Business Strategies Report

This report provides a comprehensive analysis of Morrison Supermarket's business strategies. It begins by outlining the company's mission, vision, goals, and objectives, and then examines the factors to consider when formulating a strategic plan. The report evaluates the effectiveness of the BCG and Ansoff matrices in developing strategic business plans for Morrison. A SWOT analysis is conducted to assess Morrison's strategic positioning, followed by a PESTLE analysis for an environmental audit. The significance of stakeholder analysis is discussed, and a new strategy is proposed based on the organizational audit and stakeholder analysis. The report also details the roles and responsibilities of personnel in charge of implementing the strategies, estimates resource requirements, and evaluates the contribution of smart targets to achieving strategy implementation. Finally, the report concludes by summarizing the key findings and recommendations for Morrison's future strategic direction.

BUSINESS STRATEGIES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1.1 Mission, Vision, Goals and Objectives of the organization.............................................2
1.2 Factors that have to be considered while formulating the strategic plan.........................3
1.3 Effectiveness of BCG and Ansoff matrix while developing the strategic business plans4
2.1 Strategic positioning for the organization........................................................................5
2.2 PESTLE analysis to carry out the environmental audit....................................................5
2.3 Significance of stakeholder’s analysis..............................................................................6
2.4 New strategy based on organizational audit and stakeholders’ analysis..........................7
3.1 Appropriateness of alternative strategies related to market entry, substantive growth,
limited growth or retrenchment of the organization...............................................................7
3.2 Establishing an alternative strategy for Morrison............................................................9
TASK 4............................................................................................................................................9
4.1 Roles and responsibilities of personal in-charge of strategies..........................................9
4.2 Estimated resource requirement for implementing the strategy.....................................10
4.3 Evaluating the contribution of smart targets to the achievement of strategy implementation
..............................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy is the comprehensive business planning to attain the long term
objectives of organization. It specifies the vision and mission of the organization and inculcates
the process such as the operation's management, logistics management and marketing
management. Through the formulation, implementation and evaluation of business strategies,
organization goals and objectives are achieved. It means that by using business strategy, firm
will be able to achieve the desired goals efficiently (Jermias, 2008). It incorporates the methods
which bring the comparative advantage for the organization and develop the revenue stream. It
seeks to integrate the cross-functional activities and develop strategic plans. Operation
management refers to the process of controlling and overseeing the production of goods and
services. Logistic management manages the flow of goods from its production to marketing. It is
a crucial section of supply chain and plays a significant role in business. Strategic management is
one of the managerial activities which is focused on developing plans and strategies in order to
achieve business goals. . Under the supervision of executive head and board of directors,
employees get the guidance and direction for performing all the operations of business. Further,
it includes marketing management which is an overall analysis of market conditions and its
areas. Marketing management explores the opportunities that are beneficial for the firm. It adopts
the strategies for the market penetration, market development, product development and
diversification. Business strategy helps in developing the business by analysing the current
situation, determining the direction and enhancing the possibilities to accomplish the specific
goals (Olson, Slater and Hult, 2005).
Present report is focused on describing the importance of business strategy in order to
explore the possibilities for enhancing the profitability of Morrison Company which is one of the
leading supermarket chains in UK. With 11% market share, Morrison provides products to
customers at the least possible price and with quality assurance. Group is also operating in other
sectors such as providing digital services including Morrison cellor and morrisons.com, selling
alcohol, creating online shopping platform etc. It has bought the kids retail company and online
grocer to provide the convenience to their buyers (Ács and Audretsch, 2006). It offers the
distinctive services to its customers with the assurance of quality and freshness. It maintains
good relationship with customers so that 11 million individuals visit at its stores on the weekly
basis. . With the help of vertically integrated business groups and sound logistic management,
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organization is able to fulfil their promises of providing the best quality of products from farm to
fork.
