Morrison Company: PESTLE, SWOT, and External Environment Report

This report provides a comprehensive analysis of the Morrison Company, a major UK retailer. The introduction sets the stage by discussing the practical application of business processes, highlighting Morrison's position in the market. The main body delves into the company's mission and vision, followed by a detailed SWOT analysis, examining its strengths, weaknesses, opportunities, and threats. The organizational structure is then outlined, followed by a PESTLE analysis, which assesses the political, economic, social, technological, legal, and environmental factors impacting the company. The report also explores the impact of external environmental factors, such as new regulations, sustainable practices, Brexit, increasing population, and brand positioning. The conclusion summarizes the key findings, emphasizing the interplay of internal and external elements affecting Morrison's performance. The report is supported by references to relevant academic sources.

Morrison company
and its environment

Table of Content
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Mission &Vision....................................................................................................................2
SWOT Analysis......................................................................................................................2
Organisational Structure.........................................................................................................3
PESTLE Analysis...................................................................................................................3
Impact on the external environment.......................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Business in practice is refers to as path in which new process for conducting conventional
and methods like forming databases of better practices that improvise employment retaining
(Williams and et.al, 2021). The poster is based on Morrison Retailer company that situated in
UK. It is considered as largest chain store, them provides several types of products such as food,
clothing, drink etc. This is a private limited company who gives customer variety of services. In
accordance to that determine internal and external elements that collision on Morrison company
through PESTEL analysis, identified several paths in which organization may effect on external
factors of environment.
MAIN BODY
Mission &Vision
The mission statement of Morrisons depicts rebuilding of the company by framing well
defined strategies.
SWOT Analysis
Strength
 Strong supply chain and distribution
network of Morrison’s is its strengths
enabling it to keep its customers
engaged and be available for them.
 Large product portfolio enables the
brand to capture larger segment and
customer base.
 Customer oriented practices allows
the firm to be competitive through
loyal customer share.
Weakness
 Limited geographical area is a weakness
as international buyers are ignored.
 Past controversies and conflicts have
created huge losses and affecting the
brand.
Opportunity
 Can diversified business into organic
product.
 International market expansion.
Threat
 Increasing market share of competitive
brands.
 Growing technological risks as regular
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 Acquisition and partnership with
other small companies.
 Expand business in to non-food retail
market.
 Growing rate of online businesses
and discount channels.
changes breaches are taking place due to
unethical practitioners.
 Instant changing rules and regulations.
 Constant changes in taxes and Govt.
policies bring uncertainties for the brand.
 Weak supply of innovative products as the
competition in market is huge and
regulations are increasing.
Organisational Structure
Morrison’s capitalizes on a vertical organisation. The company relies upon Top to Down
Approach.
PESTLE Analysis
Political- Political stability plays an important role on business performance. In regard to
political condition of UK, it is found that there are multiple governmental policies that affect UK
food retailers. Brexit also creates severe complication for the firm.
Economical- In regard to business, expansion of economy affected by national income
which impact on cost of output. Taxes influence demand of products that may be from
substantial when discretion is low and weak due to which it directly impacts on the company.
Social- The social factors are the trends in society and the components related to the
people or customers who are associated with the company. In regards to the same, the social
environment in which Morrison’s exist is positive for the company as in the UK, customers or
population believes in loyalty. Along with it, regular changes in the trends provides company an
opportunity to innovate and keep their customers involved for longer period by providing them
innovative offering and keeping them satisfied.
Technology- Due to enhancement in machinery, changes may place according to
technology in order to lead towards growth of business. Morrison has started using artificial
intelligence to stock its stores and drive sales. Along with it, the company is also working over
regular development and innovation as per the trends in the society and as per the technological
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changes taking place. This component is enabling Morrison’s in making best of its resources and
also to work according to the society and as per the changes taking place in the world.
Legal- An approval is needed from local jurisdiction to open up new firm and this
organization determine to stick around by regulation (Andhini, 2021). There are some rules and
laws related to food standard and quality. It is important for Morrison’s to adhere to food quality
standards in order to protect themselves against lawsuit and improving health of customers.
Environmental- This component or aspects is to look over the environment and offer the
world a sustainable offering which associate the customer and society in positive manner. Hence,
Morrison’s is working towards the same to offer the best to their customers by reducing carbon
emission and working over the renewable processes.
Impact on the external environment
External factor- This is an element that effect situations that company cannot oversight
which impact decision of organization. In these various factors are seen for performing works in
different sectors. That are;
New regulations- Retailers are required to follow all regulations for improving quality of
food. There is consistency in policy making and implementation because government adheres all
rules under world trade organization norms that may be useful for Morrison.
Sustainable practices- It is found that Morrison is striving hard for decreasing carbon
emission in order to make people feel valued and decreasing negative environmental impacts. It
offers plastic free fruits options and it has banned plastic bags and customers need to carry their
bags for buying products or they will be provided with cloths bags.
BREXIT- Brexit has changed economic condition of UK as it has increased inflationary
pressure. Due to rises in oil and other prices, consumers do not invest in clothing, flowers and
other products that Morrison offers. So, it can lower profit margin of this supermarket and
employee more workers for smooth functioning of business.
Increasing population- Raising age population is creating numbers of opportunities for
retailers as it can rise sales of companies. On the other hand, also found that people are becoming
health and environmental conscious and for satisfying customers' needs, companies need to focus
on improving sustainability and quality of products (Qiao, 2021). New brand positioning can
also help Morrison in attracting customers and retaining them. Due to which help in maintaining
proper conduct of social responsibility.
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CONCLUSION
The report has been summarizing of business in practices by determining internal and
external factors that affect company from several ways. It will justify by analysis of PESTEL
from which impact on external factors has been evaluated in regards to Morrison retailer
company who provide products of food, beverage etc. By producing detailed poster that has
define elements through impact on organization. An assessment of external elements has been
determined political, economic, social, technological, environmental and legal factors that
directly influence company by their effecting elements of it.
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REFERENCES
Books and Journals
Andhini, A.S.D., 2021. Juridical Analysis of Legal Aid Implementation for Underprivileged
Communities: Problems and Challenges. The Indonesian Journal of International
Clinical Legal Education. 3(4). pp.481-498.
Gross, H.P., Rottler, M. and Wallmeier, F., 2021. The influence of external reference price
strategies in a nonprofit arts organization's “pay‐what‐you‐want” setting. International
Journal of Nonprofit and Voluntary Sector Marketing. 26(1). p.e1681
Qiao, Y., Research on Cost Management of Retail Industry Such as Starbucks. International
Journal of Social Sciences in Universities. p.31.
Williams, J.A.S and et.al, 2021. Business writing practice and support over time: Evidence from
a strategic management class. Journal of Education for Business. pp.1-10.
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