Strategic Analysis of Morrison's: Business Context and Management

This report provides a comprehensive analysis of Morrison's, a major supermarket chain, focusing on its business context and management strategies. It begins with an introduction highlighting the impact of environmental factors, particularly COVID-19, on the industry. The main body of the report is divided into three key tasks. Task 1 examines the external environment, including political, economic, social, technological, legal, and competitive factors, along with an analysis of TAM, SAM, and SOM, and the application of red and blue ocean strategies. Task 2 delves into the internal environment using the VRIO framework to assess Morrison's resources and capabilities. Task 3 discusses change management strategies, including Kurt Lewin's model, Handy's theory, and TQM, in response to the pandemic. The report also includes a stakeholder analysis using a power/interest grid. Finally, Task 4 focuses on strategic planning, offering recommendations for effective post-pandemic management and growth. The report concludes by summarizing the key findings and providing references.

Business context and its
management

Table of Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
Task 1...............................................................................................................................................3
External environment analysis...............................................................................................3
Task 2...............................................................................................................................................6
Internal environment Analysis...............................................................................................6
Task 3...............................................................................................................................................7
Managing change....................................................................................................................7
Part 2..............................................................................................................................................10
Task 4.............................................................................................................................................10
Strategic planning.................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Growth and sustainability of the business industry is depending on the environment factors
and its influence. So in context to managing the continuous growth and development
organization have to make strategic plan for balancing the effects of environmental factors. One
of the most affecting environmental factor is covid-19 which has affected the business industries
in different ways. Some of the business industry has faced huge loss and some of the industry
developing higher revenue. Morrison’s is one of the largest chain of supermarket which comes at
the 4th position. Its headquarter in UK, England. In this report the brief analysis of covid-19
impact collectively with the other environmental factors is going to be done by the aid of internal
and external environment al analysis. Along with this stakeholder analysis and managing change
is going to be considered in this report in order to develop effective post pandemic strategic plant
and recommendation for effective management and growth (Nangia, M. And Mohsin, F., 2020).
Main body
Task 1
External environment analysis
Components of industry external environment where organization is operating
External environmental components for the Morrison are similar to the basic important
environmental components such as, political, economic, social, technological, legal and
competitive, global, environmental. Each and every business organization is get affected by the
all these external environmental components because that are interconnected and affect each
other. Due to the covid-19 High Street retail growth and profit is affected in both positive and
negative terms. Such as the environmental factor this covid-19 affected the social environmental
factors such as customer’s preference and demand changed to online shopping and increased the
sale of products. And another hand it loses the profit in order to manage this pandemic situation
for their nation and employee’s bonus or absence payment (Babatunde, O.M., 2019).
Analysis
Covid-19 is there environmental factor which has affected the all other components of
external environmental factors. Due to which customer demand and trends are changed such as
customers are moving towards online shopping, lower price and organic products. Customers are

start to prefer more health products and safe services (Ratten, V. And Jones, P., 2021). Below is
the brief analysis of external environment and its leading trends in context Morrison.
TAM, SAM, SOW
This is one of the most important business analysis and management tool which helps
analyze and calculate different factors and trans of business and market. This helps to calculate
the organization profit, organization future growth opportunities and possibilities, project
analysis and representation to make an effective growth strategy.
Total addressable market
This part of the tool is involving calculation of the overall size of the market our
customers demand in context to the organization products and services. So in the United
Kingdom total population is
60 million, due to which total addressable market for Morrison is 60 million.
Serviceable available market
As the United Kingdom is big and having huge population which cannot be reach by the
organization so in context to make the right business strategy that is important to analyze the
numbers of reachable market such as the presence of multiple retail outlets any United Kingdom
most of the places as can be reachable for the Morrison by selling their products through their
connection. There is 192 billion size of the British retail grocery market which is covered by the
500 stores of Morrison and its online services (De Turi, I. And Garzoni, A., 2018).
Serviceable obtainable market
This part of the tool is involving the calculation of the actual reachable market of the
organization the position of organization, its brand value and market share as representing the
right information of serviceable obtain market of company. Such as Organization market share
is 10.4% which means company can easily reach 10. 4% of market.
Red ocean and blue ocean strategy
This strategic tool is develop by the W. Chan Kim and Renée Mauborgne in 2005, which
helps to build the strategic business planning in context to the market competition and
organization development. Red ocean strategy as involving the development of business strategy

