Unit 32 Business Strategy: Morrison's PESTLE, SWOT Analysis Report

This report provides a comprehensive analysis of Morrison's business strategy within the dynamic global retail industry. It begins with an introduction outlining the significance of business strategy and its role in expanding customer reach. Part A delves into a PESTLE and SWOT analysis of Morrison's, evaluating its key capabilities and resources. It further examines the competitive environment using Porter's Five Forces model, identifies existing and potential competitive advantages, and devises tactical objectives. Part B focuses on the implementation of strategic direction models, recommendations for optimal growth platforms and strategies, and the importance of monitoring strategies to ensure success. The report concludes with a summary of findings and recommendations, supported by relevant references.

UNIT 32- BUSINESS
STRATEGY

Table of Contents
INTRODCUTION .....................................................................................................................3
PART A......................................................................................................................................3
Pestle and swot analysis of Morrison’s and evaluation of its key capabilities and resources3
Analysing competitive environment utilizing porter’s five forces model..............................8
Identifying existing and potential competitive benefits of Morrison’s..................................9
Devising valid tactics and tactical objectives to achieve overall objectives..........................9
PART B .....................................................................................................................................9
Strategic directions models implementation..........................................................................9
Recommendations of best growth platforms and strategies.................................................12
Monitoring of strategies to ensure success...........................................................................12
CONCLUSION .......................................................................................................................14
REFERENCES.........................................................................................................................15

INTRODCUTION
Business strategy plays wide scale functional role within dynamically evolving global
retail industry, where innovative business productive techniques further plays strong role for
customer target market expansion and enhanced goodwill. For this report, Morrison’s within
retail industry has been taken as the company serving best quality varied retail products and
services, with global brand presence. The report will be analysing in detail internal and
external business environment factors, resources and capabilities analysis for bringing on
functional rise productively within longer run. Study will further bring on detailed analysis on
competitive environment benchmarks formation, where justification of best models will be
focused on for leveraging best diversity scope widely. Research will further bring on detailed
analysis on tactical strategic directions and objectives, for strengthening keen fundamental
objectives within industry. Study will further synchronise strategic directions, best platforms
rise among strategies and for ensuring monitoring strategies to ensure success paradigms
profoundly within retail industry.
PART A
Pestle and swot analysis of Morrison’s and evaluation of its key capabilities and resources
PESTLE analysis-
Political factor-
Changes in trade policies may put negative impact on expansion strategy of
Morrison’s in term of increasing taxation charges which is quite impossible to pay, but
essential as well to grow. It may decrease profits margin of brand but for short duration
(Tumaku and Ren, 2020). This factor put negative affect on strategic mission, objective and
vision of company. The aim of company is to grow even better than its rivals, for which it
may take action in term of strategic plan to pay current tax rate or charge.
Economic factor-
In recent time due to pandemic, many people losses their jobs which increase
unemployment rate more than ever. It put negative impact on supermarket in term of putting
a lot of pressure from government side to hire local people that may not qualified and suitable
for existing jobs or vacancies. In the context of this factor, firm may develop plan in form of
hiring people according to requirement at workplace.

Social factor-
Fluctuation in key market trends may put negative impact on Morrison’s growth
because it may drive the attention of management towards considering each trend that is
impossible to known in short duration (Mandasari and Wandebori, 2020). It may lead to
losses market position, which is not possible. Firm may take better actions regarding this
factor, such as continuous market research and further modifications related to products.
Technology factor-
It may put positive impact on brand, because technology advancement give power to
increase productivity of business and also allow to reach at global level without conducting
much attempts related to marketing activities. With advance digital advertising platforms,
marketer may generate great brand awareness that in turn increase sales and customer base.
Organization may take decision to create effective plan in regard to adopt advance
technologies like social media.
Legal factor-
Due to pandemic, certain laws related to varied subjects like employment may chance,
which may put negative impact on Morrison’s strategies in term of wages. For example,
Wage act 1974 is one of those laws in which government may add certain things like it direct
companies to pay half salary to their staff during COVID-19 pandemic situation. According
to this change, company may develop strategy to create salary structure regarding each
candidate.
Environmental factor-
This element may put positive impact on brand in term of increasing its productivity
and building strong as well as influencing image in market. Customers and government
concern to reduce carbon foot print of companies, which may affect positively in term of
gaining attention of sustainable investors and making environment pollution free. Firm goal
is to be sustainable, for which its management may take action of use paper for purpose of
products packaging instead of using plastic.
Background of chosen company-
Morrison’s operate in retail industry with valuable resources successfully. It was
founded by William Morrison in 1899, UK.
Meaning of strategy management-
Strategy management is defined as efforts of organizational management that help to
achieve strategic goals and objectives of a company.
Level of strategy-

