Strategic Analysis: Morrison's Expansion into the Australian Market

This report analyzes the potential for Morrison's, a major UK supermarket chain, to expand its operations into the Australian market. It begins with an introduction to the company and the rationale for global expansion. The main body of the report provides a comprehensive PESTLE analysis of the Australian market, examining the political, economic, social, technological, environmental, and legal factors that could impact Morrison's success. The report identifies business opportunities arising from Australia's stable political environment, strong economy, multicultural society, and advanced technological infrastructure. It also references examples of successful companies operating in Australia. Finally, the report offers recommendations for Morrison's market entry strategy and concludes by summarizing the key findings and their implications for the company's expansion plans. The report emphasizes the importance of understanding the local market conditions and adapting the business strategy accordingly. This report is valuable for students studying business development, international business, and strategic management, offering insights into real-world market analysis and expansion planning.

Coursework

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Pestle analysis.............................................................................................................................1
Business opportunities................................................................................................................5
Examples of companies..............................................................................................................6
Recommendations.......................................................................................................................6
Entry Market strategy..................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Global expansion is all about planning for organization in order to extend their business
operations across the international platform for gaining competitive advantage by fulfilling the
needs of domestic as well as foreign users (Forsyth & Davis, (2011). Morrison’s is one of the
most successful supermarket plc. Which is considered as fourth largest chain of supermarkets in
United kingdom by having its headquartered in Bradford, West Yorkshire England. However,
company is having almost 10.14% market share in August 2017 and this association is listed on
London Stock Exchange. Therefore, assignment is going to highlight the expansion process of
Morrison’s in Australia by assessing external environment in order suggest further. Along with
this, recommend best market entry strategy for an organization by analysing various other facts
or figures.
MAIN BODY
Pestle analysis
Morrison was founded by William Morrison in around 1899 who initiated the business as
an egg and butter merchant in Rawson Market Bradford, England and operates under the name of
Wm Morrison Limited. However in almost 1967 Ken Morrison was took over the organization in
around 1952. Furthermore, in 1958 Morrison’s got involved in opening a small shop in city
centre which is considered as first self-service store in Bradford. Moreover, this organization
begins its first supermarket Victoria in the Girlington district of Bradford in around 1961.
Consequently, in almost 1967 Morrison’s became one of the most successful public limited
enterprises who is listed under London stock exchange. This shows that Morrison’s get
succeeded in expanding their business more and more as well as having a motive of grabbing
international opportunities in order to establish its goodwill at global platform. Thus, company is
now aiming to expand their business in Australia and wanted to understand the environment for
establishing their business in better manner. Therefore, Morrison’s wanted to understand the
things which are changing at marketplace before establishing their business in Australia in order
to control possibilities of loss by analysing this earlier (Benson and et. al., (2010). PESTLE
analysis of Australia is discussed as follows-
Political environment- Australia is one of the constitutional monarchy with Elizabeth II
who is a head of state. Basically, queen of Australia is presented by Governor- General at federal
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level and by governors at state level. However, Prime minister is considered as head of
governing bodies of Australia. Mainly, Canberra is seen as capital of Australia and Sydney
because it’s one of the largest city across the nation. Overall area which falls under Australia is
around 7,741,220 square kilometres which makes this nation as sixth largest nation across the
world. Some of the neighbour countries of Australia are; Papua New Guinea, Indonesia, East
Timor, the Solomon islands, Vanuatu and New Zealand. Moreover, Australia is also seen as a
member of Commonwealth of Nations, OECD G20 and world trade organizations. In fact, this
nation gets succeeded in maintaining very close associations with United States. Along with this,
having very secure and stable political surroundings. On the other hand, Australia have also face
numerous of criticisms because of various issues. For example; Deportation legal provision of
Australia was criticised by Justice Minister of New Zealand. At the same time, UN have also
criticised Australia for their failures in various regions such as; preventing rights of humans,
harming rights of indigenous people and the way they are treating refugees (Dunlop & Bullen,
(2011).
