Strategic Evaluation Report: Morrisons Supermarket plc Analysis

This report provides a strategic evaluation of Morrisons Supermarket plc, a leading supermarket chain in the United Kingdom. It begins by assessing the processes used by the organization to determine its strategy, emphasizing the importance of clarity of vision, information gathering, strategy formulation, implementation, and evaluation. The report then evaluates critical models and tools such as VRIO analysis and Porter's Five Forces, illustrating their application to Morrisons. The VRIO analysis examines resources like human capital, brand awareness, market position, and supply chain networks, while Porter's Five Forces assesses competitive rivalry, the threat of substitutes, bargaining power of buyers and suppliers, and the threat of new entrants. The report also touches upon the PESTLE analysis, covering political, economic, social, technological, legal, and environmental factors impacting Morrisons. Finally, the report briefly mentions the importance of change management, considering its complexity, costs, risks, and sustainability.

Strategic
Management-
Strategic Evaluation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Illustrate about critical assessment of process use to organisation to determine their
strategy...................................................................................................................................1
2. Evaluate a critical model and tools used by organisation for determine their strategy......2
3. Illustrate about an application of these tools in real organisation......................................5
4. To critically appraise about the importance of change management based on complexity
towards transformation process, its costs, risk and sustainability. ........................................7
CONCLUSION................................................................................................................................8
References:.......................................................................................................................................8

INTRODUCTION
Strategic management is a procedure that helps to setting up goals, procedures and
objectives in order to make a company sustainable growth in competitive market place. The
importance of strategic management is provide overall direction to developing plan and policies
for designed to accomplish objectives (Basurto-Davila and Kämpf, 2020). In this present report
the company is considered Morrisons Supermarket plc, it is a fourth largest chain of super
market in United kingdom and it headquarter is situated in Bradford, West Yorkshire, England.
Furthermore, the topics are covers in this present report about how organisation determine their
strategy through applying tools and application on selected business.
MAIN BODY
1. Illustrate about critical assessment of process use to organisation to determine their strategy.
Every organisation has its own process for accessing and identifying the strategy which is
associated with an objective to gain profitability and long-term sustainability. In simple terms,
the strategic planning process is a method in which organisation use to develop their long term
plans (Dzwigol and et. al., 2019). Similarly, Morrison is also have their own strategic planning
process that they regulates about their goals and objectives to better fulfilled by generate strategy
for positive outcomes.
Clarity of vision: It defines about having better goal setting that emphasis proper clarity
of business. This stage consists of identifying facts are
 It define about short term and long term objectives.
 To better identify about process where short term and long term objectives could be
accomplished.
Mission, Vision and Purpose of Morrisons company:
 Mission: The statement of Morrison's mission encompasses about “To provide all their
customers with the best value for money as per weekly shopping basis”.
 Vision: The statement of Morrisons vision that depicts “To keep continue invest in prices
and better improve product specification across hundred of customers favourite items”. Purpose: “To make quality of product and services so people can enjoy and fulfilled their
satisfaction.
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Gather and analyse information: According to this stage, it is mainly utilise when
organisation collects information and data must relevant to help for accomplish business goals. It
mainly focus to better analyse about needs of the business for long term sustainable in
competitive market. It is form of strategic decision and identifying initiatives that would help for
business growth. In perspective of Morrison's company, the practise of collection and analyse of
information help them to getting knowledge about market trends and competitors performance
Formulate a strategy: It is tend to be first step at the time of forming strategy which need
to review for complete analysation for new project strategy. To identify such areas on which
business must seek for external resources. Similarly, for Morrisons Company need to determine
or prioritise challenges which is important for their further succession plan (Heumann and et.
al ., 2021). As the business and economic situation are vulnerable which is tend to be critical and
enhance to develop effective approach each step of plan .
Implementation of Strategy: After formulating of strategy, the next step is to implemen
as per situation according. The implementation of strategy happened by organisation when they
are seeking for new change or planning for objectives accomplishment successfully. In
Morrisons company, their overall staff having clarity about new strategy and on that basis they
handle their major roles and responsibilities.