Corporate strategy-
It considered as hierarchically high strategic approach or plan that has been developed
by a company.
Business tactic-
It is a set of clear aims, plans, methods and efforts that outline current and in the
future objectives of companies.
Functional strategy-
It is a kind of short term game plan that conduct in the context of organizational
functional area within organizations.
Stakeholder analysis-
Just like above, this model also encompasses those factors that may put direct impact
on strategic planning and implementation practices of organization.
Keep satisfied –
 Government
 Director of company
Manage closely –
 Leaders
 Investors
Monitor-
 Customers
 Suppliers
Keep informed-
 Employees
Keep satisfied- (High power and interest)
These stakeholders may hold high power and are interested in success of brand and
because of this reason it is quite essential for management within Morrison’s to satisfy
government and owners by introducing productive and profitable plans (Sapapthai and et.al.,
2020). It may firm capable to grow even better than expectations and rivals that is important
and beneficial too, for which many companies attempt to grow.
Manage closely- (High power and low interest)
Another action that company may take to overcome the impact of this factor upon
strategies and business practices is that management may manage leaders and investors
activities closely. It has high power and low interest that may put negative impact on sale and
growth of brand, when it may not engage them in decision making process and respect their
point of views.
Monitor- (Low power and high interest)
It is quite essential for Morrison’s to monitor each and every activity of customers in
term of changing their demand and needs because of emerging market trends. Consumers
may not able to change price tag upon each item, but they are interested in purchase of

quality products. So because of this reason, firm may focus on current market trends that
individual customer adopts.
Keep inform- (Low power and less interest)
Workers are not interested in success of brands and may unable to hold greater power,
so for that manger may take action to inform them about what decision may take in
Morrison’s. Other job chances may grab the attention of individual person where they may
hold certain power like participate in decision making process and share ideas with
management that is essential.
SWOT analysis-
Strengths-
Skilled worker’s existence within more than 500 stores of Morrison’s in the United
Kingdom is one of its biggest strengths. It drives sales and progress of brand above
management expectations because each trustworthy and hardworking candidate contribute to
increase the productivity of business.
Organization may have another strength and that is manageable and effective
organizational structure where people may perform in productive manner.
Weaknesses-
Lack of investment related to technology adopting is the main weakness of brand
which may decrease its productivity and put negative impact on venture success in varied
manners (Khan, and et.al., 2021). Another weak point that affect in similar manner is lack of
geographical reach as compare to rivals that may lead to losses chances to grab competitive
edge, which is actually essential to obtain.
Opportunities-
Technology advancement is the best chance that supermarket by investing may grab
and take a lot of benefits through it in term of generating unexpected brand awareness in
market and attracting customers in bulk, which is actually quite essential.
Firm may grab more other opportunity as well along with above and that is wide
customer base, which is possible when it may take initiative to offer vegan food items
because it’s now in trend.
Threats-
Intense competitive environment within retail industry may possess one of the biggest
threat for Morrison’s, it may drive the attention of management to make and change tactics
and plans, which enable them to give tough competition rivals and gain competitive edge,
which is quite essential and beneficial for brand. fluctuation in any kind of legal factors that

also possess as threat in the context of brand.
Value chain analysis-
Primary activities-
Inbound logistics-
Operations-
To deliver quality and fresh grocery items, organization is able to take initiatives in
term of hiring large number of employee such as drivers, cashiers and other in logistics
section that are capable to involved in daily operations in varied outlets of Morrison’s and
support to deliver each item on time to customers that is an amazing approach or action that
firm may do.
Outbound logistics-
In order to supply or deliver products on time, organization may conduct outbound
logistics activities in appropriate manner, in term of buying own delivery vehicles that may
assure management does not have to recruit other distribution that may consume time and
efforts. Firm prefer to do not allow each customer to wait for long.
Marketing & Sales-
Morrison’s is able to conduct marketing activities with skilled and talented marketing
teams. It may adopt tactic which make it almost unique from rivals. It may giant to dedicate
to offer low price items and special offer to potential buyers. Prices by key competitors are
slightly high that is the main reason to attract a wide customers base.
Figure 1:Value chain Analysis
(Source: Value chain Analysis of Morrison, 2018)

Service-
In term of key competencies, supermarket is able to offer quite a number of valuable
services to customers in term of maximum convenience while shopping. For example, it may
take initiative to offer home delivery services to local purchasers, especially older who are
unable to talk long for grocery purchase.
Supportive activities-
Firm infrastructure-
Infrastructure of company bring benefits for its success in term of enabling workers to
communicate and coordinate with each other that allow each of them to support management.
Within hierarchical organizational structure, management may able to handle each matter
such as legal in effective manner and easily coordinate with staff regarding their
performance.
Human resource management –
The best thing that HR manager within Morrison’ may do to increase or improve
performance level of business is that they may develop plan to train existing candidate and
new as well. It helps to increase the productivity of staff and enable them to achieve strategic
aims by working together in term of reaching firm at global level.
Technology development-
Morrison’s instead of investing money on technology implementation, may highly
concentrate on improving and providing quality of its products. It may consider one of its
weaknesses that may put negative impact on process of management which they conduct to
generate brand awareness and develop plan to enhance business productivity that is actually
quite essential.
Procurement-
Organization is able to conduct this activity in effective manner, as it builds
trustworthy relationship with those suppliers that may enable to supply or provide organic
and fresh fruits and vegetables, which in recent time individual customer prefer to purchase
in bulk. In term of strength, it may give power to supermarket to beat rivals.
Analysing competitive environment utilizing porter’s five forces model
It is one of those strategic frameworks that help to define varied factors that existed
within market place or industry and impact a brand like Morrison’s.
Bargaining power of suppliers-
Extent of this force is low, because existence of number of suppliers may do not allow