and plan in context to the existing market and its competitors my effective plan. In other hand
Blue Ocean strategy is involving the strategic planning of business extension towards the new
and innovative product and market which can be more effective then competition for
organization growth. Due to the covid-19 customer demand for the online shopping, healthy
immunity booster products and the opportunity of developing innovative health safety and
sanitizing products for customer. Below is the illustration of Morrison red and blue ocean
strategy (Guanhua, C.H.A.I., 2018).
Red ocean strategy Blue Ocean strategy
Lower price (compete
in existing market)
Online selling (grow with new opportunities)
Good quality (beat
competition)
Orogenic products (make competition irrelevant)
Higher verity (grab
existing demand)
Healthy and immune boaster products (develop new demand)
Discount offers Innovative health safety and sanitizing product
Recent revenue growth statistic of Morrison Business cycle
In context to the selected organization the second wave of covid-19 has increase the trend
of online shopping due to which Morrison achieved higher sale. As organization have effectively
managed their business strategy according to the animal impact of first wave of covid-19.
Organization half grab the opportunity of online shopping trends to make the higher sale. Below
is the report of Morrison growth statics (Denault, J.F., 2017).
12 week period Percentage growth
21 March 21 8.7%
21 Fab 21 13.9%
24 Jan 21 14.3%
27 Des 20 13.1%

29 Nov 20 13.7%
1 Nov 20 11.4%
4 Oct 20 11.5%
6 Sep 20 12.9%
9 Aug 20 16%
12 July 20 17.4%
14 Jun 20 10.5%
17 May 20 9.8%
19 Apr 20 4.3%
Task 2
Internal environment Analysis
Internal environment most important component of business environment what is
involving several factors present in the organization or affect the business. Internal factors of the
business organization can be affected by the management decision and activities. Along with this
these factor can affect the management decision and task. Such as the human resources,
technology, values and Organization rules, management strategy and techniques, culture, project,
management and manufacturing, finance all these factors are considering as the internal business
factors (Sangpikul, A., 2017). In Morrison is the huge fluctuation due to the impact of covid-19
on both external and internal environments. Such as in context to the internal environment of
business safety regulations and guidelines have influence the changes on organization task and
activities along with the all internal rules regulations and production procedure. Offline retail
procedure task and activities has been completely changed buy the online delivery services,
online payment activities and safety management or staff management regulations. Due to the
online products services and delivery there is the lesser use of human resources but, financial
system of tea organization is working as similar to the previous time because that is important to
pay every employee due to their absence too for the welfare of nation. Below is the analysis of
Morrison internal environment factors with the aid of VRIO analytical tool.
VRIO analysis

This is the most effective tool for the analysis of organization internal factors competitive
abilities and potential. On the basis of organization internal factors value, rarity, limitability and
Organization ( Rouwenhorst, K.G., 2021).
Resources Value Rare Limitability Organization
Vision of
leadership
Yes Yes Not Yes
Presence at the
global and
national market
Yes Yes Not Yes
Products and
services
Yes Not Not Yes
Price strategy Yes Yes Not
Marketing
strategy
Yes Yes Not Yes
Patent Yes Yes Yes Yes
Technology Yes Not Not Yes
Team
management
Yes Yes Not Yes
Customers
relation
Yes Not Not Yes
Distribution
network
Yes Yes Yes Yes
Financial
resources
Yes Yes Yes Yes
Morrison internal environment Analysis is showing that this is having the higher competitive
vale and potential due to the rare, valuable, and limitable, organized, financial resources, patent,
employees, distribution network. Along with this organization is having well organized

marketing strategies and valuable products. All these strongest point of the organization is
helping that company to grow continuously in that situation also.
Task 3
Managing change
Due to the second wave of covid-19 the external and internal environment get effected in context
management of which, for constant growth and development of Organization Morrison plc is
changed and working to make more appropriate change on organizations in context to those
pandemic impact of covid-19 on internal, external environment. Below is the explanation of
Morrison that how the organization is managing the change.
Kurt Lewin- This is the three step model or tool which helps to manage the change within
organization management system and employees in order to get success by balancing the
organization system with the changing environmental factors. In first step that is involving the
unfreezing of specific behavior, process or strategy, which further proceed with the changing of
employee’s behavior and management system then it goes through with the freezing of these new
changes within the organization (Jensen, H., 2020).
Unfreeze
That is the first step which should be implemented by the manager of Morrison in context
to the management of origination with new changing strategy’s and habits in context the growth
of organization in the pandemic situation like covid-19 without any issues. In this step
employee’s other management department and mangers have to be inform regarding new change
its importance and procedure. Such as in context to total online serving and safety regulation
change and improvement first the plan and change should be explained each and every
department which make them unfreeze for their existing behavior and performance.
Change- That is the step through which organization can make transition by implementing new
changes, function and plan. Morrison plc did effective change within the organization by
implementing the effective online selling strategies and changed techniques along with new softy
and hygienic serving.
Frees- once the new changes and strategies are implemented then the final step is to
refreezing in order to make those changes long term and that is done by making the employees
and departments the strictness and importance of these changes which should be the part of their

