Morrison's Business Innovation: Strategy, Performance & 2021 Trends

This report provides an analysis of innovation management within the context of Morrison's, a major supermarket chain in the UK. It examines Morrison's innovation history, current innovation performance, and capabilities using SWOT and value chain analyses to assess its internal and external environment. The report highlights how Morrison's leverages innovation and technology to enhance productivity and competitiveness. It also addresses the opportunities and threats faced by Morrison's, emphasizing the company's use of scientific and creative techniques to address these challenges. Furthermore, the report discusses the retail industry's innovative technological trends in 2021, focusing on market leaders like Morrison's, and concludes by summarizing the company's successful strategies for maintaining profitability and operational efficiency, even during challenging times like the COVID-19 pandemic.

Managing Innovation
in Business

Executive Summary
The main motive of preparing this research report is to understand and study the
procedure of innovation where major corporates are used to run their business activities in
smooth manner. Due to the effective use of innovation and technology performance, productivity
and capabilities of organization are easily increased for long duration. Here Morrison's is chosen
for understanding the concept of innovation in business effectively and it is one of most volatile
and competitive company in United Kingdom. The company was established in 1899 and it is the
largest supermarket chain in UK. In this report value chain and SWOT analysis are also
explained on the company for gathering information regarding external and internal environment
and also to understand the current standard and performance of innovation. Due to collecting
data about company from various sources it determined that opportunities and threat for
Morrison's both are solved with scientific and creative techniques of business innovation. From
the below information it is concluded that current outlook of retail industry in 2021 regarding
innovative technological trends by market leaders like Morrison.

Table of Contents
Executive Summary.........................................................................................................................2
INTRDUCTION..............................................................................................................................5
TASK...............................................................................................................................................5
The organization and its innovation history................................................................................5
The organizations existing innovation performance and capabilities..........................................6
The industry in 2021....................................................................................................................9
CONCLUSION..............................................................................................................................11

INTRDUCTION
Managing innovation in businesses refer to utilization of unique ideas and creativity by
lower level employees within organization for producing best quality product according to the
needs and desires of customers. Due to the use of innovation in business effectively, operational
activities and services are run smoothly for long duration (Christa and Kristinae, 2021). The
chosen company is Morrison for analysing the impact and concept of innovation in business
effectively. The company was established 1899 and it is the largest supermarket chain in United
Kingdom. This report will cover organization and its innovation history, Organization's existing
innovations performance and capabilities and also cover innovation about industry in 2021. This
report will have prepared on the basis of secondary data which includes newspapers, journals,
articles and others.
TASK
The organization and its innovation history
This brand is doing their business publicly in the form of supermarket or retail store in
various locations. The headquarter of this company is situated in England and it is the fourth
largest supermarket in the entire UK. The company was established in 1899 by William
Morrison. Therefore, the success of Morrison retail business is started with selling small items
such as egg, butter and others by using stall in various locations. But after sometimes these stalls
are converted into big stores in the various areas of United Kingdom because the popularity of
their product are easily increased at maximum level. After the successful growth of this company
in 2021, management are able to easily sustain their portfolio and goodwill in market or between
customers for long time.
During the time of developing key strategic acquisitions and all the optimal and correct
market moves in retail industry enhanced the success rate of Morrison within low time de (Faria,
Santos and Zaidan, 2021). Due to using these techniques the profit of the company is increased at
very higher rate. The reason for increasing their profit at maximum level is that heavy utilization
of innovation by R&D department. Because due to utilizing innovation in their products desires
and needs of the consumers are easily fulfilled in time. It leads to increase the positive word of
mouth from customers towards company for long duration. For increasing innovations in their
product and service organization considered mainly four elements which are described below -

