Comprehensive Environmental and SWOT Analysis of Morrison UK Business

This report provides a detailed environmental analysis of Morrison UK, a major UK supermarket chain. It begins with an introduction to environmental analysis as a strategic tool, emphasizing its importance in understanding internal and external factors influencing business performance. The report then outlines Morrison UK's vision and mission. The core of the report focuses on external environmental analysis using the PESTLE framework, examining political, economic, social, technological, environmental, and legal factors. This is followed by a SWOT analysis, evaluating the company's strengths, weaknesses, opportunities, and threats. The report concludes with a summary and recommendations, including suggestions for online presence, employee training, quality focus, and competitive strategies. References to relevant literature are also provided.

MORRISON UK

INTRODUCTION & BACKGROUND
Introduction
 Environment analysis is termed out as strategic tool.
 This is process that helps to investigate external and internal components that mainly affects
performance of organisation.
 Henceforth, businesses are greatly influenced by their environment.
 The presentation is based on business activities of Morrison UK. It is largest supermarket plc
that is headquartered in Bradford, West Yorkshire, England. Furthermore, study has covered
environmental analysis with use of undertaking internal and external factors.
Background
 Vision- This enables the people to take ownership and work with partners that shares vision.
 Mission- The mission is to offer and share Business to Business knowledge that enables
people to succeed in business.

ENVIRONMENTAL ANALYSIS
 The external analysis will be conducted with help of components as PESTLE. It is framework that uses by
marketers to analyse and monitor the external marketing conditions. Therefore, these are outlined in following
context as are-:
Political-:
 This is defined as component that affects the profitability of the industry in huge context.
 Herein, the chances of survival of the company are quite diverse.
 In addition to this, risk to this component can be defined as very sudden and this brings changes in existing
political regimes to civil unrest to the major decision taken by legal authorities.
 Therefore, the high level of the taxation can demotivate the entity as Morrisons from maximising the profitability.
Economic factor -:
 It is defined as components that is inclusive of factors as inflation rate, foreign exchange rate, gross domestic
product and current stage of economy cycle.
 These all components can affects the working of the industry in huge aspect. This also has resulting impact on
aggregate demand, supply and business climate that all must have potential to make firm highly profitable.
 In addition to this, it can be stated that the interest of the country can affect as how much individual are willing to
borrow and invest.

CONT..
Social factor-:
 The changes in taste and preferences of the customer highly impacts the working of enterprise.
 In addition to this, these attributes are as culture, belief, attitude and values that the majority of
individual holds as community.
 In order to run organisational functions efficiently, the chosen entity needs to understand
customers, lifestyle, level of education and segment of the society so that entity can be capable to
carter the needs and wants of customers.
 In addition to this, the chosen enterprise needs to be fully aware with health standards and
demand of people to gain the competitive advancement.
Technological factor-:
 It is fast disruptive various industries across the board.
 For the chosen enterprise, this has become extremely crucial to undertake functions that aids to
constantly and consistently innovate product and services to gain competitive advancement.
 There are varied instances of the innovative product that redesign the norm for the entire
industry.

CONT..
 ENVIRONMENTAL
 There are different markets that has different norms and environmental standards that has wide impact on the profitability of
the enterprise.
 Thus, climate conditions has significant affect on the ability of Morrisons to manage the transportation of resources and
finished commodities.
 If Morrison is committed to contribute large amount of the waste that required by the law to manage the environment habits so
that effective working can be conducted within the enterprise.
 In order to be competitive, the quoted enterprise is taking initiatives to have the use of renewable energy. This is supported by
the not legal authorities but also by its large customer base. It leads to charge premium price for product and services.
 Legal-:
 The set laws and legislations impacts the working of the industry in huge context.
 Within number of countries, the legal framework and institution are not the robust that enough to protect the right of an
enterprise.
 Discrimination laws are mainly placed by the government that protects and ensures everyone in terms to treated fairly and also
offers the same opportunities to all the individuals regardless of gender, age, disability, religion and sexual orientation etc.
 In order to be competitive, the chosen enterprise needs to be complied with all laws and legislations framed by legal authorities
to ensure certain level of quality and reasonable price for the product and services. It aids to keep the customer safe and also
helps to maintain their trust on product and services.

