BMP6002: Strategic Management - Strategy Evaluation Report

This report provides a comprehensive strategy evaluation of Morrisons, a major supermarket chain in the UK. It begins with an introduction to strategic evaluation and its importance, followed by a critical evaluation of Morrisons' value chain, vision, mission, and strategic objectives. The report then assesses Morrisons' competitive advantage using the VRIO framework and analyzes the external environment through PESTEL analysis and Porter's Five Forces. It explores the political, economic, social, and technological factors affecting the company. The report also examines the company's organizational strategy, focusing on competitive positioning and customer service. The analysis provides insights into Morrisons' strategic choices and their impact on its market position, concluding with a review of the company's overall strategy.

STRATEGY EVALUATION

Table of Contents
STRATEGY EVALUATION.........................................................................................................1
INTRODUCTION...........................................................................................................................3
CRITICAL EVALUATION............................................................................................................3
Value chain analysis..................................................................................................................3
Vision..........................................................................................................................................3
Mission........................................................................................................................................4
Strategic objectives....................................................................................................................4
ACCESSING THE COMPETITIVE ADVANTAGE.....................................................................4
What is competitive advantage?...............................................................................................4
VRIO Framework......................................................................................................................5
PESTEL Analysis............................................................................................................................5
PORTERS 5 FORCES.....................................................................................................................8
Threat of new entrants..............................................................................................................8
Power of suppliers......................................................................................................................8
Power of buyers..........................................................................................................................9
Threat of substitute products...................................................................................................9
Rivalry among existing firms....................................................................................................9
ORGANISTAIONAL STRATEGY................................................................................................9
Be more competitive..................................................................................................................9
Serve customer better................................................................................................................9
Finding local solutions...............................................................................................................9
Develop useful services............................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic evaluation is the process that is associated with the future norms of the company. there
are many factors that are in context with the company. The growth of the company lies in the
amount of obeying the factors of the marketing world. There are many challenges in the
marketing world that are needed for any company to maintain the growth process (Velikorossov
and et.al, 2020). Strategic management and evaluation is necessary to understand the
perspectives of the business and the proceedings will help to understand the atrocities that are in
charge of the company. The entire report deals with the component of strategic management and
the factors that are involved to cope up with the company perspectives. The organisation that is
involved in the report is Morrisons which is the fourth largest supermarket in the United
Kingdom. Its headquarters is at Bradford, West Yorkshire, England. This was established in the
year 1899 by William Morrisons.
CRITICAL EVALUATION
Value chain analysis
Value chain analysis is defined as the competitive advantage of the company where the essential
values are to be recorded from all the sources. By conducting the value chain analysis the
competitive advantages are known. When the competitive advantages are known then it is easy
to maintain the strategies and apply them to the product. The value chain analysis is such that the
company can use the report in all the external links (Hitt and Duane Ireland, 2017). The company
Morrisons being the retailer and trading in a retailing industry is not a small issue to be just
relaxed with the mere input that is available. Every small aspect contributes for a major change
in the company. The value of the company and the shares depends upon the purchases and the
reputation that is achieved trough quality. The supermarket is said to maintain the subtle means
of doing things in the way that made it a fourth largest competitor in the United Kingdom.
Vision
The vision is regarded as the policies that are adopted to maintain the growth and the
opportunities that can be used for in order to make the company reach greater heights. The
objectives of growth are regarded as the targets and those that exist in the marketing world
(Dzwigol, 2020). Every organisation moving in the path of success will follow a vision statement
that makes it more competitive with all the other companies in the lane. The vision as applied to
Morrisons retailer is to become an exceptional and leading retailing services. The company

