Analysis of Morrisons: Macro Environment and Business Report

This report provides a comprehensive analysis of Morrisons' business environment. It begins with an introduction and discusses the positive and negative impacts of the macro environment, including political, economic, social, technological, environmental, and legal factors. The report then delves into an internal and external analysis of Morrisons, utilizing SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats. The strengths include Morrisons' market share and brand recognition, while weaknesses may include internal communication and the impact of competitors like Aldi and Lidl. The report also touches upon opportunities for growth and expansion, along with potential threats such as technological risks and changing consumer preferences. The report concludes with a summary of findings and recommendations for Morrisons to navigate the competitive market successfully. References from credible sources are included to support the analysis.

BUSINESS AND
BUSINESS
ENVIRONMENT

TABLE OF CONTENT
• Introduction
• Positive and negative impact of macro environment on business
• Internal and external analysis of Morrisons
• Conclusion
• Reference

Introduction
Business is an economic or organisation system where products and service are
exchanged for making money or one another. This presentation is made to
discuss about macro environment of Morrisons with their positive and negative
impact. The internal and external analysis helps to identify strength and
weaknesses. Also discussion about strength and weaknesses of PESTEL
analysis.

Positive and negative impact of macro environment on
business
The uncontrollable and external factors which influence business decision making and
affect strategies and performance is called macro environment. It is condition which exist
in economy rather than specified region or sector. It includes competitors, change in
cultural tastes, government regulations, interest rates.

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Political Factors- It means government intervention in business and market which includes
government policy, foreign trade, labour law, trade restrictions, political stability or
instability.
Positive Impact- Political stability of UK and any countries give opportunity to Morrisons
to run their business operations more smoothly.
Negative Impact- Frequent changes in political laws like trading policies may impact
on Morrisons export and import negatively.

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Economic Factors- It means impact on business and way of earning profit which includes
interest rates, inflation, economic growth, exchange rates, income.
Positive Impact- If income of people increases then they demand for high products which
ultimately leads to high profit earning for Morrisons.
Negative Impact- The rise in inflation rate lower purchasing power of customers and
also unemployment rises which is negative impact on Morrisons.

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Social Factors- The factors involving shared attitudes and beliefs of population. It includes
age, gender, health consciousness, distribution.
Positive Impact- The rising age group of people creates many opportunities for Morrisons
to produce various category of products for their customers which leads to high profit
earning.
Negative Impact- The current generation taste and preference changes very frequently
which creates negative impact on Morrisons.

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Technological Factors- The change in technology and impact on business and its market as
well as product is called technological factors.
Positive Impact- With the adoption of new technology by Morrisons helps in saving time
and increasing efficiency in work leads to positive impact.
Negative Impact- This factors mainly impact negatively on society as it reduces demand of
labours for completing a work. Thus, it would creates unemployment ratio as well.

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Environmental Factors- These factors have come in market recently due to increasing raw
material scarcity, carbon footprints and pollution.
Positive Impact- The positive impact of such factors is that it follows food safety and legal
standards which creates loyalty of customer towards product and Morrisons.
Negative Impact- Morrisons should keep in concern about reducing poly bag materials for
packaging of products.

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Legal Factors- The laws and regulation required for operating business in market is called
legal factors
Positive Impact- By implementing policies and strategies as per legal factors, managers of
Morrisons can provide job satisfaction to workers.
Negative Impact- Morrisons need to comply with legal standards which is set for products,
consumers, employees. It creates negative impact as it is not possible to apply each and
every laws.

Internal and external analysis of Morrisons
SWOT analysis is the strategic planning that is used to help organisation to
identify strength, weaknesses, opportunities and threats connected to project
or business competition.

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Strengths- It is the attributes or characteristics within organisation that need
to be considered for success of business. It is regarded as capabilities and
resources which can be used for competitive advantages. It includes good
reputation, brand name or cost advantages. Morrisons is largest
supermarket food chain which has 11% market share.