Morrison's: External, Internal Analysis, and Strategy Suggestions

This report provides a comprehensive analysis of Morrison's, a major UK supermarket chain, examining its global business and strategy. The report begins with an introduction to global ventures and their strategic considerations, followed by an in-depth external and internal analysis of Morrison's. The external analysis utilizes the PESTEL framework to assess political, economic, social, technological, environmental, and legal factors influencing the company. The internal analysis employs SWOT analysis to evaluate Morrison's strengths, weaknesses, opportunities, and threats. The report identifies Morrison's sustainable competitive advantages using Porter's Five Forces model, evaluating the bargaining power of buyers and suppliers, the threat of substitutes and new entrants, and the intensity of competitive rivalry. Finally, the report suggests strategic recommendations for Morrison's, based on the overall analysis and discussion of implementation challenges, aiming to enhance its performance and competitiveness within the retail industry.

GLOBAL BUSINESS AND
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
External and internal analysis in context of Morrison’s.......................................................2
Identification of company sustainable competitive advantages.........................................5
Strategies suggestions base on overall analysis & discussion of implementation of
problems.....................................................................................................................................8
CONCLUSION..............................................................................................................................9
REFERENCES............................................................................................................................10

INTRODUCTION
A Global venture could consider as organization that operates facilities in several
nations around the universe and develop effective strategies in order to sustain within
those countries for longer period. It is quite different from international ventures, which
sells items all over the world. The current assignment will be based on Morrison’s,
which falls under category of the most popular supermarket chains in the United
Kingdom. The aims of this chosen company is to provide valuable services and
products to target market. This study will explain internal and external environment
analysis and will also explain firm’s sustainable competitive benefits. This report will
justify possible suggestions base on previous analysis and argument of implementation
issues in context of selected firm.
MAIN BODY
External and internal analysis in context of Morrison’s
External analysis can define as procedure of examining specific sector
environment in which a company has operated (Liu, 2018). It considers at wider
business atmosphere that could affects firms. While, internal analysis means
examination of companies internal circumstances to assess its key resources, ability
and competitive benefits (Sholihah and et.al., 2019). It looks at elements within ventures
such as strengths, weaknesses, threats and other factors. In order to conduct external
and internal analysis in context of Morrison’s, different forms of strategic tools or
framework could use that are mentioned below-
PESTEL analysis-
This model is use to conduct external analysis of business environment which
define certain factors and its impact upon current management practices.
Political factor-
Political stability or instability, change in tax rate, trade policy & regulation and
pricing regulations are included in category of political factors (Chen and et.al., 2018). In
case of Morrison’s, trade regulation is one of the biggest external elements that can put
negative impact business performance and current practices of administration in form of
making change within existing plans relate to trade. Changes within trading rules and

policies put high pressure on firm to make modification within its activities according to
new terms.
Economic factor-
Economic growth rate, unemployment rate, inflation, interest rate and exchange
rate are all economic factors that directly impact a company activities and actions
(Freire and Rudkin, 2019). In context of Morrison’s, unemployment is one of the
components that put positive impact upon existing employment policies and practices.
For example, due to this factor supermarket can get opportunity to hire or select new
workers who are able to work within firm and contribute in gaining competitive edge.
Social factor-
Education level, changes in life style, current market trends, demographic
changes, alters in needs and preferences of buyers are included in this category
(Karunarathna and et.al., 2020). In regard to Morrison’s, when customers change the
way he or she purchase products, it could impact sales and profitability of company.
Furthermore, it also affects how inventory management arrange everything that
influence and attract consumers and satisfy their needs. This factor impact for short
term period.
Technology factor-
Technology advancement is one of those factors that affect or influence in
positive manner and bring a lot of advantages for Morrison’s. For instance, development
of digital marketing tools and technologies allow firm to create a content and then
promote its products at global level which is quite beneficial in term of increasing sale,
profitability and productivity as well (Ra and et.al., 2019). Furthermore, with this element
supermarket could gain the attention of new customers.
Environmental factor-
Climate change, recycling, zero waste and other concepts are known as
environmental factors. Consumers and government concern for environmental safety as
it put pressure on supermarkets such as Morrison to reduce its carbon footprint which is
really very important in term of saving nature from harmful impacts like air, land and
other types of pollution (Maouris and et.al., 2020). It puts positive impact upon

