Impact of Macro Environment on Morrison's Business: PESTLE Analysis

This report provides a comprehensive PESTLE analysis of Morrison's, a major UK supermarket chain, examining the impact of the macro-environment on its business operations. The analysis delves into political factors such as Brexit and its implications on food policies and regulations. It assesses economic factors, including currency fluctuations and inflationary pressures due to Brexit and COVID-19. The social aspect focuses on consumer behavior changes, particularly the increased emphasis on immunity-boosting food products during the pandemic. Technological advancements, such as investments in waste reduction and the implementation of digital databases, are also discussed. The report highlights the company's compliance with legal regulations and its commitment to environmental sustainability through carbon emission reduction initiatives and the use of paper bags. The PESTLE analysis identifies both opportunities and threats, providing insights into Morrison's strategies for maintaining profitability and productivity in a dynamic business environment. The report also references the impacts of COVID-19 on consumer behavior and food safety standards, offering recommendations for the firm to adapt and expand its business.

Global Business Environment

Contents
MACRO ENVIRONMENTAL ANALYSIS..................................................................................3
PESTLE FRAMEWORK................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Macro environment analysis involves forces which is affecting the economy at larger level. This
refers to the broader condition of an economy as opposed to specific market. In this analysis,
company will review all the factors which are unable to control (Shtal and et.al., 2018).
Morrison is on of smartest among four largest supermarkets consisting of Tesco, Sainsbury and
ASDA in state of United Kingdom. Company have been established food retailer organization
with robust online home delivery system. Morrison is having procurement and manufacturing
facilities.
MAIN BODY
Morrison is paying major focus on quality and customer enhancement with proper
implication PESTLE model. the model will comprise of political, economic. social,
technological, environmental and legal factor as important role in determining business strategy
overcoming different challenges in Morrison market. Due to COVID, the consumer food
behaviour has been changes towards certain commodities creating negative impact on Morison.
The pandemic has brought up major change in job structuring and loss of disposal income of
country. There has been major contradiction in customer budget creating negative impact on
Morison productivity and profitability. COVID have paid major emphasis on immunity boosting
food product. the company have come up with opportunities to expand the business indifferent
direction paying major emphasis on organic food products (Vallati and Grassi, 2019). COVID
have bring up the major change in the food safety ad legal standards such as looking to item
having better immunity building elements. UK legislation have imposed large ethical audits to
measure out the retail business integrity.
Recommendation
In the COVID-19 situation firm should have proper following of rules and regulation
social distancing aspect with proper sanitation in home delivery process.
Morison should look into concern regarding building up immunity which will tuned out
opportunity for firm expansion healthy food products
Conclusion
Hence, PESTLE analysis builds out deep interaction regarding different macro
environmental factors. Morrison have identified with several opportunities and threat. Company
3

is looking out to building up several strategies against challenges for gaining up profitably and
productivity for business.
Appendix
Political factor
In UK and European Union relation, Brexit is important political event of uncertainty at
harsh level due to changes in policies in regulation. Due to change in foo policies and
legislation, the retail industry has been adversely impacted
Economical factor
Brexit and COVID have created a high level of fluctuation in the currency value creating
out inflationary pressure.
Social factor
The UK population have major concern regarding building up immunity which will tuned out
opportunity for firm expansion healthy food products
Technological factor
Morrison is planning to have increase of investment to get out reduction in waste building
up busines more sustainable and customer oriented. The firm have implemented sales
technology and digital data bases in order to reduce paper work along with optimizing latest
digital trends for customer.
Legal factor
The firm have proper compilation policies and guidance supporting major compliances
with several regulation.
Environment factor
Morrison have been taking effecting steps to the reduction of carbon emission and building
up sustainable business by 30 % in year 2025. There will be usage of paper bags launching
returnable bins.
4

REFERENCES
Books and Journals
Shtal, T and et.al., 2018. Methods of analysis of the external environment of business activities.
Vallati, M. and Grassi, A., 2019, July. AI to Facilitate Legal Analysis in the PESTLE Context. In
The EMerging Technology conference (EMiT) 2019 (pp. 66-68). IET.
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
Gaspar, J and et.al., 2016. Introduction to global business: Understanding the international
environment & global business functions. Nelson Education.
Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global competition. Global
Strategy Journal, 8(4). pp.517-535.
Online
Morrison company history.2018. [ONLINE] Available through < https://www.morrisons-
corporate.com/about-us/company-history/>
5

6

7