Evaluate the strategy: It is important to evaluate strategy where actions are undertaken to
control for better performance. It include performance measurement, consistent review of
internal and external issues towards corrective action required for specific strategy. The action
immediate implement in Morrison company because to mitigate the errors for better
development in business and generate outcomes. The management team of Morrisons company
examine strategy outcomes weather it provides positive results or not.
2. Evaluate a critical model and tools used by organisation for determine their strategy.
Some of the models and tools which is been used through organisation for determine the
strategy:
VIRO Analysis: It is an internal and external tool that helps to organisation to use for resources
evaluation. The main purpose of using VRIO framework is it help in identifying organisational
resources and capabilities. due to which an effective strategy can be developed for attain growth
and success at marketplace. To analyse resources capabilities and competitiveness through four
major aspects of VRIO analysis are Valuable, Rare, Imitate and Organised.
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VRIO stands for:
 Valuable: This factor evaluate those resources those are valuable towards business like
Human resources, capital, machinery etc. If some of resources are valuable but doesn't fit
into any criteria of VRIO dimension, it would not consists as competitive advantages. An
organisation can only accomplish competitiveness party with more resources that is
valuable and neither rare nor hard to comes under imitate.
 Rare: According to this, it involves resources which is uncommon and not regulated for
the company. The rare resources are the ones that can not easily acquired by other
companies. For example: Intellectual property like Patent, Copyright, trademark etc.
 Imitate: The resources can hard to imitate, if company implies their cost as extremely
expensive for another organisation to acquire them (Kerzner., 2019). As the resources can
be considered through better competitive advantages if they are valuable, rare and
imitate. Therefore, those organisations who are not properly organised other business
firm could take advantages from resources. Machinery, organisation structure, brand
awareness are the ones which can not easily imitate.
 Organised: An organisation resource can counted organised when all resources and
structure is systematic stable that having value in long term competitive advantages.
Resources can counted in organised are Financial, human resources, Machinery etc.
Pestle Analysis:
It is a framework to detailed analyse about major key factors that helps to determine
about situation in terms of challenges and opportunities within Political, Economical, Social,
Technological, legal and Environment that influence from outside. This is generally offers
people professional insights into external factors impacting their organisation. Thus, the using of
pestle analysis conducts only when company wants to invest their capital in international
boundaries.
Porter Five forces:
According to this model, it helps to examine specific industry to determine high and low
influences of threats and behaviour of customer involved in Porter strategy. Five forces analysis
is used to identify an industry structure for better determine corporate strategy. Porter also
consist better strategic tools where to understand level of competition within industry for gaining
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long term profitability. It is tool of business analysis which help to better explain where it is
having various industries to sustain in different situations. Porter five forces also helps to identify
which of the five factors could raise opportunities and implication as in high or low range
aspects. In following there are five porter forces as: Competitive rivalry: In this first analyse defines about high level of competition in
competitive market that company faces issues to sustain. If there is high competitive
rivalry then company would faces high level of challenges in terms of product quality,
pricing and other. To mitigate these challenges company needs identifies their flaws
which helps to improve their product quality in competitive market . Threat to substitute products: It refers about possibly where the customer will find a
different product replacement, in that situation company need to convince customer with
existing product. Barging power of buyers: This factor depicts about company's perspective how their
product and services get easily negotiable. If there is healthy relationship with consumer
company would allows to provide product and services in cost reduction. Bargaining power of Suppliers: When it comes to company, they only focus to generate
revenue and assess the suppliers if they are rely on potential power a they have over
product and services (Makate, Mango and Siziba, 2019). For company, if they have
plenty number of suppliers it would easy to switch with other supplier option or company
can easily bargain with it.
 Threat of new entrant: The industries which regulates on the large investments basis and
companies who gain serious foothold in market. In market, company can quickly set up
within their financial risk and start building mobilising faster. As per the threat of new
entry is based on how company can secure better surrounded through competitors. The
threat of new entry is depend upon that how the company is secured sustain around their
competitors in competitive market place.