management practices and decision making procedure of manager because they
already took major steps towards CSR.
Legal factor-
Discrimination laws, customer protection, employment law, equality act 2010,
copyrights, intellectual property law etc. are all legal factors. Morrison’s and its overall
business can have affected from equality act 2010 in positive manner as firm had
provide fair employment, growth and career development opportunities to its existing
and new staff members. It caters benefits to supermarket in term of retaining skilled,
talented and knowledgeable employees for longer period of time.
SWOT analysis
Here, this model is use to conduct internal analysis in regard to chosen
supermarket.
Strengths-
Morrison has strong distribution network, which is one of its key strengths that
allow company to deliver quality products on time especially prepare for target
customers. Furthermore, organization also has efficient and effective supply chain
which permit them to supply items in systematic manner and satisfy consumers through
it (Paciarotti and Torregiani, 2020). This strength provides several benefits in term of
improving quality control, keeping up with demand and reduce overhead costs.
Weaknesses-
From internal analysis, it has been analyzed that management within Morrison’s
supermarket is less focused on developing loyalty programs, which could put negative
impact on customers’ base & satisfactory level (Florez-Acosta, 2019). Because of this
weakness supermarket could face issues in context of retaining potential buyers for
longer period of time.
Organization has limited geographical reach as compared to other popular
brands that has been operated within retail sector.
Opportunities-
Emerging technologies and growing market for organic items are two different
chances that Morrison’s and its management could grab in order to get further benefits
and gain competitive advantages, which boost its productivity and profitability level. For

example, company could use the best and advance technology such as digital
marketing platforms that allow its marketing team to promote venture and range of items
successfully without conducting too much attempts.
Threats-
Increasing competition within retail industry put negative impact upon Morrison’s
marketing and products production, supply chain and other activities as it leads to
decrease sales and profitability. In additional to chosen supermarket, increase taxes
rate is another threat possess in context of firm, as it affects in similar manner just like
above one does. According to this threat, organization need to pay extra charges upon
each act relate to trade.
Identification of company sustainable competitive advantages
Sustainable competitive benefits are key assets, competences, attributes and
other resources of an organization that are complex to exceed or duplicate & cater a
favorable or superior longer period over rivals (Haseeb and et.al., 2019). It could
consider as advantage that permit Morrison’s to be more successful within retail
industry more than its rivals such as TESCO, Sainsbury’s, Aldi, ASDA etc. In business
world, there are range of theoretical concepts or frameworks available that can be used
to develop critical discussion about basis of competitive edge of chosen supermarket.
Porter’s five forces-
This model is useful because it allows to examine competitive structure of retail
sector and help to identify sustainable rivalry edge.

Figure 1: Porter's Five Forces
(Source: Competitive Analysis Framework, 2020)
Bargaining power of buyers-
Degree of this force is high because target customers of any company have
strong power relate to bargain and compare prices of products with other supermarkets
chains. Due to this power, buyer can take decision to switch to other brands that can put
negative impact upon consumer base of Morrison and also impact its profitability
(Dertwinkel-Kalt and Wey, 2020). High bargaining power of target market impact current
pricing tactic of supermarket, according to that firm need to make current & further
changes that leads to decrease profitability, sales and revenue as well. Consumer is
often demanding a lot, he or she want to purchase the best products and buy offers
accessible in market by paying minimum cost as possible as they could for items they
seek to get. Affordable offers or discounts can give high power to buyer in regard to
bargain.
Bargaining power of suppliers-

Degree of this factor is low because numerous suppliers are accessible in retain
industry with them Morrison’s could deal a contract when its current group of suppliers
are demanding additional resources in form of extra price or cost of supply chain
process (Filimonau and Gherbin, 2017). Availability of different suppliers give
supermarket opportunity which it could use to gain sustainable competitive advantages
and keep it for longer period of time. It allows firm to work with exiting group of suppliers
or distributors who are able to supply products is systematic manner and on time, which
in return help building influencing and positive brand image in overall sector and also
contributes in gaining attention of new customers. Lower bargaining power cannot
permit suppliers to decrease profits margin of Morrison supermarket as it affects in
positive manner in form of increasing sales, generate revenue and maximize
profitability.
Threat of substitutes products or services-
Extent of this force is high because varied alternative products or services are
accessible in sector where Morrison’s has offered its goods to customers (Kim, 2019). It
could put negative impact upon chosen supermarket and its current plans as well as
strategies relate to inventory and other business operations. In recent time, instead of
purchasing cow milk, number of consumers are driving towards purchase vegan
products such as coconut, almond milk etc. that can consider as alternative goods
which successfully meets similar needs of people in different manners. It affects
negatively upon success and growth of chosen supermarket and can leads to decrease
efficiency in context of gaining competitive edge. Firm can gain benefits by developing
effective tactic in form of changing entire inventory system and collecting products that
its customers like the most in today’s period.
Threat of new entrances-
Degree of this force is low because economics of scale in equally complex to
gain in sector where Morrison’s has been operated from longer period with strong
management and teams of workers. It makes certain things easier for chosen
supermarket to have cost benefit, but make manufacturing and selling costlier for
companies who wants to enter into retail industry in form of entrances branches. Not
only these reasons there are different examples available that make threat of new

