Business Strategy Analysis Report: Morrison's Supermarket Overview

This report provides a comprehensive business strategy analysis of Morrison's supermarket. It begins with an introduction to business strategy and Morrison's, followed by an in-depth examination of its internal and external environments using PESTLE and SWOT analyses, and an analysis of the competitive environment using Porter's Five Forces model. The report identifies Morrison's existing and potential competitive advantages and devises valid strategies and tactical objectives to achieve overall strategic goals. It also includes an analysis of the company's strategic directions, recommendations for appropriate strategies, and suggestions for monitoring those strategies. The report uses McKinsey's 7s Model to evaluate Morrison's internal environment and capabilities and highlights Porter's generic strategies. Finally, it provides an overview of Ansoff's growth vector matrix and Bowman's strategy clock in the context of Morrison's strategic planning.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
1- Analysing internal and external business environment by using PESTLE and SWOT
analysis of Morrison's..................................................................................................................3
2- Analysing competitive environment using Porter's five forces model....................................6
3- Identification and justification of company's existing or potential competitive advantage.. . .6
4- Devising valid strategies and tactical objectives to achieve overall strategic objectives........6
PART-B.........................................................................................................................................12
1- Critical evaluation of strategic directions..............................................................................12
2- Recommending appropriate strategies...................................................................................12
3- Monitoring the strategies.......................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy is a set of plans or goals that defines how the organization can compete
in potential markets with a prescribed line of products. Morrison is supermarket chain operating
in the United Kingdom (Ali and et.al., 2021). The current report will analyse the impact and
influence of the macro environment on Morrison and its strategies with the help of PESTLE
analysis, SWOT analysis and Stakeholder analysis. Using Mckinsey's 7s Model, internal
environment and capabilities of Morrison will be analysed. Moreover, Porter's Five Force model
will be used to evaluate the competitive forces of a given market sector for the mentioned
company. Also, Porter's generic strategies will be highlighted based on which the company's
strategies will be discussed.
PART A
1- Analysing internal and external business environment by using PESTLE and SWOT analysis
of Morrison's.
There are several models accessible in the corporate world, that has been applied in the
context of industries and companies. In case of Morrison, Pestle, SWOT and other types of
strategic frameworks applied, below;
PESTLE analysis-
Political factor-
In the China, political stability and other political factors such as trade policy, can put
negative impact on Morrison's (Christodoulou and Cullinane, 2019). It leads to create new
challenges for the supermarket in term of increasing trade charges, which is not suitable for its
success in the new market.
Economic factor-
Economic stability, income level, education and other factors covered in the economic
terms can put positive impact on Morrison's, in term of increasing sales and productivity of
venture in the China. As organization can hire new educated and knowledgable candidates, who
are able to serve their services in the Chinese market.
Social factor-
Market trend, buying behaviour of customers and other terms are included in the list of
social factors. Morrison's can take benefit of each term as it affect positively upon its venture.
Firm can take approach to identify the trend and then start offering products accordingly.

Technology factor-
Technology advancement can put positive impact on venture in the new market, in term
of driving marketer attention toward using advanced technologies that help to promote business
appropriately.
Legal factor-
Changes related to regulatory frameworks and concepts, can put negative impact on
company in term of increasing work pressure to make possible and essential changes related to
policies that Morrison's follow earlier.
Environmental factor-
Morrison's can sustain for longer in the new market, because it follows CSR concept and
work according to that consideration. As it enable company to build excellent brand image in the
China, where sustainability matters.
Ansoff's growth vector matrix-
Market penetration-
According to current strategy of Ansoff's growth matrix, Morrison's can take approach to
focus on increasing sales of current items into UK and other existing market (What is the Ansoff
Matrix, 2022).
Product development-
The current term drives the attention of company toward taking initiative of offering new
category of product to the customers, either existing or new that help to increase sales (Auma
and Waithaka, 2020).
Market development-
With consideration of market development, Morrison's can take initiative to enter into
new market such as China, where possibility of venture growth and success is high in extent.
Diversification-
With the strategic term of diversification, organization can take action to enter into new
market with new product, that customers prefer to purchase, which help to meet their needs.
SWOT analysis-
Strengths-
Skilled workforce, good brand image and effective management style, are the key
strengths of company that it can utilize to achieve the strategic goals and objectives.