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3. Illustrate about an application of these tools in real organisation.
The tools which highlighted in above section VRIO and Porter Five forces analysis
framework. As of now, the company Morrison is retail base business and VRIO and Porter five
forces can help to better examine internal and external resources or factor which can create
impact on business.
VRIO of Morrisons
Resources Valuable Rare Imitation Organisation Competitive
advantages
Human
resource
Yes Yes Yes Yes Sustainable
competitive
advantages
Brand
Awareness
Yes Yes No Yes Sustainable
Competitive
advantages
Market
Position
Yes Yes No Yes Sustainable
Competitive
advantages
Supply Chain
Network
Flexibility
Yes Yes Yes No Temporary
Competitive
advantages
Evaluation
 Human resources: For Morrison’s company it is valuable, rare, imitable and organised
because it is most important practise in company. This is mainly handle manpower,
provide resources, forms policies and regulation which generate more competitive
advantages.
 Brand Awareness: In perspective of Morrison company, their brand Awareness is
valuable, rare and organised (Mutiara and Koesmawan, 2020). But it cannot be imitate
because Morrison assures to provide quality of product and services and they have loyal
customers.
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 Market Position: The Morrison market position is better sustain in competitive market
where it is consider valuable, rare and organised. But, it is not considered as imitable
because Morrison’s allows different set of quality products and they have better goodwill
in retail business at global level.
 Supply chain Network: In perspective of Morrison’s company, the supply network chain
is valuable and rare because they manufactures better quality of product and services. It is
imitate because Morrison’s not own their supplier and they need lend supplier from
others. But it is not consider organised because there are wide range of supplier present
in competitive market. Thus, Morrisons company need to change and utilised better
supply chain within certain period of time.
Pestle Analysation of Morrison's Company:
 Political factor: In this factor it plays an important role to determine certain factor which
can create major impact on Morrisons. Some of the positive factors are there that helps to
Morrisons make their long term sustainability in market through foreign exchange policy,
less corruption involved in London, United Kingdom (Onikoyi and et. al, 2021). This is
the reason the political factor stability of London, UK. But there is an uncertainty which
can decrease Morrison company growth that is Brexit market, this implication does not
allow to trade in European Union.
 Economic Factor: There are some of micro factors which involves inflation rate, saving
rate, interest rate and aggregate investment of economy. These are the important apsect
which Morrison company need to concerned while running business in London UK. As
Brexit market has already create implication to not trade in European union. But some of
benefits in London which Morrisons can attain that economic stability is quite productive
on which company can measure their profit margin.
 Social factor: On the basis of society culture which create drastic impact on organisation
culture with an environment. It helps to shared belief and attitudes of population which
plays an important role in it. The Morrison company need to understand London market
and society culture in perspective of their people like and dislikes (Sriyakul and et. al,
2019). As the population of London is quite wide and different people have significant
preferences. Morrisons can easily target their customer on gender, age and income basis.
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 Technology factor: In perspective of technology factor London is having wide range of
technological resources on which company can scrutinise their opportunity to attain and
utilised resources for their business optimisation. Through technology company now can
easily access their customer and transport product and services to them in efficently
manner. For Morrisons company technological impact on product offering where they
can deliver better sources of aspects.
 Environment: The different market have different norms where environment standards
which can create impact on better profitability towards an organisation within markets. In
perspective of Morrison company they have climatic uncertain situation such as rainfall,
water pollution or unhealthy product make environment unclean.
 Legal: On the basis of legal framework, Morrisons need to evaluate about its
employment laws which is enough to protect intellectual property right of an
organisation. They need to carefully evaluate before entering such market can leads to
theft of organisation. Some of the legal factor which company need to concerned Anti
trust laws, Copyright, Consumer protection and e-commerce and health safety laws etc.