entrance a weaker force which is quite beneficial for organization in form of keeping
competitive advantages and sustaining at top position within market place. Furthermore,
product differentiation is another element that possess threat for new entrance while
taking decision to enter into new market as it needs a strong financial base, a lot of
efforts, which is not possible for each brand to do.
Intensity of competitive rivalry-
Intensity of rivalry between existing supermarkets is high because each
organization for gaining competitive edge and increase customer base develop new or
innovative ideas which directly or indirectly increase competition level that put a lot of
pressure upon Morrison’s to be competitive against other brands such as TESCO.
Number of supermarket brands in sector where chosen company operate are quite
high, among them most are also wider in size which means that companies could make
each of their movies with being notices as it makes rivalry among existing organizations
higher force within retail industry (Jaeger and Höhler, 2020). Due to this force, firm
could experience all negative influences which leads to create stress full environment at
workplace where each employee attempts hard work for gaining benefits of competition
and efforts to obtain desire outcomes in term of gaining attention of international
investors.
Strategies suggestions base on overall analysis & discussion of implementation of
problems
By applying above three different models or strategic frameworks, it has been
analyzed that there are certain external and internal factors accessible that impact
Morrison’s management decision making process, practices, activities and performance
in negative manner (Adnan and et.al., 2020). To overcome all negative aspects firm
could consider and then implement strategic suggestions that is beneficial for its further
growth and excellent success within retail industry.
 Morrison’s would identify appropriate and suitable strategic options for its
business well-being by applying specific framework such as Ansoff Matrix. As it
helps management identify further directions which it will undertake considering
benefits & risks associated with each of endeavors. This model gives tactics

which chosen supermarket could utilize for venture progress even better than its
rivals.
 Ansoff Matrix concept comprises four different types of options such as market
penetration, product development, market development and diversification.
Among all of them supermarket should chose diversification as strategic option or
direction for its venture as it allows manager to gain attention of new consumers
and retain current one for longer by providing products with value added and
different features that successfully meets his or her needs and demands.
 Firm must use diversification tactic as it typically uses for business growth; it
includes entering into a new or profitable market that supermarket does not
recently operate in or developing new items such as selling vegan products
which company does not recently offer to customers (Kobets and Yatsenko,
2018). It helps to gain competitive advantages in form of increasing consumer
base and reaching at top position by providing and serving goods according to
buyers wants.
 In additional, Morrison’s will gain competitive advantages in the future along with
recent time successfully by using cost leadership as second strategic option
taken from Porter’s generic strategies model. According to this suggestion
company would drive its venture towards success which is actually very
important in today’s competitive environment.
 Intense competitive within retail industry is one of the biggest problems that affect
overall performance, tactics, plans and operations management activities of
Morrison’s. By using cost leadership strategy and setting affordable cost that
allow each consumer to purchase its goods instead of other supermarket, firm
would lead increase sales level much better than rivals. Cost leadership is one of
the best strategic directions or options for company because it permits venture to
become a cost leader by setting price that people would pay and buy what he or
she seeks to purchase from longer as it under their budget.
 Moreover, along with above suggestions, supermarket should consider this one
as well. For example, human resource management of Morrison’s much hire or
recruit new applicants from market where it operates its venture because it gives

them power to understand the expectation of consumers and identify current
market trends, which will help to gain competitive edge and allow to be
competitor.
CONCLUSION
By summing up, above discussion it has been concluded that Morrison’s while
operating its venture within retail industry has gained competitive advantages and
overcome all negative impact because its management has taken several actions and
developed tactics which are quite effective and beneficial too. Furthermore, from above
analysis it has been identified that by using appropriate pricing strategy company has
set right price of each items that gain attention of new and existing consumers which in
return increased sales and profit margins of supermarket even better than its
competitors. It has been summarized that by hiring and selecting new worker’s
organization has deliver quality products to target market according to his or her needs
which turn into increasing satisfactory level of each buyer.

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Competitive Analysis Framework. 2020. [Online]. Available Through: <
https://blog.alexa.com/competitive-analysis-frameworks/>