 Product – In context to Morrison, management always facilitating innovative product to
their customers with high quality which leads to sustain their brand image in market for
long time. It is one of the company who always provide fresh food products and baby
care products such as Kiddicare to their customers. Due to facilitating these type of
products to users in various locations positive relationship are effectively sustained
between customer and employee for long time.
 Process – Until 2013, Morrison did not have the option for digital platform for selling
their product through online mode which creates negative impact on company
performance. For reducing this problem organization started to use various technology,
software and apps for developing strong connectivity with all customer segments. Due to
use of various innovative technology company are able to increase the availability of
food and other products digitally to customers for buying their product within low time.
 Position – In today’s time Morrison is one of the largest supermarket in United Kingdom
who facilitates wide range of products to their customers with premium quality (Hasrat
and Rosyadah, 2021). In context to Morrison they also used various methods in the form
of innovation for increasing the value and sales of their product at higher rate between
consumers. Methods includes highlighting the features of their product through social
media, home delivery system and others.
 Paradigm – The overall mission and vision of the organization have also changes over
the years in various aspects. It includes framing of its marketing message, branding and
logo of organization. In earlier it was all about facilitating discounts in their product for
attracting the customers in large number. But in today’s time organization are focusing
sustainable and green supermarket which provides healthier food products to their
customers at low price.
The organizations existing innovation performance and capabilities
The current status of Morrison in United Kingdom is precious even after facing the
difficult situations due to COVID 19 and instability caused by Brexit. For the better
understanding of current capabilities and various innovation modes Morrison used SWOT and
Value chain analysis which are described below –
SWOT Analysis –

It is a strategic planning technique which is used by organization for identifying their own
strength, weakness, opportunities and threats which are described below –
Strengths
 In context to Morrison, they always
facilitate reliable and healthy products
to users through online mode
(Margherita and Braccini, 2021). Due
to this their brand popularity are easily
increased in market for long duration.
 Due to this their market are easily
enhanced in maximum level.
Weaknesses
 Recently, due to COVID pandemic and
keeping high price in their product
consumers are only limited in numbers.
It leads to decrease the company’s
productivity and work efficiency at
higher rate.
 The business integrations and majority
of acquisitions have been failures in the
long run like Kiddicare.
Opportunities
 Emergence of new markets and trade
relationships after Brexit and COVID-
19.
 Due to the use of effective technology,
software and apps organization as the
opportunity to increase their
operational activities and services in
various locations. Due to this
convenience are easily increased for
customers for buying their product with
in low time.
Threats
 Rising levels of childhood obesity and
environmental damage can forcefully
stop sale of many products.
 Due to heavy competition it is
necessary for management of Morrison
that they must facilitate their products
to users at average price.
Value Chain Analysis –
It is basically a method which is used by top level management for evaluating the overall
activities of firm. According to the analysis organization will take important steps for developing
quality product to customers in time. The steps involved in this analysis are described below –
Primary activities –

 Inbound and outbound logistics – Relation with suppliers, distribution system and retail
supply chain are the important element for the success of a for the success of a
supermarket. In context to Morrison due to having proper connectivity with suppliers and
effective distribution channel demand and supply of the product are easily well balanced
in market. It also helps to deliver their services and products to consumers in time.
 Operations – One of the greatest strength of Morrison company is that they always
deliver their products to customers with best packaging. It means the products are
securely packed by employees and packing is highly essential for reducing the damage in
their product effectively during the time of travelling from one place. When Morrison
increased innovation in their operational equipments then definitely they are able to
maintain quality and standard in their services, products and packaging.
 Sales and marketing – In this phase organization used various strategies for promoting
their product effectively in market. Strategies includes advertisement, digital marketing,
personal selling and others (Mondalizadeh and Amiri, 2021). In context to Morrison their
current market strategy is to strengthening its brand with help of advertising technique. In
this way this company will become a big shopping hub of sustainable, healthy and green
product for customers. Due to the use of innovative ideas in their advertising or digital
marketing the sales of their product are easily increased and consumers are also attracted
in large number.
 Services – In context to Morrison they facilitate their product to customers according to
their current service capabilities and mass discount in both offline and online mode. But
in today’s time online service are highly successful in comparison with offline mode.
Because for customer’s convenience is highly important during the time of purchasing
product from any location. In aspect of service, management must use innovative
technology for delivering their services and good to customers quickly. Due to this
goodwill of the company is easily sustained in minds of customers in long term.
Supportive activities –
 Company’s infrastructure – In context to Morrison, the overall infrastructure of the
supermarket is highly advanced and well planned. Due to the use of advanced
equipment’s and good plan convenience are highly increased for customers select the