SWOT ANALYSIS
 This is termed out as tool that aids to covered details about the business and also focus on
strengths, weakness, opportunities and threats. It is one of the effective framework that
aids to develop the strategic planning. Henceforth, these are outlined in following context
as are-:
Strength- :
 Half of the fresh food available in the store is made by the enterprise as firm has its own
manufacturing facilities. In addition to this, the attributes of in-store food marking of
market stands as point of difference.
 The chosen enterprise uses the vertically integrated model of business that highly ensures
to have the grater control and to build the better relations with customers.

CONT..
Weakness-:
 Lack of the online presence can be termed out huge problem for Morrison. Thus, spending
of the customers are continually declining due to ineffective online presence.
 Morrisons has higher employee turnover rate as compared to their rivalries and this makes
the more people leaving the job.
 The chosen enterprise has lower budget for its quality control department than the
competitors in market. Hence, this results in lack of consistency and possibility of damages
to quality across various outlets.
 The decision making is highly centralised in this enterprise and this reduce the efficiencies
in operations as this is more time consuming.

CONT..
Opportunities-:
 Technology developments- It comes with the numerous benefits to among the departments.
Effective technical advancement leads to undertake the operational function in minimal cost.
This enables the better data to be collected on customers and also improves the market efforts.
 Social media- There is continually increase in the number of users to social media. Henceforth,
the three social media platforms as Facebook, Twitter and Instagram. Henceforth, the chosen
enterprise can use social media platform to promote its products and services.
 Skilled workers- Enhancement in education and training with numerous institutes has raised the
availability of skilled workers. If the chosen entity is capable to hire the skilled labour than the
cost to training and developments can be reduced.
 Threats-:
 Suppliers- Bargaining power of supplier has been enhanced over the years with decrease in the
number of the suppliers.
 Increasing competition- Enhancement in competition within the industry puts the down-
pressure on prices. It can lead to reduce the profitability for chosen enterprise if it adjust to price
change and loss of market share.

CONCLUSION
 Hereby, it can be summarized that environment analysis of the enterprise aids to identify
internal and external working to enterprise. The present report is based on business
activities of Morrison UK.
 Furthermore, study has covered Pestle and SWOT analysis to analyse the current working
of enterprise. Lastly, recommendation has been given on weakness and threats to carry out
better working within enterprise

RECOMMENDATION
On the basis of above report, the suggestive measures has been outlined in following context as-:
 Morrison needs to take the initiatives to have online presence of product and services. This can aids
to gain competitive advancement as this attracts high range of customers.
 Chosen enterprise needs to provide effective training facilities to customers. So, that they can able to
undertake the better working within the enterprise.
 In order to attract the customers, the organisation should put major focus over quality aspect as this
can enhance the quality scenario and to offer the product and service at affordable cost.
 To cope up with the competition avail in market, the chosen entity needs to produce the commodities
that are quite different from suppliers commodities. It aids to maintain rate of customer retention.

REFERENCES
Books and journals
 Guo, L. and Wang, Z., 2019. Ratio analysis of J Sainsbury plc financial performance
between 2015 and 2018 in comparison with Tesco and Morrisons. American Journal of
Industrial and Business Management, 9(2), pp.325-341.
 Kim, J., 2017. The African-American Text as a Cultural Event: Toni Morrisons Case of
Aging, Gender, and Creativity in God Help the Child. 미미미미 , 24(2), pp.139-159.
 Adewuyi, A.W.A.W., 2016. Ratio Analysis of Tesco Plc Financial Performance between
2010 and 2014 in Comparison to Both Sainsbury and Morrisons. Open Journal of
Accounting, 5(03), p.45.
 Wu, C.C., 2017. Jago Morrison. Chinua Achebe. ARIEL, 48(2), pp.176-180.
 Haleem, F. and Jehangir, M., 2017. Strategic Management Practices by Morrison PLC,
UK. Analysis, Lessons and Implications. Middle East Journal of Business, 55(4182), pp.1-
7.

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