Global Business Environment: PESTLE Analysis of Morrison Supermarket

This report presents a PESTLE analysis of Morrison, the fourth-largest supermarket chain in the UK, to identify the impact of macro-environmental factors on its business strategy. The analysis covers political factors like Brexit and government regulations, economic factors such as pricing and household budgets, social factors including population growth and health awareness, technological advancements like artificial intelligence, legal aspects related to food safety, and environmental concerns such as waste reduction and plastic-free options. The report concludes that understanding these external factors is crucial for Morrison to develop effective strategies and make informed decisions within the dynamic global business environment. Desklib provides students access to a wide range of solved assignments and study tools.

Global Business
Environment
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Contents
Global Business Environment..........................................................................................................1
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Pestle analysis-.................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
Books and journals......................................................................................................................6
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INTRODUCTION
A global business is a firm operating in many countries worldwide. The global business
environment is referred to as the environment in various independent states, with unusual
features within the business environment, which impact the process of making decisions about
the utilisation of resources and energy. Morrison has been taken as a base company which is the
fourth largest chain of supermarket in the UK. It is headquartered in Bradford by William
Morrison in1899 which concentrates mostly on food and grocery. This file covers the Pestle
analysis to recognise the impact of changes in business environment (Wijethilake and Upadhaya,
2020).
Pestle analysis-
This analysis searches very intensely inside the macro-environment of the marketing industry for
Morrison which plays an essential role in identifying the business strategy that will help in
overcoming all the challenges faced by this firm.
Political: The political element is an external environmental element that can increase the
probability and can guide to remarkable loss for the business. In case of Morrison, Brexit is a
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main political case where there is a huge amount of unpredictability in policies and rules. There
is a great effect of multiple government rules on food retailers which causes a great effect on a
company.
Economical: These factors are decisions in economic activity that rightly affect a firm and have
a long duration impact. In context to Morrison, pricing may raise which leads to different
budgets in households which makes a huge impact on customers (Jafari-Sadeghi, Kimiagari and
Biancone, 2019).
Social: Social factors are effects that impact and describe way of living standards like household,
society and belief. In relation to Morrison, increment in the population will create a growth in
education and health for customers. This will lead to the increment of various opportunities in
business.
Technological: This feature has a great impact on the industry as a slight technological
development will inevitably have an effect the organization. In case of Morrison, it uses various
technologies like artificial intelligence which helped in decrement in making the cost and lessens
the efforts for all the consumers. It also use many factors in a digital manner which is used to
recognise the trends came up in the market and serves to all the consumers in a better manner
which will help in concentrating on the development of company.
Legal: This feature impacts both the internal and external environment of the selected firm. This
situation can impact industry plans, process and can regulate security and management.
Alterations in legitimate systems can influence a firm by setting new necessities. In case of
Morrison, it has various legal policies and guidance which supports the whole observation with
different rules and regulations such as rules related to food safety (Alade and Windapo, 2019).
Environmental: This aspect is particularly sensitive to the influence of the immediate
environment and the impact of environmental factors. This feature is linked to the environment
and the way it impacts any industry. In context to Morrison, it has a chance through which it can
increase their safety due to various wastes like by reducing the utilisation poly boxes in supply
chain and by serving plastic free options for fruits and veggies.
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CONCLUSION
It is concluded from the above report is that it will assist the firm to set up outside parts that can
influence decisive part made within the industry. By recognising the effect these outside factors
can have on the firm, it is helpful for the industry to strategies in a better way.
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REFERENCES
Books and journals
Wijethilake, C. and Upadhaya, B., 2020. Market drivers of sustainability and sustainability learning
capabilities: The moderating role of sustainability control systems. Business Strategy and the
Environment, 29(6), pp.2297-2309.
Jafari-Sadeghi, V., Kimiagari, S. and Biancone, P. P., 2019. Level of education and knowledge, foresight
competency and international entrepreneurship: a study of human capital determinants in the European
countries. European Business Review.
Alade, K. and Windapo, A., 2019, July. 4IR leadership effectiveness and practical implications for
construction business organisations. In Construction Industry Development Board Postgraduate
Research Conference (pp. 62-70). Springer, Cham.
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