Global Business Environment Analysis: Morrison's PESTLE Report

This report presents a PESTLE analysis of Morrison's, a leading UK supermarket chain, examining the external factors influencing its global business environment. The analysis covers political factors, including the impact of Brexit and COVID-19 on operations and profitability. Economical factors, such as currency fluctuations and inflation, are discussed alongside social trends like changing consumer preferences and health consciousness. The report also explores technological advancements, legal considerations regarding food safety and employee treatment, and environmental policies focusing on CSR and carbon emission reduction. The conclusion emphasizes the importance of PESTLE analysis for companies to operate effectively and efficiently in the global market, aligning with current trends and standards. References to books, journals and online resources are included to support the analysis, along with an appendix showing Morrison's gross profit from 2009-2019.

GLOBAL BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...............................................................................................................1
MAIN BODY ......................................................................................................................1
PESTLE ANAYSIS........................................................................................................1
CONCLUSION ..................................................................................................................3
REFERENCES..................................................................................................................4
APPENDIX……………………………………………………………………………………….4

INTRODUCTION
Global business environment refers to that which is not easily controllable but
influence most of the companies to interact internationally. This report is based on the
Morrisons supermarket that is one of the leading supermarket chains headquartered in
England, UK. This project essay is based on the PESTLE analysis on the Morrison’s
operating environment so that firm will gain high amount of profits and sustain for a
longer period of time(Contractor and et. al., 2020).
MAIN BODY
PESTLE ANAYSIS
In context of Morrison’s, these analysis helps in overcoming the various issues
like loss in market share, changing customer perception etc.(Kotabe and Helsen,2020).
These analyses can be shown below:
 Political- In European country Brexit may impact majorly, Due to this Morrison’s
operating profit also affected as they cannot buy the raw material from another
European country on low cost due to this they sale their products on high price
and this will reduce the company profit. Due to COVID company cannot export
their products effectively because in this firm need major investment due to
health and sanitization. The first locked down impact most as it affect the dealing
in several countries due to which high loss can be faced. but in locked second
firm can effectively deal with other countires and purchase the required material
(Morrison’s sales rise but profits hit by COVID-19 costs, 2020).
 Economical- In this factor, due to Brexit in UK there was high fluctuations occur
in the currency due to which Morrison’s face high inflation pressure by raising
prices of goods and purchasing the inputs on high cost(Gaganis, Pasiouras and
Voulgari, 2019). First and second locked impact majorly on the economy of the
country and also the company profits because due to this many people loss their
jobs that will affect purchasing power of customers. In this they also follow
sanitization because of COVID this will also enhances the prices.
 Social- In case of Morrison’s, that is a leading supermarket grab the opportunity
of selling their products more because of increasing population. As they also
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sales the quality and vegan range of food and drinks that also attracts the
educated and health conscious consumers in UK. After COVID firm will majorly
focus on health and safety laws to attract customers.
 Technological- In context of Morrison’s, company invest more on use of
technology in producing the goods that helps in eliminating the wastage so that
cost can be saved, and consumers get the goods on reasonable cost. Due to
COVID-19 company also use the digital platform such as social media so that
they can attracts the large number of customers in all over the world and gain
high profits(Cherunilam, 2020).
 Legal- After COVID-19 impact Morrisons can follow policies and standards
related to the food safety that does not harm the customers health. They also
follow the equality law for treat all their employees fairly affect the company
working and firm will gain higher profits and revenues(PEST Analysis Example
for the Food Industry. 2020).
 Environmental- To sustain in the marketplace Morrison’s can adopts the policies
of CSR that work for welfare of society and environment. Because of COVID,
firm also working on reducing the carbon emissions at 26% to 30% by 2025 that
helps in clean and saving the environment(Vallati and Grassi, 2019).
CONCLUSION
From the above explanation on the global business environment it is concluded
that it should be analysed by the use of the pestle analysis. As it is the best source of
analysing the external environment so that companies are working effectively and
efficiently as per the trends, standards, code of conduct follow in the extrinsic
environment.
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REFERENCES
Books and Journals
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd.
Contractor, F.J. and et. al., 2020. How do country regulations and business
environment impact foreign direct investment (FDI) inflows? International
Business Review. 29(2). p.101640.
Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and
SMEs' profitability: Evidence from European Countries. Economic
Modelling. 78. pp.275-292.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley &
Sons.
Vallati, M. and Grassi, A., 2019, July. AI to Facilitate Legal Analysis in the PESTLE
Context. In the EMerging Technology conference (EMiT) 2019 (pp. 66-68). IET.
Online
Morrisons sales rise but profits hit by Covid costs, 2020. [Online] Available through
https://www.bbc.com/news/business-54098315
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APPENDIX
MORRISON GROSS PROFIT 2009-2019
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PEST Analysis Example for the Food Industry. 2020. [Online] Available through:
<https://pestleanalysis.com/pest-analysis-example-for-the-food-industry/>./
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