Strategic Analysis of Morrisons: Applying PESTLE and Porter's Model

This presentation provides an analysis of Morrisons, a major UK supermarket, focusing on its business environment. It employs the PESTLE framework to examine political, economic, social, technological, environmental, and legal factors impacting the company. Additionally, Porter's Five Forces model is used to assess the competitive intensity of the industry, considering the bargaining power of suppliers and customers, the threat of substitutes, and rivalry among existing competitors. The presentation concludes that a thorough understanding of both internal and external market factors is crucial for effective strategy development and highlights the importance of innovation and customer relationships within the business environment. Desklib offers similar resources and study tools for students.

BUSINESS ENVIRONMENT

TABLE OF CONTENTS
 INTRODUCTION
 BUSINESS ENVIRONMENT
 PORTER FIVE FORCE
PESTLE
 REFERENCES

INTRODUCTION
 The presentation will be based on Morrison
which is one of the largest supermarket of
UK that provide retail service to their
customer.
 Along with this, the presentation will
discuss about Pestle and porter five force.

BUSINESS ENVIRONMENT
 Business environment is sum or collection of all
external and internal factors like employees,
customer, supply and demand, management as
well as innovative technology.
 In simple words it can be define as market that
is consist of all the factors that can affect firm
abilities and customer relationships.

PESTLE
 Political: This factor is consisting of policies that has been made by the
government which is followed by all organization as well as people.
 Economical: The company should operate in country that have good GDP
rate as it will allow the firm to increase their sales.
 Social: This factor is consist of market trend that has been going in the
market that will affect the company in both positive and negative way.
 Technology: The organization making use of advance technology so that it
can improve their performance as well as provide quality service to their
customer.
 Environmental: Every company have their different norms and
environmental standards that can impact overall profitability of the
company. Along with this, before entering into new market area the
company should evaluate environmental standard that need be followed by
company.
 Legal: It is consisting of factors like law that has been implemented the
government in order to maintain peace in the society.

PORTER FIVE FORCE
 Bargaining power of suppliers: The company can buy product form various
suppliers and build good relation with the so that it can get item at low cost.
 Buying power of customer :The organization can build large customer base as it will
help in reducing the bargaining power of the buyer and also increase the sales of the
company.
 Threat of substitute:
 When customer have more subacute of the product then profitability of the company
suffers.
 Rivalry among the existing competitors:
 The organization can meet with the competition by building a sustainable
differentiation as well as to collaborate with competitor as it will increase the market
size.

CONCLUSION
 From the presentation it has been summarized that company before making strategy
need to analyse internal as well as external market factors.
 It has also concluded that business environment is collection of various activities like
innovation and customer.

REFRENCE
 Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering. 35(1). p.05018013.
 Kara, E., 2018. A contemporary approach for strategic management in tourism sector:
pestel analysis on the city Muğla, Turkey. İşletme Araştırmaları Dergisi. 10(2). pp.598-
608.
 Nurmi, J. and Niemelä, M. S., 2018, November. PESTEL analysis of hacktivism
campaign motivations. In Nordic Conference on Secure IT Systems (pp. 323-335).
Springer, Cham.