Morrison’s suppliers to increase cost of supply chain activity which they may conduct with
brand. It may restrict them to demand for price increasing that is beneficial for the
organization in term of selling affordable and quality products in market. In term strength,
firm may use its effective relation with suppliers to gain competitive edge.
Bargaining power of customers-
Because lack of substitute products and services, customers are not able to bargain
and switch to another brand, which is quite beneficial for Morrison’s as it may retain
profitable group of customers and focus on improving their satisfaction level even better than
now, which is essential and beneficial in term of increase sales and continue repurchasing
practice of customers. It is the key power of company to keep its customers retain with brand.
Threat of new entrances-
Extent of this force is low, because maintaining and sustain venture into retail
industry is quite complicated, as it requires huge investment and bring barriers to achieve
economics scale. These things made new entrance threat a weaker force, which may put
positive impact on Morrison’s growth and plan as it only focus on beating known rivals
through effective practices.
Threat of substitute products or services-
Degree of this force is low because in industry very few substitutes items are available
that produce and offer by other companies, which may do not put much impact on Morrison’s
sales and success. Organization may attempt to increase its products quality that help to retain
existing customers and also support to attract new that are interested in purchase of wide
category items.

Figure 2: Porter's Five Force
(Source: Porter’s Five Force Framework, 2020)
Rivalry between existing brands-
Within retail industry, there are many organizations existed like TESCO, Sainsbury,
ASDA, Walmart, etc. that give tough competition to each other. It increases competitive
extent within market that may put negative impact on Morrison’s. Intense competition may
drive the attention of management towards developing strategic plans and tactics that help
gaining competitive edges and increase productivity of brand.
Identifying existing and potential competitive benefits of Morrison’s
Supermarket may grow much better than its rivals and get unexpected success, which
bring more benefits for it. By using effective approaches and techniques, organization may
grab current and potential competitive edges such as wide customer base, which is quite
tough to increase for any brand whether it is small or large. Another advantage that firm may
grab by using its key strengths, capabilities and resources and that is excellent brand
recognition. It is one of those potential competitive benefit that supermarket obtain and

increase sales, productivity as well as profitability through this.
Devising valid tactics and tactical objectives to achieve overall objectives
It is quite essential for Morrison’s to achieve strategic aims, for which it may choose
the best methods and develop strategies as well, in systematic manner. For example,
organization may develop strategy to use advance technologies for purpose of promoting
venture and generating brand awareness at global level, which may in return gain the
attention of profitable investors and customers, who may able to increase profits margin of
company even better than its rivals.
Furthermore, management may develop tactic to achieve business objectives in term
of developing plan to hire more people that have better competencies and great knowledge
regarding specific job for which employer tend to recruit a candidate. They may also take
initiative to build strong workforce that contribute to achieve supermarket objectives by
working hard and performing according to their roles which made them capable to fulfil their
accountabilities that help to obtain desire outcomes.
PART B
Strategic directions models implementation
Morrison is one of the best retail company widely growing within varied competitive
retail industry, with its large scale expertise factors for strengthening larger functional
diversity targets among corporate targets. Strategic directions models implementation plays
specific crucial role for pertaining towards best scale growth goals innovatively, and to
competently bring on new vision oriented functional targets worked on.
Ansoff matrix
The growth decisions within internal competitive market can be further competitively
evolved by bringing on best scale functional expertise, where Ansoff Matrix plays widely
crucial role for gaining best targets effectively. Market penetration: Increasing production capacity and marketing investments will
further enable company to penetrate company strategically, for larger functional goals
profoundly and to strengthen innovation among products and services. Morison by
heading on towards enhanced distribution, specific working goals actively and to
strengthen up larger scale competent productive pace will be able to expand
commercial brand value (Top 5 Strategic Planning Moves to Best Position Your

Business for Success in 2020,. 2019). Product development: Morison has to further invest on products technological
parameters, by bringing on best scale rise within products development working goals
actively which further calls up scope for specific efficacy targets. The product
development factor holds high significance, for scaled up working targets and larger
scale working preferences among customers goodwill enhanced avenues. Market development: Morison by investing towards establishing competitive brand
value rise functionally and larger technical strengthened scope, brings on further
scaled up business opportunities to extend best market development working goals.
The market development factors such as extending commercial brand value structure
consistency, bringing on technical expertise factors and enhanced market presence
goals further will be able to yield on towards specific work goals actively.
 Diversification: The factor of diversification further extends focus for larger market
structure expansion by being able to serve customers wide scale functional enlarged
retail services actively. Morison will be able to bring on best brand investments and
strategic competencies, by developing best investments for larger scale consumer
market domains. New business chains , and international market expansion further
extensively heads on towards large scale customers market expertise factors for
specific brand growth innovatively.