Business Environment Analysis of Morrison's Supermarket Chain

This report provides a comprehensive analysis of the business environment of Morrison's, a major UK supermarket chain. It begins with an introduction to the business environment and its impact on organizational structure and operations. The main body of the report focuses on SWOT and PESTEL analyses. The SWOT analysis examines Morrison's strengths, weaknesses, opportunities, and threats, providing insights into its internal capabilities and external challenges. The PESTEL analysis explores the political, economic, social, technological, environmental, and legal factors affecting the company. The report also discusses how the company impacts its external environment, including financial and political components. The conclusion summarizes the key findings and emphasizes the importance of understanding both internal and external factors for achieving favorable outcomes. The report also includes references to relevant books and journal articles.

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Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
SWOT ANALYSIS................................................................................................................3
PESTEL Analysis...................................................................................................................4
How the company impact its context External Environment.................................................5
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8
Books & Journal:....................................................................................................................8

INTRODUCTION
Business environment is contemporary and flexible and it impact of organisational
structure functions and operations at wider level. With changing period of time, it has become
important to conduct a proper research on the basis of which information is obtained. Main
purpose of this report is to understand the impact of both internal and external factors on
business (Çitilci, 2020). Morrisons, largest supermarket chain headquartered in United
Kingdom. The organisation deals in daily consumable items and as well as other consumer
related products and services. It also has many computers in market such as Tesco, Wal-Mart,
Amazon, Sainsbury and many more. This report comprises of concept of business
environment, external analysis and their impact on business, frameworks such as swot and
pestle analysis.
MAIN BODY
SWOT ANALYSIS
It is a tool which is used by most of the organisation in order to determine and
examine their internal capabilities by accessing to strength weakness, opportunities and
threats (Çitilci, 2020). Main benefit of this tool is that it helps in making effective decisions
regarding development of business as well as activities that are needed to be changed and
improved. In relation of selected organisation, manager of the form also uses SWOT analysis
which helps in making decisions in proper manner and is further discussed as follows-
Strength
 Main strength of Morrison’s is that they have efficient and skilled employees with
different food making skills and strong distribution network.
 Another Morrison’s strength is that it they provide high quality of products and
services to their customers which helps them to develop positive relationship in
market.
 Organisation is located at global level and it has higher brand equity across the globe
that helps them to execute their business activities in proper manner.
Weakness
 Main weakness of Morrison's is that it is located at global level but with limited
geographic presence. This makes it difficult for them to diversify their product at
wider level (Fosher, 2018).
 Due to adoption of changes with the slower rate, it is not easy for them to engage with
the target audience.
Opportunities

 Morrison’s also having opportunities in the market such as they can establish on the
basis of demographic rather than geographic factor which will enhance their goodwill.
 With this on-going pandemic situation each and every business is connected with
digitalization and e-commerce platforms so Morrison’s can also enhance their
activities through e commerce which will boost their sales (Leung, 2019).
Threats
 The biggest threat to the company is that due to changing rules and regulations within
food sectors and United Kingdom economy it can impact upon the service operations
and functions
 Further the competition level in FMCG sector is growing at large scale as the numbers
of small and medium enterprises are taking the market and customers.
From the above matter it can be analysed that it is critically important for organisation to
use the swot analysis on the basis of which it will be easier for them to improve and achieve
their goals mission and vision within time period. It is duty of a manager to make ensure that
appropriate changes are made after conducting the swot analysis so that benefits are achieved
(Haleem, 2017).
PESTEL Analysis
PESTEL Analysis is a type of a framework which is used by enterprises with aim of
examining and analysing the external factors that impact on overall organisational structure.
This framework is important to be considered as because it helps in understanding the market
situation and its impact on enterprise as well as resources. This framework consists of
different elements which are explained as follows-
Political factors- It is a type of element which consists of factors like ok lag
installations political stability and instability tax rates environmental law etc. Due introduce
of BREXIT, created major changes in business sector and which leads to change in policies
as well as regulations. Morrison’s was affected by Brexit at larger scale (Lan, 2017).
Economical- It is another component of framework in which it consists of inflation
and deflation rates taxation policies disposable income etc. In context of selected enterprise,
Brexit created fluctuations in currency and which also ensures the inflationary pressure on
enterprise.
Social- Social factor consists of population behaviour attitude trends and many more.
In reference of chosen company, enterprise has to follow the rules and regulations as because
of growing education and awareness about health of consumers in United Kingdom. Social
factors are important to be considered as because the products and services are used by
customers and their demands changes from time to time. In order to fulfil the needs and

