Morrison Case Study: Macro Environment, SWOT, and Business Impact

This document provides a business environmental analysis focusing on the macro environment's positive and negative impacts on business operations, using the UK supermarket Morrison as an example. It employs Porter's Five Forces model to analyze external factors such as competitors (Tesco, Asda, Sainsbury), substitutes, buyer power, supplier power, and new entrants. The internal analysis includes a SWOT analysis, identifying Morrison's strengths (good image, supply chain, large presence in the UK), weaknesses (limited geographical reach, farmer's rights issues), opportunities (international expansion, rising demand, acquisitions, strategic partnerships), and threats (increased market share, government policies). The analysis further explores how these internal strengths and weaknesses interrelate with external macro factors like management decisions, financial resources, regulations, environmental laws, and strategic planning. The document concludes with a list of references used for the analysis.

BUSINESS
ENVIRONMENTAL
ANALYSIS

IDENTIFY SOME POSITIVE IMPACTS OF THE MACRO
ENVIRONMENT ON THE BUSINESS OPERATIONS
Change in market trends
Customer segmentation
Attract more customers
Larger opportunity
Stable economic condition
Technological advancement

IDENTIFY SOME NEGATIVE IMPACTS OF
THE MACRO ENVIRONMENT ON THE
BUSINESS OPERATIONS
Political constraints
Legal constraints
EXAMPLE : Supermarket in UK (Morrison)
Food law
Fat free food usage

EXTERNAL ANALYSIS OF MORRISON
 Porter five force models
 Power of competitors
a.) Tesco, Asda, and Sainsbury
b.) low cost of the products
 Threat of substitutes
a.) various stores and
the grocery store in the UK

EXTERNAL ANALYSIS TO IDENTIFY ITS CORE
STRENGTHS AND WEAKNESSES
 Bargaining power of buyers
a.) various other alternatives in the markets
b.) continuous product innovation
c.) affordable price range
 Bargaining power of suppliers
a.) manufacturing firm of the company
 Threats of new entrants
a.) It is low in the UK market
b.) competitive pricing

INTERNAL ANALYSIS TO IDENTIFY ITS
CORE STRENGTHS AND WEAKNESSES
 SWOT ANALYSIS
 Strength
a.) good image
b.) Proper supply chain
c.) largest companies in UK
d.) 500 stores in UK
 Weakness
a.) limited geographical reach
b.) issues related with the farmer’s rights

INTERNAL ANALYSIS TO IDENTIFY ITS
CORE STRENGTHS AND WEAKNESSES
 Opportunities
a.) international expansion
b.) Rising demand
c.) Acquisition of the small organizations
d.) Strategic partnership
 Threats
a.) increase in the market share
b.) taxes and the policies of the government

HOW STRENGTHS AND WEAKNESSES
INTERRELATE WITH EXTERNAL MACRO
FACTORS.
 Influencing factor
 Decision of the management
 sufficient financial resources
 pricing and marketing strategy

HOW STRENGTHS AND WEAKNESSES
INTERRELATE WITH EXTERNAL MACRO
FACTORS.
 Policies and regulations
 loss in the profits
 Demand of the company
 Proper utilization of the resources.

HOW STRENGTHS AND WEAKNESSES
INTERRELATE WITH EXTERNAL MACRO
FACTORS.
Environmental laws
Misuse of the natural resources
Strategic plans and tactical plans

REFERENCES
 Boyd, B., Henning, N., Reyna, E., Wang, D., Welch, M. and
Hoffman, A.J., 2017. Hybrid organizations: New business
models for environmental leadership. Routledge.
 E. Dobbs, M., 2014. Guidelines for applying Porter's five
forces framework: a set of industry analysis templates.
Competitiveness Review, 24(1), pp.32-45.
 Harding, S., 2017. MBA management models. Routledge.
 Bell, G.G. and Rochford, L., 2016. Rediscovering SWOT’s
integrative nature: A new understanding of an old framework.
The International Journal of Management Education, 14(3),
pp.310-326.

REFERENCES
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University Press.
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 Madhavaram, S., Hunt, S.D. and Bicen, P., 2017, May. The FREE (Firm Resources
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