insights concerning a specific populace relying on their sex,
race, class, age, pay and family status. Utilizing such information help such retailing organization to
fabricate or advance such items which are perfect for their utilization and doable to buy. Along these
lines, the showcasing arranging and inclining can be effectively set by examining such condition
critically. Lawful condition like the arrangements or set of rules defined or actualized by government
can impact association development rate. Morrison have to profound information about the present
approaches and revised rules for making crafted by organization according to these conditions. It has
been seen that on the off chance that copy item are seen as kept in given grocery store, at that point it
is against lawful arrangements, which later outcome in overwhelming fines and disciplines. Such
practices can possibly bring down their image worth and loss of faithful clients. Mechanical condition

is an essential thing of creating procedure and making very good quality and imaginative items for
promoting their image name. The administrations which are profoundly innovative and render client
opportunity to get remarkable things are exceptionally advanced in such condition (Erl, Khattak and
Buhler, 2016). The job of innovation in diminishing computerized dangers have permitted the
individual organization in making their items accessible on online market, this practices made their
items and things open to huge number of individuals. These exercises had a huge effect on
development and efficiency of organization and made an essence accessible at online too with no sort
of risk. Natural environment is also one of the factors which play important role in affecting the
services as well as working of business from. The impact of natural disaster, climatic condition,
weather, location, availability of natural resources and many more other factors are equally
responsible in Operation as well as administration of business from. Moreover natural environment is
comprised of two major factors which are ecological and geographical ( Tarabasz, Selakovic and
Abraham, 2018). Hair ecological environment it determines the quality as well as type of decision that
made in terms of business. Availability of raw material has major impact on working of Morrison due
to which organisation has to decide what specific location they should have to select for expanding
business. As it is important that structure of area in which company is expanding their business should
be according to the preference because it may result in sales and revenue full stop for this reason coma
manufacturing right should be kept at such location Which are closer to the place and have resources
available and also suitable according to the climatic condition.
PESTEL and SWOT analysis
PESTEL is a tool utilise by marketers for analysing as well as monitoring external
factors related to business environment which have wide impact on environment (Lee, 2015). Here,
PESTEL stands for political, economical, social, technological, environmental and legal. Thus,
PESTEL analysis will provide assistance to manager of Morrison in analysing external factors.
Explanation of these are as follows :-
 Political factors - it is an factor that effect on profitability aur chances of sustainability of an
organisation at world level. There are numerous political factor which Morrison have to
expose. Several laws and regulation developed by government as well as political stability of
country (Schaltegger and Burritt, 2017). Here, laws and regulations are related to contract law,
integrity of politicians and many other factors which impact the working of respective business
firm.
 Economical factors - This factor include inflation rate, foreign exchange rate as well as
current status of economic cycle. For Morrison Company it is important to consider all these
factor for running their Organization in smooth manner.

 Social factors - Social factor which may affect working of Morrison are and which respective
company operating their activities. Social factor consists culture, attitude, belief, value and
many more all these are hold by numerous individual as a community (Hamilton and Webster,
2018). It is important for organisation to consider demographics of individual like there age
and gender.
 Technology factors - it is and factor which constantly innovate for enhancing productivity of
company and also for eliminating risk in near future. It is important for Morrison to introduce
Technology within their organisation for enhancing their productivity as well as developing
strong customer base.
 Environmental factors – Several industries hold numerous different standards of
environmental protection as their norms. Environmental factors which may impact Morrison
are current conditions of weather for transportation and export of resources and finished
products, Climate changes and so on.
 Legal factors - Factors like equal opportunities, health and safety, customer rights, product
safety, labeling and many more. Thus, Morrison require to consider all legal factors for
ensuring safety of their stakeholders as well as for developing a optimistic brand image
SWOT is a tool which has been used by organisation to identify their strengths, weaknesses,
opportunities and threats (Lenart-Gansiniec, 2018). This tool helps in identifying the competencies of
business along with identifying the manner in which threats could be eliminated. Below is a brief
description of elements of SWOT in context of Morrison.
Strengths:
 Morrison’s carries a staggering market share of 10% of the United Kingdom’s retail market
which can be mentioned to be one of its biggest strength (Mayanja and Perks, 2017).
 Strong distribution network of approximately 500 stores carries a strong market reach.
 Availability of home delivery and online presence.
 The supply chain network of this organization has been very efficient which is helpful in
fulfilling customer requirement in an appropriate manner.
Weaknesses:
 Lack of effective management of its online presence can be referred to be a weakness.
 Consistency in satisfying needs and expectation of consumer can be another weakness (Raziq
and Maulabakhsh, 2015).
 The presence of this organization is limited in United Kingdom therefore more vulnerable to
changing taxes and government regulations.

 This organization has been struggling with recent allegation of farmer’s right which have
reflected negatively on good will of the company.
Opportunities:
 One of the biggest opportunity for this enterprise is to enlarge their presence food segment as it
forecasted to be highest growing retail sector.
 Morrison’s Plc can further expand their operations into overseas market so as to achieve
economies of scale.
 This business can acquire small and approachable business to further enlarge their market.
Threats:
 The limited market shares and growing dominance of Tesco and Sainsbury’s is a major threat
to this organization (Namada, 2018).
 The diverse portfolio of Aldi and Lidl carries higher rates of growth in the market than
Morrison’s Plc.
 The success of business which are operating online have harmed the functioning and revenue
output from the retail outlets for Morrison’s Plc.
CONCLUSION
After going through above discussion it has been summarised that, business environment is
some collection of internal as well as external factor which have positive and negative impact on the
working of organisations. It includes employees, customers needs, demand, supply, activities of
government, economical changes, innovation in technology, social trends and many more. These
normal contemporary business condition helps in choosing driving just as optional make an effort
openings which further guides in making a marketable strategy with a functioning and present assets.
Such open doors in future strengthen the development and productivity of association. A financial
framework are characterized as a way through which number of legislative offices and social orders
convey the assets from one district top another. Such framework can possibly keep up capital and
division of work. Market financial framework is used by WM Morrison plc as indicated by the report
which lay earlier accentuation on organic market. The upside of such economy helps in improving
effectiveness, development level and profitability. There is no inclusion of government bodies and all
choices are taken by the trough and labourer of association. Every such obligation brings about high
development and innovativeness.

End can be drawn that the monetary approaches just as financial state of Morrison have made
steadiness issues which later on illuminated by making progressively imaginative practices for giving
a high serious edge to the adversaries. The organization got influenced by rising expansion and value
pressure which lead into political and prudent unsteadiness. However, organization received many
trend setting innovations and managed expansion by introducing item in totally different manner. All
variables identified with non efficient condition additionally have an extraordinary outcome on
running of business. The mechanical condition made the organization liberated from danger of online
rupture, which gave organization access to include its items an administrations their webpage or on
different social stage. The legitimate condition helps in knowing the administration strategies on
which Morrison need to work else they can confront discipline or enormous fines. Segment factors
render an opportunity to concentrate on a specific age gathering of people. The common habitat which
incorporate land and biological condition have ability to change business procedures and plans, along
these lines particular organization are proposed to stream green motivation and more CSR
arrangements for bringing down negative impact on condition and pull in enormous number of
populace. The qualities, shortcomings, openings and dangers of Morrison are broke down which
further assistance organization in making new rules and long haul objectives.

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