believes that, customers are an asset and in order to provide the customers with their desired
products, the company will maintain a good team of workforce that will ensure to provide its
people the desired results.
Mission
The marketing world is such an immense base with wide range of the spectacular industries,
businesses and the organisations, that compete with each other in their respective fields. Every
company follows a particular objective in order to grow in the path they have chosen (World
Health Organization, 2020). The Morrisons company mission is to provide its customers the
stipulated goods and the products in the time they are required to the customers. When the
mission is successfully carry-forwarded, then the company will achieve the sales that are in
regards of the development. Therefore, the company Morrisons achieve a mark of being the
fourth largest supermarket chain in the United Kingdom with the turn over crossing 89 billion
dollars.
Strategic objectives
Expanding market share: shares are everything for a retailing industry in order grow in the eye of
the marketing world and its customers. The shares are attained in many ways. The quality is of
the major concern and that is to be taken care of in every organisation which will draw towards
the increase in the number of customers and that will bring about the number of shares to the
company (Ariyani and Daryanto, 2018).
Changing market position: when one firm is working and in operating in the retailing sector, they
are said to maintain the things that are required to compete with the other companies in the
marketing field. Knowing the potential is one hand and then determining the other competencies
is on the other hand. Then follows the implementations. The company Morrisons started as a
small store initially and then it grew up to be the largest chain supply. They constitute of
products that follow a factor called freshness which means that there is no repetition of the
product and there is always a sense of new offers and implementations.
ACCESSING THE COMPETITIVE ADVANTAGE
What is competitive advantage?
The competitive advantage is the process of involving in the competition with the other firms.
The ability to take over another company is the advantage of being the best over the other
(Buzatua, 2019). The competitive advantage is meant to be the essential criteria and that which

will help to restore the reputation. The competitive advantage will give access to the resources
that are responsible to make the profits. The competitive advantage will change the graph of the
company.
VRIO Framework
The VRIO framework is a tool that is used to safeguard the resources of the company. this tool
will not allow the company to lose its cost-effective measures and will help to maintain the
standards. The full form of VRIO is valuable, rare, inimitable and organised. Every organisation
that is working upon this tool will safeguard its company’s data. The VRIO analysis of the
company Morrisons will deal with the things that are related to the resources of that retailer (Pan
and et.al, 2019). The tool helps to keep a check on the resources individually and then any kind
of information exploitation will be looked into and checked. The Morrisons VRIO tool in detail
is as follows:
Valuable:
The VRIO tools helps to understand that the company’s financial resources are very valuable.
The resources that are related to the finances will help to alter the external impacts and will
develop an strong cage force around the company during crisis.
Rare:
The financial resources are regarded to be rare when it is with the Morrisons company. This
makes it to be valued and opted by many references. The policies and the statements are such
that they cannot eb seen in other retailers.
Imitable:
The financial resources of the company Morrisons are way too costly to be imitable. They can by
no means get imitated under ordinary circumstances by the people around (Martin, 2017). The
cost-effective measures are not opted by any others therefore its stands un imitable.
Organise:
The financial resources of the organisation are said to capture the value of the organisation in the
company Morrisons. The organisation focuses upon maintaining the value of the products and
the service that is rendered.
PESTEL Analysis
PESTEL analysis is another important tool that is present in almost all the organisations in order
to understand and to enrich the factors that are to be developed in the company. The PESTEL

analysis will help to maintain an accurate record of the on going circumstances in the company
and the external factors that are responsible to maintain the company’s management. The
Morrisons company’s every strategy is so authentic that makes everybody fall into the thought
process of hoe this company has achieved the fame in no time. the company is operating in not
less than a dozen countries and is said to be one of the most re-knowned retailers with the
products that are ranging from all the sources. A detail of the PESTEL report of the company is
as follows:
Political:
The first factor of the analysis is the political factor. An organisation that is bound in a country
will have to undergo certain pressures from the government. The political fa tors are a major
concern out of all. The taxation is the point that major governments stress upon the retailers as
well as many other industries. The retailing industry is said to be the most authentic out of all the
organisations and the company’s in the marketing world. The United Kingdom is known for its
retailing sector and the government policies are such that there will not be any hectic cautions
from the government. The company will have to deal with the risk of military invasion which
with the support of the government is now being able to stay away from all those threats. The
taxation rates and the incentives that are imposed by the government are as regular as the
organisations usually pay and that does not effect the policies of the company. the company
works under subtle means by not disturbing the ecological systems and the tax paid at the
stipulated duration that makes it to carry forwards its services and made it one of the most
preferred choices of super markets. The pricing laws and regulations that the United Kingdom
impose on the industries and businesses are a way too normal yet there might be a sudden
increase in the rates of the tax. The wage legislation is of the minimum but in the early days of
the company’s establishment there was a sort of unfair means which later were cleared when
there was a proper growth in the services. The government has a work-week regulation and the
company maintains everything in the way they do. The company was able to overcome all the
extra dramatic political pressures and now able to make up for the on-going circumstances.
Economic:
The economic factor of the analysis deals with the inflation rate, savings rate, interest rate,
foreign exchange rate and economic cycle which determines the economy of the company. the
macro environmental factors that apply externally effect the competitive advantage of the

