Morrisons' IT Strategy: A PESTLE & Porter's Five Forces Analysis

This report provides a comprehensive analysis of Morrisons supermarket plc, focusing on its internal and external business environments and the role of information technology in gaining a competitive advantage. It begins with a detailed description of Morrisons, including its history and business operations, followed by an analysis of relevant PESTLE factors, particularly the economic and social factors impacting the company. The report then applies Porter's Five Forces model to assess the competitive forces within the retail industry, highlighting competition rivalry, bargaining power of customers, and bargaining power of suppliers as key factors. The discussion extends to how Morrisons could deploy information technology to improve its business processes and address identified issues, emphasizing the importance of technological innovation for maintaining a competitive edge. The analysis concludes by summarizing the key findings and implications for Morrisons' strategic decision-making.

Managing
Information and
Technology

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Describe about your chosen business where in detail and include about brief history and
business...................................................................................................................................1
Discuss about any two of most relevant PESTLE factors which creating impact on business. 2
Apply porter five forces model which are explaining probable impact of any three of five
forces on chosen business.......................................................................................................4
Discuss and apply Porter five forces and also highlight three forces. ...................................5
Discuss how the business could deploy information technology (IT) to improve its business . 7
CONCLUSION................................................................................................................................8
.......................................................................................................................................................10

INTRODUCTION
Managing of technological innovation about both an art as well as science, as the process
involves the know about how technological where core skills and deliver where the functionally
where one brand. The ability where to identify about changes in technologies to better come up
within new innovation on others (Adjei., 2020). It is important involves the planning,
implementation, evaluation and control of the organisation with resources and capabilities in
order to create value and competitive advantages. Management of innovation which includes
both changes where the management for effective managing organisation basis process which
more influence and encourage innovation. In this following report, the company which is
Morrisons is a super market plc which is fourth largest chain of supermarket within United
Kingdom and headquarter in West Yorkshire. As in this the topic is been covered about to
analyse about internal and external business environment and assess of role in information
technology is enabling where they not better gain competitive advantages effectively. There is
analyse about effective Pestle factor which better affecting on chosen company (Berawi and et.
al., 2020). Along with measure about business deploy information technology which improves
process and to address any issues highlight earlier discussion and analysis.
MAIN BODY.
Describe about your chosen business where in detail and include about brief history and
business.
The selected business for this section or report is retail business where many companies
are there like Tesco, Asda stores, Sainsbury and others. Morrisons was founded 1899, who
started by the business an egg and butter merchant in Rawson Market Benford, England on under
Morrisons Limited. In March, 2004 acquired Safeway, A British Supermarket chain which
owned 479 stores allowing Morrisons to better have effective larger presence in Southern
England. The company was purchased for 3.3 billion pounds with comprising 1 new Morrisons
share that enabling safeway shareholder to have a 40% take in enlarged group of reducing the
Morrisons family shareholding to 18%. The acquisition might quickly ran into difficulties caused
through in part of Safeway of UK outgoing where the management changing than the better
accounting system six weeks before transaction was completed. This result was series of profit
warning being issued through Morrisons, poor financial results where the reversion towards
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manual system. The program of store conversions from Safeway of Morrisons was the largest of
kind British retail history where focusing initially on the retained stores which were freehold
with separate car parking facilities. Within a few weeks, Safeway carrier bags were replaced by
those Morrisons through own product which began appear within safeway stores.
Discuss about any two of most relevant PESTLE factors which creating impact on business.
Pestle Analysis: According to this analysis it depicts about overall external factors that majorly
operates challenges Morrisons where better supermarket plc. In this analysation business get
helps to attain better competitive analysis where challenges and opportunities scrutinise through
six factors like Political, Economic, Social, Technological, Environment and legal factors (Child
and et. al., 2020). In following there are all six factors of Pestle analysis that would help to
identifies some benefits factors which can create high impact of Morrison company are: Political: This play an significant role which is help to determine about certain factor that
can create an impact on Morrisons supermarket plc for long term aspect of profitability in
certain level of country in market. In perspective of Morrisons marketplace is operating
within retail in more than dozen in different countries. The achievement of success
through such dynamic Retail industry which across the countries. As in United Kingdom
political condition is stable enough where the importance sector in country's economy. In
Morrisons company perspective their political system get affected at the time of
generating more policies which make influence positive or negative aspect. There is
negative aspect which is Brexit Market that describe UK base business would not able to
trade within European Union. Economic: In this factor, it demonstrate about specific country base economic
performance that measure on the basis of inflation, recession, unemployment factor etc.
In situation of Morrisons company perspective the macro environment factor such as
growth rate, inflation and industry economic indicators such as retail industry can grow
effectively. There is different government intervention within the free market to related
consumer services. Exchanges rates of stability of host within country's currency as UK
currency value is quite stable (Foulger, Graziano. and Slykhuis, 2020). There is higher
GDP growth rate about signals where growing demand in the economy where the
Morrisons can make better targeting new customer by pitching them new base product
and services.