This report outlines the missions and visions of Morrison, along with identifying the
objectives and goals set by the management of company. Along with this, it includes the
description about the competency of strategic planning made by the board of directors. It
identifies the factors which need to be considered at the time of formulating plans and selecting
the techniques incorporated in plans (Lee and Wu, 2010). Further, evaluation of strategic
positioning, environmental audit and significance of stakeholders is done through using the
management tools such as SWOT, product positioning and PESTLE. In case of Morrison, new
strategy is proposed after analysing the appropriateness of alternative strategies for the market
entry, substantive growth, limited growth and retrenchment. For the efficient execution of
strategies and plans, it is required for management to ensure the availability of capable
personal. , hence the report depicts the assessment of the roles and responsibilities of the
personal in-charged and analyse the resource requirements.
1.1 Mission, Vision, Goals and Objectives of the organization. Mission: With the availability of 1.25 lacs employees, it is focused on offering their
customers the best value products at the utmost convenience with freshness assured. In
order to become strong in this challenging environment of food and grocery business
with skilled employees, Innovation on frequent basis and the prompt availability of
services are necessary to be considered (Ritter and Gemünden, 2004). Vision: Morrison differentiates itself from the competitors on the ground of freshness of
goods. Its vision statement clearly states that it wants to become the “Food Specialist” in
all over the world. Morrison has the vision of providing quality of services at the
reasonable price in order to save the customer’s money and keeping the benchmark in
terms of freshness high (Wankel, 2008). With the vision of multi-format and multi-
channel grocer, Morrison is always committed to the high quality at low prices and the
elite food quality through skilled services.
 Objectives and goals: The leading supermarket chain focus on five dimensions for its
growth which are value, food, innovation, skills and organizational structure. Its central
objective is to open more convenience stores and to develop the organization's online
capabilities. From the past few years, the grocery sector is facing challenges and the
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group aims to stay strong in this financial crisis. Through utilizing existing capacities and
by identifying the strengths and new opportunities, the goal is to establish the meaningful
presence online and convenience (Teece, 2010). Using the new strategic initiatives, the
organization’s objective is to fulfil five areas that are the best value products, retaining
and increasing the freshness standard, bringing innovative methods through research,
enhancing the employee's skills and expanding the organizational structure through
establishing the presence in many areas.
1.2 Factors that have to be considered while formulating the strategic plan
The factors that are to be considered to formulate the strategic plan are: Resources: The prime factors that need to be considered are the availability of resources
within organization. Morrison is operating in the retail supermarket business and having
the online grocery as the core markets (Palmatier, Dant and et.al., 2006). This sector
requires the availability of fresh products on customer's demand. Location: While formulating the strategic plans, the basic component that needs to be
kept under consideration is the location from where the production will start and selling
will take place. It matters significantly while analysing the cost effectiveness of the
product or strategy. The distance of product manufacturing to selling affects the
profitability of organization. Organizational structure: After formulation of strategy, execution is the succeeding step.
Organizational structure means the human resources in existing firms and culture that
prevails. The compatibility of organizational structure and strategic plan is also tested at
initial level. Identifying the strengths of employees in the respective fields and assigning
duties to them for getting better results is also the part of strategic planning (Smith,
2015). The strategies can be developed according to the existing capabilities and
opportunities. Research and development: Any service or product is launched after the proper research
is made in respect with the market availability and the possible opportunities. Along with
the analysis of available situation and possibilities, it also performs the evaluation of all
the steps done in standardized criteria. This is central to the management of Morrison as
the group always intend to come up with new products by fulfilling the needs of their
customers and through providing them convenience.
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 Communication and coordination: To monitor 475 stores in UK, the sound and efficient
coordination is required. At the time of strategic planning to launch a new service of
product, it needs to be considered that the communication and coordination is at the
optimum (Singer, 2006). The grocery retail with the assurance to provide the quality
fresh food from the farm to the branch, organization requires flawless inter-linkages and
the logistics management to fulfil the same.