Conclusion- By analysing all the above situations such as; positivity of Australian
governing bodies as well as their criticism, it has been understood that Morrison’s have not
harmed by government policies because somehow Australian authorities are supporting
corporate world. In fact, members of parliament wanted to developed their nations by imposing
strict rules and regulations which somehow seen in a wrongful way. Thus, Morrison can have
stable political environment while running their business in Australian marketplace.
Economic factor- Another element of external environment is assessment of economic
surrounding of Australia for understanding the market of a nation. However, Australia is seen as
13th largest economy across the global platform. Mainly, economy of this nation developed by
almost 2.4% in 2017 which is really below the expectations of country because they have
expected to grow their economy by nearly 3% in 2018. Along with this, investment of
businesses, incomes of household people and inflation are expected to pick up gradually. Recent
company tax rate in this nation is almost 30%. On the other hand, tax rate for individual’s
income is zero for the person having income of around $18,200 (Tsyhankova, Yatsenko &
Zavadska, (2014). It means, higher rates are apply for those person whomsoever are having
maximum individual incomes. Some of the key imports of Australia are; vehicles, machinery,
minerals fuels which includes oil, electrical machinery and tools, medical apparatus, precious
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metals, plastics furniture and so on. Hence, it has been analysed that nearly US$221.4 is
imported by nation across the international market in 2017. Apart from this, some of the top most
key imports of Australia are; iron ore, gold, coal, natural gas, beef, wheat, financial support,
educational and copper.
Conclusion- As per the economic circumstances of Australia, Morrison’s have number of
opportunity to grow their business by acquiring help from common marketplace. In fact, this
nation got engaged in several types of business due to having company have an opportunity of
expanding their business in better manner. Along with this, possibilities of loss are also get
minimum because economic condition of Australia is very much stable.
Social environment in Australia- This nation is seen as one of the best countries across
the world because of various elements such as; wealth, education, health and high quality of life.
As compared with other top most economies, Australia is having very less population which is
almost 22.9 million. In fact, life expectancy for men is around 80 years only whereas 84 for
women’s. At the same time, nation is also considered as most multicultural and multiracial
countries across the seas. Although, nation is having a significant heritage from their indigenous
people who believed to get migrated from Asia (Barba and et. al., (2016). Thus, after completion
of second world war nation have adopted an appropriate policy for mass immigration although
migration is really very sensitive issue in Australia as per governing bodies. Additionally,
Australia is having a very suitable number of public and private universities which get succeeded
in seeking the attention of various global students in every year. Hence, students from distinct
nation have made up more than a quarter of enrolments in few universities of Australia. For
example; number of students which came from global market are of; China, India, Nepal,
Malaysia, Vietnam, Brazil and Colombia. Consequently, one more thing is observed by
Australians people are that they are too much hardworking and outward looking. They believe in
spending their free time in watching sports and playing. This shows that, Australia is amongst
one of the best in various sports activities such as; cricket, hockey and swimming. Hence, sports
industry is having a major contribution in growth of national GDP.
Conclusion- After analysing the economic factor, it has been understood that economic
condition of Australia is growing at a fastest rate because this nation is already got involved in
several business which is highly beneficial for the success of entire nation. Thus, Morrison’s can
also have an opportunity to developed their organization by coming up with creative products.
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Technological- Australia is also popular for its advanced technologies across the distinct
nation and well known for utilizing new tools and equipment’s at a very fastest rate as compared
to other developed nations. Thus, development of purchasing technology growth is around 4%
grow in 2018 to nearly $63 billion and expecting to grew by almost $65 in coming 2019.
However, most of the local companies are investing too much in technologies for accomplishing
their business activities in order to satisfy the needs of desired consumers. For example;
computers & tools, advanced software, tech consultancy services, cloud technology and artificial
intelligences are some of the major drive which associations in coming with creative results and
design in order to attract most of final users (Spear (2013).
Conclusion- Consequently, technological factors of Australia also highlights that
Morrison’s can easily perform their business activities with the help of modern tools and
equipment’s. As a result, get succeeded in gaining maximum return on their investment by
fulfilling the needs of domestic as well as foreign clients.
