Morrisons: Analyzing the Global Business Environment with PESTLE

This report provides a PESTLE analysis of Morrisons, a UK-based supermarket chain, to understand its global business environment. It examines political factors like Brexit's impact on policies and raw material costs, economic factors such as currency fluctuations and inflation, social factors including consumer preferences for organic products, technological advancements in promotion and distribution, legal factors related to food safety and employee equality, and environmental concerns like reducing carbon footprints and plastic usage. The analysis concludes that PESTLE is a valuable tool for Morrisons to navigate external challenges, improve its market position, and achieve sustainable profitability. Desklib provides a platform for students to access similar solved assignments and study resources.

Global business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
PESTLE ANALYSIS..................................................................................................................1
CONCLUSION ...............................................................................................................................2
REFERENCES...............................................................................................................................3

INTRODUCTION
Global business environment define sovereign organisation environment that are not
controllable but create impact on operations of companies at the time of interact internationally.
Global business environment is used to make proper decision making by using several resources
involve raw material, human resources etc. As organisation must affected by external
environment more rather than from the competitors. This particular report is based on Morrisons
(Vallati and Grassi, 2019). It is a famous UK supermarket chain Headquartered in England, UK.
Morrisons deals in number of products such as clothing, foods, books, drinks etc. as it report is
based on pestle analysis that helps in identifying key drivers of changes to sustain for a longer
period of time.
MAIN BODY
PESTLE ANALYSIS
It refers to that analysis which is based on external factors that impact highly on business
operations and survival. In terms of Morrisons, pestle analysis assist in overcome with several
issues due to which company lost their market share, fierce competition, change customer
perception etc. Hence with the use of pestle analysis Morrisons fulfill customer demands to
generate more profitable results. These includes six factors which are demonstrated below:
 Political factor- This factor include intervention of government within business
organisation (Dovis and Zaki, 2020). When Brexit was occur in UK it impact policies,
regulations and laws of government that are uncertain and changes very easily. In this
case, Morrisons profit margin also impacted because they can't purchase raw material
from European country on low cost that affects the profit margin and directly reduce
profit margin.
 Economical factor- This factor involves purchasing power of buyers, economic
condition etc. Due to Brexit in UK there is high fluctuations occur in currency due to
which Morrison face inflation pressure by increase the prices of goods by purchase
inputs on high amount. Due to increment done in prices of oil impact households to
consume products at low cost. Hence it impact company profitably.
 Social factor- This includes values, perception of customers who lives within society. In
terms of Morrisons, it is a leading supermarket emphasis on grab opportunity by selling
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those products which satisfied customers demands. They sold organic range of products
which are highly demanding in recent time create profitable outcomes in company
sustainability.
 Technological factor- In recent time technology play a crucial role in expanding
business on global nature. In context of Morrisons organisation usually invest on use of
technology while promoting, distributing and manufacturing goods. It also helps to save
cost of company so that they enjoy more profitable results (Cherunilam, 2020). Morrisons
use the digital platforms such as social media to attracts large base of customers in all
over the world. In this company need to emphasis on using updated technology software
so that profit margin would enhanced and cost of production is low.
 Legal factor- This represent rules and regulations that are imposed by government for
safety of employees and consumers. Morrisons is a company who follow standards and
policies related to food safety so that it could not harm employees dignity,. As they use
equality law where they treat every employees on equal basis so that they are satisfied
with the working and focus on attaining company targets properly.
 Environmental factor- This factor emphasis on reducing carbon footprints, pollution
etc. to clean environment. In context of Morrisons, manager need to focus on adopt the
CSR policies to sustain at marketplace and reduce the negative impact from environment.
They also emphasis on reducing the use of plastic packaging and move towards the use of
paper bags, jute bags or bamboo bags (Kotabe and Helsen, 2020). This reduce carbon
emissions and clean the environment effectively.
CONCLUSION
From the above information it is concluded that global business environment is very
prominent business term that could be effectively analysed by using PESTLE tool. However it is
a best strategic tool that is used to examine external environment so that companies work
properly and appropriately according to market requirements and government policies. This
helps Morrisons to generate more profitable results by reducing threats that are avail in the
operations of business firm. Hence, pestle analysis is very effective for company to build image
on international level and sustain for longer time period.
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REFERENCES
Books and Journals
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Dovis, M. and Zaki, C., 2020. Global Value Chains and Local Business Environments: Which
Factors Really Matter in Developing Countries?. Review of Industrial Organization,
pp.1-33.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Vallati, M. and Grassi, A., 2019, July. AI to Facilitate Legal Analysis in the PESTLE Context.
In The EMerging Technology conference (EMiT) 2019 (pp. 66-68). IET.
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