1.3 Effectiveness of BCG and Ansoff matrix while developing the strategic business plans
The BCG and Ansoff's matrix is applied to Morrison's strategic plans and following
points can be inferred: BCG matrix: BCG matrix helps the managers to evaluate the current portfolios of
business organization and plans the strategies accordingly. With the basic measurement
as well as through market share and growth rate, managers identify the present scenario
of available resources, their allocation and the competitive strength of the organization in
market. With the help of BCG matrix, it can be inferred that company runs in cash cows
quadrant with high market share and low growth. Morrison's vertically integrated
business models help it to create values (Tiwari, Buse and Herstatt, 2006). It has bought
kids retailer and online shopping which comes in the question mark and dog’s quadrant to
earn profits and the generated value is invested in retail supermarket and grocery.
 Ansoff's Matrix: Ansoff's matrix offers the growth strategies to the managers by giving
four alternatives which are market penetration, market development, product
development and diversification. These growth strategies help Morrison's group to
explore new opportunities to expand the market and product lines through different
strategies. It has helped in identifying the opportunity to expand the market of grocery on
virtual platform through providing online grocery that is the market development.
Through vertical integration, the firm has product diversification in Kids retail and online
shopping (Vitharana, Jain and Zahedi, 2004).
2.1 Strategic positioning for the organization
For the purpose of strategic positioning of Morrison, tool of SWOT analysis will be used
which is explained as follows:
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SWOT Analysis: It helps to analyse the risks and opportunities for the organization with
the help of internal and external factors. SWOT refers to the strengths, weaknesses, threats and
opportunities that the organization possess. Considering the internal and external factors, SWOT
analysis of Morrison is done in the following manner: Strength: The strength of organization lays in its logistics management, production team
and effective services. To provide the best quality, firm manufactures 74% of their
products in their own farm and have the efficient supply chain to deliver them precisely
on time. To serve 11 million customers a week and more at online platform, company is
having very skilled labour (Steurer, Langer and et.al., 2005). Weakness: Despite of having efficient logistics, the coordination among the management
and the subordinate staff needs to be improved. Opportunities: Wide opportunities are available for Morrison to expand their business
online in all the sectors where it is operating.
 Threats: Company faces constraints in the pricing section. It is the leading supermarket
but has comparable low market share among the four largest supermarket retails. The
firm has to come up with new distinctive products and services.
2.2 PESTLE analysis to carry out the environmental audit
By using PESTLE analysis tool, the environmental audit can be done by considering the
political, economic, social, technological, legal and the environmental factors that are
influencing the working of organization. Political factors: Morrison is operating predominantly in UK. UK offers favourable
conditions in country for the grocery and the supermarket retailers. The food product’s
market has seen an immense growth in the last decade so; certain policies are made to
protect the employees and traders to make it accessible (Kauffman, 2015). Economic Factors: Grocery sector is facing the challenging situation in zone. So, instead
of adverse circumstances, the organization is making efforts to retain strong position in
the market with its distinctive products and skilled services. Social Factors: It refers to the factors such as customer's preferences, culture of country
and other social dimensions. The group is making products as per the choice of its
customers at affordable prices.
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 Technological Factors: With fast emergence of web and information technology, the
supply chain of organization has become fast and precise. The communication and
coordination has also become easy and convenient (Ghemawat and Levinthal, 2008).
 Legal Factors: The organization has to consider all the rules and regulations laid by the
legislative sectors that are prevailing in the respective countries in respect to the foods
and the supply chain.
2.3 Significance of stakeholder’s analysis
The stakeholder's analysis helps the management of organization on various dimensions
which are like: Market strategy: The stakeholder’s analysis helps in building the market strategies by
using SWOT analysis and other tools. It enables to know the strengths and the key areas
to work upon and to make the strategy accordingly. Motivating Employees: By realizing the role of employees, Morrison offers them the
healthy work culture, high performance environment, performance appraisals and creates
new opportunities for them to enhance their potential and abilities (Keim and Hillman,
2008). Forming the partnerships and Agreements: Stakeholder’s analysis enabled the
organization to collaborate with the supply management, distributors, investors and
creditors in more optimized way.