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 Social: According to this factor, it emphasis about to measured different social aspects
which are concerned on the basis of two specification like demographic and geographic.
It calculate on the basis of attitude, opinion, belief and standard of living of people which
is created more suitable benefits effectively. In perspective of United Kingdom region
their people are very open minded society which is tend to prefer for use modern
advanced level product. If the Morrisons company will offer high quality and modern
product of their customer on the basis of their sales and revenue about product company. Technological: This process of factor in United Kingdom is better advanced specification
technically advanced nation where people use internet and digital media to platform for
perform better in basis activities. Morrisons which is needed to update about their
technology, machines and distribution can be maintained within better product of
company. There is scope of advanced artificial intelligence featured where many
company implement in their workplace for make better flexibility as well as attain
enhance employees productivity. Environment: On the basis of this factor are linked with protecting ecology and
environment from Hazardous situation like tsunami, cyclone and other high tide weather
condition can create impact on business activities. Through following laws will benefits
the company that make sustaining where a positive image within marketplace, where
Morrisons is operate within effectively. Due to this sales and profit of company will be
high.
 Legal: The macro factor involves all legal rules and norms which are introduced through
UK base government to secure the welfare of customer or employees through business
companies and vice versa. Manger of company is needed about to follow overall legal
procedures so that Morrisons company would not impose heavy pleneties because of law
disobedience.
Evaluation:
On the basis of above Pestle Analysis in perspective of Morrisons company where the
two factor which create more influence their business that is Economic and Social factor. These
two factor are highly considered for generating impact on Morrisons business because inflation,
unemployment, recession and other economic related crises could be create more implication on
business growth (Liu, Yang and Zhang., 2020). Usually, customer changes their taste and
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preference frequent or can preduict that the human behaviour consider as vulnerable manner
could raise negative as well as positive influence toward Morrisons product and services.
Apply porter five forces model which are explaining probable impact of any three of five forces
on chosen business.
According to this force is a model that identifies and analyse where it is having five
competitiveness force that enhance shape every industry which help to determine are industry
weakness and strength. It is frequently used to identify about an industry structure to determine
corporate strategy. In following the use of Porter five forces in Morrisons company to determine
major three forces which can create influence more competitive advantages.
 Competition of Industry: This technique is to better develop about better competitive
method which is better understand through sources of competitive forces. In perspective
of Morrisons where the buyer power which is oligopoly where some of product and
services differences, but many other product and services generates better product
competitive advantages. For Morrisons, there is high level of competition in competitive
market as many other company are compete with each other such as Tesco, Asda Stores
etc.
 Threats of new entrant: On new entrant in retail where bring of innovation and new
ways of doing things puts pressure on Morrisons follows lower pricing strategy which
implies reducing costs and major providing new value proposition towards the customer.
Morrisons supermarket plc where it has to manage overall challenges and it build
effective barrier and safeguard its competitive edge through innovative new product and
services. For Morrisons company there is have chance more entrant of e-business which
creates high economic level of scale.
 Bargaining Power of customer: In situation of Morrisons company is having high
bargaining power of purchase because customers are having vulnerable behaviour where
they can easily switch from their existing product and services (Miguel-Cruz and et. al.,
2020). As many of the product of Morrisons are similar with other brand product like
Tesco and Asda as well as they are also offering in similar range of product and services
through which to get attain better work outcomes effectively.
 Bargaining power of Supplier: In case of supplier of Morrisons company is comprising
low level with numerous and diluted suppliers where high threat of vertical integration
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where it is having limited volume along with better purchasing power. It is reasonably
easy for supermarket toward switch suppliers. There are other option for Morrisons
company for approach new supplier with easily negotiation and there is some protection
from different authorities and pressure groups.
 Threat of substitutes: For the situation of Morrisons company the supermarket move to
the convenience sector, this threat diminishes. As the products and services of Morrisons
which are existed in competitive market are performing for that performance there is low
threat of substitution for other retail basis product and services.
Evaluation:
On the basis of above Porter Five forces in perspective of Morrisons company there are
three forces which are highlighted and it will create major influence on growth of company
effectively are: Competition of Rivalry: In this force it specfically highlight that there is high competition
in retail industry for Morrison like Tesco and Asda are the companies who not only deal
with retail base product but also manufacture which increase the competition level
between each other companies. Therefore, Morrison need to make work on their USP
product and services that generate better positive outcomes which attain competitive
advantages outcomes. Bargaining power of Customer: It is also high level because there many other different
brands which consumer can easily change their product buying choice that create creates
more positive outcomes. For that Morrisons company they have to make sure that quality
of product and services get developed to fulfil customer demands.