required product within low time and do the payment transaction in fast manner. In this
way goodwill of the firm are easily sustained for long duration.
 Procurement – Here various types of raw materials and inputs which are used in
operational activities are fully handled by higher level inventory management. In context
to Morrison management are used effective supply chain management for maintaining
positive relationship with their suppliers and customers. Due to effective supply chain
consumers always received best quality product from company in time.
 Human resource management – In context to Morrison, management must understand
the need of a competent workforce to look after and manage its hundreds of stores
(Murmura, F., Bravi and Santos, 2021). Then, according to that management must
facilitate effective training to their employees. In this way company are able to facilitate
best service to large number of consumers effectively which leads to increase the visits of
their customers to their supermarket for long duration. Due to the use of innovative
technology in the training roles and responsibilities are easily cleared in the minds of
employees for long time.
 Technology development – In context to Morrison, management are highly focused on
innovation and advanced usage of technology in its operations. Due to the use of updated
equipment’s payment transaction are done in very less time during the time of buying
product. In this way services are done in very fast manner which leads to increase their
profit at higher rate. Due to innovation convenience are highly increased for customers
for buying the product and services from company within low time.
From the above data of SWOT and Value Chain analysis it is concluded that use of
innovative tools by the company is reflected in the way it operates its newly automated supply
chain and empowers its various stores in the country with advanced robotics and artificial
intelligence based systems. Morrison has been successful in remaining profitable and highly
operational even during the pandemic thanks to its robust organizational capabilities.
The industry in 2021
For developing the consistent and sustainable competitive sustainable competitive edge in
retail, it is necessary for management that they must understand the future forecast and current

trend in retail. Some of the major recent futuristic developments and happening are described
below –
 Cashier less store – In retail industry this is one of the hardest or effective hit to
sustainability and profitability from COVID 19. Due to having large crowd inside the
store Morrison decide to apply the concept of reducing billing staff from the premises.
With help of this concept productivity of organization are easily increased through online
shopping at large scale in long term. QR codes, payment scanning systems and artificial
intelligence has been getting increased usage in 2021
 Indoor positioning systems – In context to Morrison it is one of the company updated
equipment’s and effective layout in their store for run their internal activities smoothly.
Due to using talented employees and effective layout customers easily get proper
guidance to their desired shopping sections so they do not get lost and shopping is done
in quick sessions. Products includes meats, vegetables, fresh food and others. In this way
strong positive relation are easily sustained between customer and employee for long
duration.
Morrison's being one of the major presences in UK's retail and grocery sector has sped up the
technological and innovative advancements in its operations in 2021 to combat the coronavirus
slowdown and cater to the growing demands of its target demographic.

Recommendation -
From the analysis of above mentioned data it is concluded that use of technology is the
best way and suitable technique to Morrison's company for increasing their profit at maximum
level. Due to the use updated or advanced equipments or software firm are able to deliver their
products and services to customers in time. In this way the positive relationship between
company and customers are easily sustained in long term.

CONCLUSION
From the analysis of above data, it is concluded that innovation is a very important concept
for Morrison for increasing uniqueness and sale in their product effectively. Due to increasing
sale it is one of the leading supermarket chain in United Kingdom. It was used to conduct an
innovation audit detailing the rich and long spanning history of innovation of supermarkets since
it's inception in 1899 till the current days and their current capabilities and performance were
evaluated using SWOT and value chain analysis respectively The report was concluded with a
brief outlook on the current trends and technologies in use inside the retail industry and the way
major retailers are adopting to these latest trends was also described in brief.

REFERENCES
Books and Journals
Christa, U. and Kristinae, V., 2021. The effect of product innovation on business performance
during COVID 19 pandemic. Uncertain Supply Chain Management, 9(1), pp.151-158.
de Faria, V. F., Santos, V. P. and Zaidan, F. H., 2021. The Business Model Innovation and Lean
Startup Process Supporting Startup Sustainability. Procedia Computer Science, 181,
pp.93-101.
Hasrat, T. and Rosyadah, K., 2021. Usability Factors as Antecedent and Consequence on
Business Strategy and SERVQUAL: Nielsen & Mack Approach. Golden Ratio of
Marketing and Applied Psychology of Business, 1(2), pp.81-92.
Margherita, E. G. and Braccini, A. M., 2021. Managing industry 4.0 automation for fair ethical
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Mondalizadeh, Z. and Amiri, M., 2021. Designing a Conceptual Framework for Innovation
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