 Product and market development: Keeping customers at the locus of organization, the
group is offering quality products at low prices and also, it is connecting with buyers
through online services. Further, it is investing more money in the core markets and
making the shopping easy and accessible (Langenberg, 2007).
Stakeholder’s analysis has helped the organization in a significant manner. With the
improvement in product quality, it has made the brand in the state of comparative advantage. It
has made the prices low on permanent basis and escalated the indirect procurement. The product
flow to the ultimate customer is improved by an efficient supply chain (Baye and Beil, 2006). It
has increased the efficiency of promotional activities done and the processes adopted for
executing it. The wider stream of customers is covered through this.
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2.4 New strategy based on organizational audit and stakeholders’ analysis
Based on the organizational and stakeholders analysis, it can be inferred that the
organization is endowed with the sufficient resources and logistics to expand its market on wider
horizons. The new strategy that can be adopted by the organization for market expansion is by
opening new outlets at the emerging economies such as Brazil, China and India on the physical
and virtual platform to connect with more customers globally (Chen, Sun and et. al., 2008).
Company has sound coordination and communication network through which the
operations can be handled at the headquarters. With the new promotional investment and
sourcing, the credits and finances can be made available from UK and at local areas. With the
improved productivity in the product flow and processes, the organization can continue to
develop its multi- format and multi- channel business model. It will help the firm to get closer to
the customers and buyers. Through this, it can accelerate its presence in new channels. These
emerging economies bring wider scope for the group to establish the online grocery facility as at
present, there is no such facility prevails. The market can be built by providing the utmost
convenience to the new location and local catchments over there.
3.1 Appropriateness of alternative strategies related to market entry, substantive growth, limited
growth or retrenchment of the organization
There are various alternative strategies for Morrison for increasing sales and profits of
business. These are as follows:
Market entry Strategies: There are number of factors that influence the choice of
business strategies of Morrison. The following strategies are described below which Morrison
can consider for market entry: Direct Exporting: Direct exporting is defined as selling directly into the chosen market
with own resources. According to this, Morrison can establish a sales program for their
agents and distributors to represent them further in market (Montgomery, 2011). These
agents and distributors become the face of organization which helps in expanding the
business in the chosen market. Licensing: Furthermore, licensing is another option that is available for Morrison for
entering in the new market. Licensing is an arrangement in which firm will transfer the
rights for the use of products or services to another organization. This strategy is useful
when purchaser of the license possess large market share in Morrison's interested market.
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 Franchising: This is a typical North American process for fast market expansion
however; it increases the grip of business in other parts of the world. Since, Morrison has
retail business, thereby; franchising is a better option for them to enter in the new market
(Steurer, Langer and et. al. 2005). Partnering: Partnering is essential while entering in foreign markets. Partnering can take
place in various forms such as simple co marketing agreement to a sophisticated strategic
bond for manufacturing.
Substantive growth strategy: To grow and increase the sales and profits of Morrison,
substantive growth strategies are essential which includes two main factors. These are related
diversification and unrelated diversification. Related diversification furnishes the potential to
attain the natural process of growth by exchanging and sharing the resources of business.
However, unrelated diversification lacks social class in market, distribution channels and
production technologies to provide the opportunity for natural process of growth through the
exchange and sharing of resources (Peng, Wang and Jiang, 2008).
Limited growth strategy: There are two main factors available that Morrison can consider
for growing their business which are as follows: Market Penetration: This strategy includes selling existing products in the existing
markets to penetrate and capture the business. As per this strategy, Morrison can decrease
prices, improve their distribution network and increase their promotional activities etc. Market Development: Moreover, market development strategy involves developing new
products in the existing market as well as in new markets. According to this strategy,
Morrison can reach at new customer segment and expand their business in new
geographic area.
