University of Bolton: Morrison's Business in Practice Report - BMP3002

This report provides a comprehensive analysis of Morrison's, a prominent supermarket chain in the United Kingdom. It begins with an introduction to the business environment and the factors that influence it. The report then delves into the specific context of Morrison's, examining both internal and external factors using PESTEL and SWOT analyses. The PESTEL analysis explores political, economic, social, technological, environmental, and legal factors impacting the company. The SWOT analysis identifies Morrison's strengths, weaknesses, opportunities, and threats. The report further discusses how Morrison's can impact the external environment, including strategies to mitigate negative impacts and leverage opportunities. The conclusion summarizes the key findings, highlighting the interplay of various factors and the company's strategies to navigate its business environment. The report also includes references to the sources used.

BUSINESS IN PRACTICE
INTRODUCTION- In the world of business, there are different forms of
external and internal elements are accessible that put either positive or
negative impact upon a venture that has been operated in specific sector.
In order to overcome all the negative impact or forces, a business can take
better action or conduct practice. The current presentation would be based
on, Morrison’s which falls under category of leading supermarket chains
in the United Kingdom. This study will explain internal & external factors
that will effect a specific venture. This report will justify different ways in
which selected company can impact on external atmosphere.
External & internal factors that impact organization- In
corporate world there are varied models are available that can
use in context of different companies for analyzing and
determining factors either internal or external that affect
Morrison’s venture environment. Here, PESTEL analysis as
strategic framework use and mention below-
Political factor- Change in tax rate, trading restriction,
political stability or instability and trade policies are the
examples of political factors. In case of chosen company,
increasing tax rate or high taxation put negative impact on
supermarket and its trading procedure as it can lead to decrease
sales, profitability, sales and productivity. According to that
change, firm need to pay extra charge on each trade act which
is really very important for venture.
Economic factor- Inflation rate, foreign exchange rate,
unemployment and interest rate are included in category of
economic factors that directly affect the way a company act,
process and manage its venture within specific industry. In
context of Morrison, unemployment rate is one of the external
force that put positive impact on organization in term of giving
the best opportunity relate to workforce development by hiring
and recruiting new employees who are recently unemployed
and able to contribute in success of its business.
Technology factor- Emerging and developing
technologies bring a lot of benefits for Morrison’s as
it affects positively by increasing abilities and
operational efficiency of chosen supermarket in term
of developing effective and most influencing
marketing content that directly impact target market
and influence mind of each buyer. Social media is the
best digital marketing tool or technology which give
marketing team chance to reach at global level and
gain attention of profitable target market.
Environmental factor- In recent time, customers,
government and other stakeholders of a venture put
pressure on company to reduce carbon foot print
which is quite beneficial in several terms such as
build positive brand image and allow to conduct
sustainable business practices. This factor put
positive impact upon supermarket because firm has
already taken major steps towards CSR practices. For
example, company take action to reduce its food
waste by up to 12.3 percent.
Social factor- Education level, change relate to consumer preference
& need, leisure interests and environmental consciousness are
different social factors. In regard to Morrison’s, in recent time
customers instead of purchasing other products now switch to
purchase vegan food items as it can be consider as change in buying
habit of target market due to rise of vegan consumption. This factor
put negative impact on supermarket in term of managing inventory
operation according to modification.
Legal factor-
Laws relate to environment pollution, consumer and
worker’s safety law and discrimination law are all legal factors. In
case of Morrison’s, Equality Act 2010 is a legal factor that put
positive impact on firm and its human resource management
practices. Morrison’s follow all the legal principles, apply ethical
business practices and follow regulations that allow company to
sustain for longer period of time within retain industry and give
them power to be competitive by supply their products all around
the world in the future.
SWOT analysis-This concept or strategic analysis tool is use and
apply to identify internal factors that affect Morrison’s.
 Strength-
 Weakness-
 Opportunity-
 Threat

Strengths- The biggest strength of Morrison’s is its 500 stores in United
Kingdom where its management has managed the performance of skilled
and talented workers approx. 130,000 which is really an amazing thing. As
it helps to boost the productivity and increase operational efficiency of
venture even better than its rivals. Another strength of supermarket is its
wide product portfolio through which firm can retain its consumers and
attract new one successfully.
Weaknesses- Each organization has some weaknesses that affect overall
performance of ventures in negative manner, some impact for long term of
period or certain affect shortly. By using this model, it can analyze that
restricted geographical reach as compare to other big supermarket brand
such as TESCO, ASDA etc. is the weakness of Morrison which impact in
negative manner. Furthermore, along with this weak point firm also have
another one and that is unsystematic or in appropriate infrastructure and
network in term of information technology.
Within retain industry the competition level could increase because all
the companies in this sector are adopting varied method and
implementing management approaches to give tough to rivals. It is
recognizing as external environment factors which could be overcome
when Morrison take and use right way among many. Furthermore,
supermarket and its manager take develop a plan through which they
can offer what buyers in today’s competitive environment want and
expect from organization. For example, firm can offer vegan items
which its target market in recent time consume and take decision to
purchase because of two different reasons. First one is that it is
beneficial for people in term of making their health better and support
to boost stamina as well as immune system. By using this way and
choosing it among different options firm can sustain for longer, gain
competitive edge and also obtain desire outcomes in several manners.
ways that company use to affect external environment.
Opportunities- Technology developments is one of the biggest
opportunities that comes with different benefits and advantages. By
grabbing this opportunity Morrison’s and its marketing team could boost
the productivity of business which in return increase sales & productivity
level even better. Along with this one, current market trend also
considers as growth chance for company which it could grab for gaining
further benefits and opportunities.
Threat- Increasing competition and tax rate are two different external
factors that put negative impact upon Morrison and its current
management tactics, actions and decision making procedure.
Accessibility of numerous supermarkets within retain industry possess
the biggest threat for chosen supermarket as it gives negative experience
to manager and leader as well as top authority in term of increasing
pressure and stress level in context of gaining competitive advantages.
Different manners in which company could impact on external
environment- Morrison is well-known brand in retail sector, it has
operated since from so longer with groups of knowledgeable workers. As
discussed above, political and social as external factors and threat and
weakness of venture as internal forces put negative impact on chosen
supermarket, which firm can handle by using different manners or ways
available in the business world that allow management to affect external
environment. For example, increase tax rate is element of external
business environment which affect has been discussed above. In context
of this factor company can take appropriate action or use potential way
such make change within existing trading procedure and plan to pay
extra charge according to changes that is really very important to do in
term of gaining chance to trade across UK effectively. In regard to
change relate to preference & need of consumers are also included in
external venture environment.
CONCLUSION-By summing up above, discussion and analysis it has
been concluded that political, social, economic, technology,
environmental and legal factors putting impact upon Morrison’s and its
management practices in different manner. By taking right actions and
using approaches, organization has overcome negative impact of certain
factors in effective and systematic manner. Furthermore, from above
analysis it has been identified that by using varied methods and taking
decision after analyzing overall situations, company has impacted entire
external environment in positive manner. By considering all the
appropriate tools, techniques and approaches firm has gained desire
outcomes which is quite beneficial & useful.
Organization could take better action in context of this by
conducting market research, which enable its marketing,
research & development and production team to identify
what people like and prefer to buy as well as allow firm to
determine current trend that its target market adopt the
most and implement as part of his or her life. Furthermore,
supermarket and its management could conduct a quiz
through which they can gather data and key information
relate buyers needs and preferences which is really very
important to collect as it could be used while manufacture
items, preparing services and delivery these to target
customers. By taking this action and using approach firm
can affect external environment in positive manner.
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