Environmental- Australia is count as one of the most beautiful nations over the seas
because of stunning beaches which attracts the minds of several tourists, mountains and forests.
In fact, this nation is widely famous for its mind blowing biodiversity. Almost one million
species of plants and animals are determined in Australia. At the same time, Australia are also
encountering some of the major surrounding challenges. For example; Australia is also known
for driest inhabited continent on overall earth because climatic modification is another major
challenge. Thus, current senate investigation summarized that fluctuation in national
environment is a recent and existential national security risk for Australia. On the other hand,
water insecurity, spreading of infectious diseases as well as regional disputes over food, water
and land are major potential results of climatic modification ( Zolin, (2013).
Conclusion- This shows that environment of Australia is influencing Morrison’s in two
distinct ways but it’s also depend upon company’s creativity that how they can manage these
issues because nothing is impossible. In fact, somehow Australia nature is supportive by changes
in climate provides all the opportunities and challenges to the company while running their
business operations.
Legal environment- Last but not the least, Legal factor of a nation covers all the
necessary laws, provisions, rules and regulations that are imposed by legitimate bodies on whole
nation. Main objective of imposing norms is to make sure that fair trading is going on by
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protecting both businesses and consumers from exploitative activities. In fact, Australia is having
numerous of fair trading norms, competition provisions and consumer protection beliefs. For
example; Fair Work Act 2009 is one of the most primary pieces of legislation which helps in
governing employment in overall nation. Similarly, privacy laws is also dealing with how
various organizations is going to handle the personal information of their end users and staff
members which are connected with an enterprise (Fisher, (2018).
Conclusion- Legitimate provisions are really indispensable for creating peaceful
environment at marketplace because these laws, rules and regulations always supports in creating
an equal surrounding. In fact, this will help in protecting Morrison’s from getting exploited by
already established new business because various norms are applied at marketplace for
protecting newly emerging organizations.
Business opportunities
There are number of reasons are identified which shows that an organization have
numerous of opportunities for investing in Australia is discussed as follows-
 Australia provides a very secure, safe, easy and minimum risky surrounding for
companies while doing their business across the distinct regions of country.
 In fact, this nation is also having a 24 years of uninterrupted growth.
 Economy of Australia is a very much innovative and creative with the availability of too
much talented workforces.
 Australia is also strategically interlinked with Asia.
 This nation is having a very democratic and politically stable governing bodies.
 Regulatory environment very much business friendly which is advantageous for
Morrison’s while running their new entity.
 Most advantageous thing for Morrison is that governing bodies of Australia always
welcomes foreign direct investment through AUSTRADE which is an investment
promotion agency (Mazumder and et. al., (2010).
By considering all the above points, it has been understood that Morrison is having a
great success opportunity in Australia expansion because this nation is fully creativity and
market support.
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Examples of companies
Business analyst at IBIS world have forecasted their 2017 list of Australian top most
1000 organizations by revenue whether its ASX list, private or governmental running businesses.
Above tabular presentation is just assumption figure which shows the top most
performers of Australian which were expanded their business in Australia for generating more or
more revenue. However, column of change percentage shows that companies have done
numerous of efforts for improving their performance from the beginning and now get succeeded
in achieving their set targets (CHRIS PASH, 2018 ). This shows that, Morrison can also grew
their annual revenue and improve its performance by doing efforts. Apart from this, there are
various other organizations are also identified which are comes for expansion in Australia and
now become top most associations in marketplace.
Recommendations
Throughout the analysis, it has been understood that Morrison’s is having number of
opportunities to develop their business in various manner. In fact, all the above factors of
PESTLE, business opportunities and examples of top performers shows that Morrison’s can
easily attained their set targets by coming up with creative concepts. Thus, company have to
consider necessary options while expanding their business in Australia which is described as
follows-
 Workforce of Australia are too much hardworking which shows that company have a
good option to accomplish their business activities by using the talent of Australian
employees team. Therefore, Morrison’s have to take care of their staff members by
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providing various opportunities to them so that they can show their talent in front of
whole organization.