Retrenchment: This is always an alternative action in business which is taken in the stage
of inefficiency, economic recession and in strong competition (Mailath, Nocke and Postlewaite,
2004). In case if Morrison has to face some inefficiency or economic issues in organization, then
it can consider retrenchment strategies such as asset reduction strategies, cost reduction strategies
and revenue generation strategies.
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3.2 Establishing an alternative strategy for Morrison
By considering all the alternative strategies for business growth of Morrison, it is
recommended that the organization can grow their business by entering in a new market. Since it
is the fourth largest super market chain of UK, it can easily expand business in the foreign
markets. Morrison group also recognizes that suppliers are merging worldwide the benefits of its
expansion which will strengthen its buying power and ability to supply high quality products at
competitive prices (Langenberg, 2007). However, Morrison can expand its business and
supermarket chains in India as India has large population which can provide opportunity for
Retail market to expand.
Therefore, Morrison can enter in the Indian retail market by providing franchisee. By this
strategy, Morrison can get the process of fast expansion outside the UK. This strategy provides
certain level of independence where Morrison can operate its business. It will provide them
existing product services and the firm can take benefits of widespread brand name and
recognition. Moreover, it is beneficial for Morrison as it will provide them new customer base in
India (Chen, Sun and et.al., 2008).
TASK 4
4.1 Roles and responsibilities of personal in-charge of strategies
To implement the new strategy for increasing sales and profits of Morrison, there are
three main roles which are as follows: HR Manager: To implement the strategy of entering in a new market, first of all,
Morrison's HR manager will need to recruit new workforce in India. It is essential that
Morrison's workforce must have the efficient knowledge of Indian markets and customer
demands for the successful establishment. Thereby, they have to recruit and select
accordingly. Finance Manager: Furthermore, for any business, finance is essentially needed. Without
having sufficient finance, business cannot succeed. For establishing business in India, the
finance manager of Morrison has to take some important decisions relating to capital
investment and profitability of organization (Tiwari, Buse and Herstatt, 2006).
 Marketing Manager: Marketing department plays a crucial role in the success of any
business. Morrison's marketing department will do promotional activities before entering
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in the Indian market. The organization has to identify the marketing strategy which will
be useful for increasing customers. Morrison can promote their brand in India by
television advertisement, newspaper advertisement, brochures, road shows and social
media etc. It is the responsibility of marketing manager of Morrison that they can
promote their brand name between new customer segments in the way they want.
4.2 Estimated resource requirement for implementing the strategy
To implement the new market entry strategy of Morrison, resource allocation is essential.
The requirement of resources can be different as per the strategy and chosen market. While
entering in a new market for increasing the sales and profits, firm will have to face new
challenges and competitors of the industry (Vitharana, Jain and Zahedi, 2004). Thus, Morrison
will require efficient physical resources, technical resources and initial start up of finance.
Physical resources consist with the workforce of organization. If Morrison has an
effective and efficient workforce who are well skilled, knowledgeable and capable to work with
the competency then the firm can strengthen its customer base in new market. Similarly,
effective brand promotion and advertisement between people also plays an important role in the
success of business. Thereby, the firm will need effective marketing resources to develop the
business. While implementing all these resources, firm will require initial finance to establish
business in new market (Montgomery, 2011). Finance plays a critical role in business from its
establishment to operating the business. Thereby, these resources are essential for the successful
implementation of business strategy.
4.3 Evaluating the contribution of smart targets to the achievement of strategy implementation
When firms target is specific and measurable, it is more likely to be implemented and
achieved. In order to have successful implementation of strategy, the firm will require to have a
clear picture of expectations in the way they want to achieve it. Furthermore, the organization
has to set measurable goals and objectives to quantify the sales, profits, expenses and time
duration after implementing the strategies (Steurer, Langer and et.al., 2005). After this, the firm
needs to set attainable goal when the accomplishment of strategy is within reach. However,
factors such as realistic and time bound completion of strategy is also important.
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