Daly work. For that Morrison is having the strong rules regulation and guidelines for
organization.
Handy theory- according to this theory ther are the four classes of culture such as power,
role, task, and person which highly influenced the management decision while doing translation.
That is the important parts of the culture which helps to manage the change effectively without
any difficulties. As it helps to change the behaviour and make understanding due to respectful
and balanced culture. In Morrison there is the role culture which is helping to make effective
performance by clear responsibilities and task. So this culture is influencing the effective
management of change by helping in the easy explanation of changes role vies.
TOM- The change management and implementation of the new changes along with the
operational function is important in order to provide the best customer services and support.
Such as the total quality management tool is involving the different operational function in
context to the continuous satisfaction and positive relationship with the customers. That is
continuous improvement with customer’s focus, total involvement, process improvement
function which can be further proceed with the change management according to that for success
( Alam, S. And Islam, M.T., 2017).
Stakeholder analysis
Power interest grid-
For the business organization change management and strategic planning that is important to
make internal and external stakeholder’s analysis which can be effective and helpful in process
of decision making. Such as at present market the changing environment due to the civid-19 is
increasing the requirement of effective change and for that another important thing is to make the
analysis of stakeholder’s in relation of strategy and change. The important stakeholders of the
Morrison are customers, government, non-government communities and colleagues. High power,
higher interest stakeholder is customer’s which should be keep satisfy. Then the higher power
low interest stakeholder is government which should be closely managed. Competitors are lower
power and high interest which should be monitored. Then the low power, low interest is
suppliers which should be keep informed (Haleem, F. And Jehangir, M., 2017).

Part 2
Task 4
Strategic planning
Importance of planning for strategy formulation
In order to make effective strategy for organization growth and development that important to
pre define strategic development plan. This is important because it helps to identify the important
and necessary aims and objectives of strategy development which can be further get clear by the

preplanned task and activities of getting those objectives. Below is the illustration of pre planed
strategic formulation in context to the post pandemic growth and development of Organization.
PDCA cycle
This is the effective framework of planning the new change and strategy within the organization
in context to improve customers satisfaction and manage the function with in new environmental
changes below is the brief strategic planning of Morrison by PDCA cycle. That is the plan-do-
check-act procedure cycle for planning (Ariyani, W. And Daryanto, A., 2018).
Plane- that is involving the different smaller steps to develop the effective plan with clear
objectives, resources and timing of the solution implementation. In context to the Morrison the
objective of the organization is to develop the innovative health and safety products along with
improvement of the online services to make faster sale. For that employee’s innovative skills and
research along with the information technology is best resources. And to make these changes the
best situation that timing of pandemic which can be managed step by step.
Do- once the clear plan is developed then the next step is implementing the plan smoothly in best
situation along with the clarification of every individual responsivity (Handy, H.A., Kim, E.,
2020).
Check- in order to make effective change and improvement that is important to monitor the each
and every step of implementation and running face. So that mistakes can be audited and plan get
best success. For Morrison the check plan is risk management, auditing and monitoring.

Act- This is the final step of this, cycle which done after the checking process by assuring the
improvement and higher possibility of successful goal achievement. In this stage plan is
implemented at higher scale market level.
Recommendation
Redirect inventory- according to the changing environment and customers demand Morrison
should do the re arrangement of the inventories which can be effective enough to manage that
within right time and amount.
Balance flexibility- the demand of the customers related to products is changing at higher rate
and in context go that organization have to be flexible enough to balance those demand. Such as
there should be flexible planning for the product supplier packaging and distribution.
Add capacity- due to this changing situation nondiscretionary product demand is increasing and
in order to manage this organization have to add capacity to serve that by increasing the
management staff (Tollenaar, L.S., Lopriore, E., 2020).
CONCLUSION
Form the above study it has been concluded that environmental factors are effecting each other
and at present covid-19 is one of the factor which effect all the external and internal
environmental factors in context to which the analysis of the all those factors is done by the aid
of tools. Such as TAM, SAM, SOW, Business cycle, VRIO analysis, Kurt Lewin, Handy theory,
Power interest grid, PDCA cycle. Which helps to make the effective change by the effective
analysis and planning of the environmental factors and improvement.