Morrison Supermarket Plc: Impact of External Factors - PESTLE Analysis

This report provides a comprehensive analysis of Morrison Supermarket Plc's business environment using the PESTLE framework. It identifies and discusses the impact of legal, environmental, and social factors on the company's operations, highlighting both opportunities and constraints. The report also explores the role of technology, particularly artificial intelligence, in maintaining Morrison's competitive advantage through efficient automated ordering systems. Ultimately, the study concludes that while external factors present challenges, strategic adaptation and technological advancements are crucial for Morrison's continued success in the dynamic business landscape. The document is available on Desklib, a platform offering a wide range of study resources for students.

BUSINESS ENVIRONMENT

TABLE OF CONTENT
 INTRODUCTION
 PESTLE VARIABLES
 LEGAL FACTORS
 ENVIORNMENTAL FACTORS
 SOCIAL FACTORS
 FINDINGS
 IMPACT OF TECHNOLOGY
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business environment is collection of all internal and external factors that affects the business.
 Also, the present report is based on Morrison supermarket Plc which is the largest in UK and will identify
impact of certain external factors on the working of the firm.
 Moreover, various constraints and opportunities will also be discussed in detail.
 Lastly, use of technological strategy and impact of same of the quoted firm will also be analysed.

THREE PESTLE VARIABLES
 Morrison's supermarkets is the largest chain of supermarkets that is located in United Kingdom. Also, there are various
factors that are affecting the operation of the company that are described through PESTLE model as follows
 LEGAL FACTORS: There are various laws such as employment laws, consumer protection laws, intellectual property
laws etc. that have to be followed by the firm in proper manner so that there are no problems in the future

ENVIRONMENTAL FACTORS
 There is requirement to gain in depth information about various environment regulation by quoted firm so that it could
be socially responsible and create awareness among the people about various environmental friendly practices that are
followed at the workplace.
 Also, to create positive impact Morrison is supporting use of renewable technologies at the workplace.

SOCIAL FACTORS
 With the current changes in business environment it is very essential for firms to closely identify the changing
needs and wants so that revenues might be increased.
 Also, this factor will create positive impact on Morrison only when consumption behaviour, demographics,
cultural norms and gender are clearly defined to sell goods in the various outlets.

FINDINGS
 Based on the above factors it can be said for Morrison supermarket that legal factor is constraints as firm is operating in
different markets and hence to continuously monitor the changing policies in each target market is not possible for firm
and thus chances of risks are higher.
 Also, in context of environmental factor it can be said that environmental factor is opportunity for firm as Morrison
would develop certain ways to sell more of sustainable products so that it would attract more number of consumers in its
outlets.

IMPACT OF TECHNOLOGY
 In the current era technology plays a major role in generating
greater sales of any business.
 Also, in context of Morrison it can be said that with continuous
improvement in technology the firm had been able to maintain
competitive advantage for long run
 Moreover, technology that firm using currently is artificial
intelligence through which it has been able to develop efficient
automated ordering system to take certain orders of the
customers and keep the track of the same.

CONCLUSION
 From the above presentation it can be concluded that legal, environmental and social factors have both
positively and negatively affected Morrison's operations.
 Also, the study had identified the relevant opportunities and constraints associated with these factors along with
discussing the impact of technology on competitive advantage of the firm.

REFERENCES
 Al-Surmi, A., Cao, G. and Duan, Y., 2020. The impact of aligning business, IT, and marketing strategies on firm
performance. Industrial marketing management. 84. pp.39-49.
 Bratianu, C., Stanescu, D. F. and Mocanu, R., 2021. Exploring the knowledge management impact on business
education. Sustainability. 13(4). p.2313.
 Hansen, M. W. and et.al., 2018. Coping with the African business environment: Enterprise strategy in response to
institutional uncertainty in Tanzania. Journal of African Business. 19(1). pp.1-26.