Weaknesses-
Lack of workforce diversity, poor leadership style and lack of expansion are the main
weaknesses of Morrison's, that it can take effort to overcome, in appropriate and systematic
manner.
Opportunities-
Technology advancement, and emerging market trends are the main opportunities that
organization can grab appropriately, with formulation of effective plans and strategies.
Threats-
Regulatory changes, and intense competition are the two main threats that can put
negative impact on Morrison's, success in the China.
Mckinsey's 7s model-
Strategy-
It is important for the Morrison's to develop the best strategy related to business functions
that aid to achieve the goals that they can set for further growth.
Structure-
Organization can take approach to utilize the best organizational structure that can help to
increase employees performance and productivity, better than last few years or months (Pospisil
and Zavodna, 2022).
Systems-
It is essential to utilize the best system and form policies that can help supermarket to
gain competitive advantages in the bulk.
Shared Values-
In the Morrison's, management can create a positive environment where they are
comfortable to share values, mission, vision and aim with employees who can help to achieve
each.
Style-
By using appropriate and useful leadership style, leaders in the Morrison's can boost
employees morale who can contribute to make company productive and profitable.
Staff-
Organization can utilize its staff for purpose of aim achievement and make them more
stronger through training session that can help to reach desire outcomes.

Skills-
For purpose of gaining competitive advantages, organization can train its staff members,
which in turn lead to develop or improve their skills.
2- Analysing competitive environment using Porter's five forces model.
Bargaining power of suppliers-
The extent of current force is high because number of suppliers accessible in the new
market, which make company ineffective as it conducts efforts to identify the sustainable
suppliers who can work with firm with low price and less policy structure.
Bargaining power of customers-
The degree of this force is low, because customers do not have any sources, where they
can find product quality and good quantity.
Threat of new entrance-
The degree of current force is low, because requirement related to new market entrance is
high, which means companies to tend to enter into retail market in the China put extra efforts,
which is not possible for all the ventures to do that.
Threat of substitute products and services-
The level of this force is low, because substitute products of vegan good items are no
available in the market.
Competition between existing companies-
The level of competition between existing organizations in the China retail industry is
high, which means company face challenge to survive.
3- Identification and justification of company's existing or potential competitive advantage.
Technology advancement, emerging trends and global expansion are the best competitive
advantages, which Morrison's can grab in form of developing plans. It can take initiative to
develop strategy in the context of implementing new technology, or using specific one. After
that, organization can conduct practice of identifying new trends that Chinese falls and then
move to the last opportunity, that is expansion in the China.
4- Devising valid strategies and tactical objectives to achieve overall strategic objectives.
Porter's generic strategy analysis
Michael porter's generic strategies help the organizations to choose right strategies for
running the business on a competitive edge. Following is an analysis based on the porter's

