BM461: Analysis of Morrison's Global Business Environment and SWOT

This report provides a comprehensive analysis of Morrison's, a multinational supermarket chain, within the context of its global business environment. It begins by defining the internal environment, including factors like mission, vision, and human resources, and then introduces the SWOT analysis framework, detailing its components and significance. The report explores Morrison's distinctive competencies and capabilities, competitive advantages, and business model, highlighting the roles of human and marketing resources. A TOWS matrix is utilized to analyze internal strengths and weaknesses alongside external opportunities and threats, with specific examples related to Brexit, competition, and the COVID-19 pandemic. The impact of these factors on the marketing and human resource departments is also examined. The report concludes by emphasizing the importance of understanding both internal and external factors for business success, and the use of SWOT analysis to inform strategic decision-making.

Global business
environment

INTRODUCTION
Global business environment define as the external factors which is surrounded
around the business entity and might influence the decision making and operations of
business organization. In reference to the present report, Morrison’s is chosen as the base
organization which perform its business functions in hospitality sector. There are various
internal and external factors which affect the overall functionality in a negative manner and
for this SWOT analysis is going to be conducted in this report. In this report Morrison is
chosen as the base company which is a multinational supermarket chain founded in the year
1899. This will aid in identifying strength and weakness along with the opportunities and
threats which impacted the functions and operation of business organization. Along with this
two factors such as human resource and marketing resources affected by these forces.
Main body
1.INTERNAL ENVIRONMENT
Define the Internal Environment. List the components of the Internal Environment of your
organisation.
Internal environment of a business organisation consist of various elements among the
workplace including their existing staff members, managers, corporate culture and many
more. These factors highly influence the business functions of the company. In simple words,
it has been identified that internal environment define as the events, culture, staff members of
the business organisation which highly influence the overall decision making of the company.
In the present context of Morrison’s, it is said that the internal factor are the mission, vision,
value of the company, human resources, organisation structure and many more.

2.DEFINITION OF SWOT ANALYSIS
Define SWOT Analysis: It is a framework used by business organisations in order to
examine their internal strength and weakness so that they can perform their functions
effectively. Whereas opportunities and threats need to be cope up by them with the help of
effective strategies and policies. This model help in identifying capability of a business
entity. In this context it has been identified that SWOT analysis includes 4 elements where S
stands for strength W stands for weakness O stands for opportunities T stands for threats.
Hence it has been concluded that strength and weakness are the internal factors as they are
easily controllable and managed by organisation whereas opportunities and threats are
uncontrollable which can not be managed and control by business organisation.
3.DISTINCTITIVE COMPETENCIES AND DISTINCTIVE CAPABILIITIES
A distinctive competency refers to any sort of capability of a business organisation
which makes it distinguishes from their rival and competitors arise at the marketplace.
It has been said that a company resources which are very difficult in order to impart with
their competitive advantage known as distinctive capabilities. They provide growth
opportunities at the competitive marketplace.
The activities as well as procedure of a company in order to utilize specific assets. The
assets are known as the resources help in producing goods and services which leads towards
the growth of business organisation.
4.COMPETITIVE ADVANTAGE
Define competitive advantage
It is said that competitive advantage refers to the advantage over rivalry which
is gained by providing offering value products to consumers. This can be done by either
providing low price services or by producing high quality products and services which as a
result justify high pricing strategy.
5.IMPORTANCE OF S.W.O.T.
Strength Weakness

 Around 400 physical stores at UK
marketplace
 Strong brand image
 High quality products
 Limited geographical area
 Lack of skilled workforce.
Opportunities Threats
 International expansion
 Increase product line
 Rival companies
 Rise in labour cost
 Increase in tax rate
In reference to Morrison, it has been identified that the weakness of the company is that
company having limited skilled workforce but it will be converted into opportunity by doing
business expansion. Similarly threat of the company is rise in competition can be converted
into strength as Morrison have strong brand image at the market place. Along with this, by
using PESTLE analysis business entity can easily grab opportunities at new marketplace.
6.BUSINESS MODEL
Morrison’s is an international supermarket chain deals in food and drinks, books, CD’s,
DVD’s, clothing and many more across the world. They uses highly advanced technology to
produce high quality products and services which provide unmatched experience to their
customers.
7.RESOURCES
Human Resources
It is said that human resource plays very important role in the growth and success of a
business. They are the essential elements who perform all the activities and operations which
leads towards the attainment of organizational goals and objectives. In relation to Morrison, it
is said that company having limited skilled workforce and for avoiding such situation they
need to hire skilled and competent workforce.

Marketing Resources
In order to promote goods and services it is essential for every business organization to
adopt effective marketing strategies and policies so they can attract large number of
customers towards them. In reference to Morrison, it has been identified that company adopt
both online and offline platforms in order to promote their goods and services.
8.ORGANISATIONAL STRUCTURE
An organizational structure refers to how functions like coordination, task allotment,
supervision are guided towards the attainment of goals and objectives of the company. It has
also been said that organizational structure highly influence organizational actions. In
reference to the present context of Morrison, it is said that managers adopt Functional
organization structure.
9. TOWS ANALYSIS
TOWS MATRIX
Internal Factors
External Factors
STRENGTHS
1. Marketing- Strong brand
2.Marketing-Large distribution
network
3. Effective and skilled human
resource.
WEAKNESSES
1. Marketing-Products are
expensive eg
Harrods,Waitrose
2. No proper training is give to
employees.
OPPORTUNITIES
1. Political-EU market large
2. Company can make use of
advaned technology in order
PLANS- STRATEGIES TO
GROW
S-0 PLANS/STRATEGIES
The company can ebter into
W-0 PLAN/STRATEGY
It is analyse that products of
company is expensive and in
order to gain opportnity and

to offer on time and quality
service to customers.
new market as it is determine
that it occusr less promtional
cost to company as it is
renowned oragnisation at
marketplace.
attract large number of people,
it can offer low price product
without compromising quality.
THREATS
1. Due to Brexit, inflation rate of
UK is decline that has negative
impact on overall sales and
profit of company.
3. Social- Corona Virus,aging
population
S-T PLAN
It is important for an entity to
analyse market as it help in
declining level of thraet in an
effective manner.
WEAKNESS VS THREAT
Due to Brexit, the buying
behaviour of customer is
declined and is conisder as a
thret for company.
Explain impact of Opportunities and Threats of your organisation on TWO of the
following
Marketing Department
Marketing functions of an organization highly influence business operations in both
positive and negative way. Opportunities and threats of the company highly affect their
overall performance. It is said that threat for the company is high level of competition which
as a result influence them to promote their products and services at the marketplace in more
effective and efficient manner. For this proper market research are required which includes
huge amount of funds. On the other hand for grabbing opportunities like business expansion,
marketing team are required to identify present market trends and situations which as a result
influence the performance.
Human resource
Opportunities and threats impact on the human resource of the company as they are the
one who aid in attainment of organizational goals and objectives. Threat might create
negative influence on the working environment of business which leads towards the reduction
of efficiency of workforce. Whereas in reference to opportunities it is said that by doing
business expansion, human resources of the company get opportunities to perform their work
in more effective manner which leads towards the growth and development of their skill and
personality. This will impact on the performance of business organization.

CONCLUSION
It has been concluded with the help of above information that global business environment
includes both internal and external factors which influences the overall performance of
business organization. Along with this, it is also said that SWOT analysis help in identifying
internal strength and weakness along with external threats and opportunities which affect the
operation of business at the marketplace.

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APPENDIX
Place your list of:
Strengths and Weaknesses here

List of your opportunities and threats.