company. the company Morrisons maintains the economic factors that are listed and it specifies
the type of the economic type and that will make it possible to maintain mere understanding of
economy. The company stresses upon the government’s intervention over the market and derives
subtle means of overcoming few in appropriate things. The company keeps a check on the
employment rate at regular intervals and then allots stipulated resources for every sector. The
retailing sectors contribute a major part towards the country’s economy. Therefore, the
governments will not allow any injustice in the company’s taxation norms. The foreign exchange
rates are such that there will not be a concurrency in dealing with the factors.
Social:
The social factors are about the mindset of the people that how a customer perception is towards
the company and how the customers are able to maintain the services of the company. the
company Morrisons culture is of the form that makes its employees interact more with the
customers and that will help to attract the sales of the company. The supermarket is divided into
certain sectors and each sector is provided with the manger that will help to mingle and know
their customers. Due to this working culture the company is now able to carry on trade overseas
with not less a billion-dollar revenue. The company focuses on understanding the demographics
and the skills that are required to carry on the trade.
Technology:
The increasing population and the hustle for the adaptation towards the technology is such that
even a small thing that makes things easier, people are preferring such. The Morrisons company
is no where less in the implementations related to the technology. They have introduced a system
of online transactions and the payment criteria are also made through the available online tools.
The dashboards and the shopping menu everything is depicted online and the customer will not
find it difficult to understand the spectrum.
Environmental:
The environmental factors contribute major part in the strategic management. The conditions of
the place and the region of operation will affect the supermarket in the ways it should be. The
company Morrisons is situated in a place that has more customer approach and it is feasible to all
the customers that come to visit the place at regular intervals of time. the climatic conditions are
as normal and cooperate with the trade. The company is in charge of the pollution laws by not

exceeding the limit of the waste spectrums. A process of recycling is followed in the workplace
and that makes it to manage the waste that is dispersed.
Legal:
The legal factors in some countries are not robust. They impose severe threats to the
organisations that mislead the government regulations. That in view of the company Morrisons is
such that it obeys almost all the rules that are inferred by the government. An anti-trust law is
applied in the retailing sector and the company maintains the trust even though it has a vast chain
yet never crossed the limit of maintaining the rules and regulations (Kim, 2019). The
employment law is in favour of the company and it never failed to leave the voids of the
employees filled. There is a proper inspection in order to know the employee requirement and a
thorough examination of the employee salary details. Every employee is provided with the
required pay without negotiations and all are treated same.
PORTERS 5 FORCES
The porters five forces will help a company to analyse the competitive landscape of the
company. through this the company will fetch the required knowledge about the requirements
that are in due of the company and where it stands in the marketing race. They are as follows:
Threat of new entrants
The threat related to the entry of the new companies into the same field operating with the same
principles is a common factor that is seen everywhere. Morrisions company deals with the threat
of new entrants and is believed to be such that they cannot cross the limits that the company
posed with the policy of cost advantage. Through this policy the company can fight with the new
entrants. The company’s strong brand and identifications makes it differentiating from the other
industries.
Power of suppliers
Suppliers are regarded as the sole reason of the trade. With increasing retailers the suppliers
demand is increasing. They are not giving importance to the organisation since there are many
and can opt for the one over another. Morrisons company buys products from its suppliers at a
cost as low as possible. If the cost is beyond its expectation, then the company focuses upon
changing the supplier.

Power of buyers
The retailing field has more number of suppliers than buyers. Therefore, the demand for the
suppliers is more than the number of buyers. There are only few ties with the suppliers that
provide goods at their requested prices. Morrisons defines it power of buyers by differentiating
with the other brands, the company stands unique in the quality of the product and that makes it
stand as a leading supplier in the retailing industry. If a supplier provides a good product then the
buyers affirms to trade with them on a long run.
Threat of substitute products
In retailing industry there are many substitutes designed for the branded products. For the
company Morrisons there are threats related to the substitutes since there are few substitutes for
the products. Since the company aims at providing grater quality products there is no chance for
it to be differentiated among the others. It stands and maintains its brand value and people can
easily identify the supplier chain.
Rivalry among existing firms
The competition is such that there is a prior rivalry among the types of the organisations.
Morrisons deals with the rivalries by focusing upon the new customers rather than drawing from
the other firms.
ORGANISTAIONAL STRATEGY
Morrisons organisational strategy is of the following kind:
Be more competitive
The company believes that in this fast-growing world there cannot be anything that is just
assumed. One cannot strive for success if the proper competencies are not known. When one is
competing with another, there is an urge to stand more powerful with greater innovations. The
company never failed to go down in the analysis with regards to the quality.
Serve customer better
The company affirms that the customer is the main source of reaching great heights. The
company maintains the interaction with the customer by not letting go of its sales (Drobyazko,
2019). They try to provide new items on demand of the customers.
Finding local solutions
The company majorly focuses upon the solutions that are in regard of the growth that happen and
occur locally. Like that with regards to the food that is happened to be locally. The people from

