Analysis of Morrison's Business Model and Development Strategies

This report provides a comprehensive analysis of Morrison's business model, focusing on its key activities, value proposition, customer relationships, and market segmentation. It details Morrison's expansion strategies, particularly in the Asian market, and its approach to outsourcing. The report examines Morrison's cost structure, revenue streams, and the role of digital media and traditional channels in its customer interactions. It also discusses the company's strategies for creating an attractive brand image and the importance of effective promotional activities. Furthermore, the report incorporates various academic references to support its analysis of Morrison's business practices.

Morrison
Developing Enterprises
Presented by
(Name of
Student)

Background of the company
• Morrison is considered as fourth largest supermarket chains of
UK occupying a predominant place in the International
market.
• Food, drinks, books, magazines, CDs and DVDs are the core
products of Morrison. Around 132,000 employees are
currently associated with the organization.
• As of 2016, the company is occupied with 498 superstores all
over the World. In comparison to other continents Morrison is
less available in Asian countries

Overview of Business Canvas Model

Key Activities of the company
• Designing products
• Outsourcing
• Customer services
• Training of staffs

Key Resources
• Human resources
• Financial resources
• Technological resources
• Physical resources

Value Proportion
• The overarching term value proportion refers to the business
statement based on which the company summaries why their
products and services are superior to others.
• Steps:
• To make an attractive tagline by highlighting the product
features in quest of drawing customers attention
• To maintain effective promotional activities so that customers
of different localities can view the product features
• To highlight the benefits and facilities that BPO of Morrison
give the customer services
• To create brand image and reputation

Customer Relationship
• Face-to-face communication
• Communication through digital media

Channels
• Digital and social media:
 Facebook
 Instagram’
 Youtube
• Traditional Media
• Television
• Hoarding
• Leaflet

Customer Segmentation
• Market segmentation is conducted as per geographic, demographic and
psychographic method. As per the geographic market, segmentation
Morrison has targeted those groups of people who belong to the areas of
Asian pacific zone.
• Especially, localities belonging to India are the most wanted target areas
for expanding the business of outsourcing. Demographic market
segmentation believes that target group should be segregated as per the
income status age group and gender of the people
• As per the psychological background, Morrison has targeted the people
from every cultural belief and psychological backgrounds. As a result, the
organization has focused to draw the attention of the people of both urban
and suburban.
• As a result, large number of people is already targeted for using the
products as well as services of Morrison.

Cost Structure
Sources Amount (GBP) Amount(GBP)
Sources of income
Bank loan 150,000.00
Government Sponsorship 60,000.00
Total income 210,000
Sources of expenditures
Room rent 5,500.00
Taxes 2,000.00
Workforce 10,000.00
Advertisement 20,000.00
Electricity 4,000.00
Charges for administration 5,000.00
Other Equipments 25,000.00
Other maintenance 10,000.00
Communication expenses 50,000.00
Miscellaneous charges 3,000.00
Transport 15,500.00

Revenue Streams
• Online Sales
• Commission

Reference List
• Anwar, S., 2013. Outsourcing and the skilled–unskilled wage gap. Economics
Letters, 118(2), pp.347-350.
• Benaroch, M., Webster, S. and Kazaz, B., 2012. Impact of sourcing flexibility on the
outsourcing of services under demand uncertainty. European Journal of Operational
Research, 219(2), pp.272-283.
• Butler, M.G. and Callahan, C.M., 2014. Human resource outsourcing: Market and
operating performance effects of administrative HR functions. Journal of Business
Research, 67(2), pp.218-224.
• Chung, H.M. and Khan, M.B., 2012. The effects of outsourcing of information
technology on the employment of computer professionals in the United
States. International Journal of Management, 29(3), p.371
• Dhar, S., 2012. From outsourcing to Cloud computing: evolution of IT
services. Management Research Review, 35(8), pp.664-675.
• Dolgui, A. and Proth, J.M., 2013. Outsourcing: definitions and
analysis. International Journal of Production Research, 51(23-24), pp.6769-6777.