generic strategy for the company, Morrison. The company has adopted a combination of cost
leadership, differentiation and focus strategies to handle the pressure of competition.
Cost Leadership
Cost leadership is the strategy used by most of the organizations to maintain competitive
edge by lowering down its costs (Benghezal and et.al., 2022). In Morrison, middle class
consumer group is targeted as it contributes a large proportion. Consumers with lower income
and who belong to middle class group focus much on the pricing set by the company. Therefore,
cost leadership is the best strategy to fulfil the needs of the targeted consumers. The prime focus
of Morrison is to make its products affordable to everyone around the world and the products
should be easily available to the consumers. Moreover, Morrison focuses on providing sales
benefits to the consumers by offering them products at discount.
Differentiation
Differentiation is a second generic strategy that helps the organizations to expand its
customer segment by offering them unique featured products (Ali and et.al., 2021). The strategic
objectives of Morrison for using this strategy are to introduce innovations in its products and
taking care of the growing health concerns of the customers. For example: there has been an
expansion in the product line op Morrison after looking at the growing health concerns among
the audience. Through this strategy, the company can offer products which are unique and
different from its substitutes. To achieve this, there has been wide investment in the field of
marketing and advertisement. Company's brand logo is different and unique which can help in
differentiation from other brands.
Focus Strategy
Focus strategy is the third main generic strategy which helps the organizations to allocate
resources in its narrowly targeted segments effectively. Morrison focuses on offering its products
at low cost without compromising the quality. Best value focus strategy is used to focus on the
design, taste and size of its products to meet the on growing needs of the consumers. To meet the
psychological needs of the consumers, Morrison continuously bring changes in its brand logo,
packaging and designing of the product that could match the requirements of the customers
(Bozic and et.al., 2019). Customers prefer quality products but never get ready to pay a good
price. Focus strategy will help the company to achieve its goals of offering quality with low costs
for targeted segment.

Bowman's strategy clock-
Low price and added value-
According to the Bowman's strategy clock, Morrison's can take approach to keep its price
and value of products, relatively low, which means it can conduct practice of competitive method
to compete with contemporaries in the Chinese market.
Low price-
Morrison can follow low pricing strategy that make supermarket capable to gain the
attention of potential customers and retain them with existing buyers.
Hybrid-
The current strategy in the Bowman's strategy clock, drives the attention of supermarket
toward adding value of goods in consistent in nature (What is Bowman’s Strategy Clock, 2022).
Differentiation-
With differentiation strategy, Morrison's can take approach to offer goods that are high
on realms of quantity and quality, at an average price.
Focused differentiation-
The current category of strategy, supermarket can apply in the context of brand, which
means it can focus on exclusive and luxury items, which are high on quality and sold at high
price.
Risky high margins-
By using risky high margin strategy, organization can charge high prices for items that
are recognized as mediocre in the value by the target market (Echchakoui, 2018).
Monopoly pricing-
According to the current term, organization can position itself as the monopoly leader in
the new Chinese market as it only ones offer particular category of items there.
Loss of market share-
The last strategy of Bowman's strategy clock is current one, according to which company
can face varied challenges such as loss of market share, when it unable to offer those services
and goods that consumer value a lot.
Background-
The current strategic plan is developed to specific the strategies that Morrison's adopt and
utilize, for purpose of increasing sales, profits, productivity and performance level. The chosen

supermarket, falls under the category of leading supermarkets in the UK. It efforts to gain
competitive advantages, with skilled workforce and effective plans.
Organizational structure-
For purpose of achieving aims and objectives in varied terms, organization can utilize
functional organizational structure. The main reason behind using this structure is that it enable
management to assign the work within each functional departments, while entering into Chinese
market, where competition level is high.
Vision-
The vision of Morrison's is to increase profitability and productivity, along with offering
satisfactory services and products to target market.
Mission-
The mission of Morrison's is to enhance customer satisfaction level and increase
consumer base.
Objectives-
 To increase sales and profitability by 50% within 2 years
 To expand business in the China within 2 years
 To enhance customer base and satisfactory level by 60% within 3 years.
Marketing mix-
Marketing mix is the best model that apply in the context of Morrison's strategic plan,
with consideration of product and market development strategies. It enables supermarket to
select or develop the suitable strategy that help to achieve the aim of overall plan.
Product-
Organization can focus on introducing new product in the market and also concentrate on
their packaging, which needs to be sustainable. Morrison's and its production section can take
decision to introduce new range of vegan items in the market, which majority of customers
prefer to purchase and consume.
Price-
It is essential for the Morrison's to select a specific pricing strategy, which enable it to
retain potential customers and make them loyal, like existing target audience. It can utilize
competitive pricing strategy, in term of setting price higher or lower, against rivals pricing
tactics.