various places comes in search of the products that the company is offering and those that occur
in the areas the store is operating.
Develop useful services
The company’s main strategy is to provide the services that customer needs. Customers will be
more when there is proper service. Therefore the company trains its employees to maintain the
subtle service to manage customers by not compromising in the innovations.
CONCLUSION
The entire report deals with the strategic evaluation. The strategic evaluation is necessary to
understand the different perspectives that are related to the management of the company. one
may not ensure when there will be short comings in the way therefore the strategic evaluation
will help to analyse the different factors that justify the company to be operating in the unique
environment. The report deals with the retailer Morrisons. The company is regarded as the fourth
largest chain of super markets in the United Kingdom and is known for its brand globally. The
company has a billion-dollar revenue turnover that makes it an impeccable chain of suppliers.
The company provides services that are required by the customer and maintains freshness policy
which is of major concern for many customers. The different PESTEL factors are explained in
the report to understand how the company is able to deal with the extremities and how it turned
out to be the best out of the lot more retailers. the porters five forces were explained along with
the overview of strategic development. this provides a clear understanding of the strategic
evaluation.

REFERENCES
Books and journals
Ariyani and Daryanto, 2018. Operationalization of Internal Analysis Using the VRIO
Framework: Development of Scale for Resource and Capabilities Organization (Case
Study: XYZ Company Animal Feed Business Unit). Asian Business Research Journal. 3.
pp.9-14.
Buzatua, 2019. MANAGING ORGANIZATIONS FOR SUSTAINABLE BUSINESS
DEVELOPMENT: INTERACTION BETWEEN VRIO FRAMEWORK AND
McKINSEY 7S FRAMEWORK. New Trends in Sustainable Business and Consumption,
p.243.
Drobyazko, 2019. Factors of influence on the sustainable development in the strategy
management of corporations. Academy of Strategic Management Journal. 18. pp.1-5.
Dzwigol, 2020. Methodological and Empirical Platform of Triangulation in Strategic
Management. Academy of Strategic Management Journal.19(4).pp.1-8.
Hitt and Duane Ireland, 2017. The intersection of entrepreneurship and strategic management
research. The Blackwell handbook of entrepreneurship, pp.45-63.
Kim, 2019. A Study on Management Competency Affecting Organizational Performance.
International Journal of Advanced Culture Technology. 7(2). pp.93-102.
Martin, 2017. Porter's Five Forces: Analyzing the Competition. Business News Daily, 26.
Pan and et.al, 2019. PESTEL analysis of construction productivity enhancement strategies: A
case study of three economies. Journal of Management in Engineering. 35(1). p.05018013.
Velikorossov and et.al, 2020. Strategic management.
World Health Organization, 2020. WHO SAGE values framework for the allocation and
prioritization of COVID-19 vaccination, 14 September 2020 (No.
WHO/2019-nCoV/SAGE_Framework/Allocation_and_prioritization/2020.1). World
Health Organization.
Online
PESTEL analysis: [ONLINE] Available through:< https://www.swotandpestle.com/morrisons/>
Porters five forces: [ONLINE] Available through:<
https://www.essay48.com/term-paper/13970-Morrisons-Porter-Five-Forces#:~:text=%20These
1

%20Porter%E2%80%99s%20five%20forces%20are%20as%20,Services%205%20Rivalry
%20Among%20Existing%20Firms%20More%20>
Strategic management: [ONLINE] Available through:< https://businessjargons.com/strategic-
management.html#:~:text=Strategic%20Management%20Process%201%20Defining%20the
%20levels%20of,Managing%20behavioural%20and%20functional%20implementation%20More
%20items...%20>
Vision and Mission statement: [ONLINE] Available through:<
https://mission-statement.com/morrisons-mission/>
VRIO framework: [ONLINE] Available through:< https://www.clearpointstrategy.com/vrio-
framework/>
2