BM 461: Report on SWOT and Operational Impact for Morrison's

This report provides a comprehensive analysis of Morrison's, a major player in the retail industry, focusing on its global business environment. It begins with an introduction to the key factors influencing the company's operations, both internal and external. The core of the report is a detailed SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis, identifying Morrison's core competencies, areas for improvement, potential growth avenues, and competitive challenges. Following the SWOT analysis, the report examines the operational impact of key drivers, such as brand portfolio, technology investment, customer relationship management, and online channels, on two key functional units: Marketing and Finance. The marketing section explores how the strong brand portfolio and customer relationship management strategies affect the promotion and communication of Morrison's offerings. The finance section assesses how technology investments and online sales channels impact the allocation of resources and profitability. The report concludes by emphasizing the importance of environmental scanning for effective decision-making and summarizes the key findings related to the SWOT analysis and operational impacts, providing a holistic view of Morrison's business strategy and challenges.

BM 461 Global
Business Environment

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
SWOT Analysis.......................................................................................................................................3
Operational Impact Analysis...................................................................................................................5
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................7

INTRODUCTION
The business environment is mainly the external and internal forces and factors which are
not in control of the companies. These may affect the functioning and working of the
organization. There are mainly 2 types of factors that are prevalent in business environment
which includes internal and external. It is essential for the organization to scrutinize its external
environment in order to grow and expand the company in the competitive environment
(Moktadir and et. al., 2020). The organization for this report is Morrison’s which deals in retail
industry. It was founded in the year 1899 and is headquartered in England. This report will cover
the SWOT analysis of the organization and the operational impact analysis of it.
MAIN BODY
SWOT Analysis
It is a tool or a framework which is used to identify the internal and external factors of the
organization such as strength, opportunities, weakness and threat. In relation to Morrison, it is
narrated thereunder-
Strength Weakness
 Morrison has become expertise in
entering the new markets and making
success out of it. The expansion for the
company has helped it to build the new
revenue stream and also diversified the
economic cycle risk into the market
where it operates.
 Another strength is its strong brand
portfolio as Morrison’s invest huge
amount in building the strong brand as
this only helps it to successfully expand
its business in new products line (Işık
 The biggest weakness for Morrison is
its marketing of goods as the company
may be successful in terms of sales but
the USP and positioning of the brand is
not defined clearly which results in the
competitors taking the edge over
Morrison.
 Another weakness is its organizational
structure which is not compatible with
the business model it presently use.
Thus this makes the expansion of the
organization in the limited manner for

and et. al., 2018).
 Next strength of Morrison is its highly
dedicated customer relationship
management department which works
on to deliver high level of satisfaction
to the customers for the existing one
and the brand equity for the potential
consumers.
the adjacent segments of product.
 Morrison investment in the technology
is not as per the vision of organization
which becomes its biggest weakness. It
must invest in the new technologies due
to its regular expansion of the business
so that it can integrate the process.
Opportunities Threats
 Morrison must invest in the online
channel so that it can know the
customers in a better manner and serve
their needs by using the big data
analytics. This will help Morrison in
increasing its sales volume as earlier
also investing huge amount in online
platform has opened the sales channel
for the company.
 Another opportunity can be to enter the
new emerging markets by adopting new
technologies and the free trade
agreements of government so that it can
target new customers and enhance its
business.
 Morrison must focus on the new trends
in consumer behaviour which can open
up the new market for it as it is an
opportunity to build the revenue
streams and also diversify in different
product lines.
 One such threat for Morrison's can be
the development of new technologies
by the competitors as it can affect its
profitability and sales volume.
 Another threat can be the new policies
and regulations of the government post
the Brexit as it may affect its
operations.
 The intense competition in the UK
market specifically in retail industry
has not only the pressure on the
profitability of the firm but also on its
overall sales (Herliana, Lawiyah and
Aina, 2018).

Operational Impact Analysis
The different key drivers being identified from internal and external environment for
Morrison which includes the strong brand portfolio, investment in new technologies, the
customer relationship management and the online channels. The impact of these drivers on 2
functional units of Morrison are illustrated below-
 Marketing- This functional unit of the organization is entrusted with the work of
promoting and communicating the offering of the organization. This department plays an
essential role in establishing the business. It involves planning such strategies of
marketing which can help it in increasing its sales volume and the profitability. As
Morrison has the strong brand portfolio which helps the organization in expanding Its
business which also places the huge pressure on the marketing department to plan such
strategies to promote the product of the organization in such a manner that its brand
portfolio is maintained. Another driver which affects the marketing unit is the customer
relationship management as this department concentrate on different ways in which the
customer satisfaction can be enhanced and due to this, the marketing unit of Morrison’s
has to plan such strategies which can promise the consumers for the high level of
satisfaction after availing the product and service of the business (Leyer, Stumpf-
Wollersheim and Pisani, 2017).
 Finance- This department has a role to manage the finances and funds of the
organization. It mainly allocates and makes the budget for the organization and
distributes it to the all other departments so that each can function effectively.
Investment in the technologies can place a heavy impact on the financial department of
Morrison’s as it requires huge amount of funds to deploy technology and this may also
lower the profitability of the organization in the initial time due to high investment.
Another key driver that affects the finance unit is the online channels for selling the
offering of the company as it requires high cost in developing the online platform but
once it is successful, it helps in enhancing the profitability rates in more speed as
compared to physical selling (Carvalheira and et. al., 2018).

CONCLUSION
It is concluded from this report that it is very essential for the enterprises to scan the
business environment so that it can make efficient decisions. SWOT analysis is a framework
which helps it to identify the strength, opportunities so that it can overcome its threats and
weaknesses. There are different drivers which are identified from the SWOT analysis that affects
the marketing and financial unit of Morrison’s which includes strong brand portfolio, customer
relationship management, investment in technologies and the online channels for sales.

REFERENCES
Books and Journals
Carvalheira, M., and et. al., 2018. Performance of a two-stage anaerobic digestion system
treating fruit pulp waste: The impact of substrate shift and operational conditions. Waste
Management. 78. pp.434-445.
Herliana, S., Lawiyah, N. and Aina, Q., 2018. Swot Analysis Approach on Sme's Entrepreneurial
Competency. Academy of Entrepreneurship Journal. 24(2). pp.1-6.
Işık, Z., and et. al., 2018. Application of SWOT analysis in Turkish construction industry.
In Proceedings of the 21st international symposium on advancement of construction
management and real estate (pp. 299-309). Springer, Singapore.
Leyer, M., Stumpf-Wollersheim, J. and Pisani, F., 2017. The influence of process-oriented
organisational design on operational performance and innovation: a quantitative analysis
in the financial services industry. International Journal of Production Research. 55(18).
pp.5259-5270.
Moktadir, M.A., and et. al., 2020. Critical success factors for a circular economy: Implications
for business strategy and the environment. Business strategy and the environment. 29(8).
pp.3611-3635.