 Consider internal elements also before launching the business such as; assess the
customer choice, preferences, taste, current trends, suppliers, strategies of competitors
and many more. As it will help while designing of product or organizational strategy.
 Understand each and every aspects of legal norms, provisions, rules and regulations in
order to minimize the probabilities of mistake that might get incurred while performing
business activities.
Hence, by analysing all the above facts or figures it has been clearly understood that
Morrison have to emerge their new business in Australia for generating more or more revenue.
As external environment of nation is very much supportive and not that much negative.
Entry Market strategy
There are number of entry strategy are available but from all of them Joint venture will be
best for Morrison while establishing their new business in Australia because this strategy helps
an association in understanding current market. Along with this, profits and losses will also share
between two organizations or parties which come closer for making a joint venture. Basically,
Joint venture is a business association that is formed with the help of two or more parties
characterized by shared ownership, shared returns and risks. Hence, this will help Morrison’s in
attaining their set targets by acquiring support from other associations (Williams & Figueiredo
(2011, June).
CONCLUSION
From the above report, it has been summarized that expansion is a very broad term and
complex activity for every organization whether its small or large because future is uncertain.
Thus, it is essential to assess external and internal environment of a nation before establishing a
new business at marketplace. Throughout the analysis of the project, it has been understood that
company have number options and market opportunity in new environment because every
individual wanted to experience something creative and unique. Hence, this project shows the
market opportunities for an organization in Australia with the help of external assessment.
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REFERENCES
Books and Journals
Forsyth, D. M., & Davis, N. E. (2011). Diets of non‐native deer in Australia estimated by
macroscopic versus microhistological rumen analysis. The Journal of Wildlife
Management, 75(6), 1488-1497.
Benson, S. J and et. al., (2010). Forensic Analysis of Explosives Using Isotope Ratio Mass
Spectrometry (IRMS)—Part 2: Forensic Inter‐Laboratory Trial: Bulk Carbon and
Nitrogen Stable Isotopes in a Range of Chemical Compounds (Australia and New
Zealand). Journal of forensic sciences, 55(1), 205-212.
Dunlop, J. N., & Bullen, R. D. (2011). Habitat use and trophic structure in a microbat
assemblage on the edge of the southern rangelands, Western Australia: insights from
stable isotope analysis. The Rangeland Journal, 33(1), 1-7.
Tsyhankova, T., Yatsenko, O., & Zavadska, Y. (2014). Global transformations of international
organic agrofood markets. Management Theory and Studies for Rural Business and
Infrastructure Development, 36(2), 425-434.
Barba, F. C and et. al., (2016). A technical evaluation, performance analysis and risk assessment
of multiple novel oxy-turbine power cycles with complete CO2 capture. Journal of
cleaner production, 133, 971-985.
Spear, N. (2013). A multidisciplinary analysis of evaporite rocks from the mid-Neoproterozoic
Browne Formation, Officer Basin, Western Australia.
Zolin, R. (2013). How the environment affects opportunity recognition by entrepreneurs at the
bottom of the pyramid. In Conference Proceedings: Australia Centre for
Entrepreneurship (ACE) Research Exchange Conference 2013. Australia Centre for
Entrepreneurship.
Fisher, N. I. (2018). Stakeholder Value as an Organizing Principle for Strategic
Planning. Journal of Creating Value, 2394964318771251.
Mazumder, D and et. al., (2010). Effect of acidification on elemental and isotopic compositions
of sediment organic matter and macro‐invertebrate muscle tissues in food web
research. Rapid Communications in Mass Spectrometry, 24(20), 2938-2942.
Williams, B., & Figueiredo, J. (2011, June). Strategy and technology management: An
innovation-leader case study. In Technology Management Conference (ITMC), 2011
IEEE International (pp. 806-811). IEEE.
Online
CHRIS PASH, 2018. [Online]. Avaialble through <
https://www.businessinsider.com.au/australias-top-companies-for-2017-2018-3>.
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