 Bargaining power of Suppliers: Morrisons need to make sure that they appraoch their
own better supplier because by manufacturing through others can decrease the quality of
product and services.
Discuss and apply Porter five forces and also highlight three forces.
Porter Value chain analysis which consist where the number of actively which is namely
where the activities which is namely primary activities and support it. Primary activities which
have immediate effect on the better production, maintaince sales and support through better
product and services for supplied effectively the product and services of company. In perspective
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of Morrisons it create better Porter five Chain Primary activities which generate more positive
outcome effectively such as: Inbound logistics: In this value chain which include the receiving, warehouse and
inventory control of company where raw material (Ndubisi, Nygaard and Chunwe, 2020).
This also covers all relationship with suppliers. In perspective of Morrisons they store
their manufactured products from production house through which it would get to attain
more competitive advantages goals and objectives. Operations: It involves procedures for converting of raw materials into finished product
and services as per this includes the changing all inputs to ready them as outputs. For the
Morrisons company their operation work used to handle by the financial and human
resource department to gain more better management system. Outbound Logistics: All the activities to distribute a final base product to consumer are
considered outbound logistics. This include delivery of the product but also include better
storage and distribution system can be counted as external as well as internal. There are
some of product and services of Morrisons also makes import from one region to another.
 Marketing and Sales: The strategies to enhance visibility and target about systematic
customer such as advertising, promotion, and pricing are included within marketing and
sales activities. It basically about all this activities that help convince to customer about
product. Usually, Morrison use to deal with customer for making them convince by
promotion tool in digital or mouth to mouth marketing where customer are get to
accomplished within positive outcomes.
Porter Value Chain Secondary Activities Chain: Procurement: It is acquisition of inputs or resources for the specific firm, from this
process company get opted their resources where how company obtain raw materials,
thus includes findings where the negotiate prices within suppliers and vendors. Human resource management: This is one of the most important practises of managing
employees, hiring, making policies as well as help to design market and sell product. For
the productivity Morrison Human resource management also enhance above practises
along with training and development, Induction, performance appraisal etc. As overall
managing employees which is useful towards all primary activities where the employees
and proper hiring process conduct for different marketing logistics functions.
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 Technology Development: It is used during research and development and also can
involve designing and developing manufacturing techniques and automating processes.
This usually include hardware, software and procedure and technical knowledge. As
Morrison company implement IT technologies for flexible work and also increase
employees efficiency within proficiency manner (Nwafor, Nwoqbo and Obiekwe, 2021).
Therefore, a business working to reduce about technology costs where such as shifting
from hardware into digitalise cloud can be prevails more opportunities to promote
product and services and connect more and more customer effectively.
Evaluation :
On the basis of above Porter Value chain applies on Morrisons company where three
Value chain forces are plays an important role in business activities such as Inbound Logistics ,
human resource management and Marketing sales activities are the main Porter Value chain
practises. This happen because these three are work on core work of business regulates like
arranging raw material and making it store as inventory, hiring of potential employees for better
manpower stability and marketing sales activities generate more business opportunities through
enhancing advertisement, manufacturing and other practises for getting better competitive
outcomes effectively.
Discuss how the business could deploy information technology (IT) to improve its business .
Information technology is important effect on business operation where it does not matter
about size and scope of business creates important through tangible and intangible benefits
which help to make money customer demanded. Through technology infrastructure affects the
culture, efficiency and relationship of specific business. There are some of benefits of
Information Technology which create more benefits in retail business like Morrisons company
get development factor within effective manner such as:
Communication with customer: First and foremost, technology which create ability to
communicate with people regarding with suggestion, feedback and queries that prevails by them.
As per today's business environment that it prevails necessary for employees to better interact
within clients quickly and clearly (Owusu and Broni Jr, 2020). Through websites allows
customer to find out the answer where the question after hours. Through fast development of
transportation option of business allows to move product and over large geographic areas.
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Efficiency of operations: On the basis of technology, it helps the business for understand its cash
flow need to preserve and precious resources such as time of physical space. Warehouse
inventory technologies where let the business about how to manage through better storage cost
while holding product.
CONCLUSION
From above report of Managing Technology and business is summarised about external
and internal business practises which plays an important role for generating positive way of
outcomes effectively. By explain Pestle Analysis in United Kingdom for retail business that two
factors are highlight which can create high level of impact in perspective of retail business.
Apart from it, porter five forces analysis for retail industry and scrutinise of three main forces
that would create influence in retail business effectively. Some of force like Bargaining power of
customer, competitive rivalry and Threat of substitute these three major components of porter
forces create high intensity for business growth. At last three Porter Value chain which plays an
important role for retail business effectively. Information technology can also create high impact
on business to make flexibility and generates positive way of outcomes.
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