demands of targeted audience selected company uses research analysis as well less now
aiming towards demographic factor.
Technological- Technological factor comprises of use of advanced software and tools,
machine learning artificial intelligence etc. In consideration of Morrison's, they promote and
advertise their brand image by use of social media platform and many other digital tools
which makes it easier for them to reach to customers. In this changing period of time, it is
critically essential to use technology in business on the basis of which competitive
advantages can be undertaken easily. (Lulaj, 2018).
Environmental- In this element of PESTEL analysis, it aims at factors like protection
of green environment, waste management, resources efficiently etc. In viewpoint of chosen
company, be focused quotes carbon emission and reduced it by 26.9 % and are also evening
to reduce it to 30% by 2025. The chosen company also eliminated the use of poly boxes in
their supply chain processes. With the awareness of community and societies, it has become
crucial to focus on boosting the environment and increasing the sustainability of business.
But focusing on this factor it also increases the Goodwill of a brand.
Legal – It is the last component of framework in which it includes the elements like
rules and regulations policies laws governed by the government. In reference of undertaken
enterprise, be properly follows food safety and standards like FSA targets factor. This factor
impact on enterprise as because following all the rules and regulations makes it time
consuming and difficult for entity to execute their operations (Moore, 2018).
The above explain the paragraph shows that external environment impact upon
organisation at large scale. With conservation of this framework, it is necessary to have
relevant information about the market so that positive decisions are undertaken.
How the company impact its context External Environment
Financial component- It is an important element which is to be used as because
effective directly on profit of the business. In relation of selected organisation, it comprises of
loan, more capital and many more. It is necessary to separate this so that it is easier for entity
to accomplish goals in appropriate way.
Political variable- It comprises of laws, rules and regulations, etc. It is necessary for
company to examine the impact of government change of rules and policies. In context of
chosen company, it focuses on maintaining the stability and follows all the legal procedures
appropriately ( Praveen, 2020).

CONCLUSION
On the basis of above given report, it is analysed that the primary purpose of company
is to increase financial position and achieve favourable outcome in future period of time. In
this report, there is a discussion regarding internal and external factor that enforces direct
effect on company and also how the company execute its business in specific field for
accomplishing favourable results in future time period. The main aim of business is to
enhance their financial position at market. In the present era it is identified that there are
different business performing their activity in desired sector for achieving good business
result.

REFERENCES
Books & Journal:
Çitilci, 2020. The Importance of PESTEL Analysis for Environmental Scanning Process.
In Handbook of Research on Decision-Making Techniques in Financial Marketing
(pp. 336-357). IGI Global.
Fosher, 2018. Understanding the Marketing and Management of trails using PESTEL
Analysis.
Haleem, 2017. Strategic Management Practices by Morrison PLC, UK. Analysis, Lessons
and Implications. Middle East Journal of Business, 55(4182), pp.1-7.
Lan, 2017. Healthy competition to support healthy eating? An investigation of fruit and
vegetable pricing in UK supermarkets. Journal of Agricultural Economics, 68(3),
pp.881-900.
Leung, 2019. A B2B flexible pricing decision support system for managing the request for
quotation process under e-commerce business environment. International Journal of
Production Research, 57(20), pp.6528-6551.
Lulaj, 2018. Role of analysis CVP (cost-volume-profit) as important indicator for planning
and making decisions in the business environment. European Journal of Economics
and Business Studies, 4(2), pp.99-114.
Moore, 2018. Evaluation of the nutrient content of yogurts: a comprehensive survey of
yogurt products in the major UK supermarkets. BMJ open, 8(8).
Praveen, 2020. Pandemic–based Esl: A Swot Analysis.