Place-
Morrison's and its management can take strategic action in form of selecting a specific
location in the China, where they can establish its own outlet. It becomes quite easier for the
supermarket to gain the attention of customers and make them happy, which is essential and
beneficial too for them to do that.
People-
In order to serve satisfactory services and offer quality products to new target market,
Morrison can take approach to hire new candidates, in the China. The main reason behind this
strategy is that, it helps company to better understand target market needs as local people are
aware of what individual person in the Chinese market need and demand for.
Process-
It is important for the management to smooth the procedure of supply chain, which
enable them to gain competitive advantages. It is possible when Morrison's, can identify
suppliers and then build good supply chain, which allow supermarket to achieve the strategic
goals and objectives.
Promotion-
For purpose of promotion, Weibo is the best social media platform that Morrison's can
utilize to reach target people and aware them about new product that they want to introduce in
the Chinese market (Top Chinese Social Media Platforms, 2022). The current social media
channel is as a combination of Chinese Twitter and Facebook, where people can collect
information about any new product or service.
Physical evidence-
In order to show the physical existence of Morrison's in the China, management can take
decision to utilize specific strategy, or approach. As they can utilize social media channels to
show the existence and also the holdings, that customers can consider and recognize brand
accessibility in the market.
Strategy formulation-
VRIO analysis is the best way that Morrison's and its administration can take into their
consideration for purpose of strategy formulation. The implementation of chosen model, can
enable them to identify the key resources and capabilities that supermarket has. It enables them
to form the best strategy with consideration of key elements and these are;

Resources and
capabilities
Value Rare Inimitable Organization
Good marketing
strategies
Yes No Yes Yes
Intellectual
property rights
Yes Yes Yes Yes
National and
international
presence
Yes Yes No Yes
Skilled and
diverse
workforce
Yes No Yes Yes
Customer
network and
loyalty
Yes Yes Yes Yes
Supply chain
network
Yes Yes Yes Yes
From the above VRIO table, it has been founded that organization can form market and
product development strategy and also can work on these, in term of using all the valuable, rare,
and inimitable resources as well as competencies that they had, such as skilled and experienced
workforce.
Implementation-
Morrison's can implement chosen strategies such as market and product development, in
term of developing appropriate plans, such as team development. It enables supermarket and
management to form a team of skilled and knowledgable players, who can help to achieve the
aim in form of offering quality goods to the new customers, as per their needs and requirements.
Another approach of plan or strategy implementation is role and responsibility division,

according to which management can take initiative to divide role and accountabilities among
individual person to make work more systematic and appropriate.
Evaluation-
The best way to evaluate the success of current strategic plan is to consider the level of
increasing profitability, which defines that Morrison's in the new market with new category of
product is sustaining effectively and successfully.
PART-B
1- Critical evaluation of strategic directions
Advantages of strategies directions for Morrison:
 Cost leadership strategy helps the company to expand its share in the market . With the
help of this strategy, Morrison can create awareness about its brand and increase the
sales of its products. Offering discounts can help in increasing brand popularity among
the consumers which will further help to increase the consumption.
 Differentiation helps the company to delight their customers by offering innovative
products. This results in increase in preferences of consumers for the products offered by
the company over other competitive brands.
 Focus strategy allows the company to maintain competitive position. The main
advantage of this strategy is that it creates brand image among the consumer which
contributes narrowly in the business of the company.
Disadvantages of strategic directions for Morrison:
 Cost leadership strategy has certain limitations like technological changes can sometimes
nullify past investments. Placing more attention on the cost can create inability to see
changes in the product or marketing.
 Differentiation strategy can create problem in holding the loyalty of the brand
(Gorgoglione and et.al., 2019). Buyers of the products compromise the quality because of
the low price offered by the competitors. Sophistication of buyer can decrease their need
of differentiation.
 Disadvantage of focus strategy is that the difference in the cost with the competitors
eliminates the advantage of cost that serves a narrow base of target.