Evaluation:
As per above Pestle Analysis is summarise for Morrisons company where factors are
create positive and negative influence towards Morrisons company. Political and Economical
would create implication because of Brexit Market and uncertain situation of inflation and
recession rate. The positive factors are social and technological which enhance to develop
different range of customer, market and advanced resources that can increase Morrison business
sustainability in market.
Porter Five Forces of Morrisons Threat of New Entrant: For Morrison company implement low pricing strategy,
because they have cost reduction and pressure from other competitors on which
Morrison’s supermarket has to manage overall challenges to build effective competitive
edge. Bargaining power of Suppliers: The suppliers of Morrison’s company are dominant
position and there is high power of bargaining in suppliers. Because Morrison company
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does not owns their own suppliers and power of retail suppliers increase their prices to
negotiate easily. Bargaining power of buyers: The buyers use to demand different traits of product and
services for explore their needs and wants. As for Morrison’s there is high bargaining
power of buyers because consumer have different option to buy similar trait of product
from other retail company which is either provided or not by Morrison’s. The other retail
business which can increase Morrison's customer bargaining power are Tesco, Asda,
Sainsbury etc (Steven C., 2020). Threat of substitute: When a new product or services fulfilled customer needs in
different ways, in this situation industry profitability suffers implication. For Morrison
company their threat of substitute product or services is high if they are provide value of
proportion quality in their product and services.
 Competitive Rivalry: For Morrisons company is having high level competitors in
competitive marketplace. It is identify about the game changing trends on organisation in
retail industry. They can identify game changing trends early on can swiftly respond to
exploit the emerging opportunity. Some of companies are there like Tesco, Asda Stores,
Sainsbury, IKEA etc.
Evaluation:
On the basis of above Porter Five forces regarding with Morrisons company summarise
that they have low influence in Threat of new entrant and bargaining power of suppliers. But the
high influence create presence for Morrisons company in Bargaining power of Buyers,
competitive rivalry and threat of substitute all these factors which makes important for Morrisons
business. Company need to mitigate their high influences where they have to offer discounts and
they need to work on product's value of proportion which attract consumers.
4. To critically appraise about the importance of change management based on complexity
towards transformation process, its costs, risk and sustainability.
Change management is form of systematic approach towards dealing with transformation
of an organisation goal's, process or technologies. The objectives of having change management
where it is implement strategies for mapping effective change and also help to adopt change
(Urbinati and et. al., 2020). Every organisation is creates strategy to makes implement changes
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for better competitive advantages attained. In following there are the importance of change
management which helps to enhance transformation process such as:
Importance of Change management:
Change management play an important role by increasing change in modern organisation
through technologies. Through better change management it focuses on the “people side” of
change whereas project management focuses on delivering better product side of things. Training
is most essential part where successful change management career are:
 External factors: The factors which would play a wide role in organisation change.
Globalisation and the rapid developments within new digital solutions are create
influence to respond or generate positive outcomes. Some of factors in external like
Policies, government rules and regulations etc.
 Engaging people with change process: The key of managing change in an organisation
where it easy to engage those people that affected change initiatives. Staff will be
involved within change process eventually where it better communicating and engaging
with staff about change plan early helps early helps to work in ground level.
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The role of change management in costs, risk and sustainability:
Cost: The role of change management is having cost avoidance tactics where it depends
upon change influence in organisation weather it would reduce or increase the costs. When the
positive change is applied correctly and it helps to waste and therefore better reduce costs.
Through effective change management helps to an organisation smart choices as it increases
productivity, decrease risk to help for improvement better profitability organisation.
Risk: This factor is major part in Change management for transformation process, if a
company planning to implement change in their workplace it contain high amount of risk. The
risk which mainly involve for change where chances of failure is more rather than succession. It
also involve high budget. Resistance to change can be one factor on which people are usually set
their own ways to accept new procedures. To adding in this, employees may remember towards
previous failed organisation change initiatives. There is also fear of losing jobs, especially if the
change involves better process of automation and information system.
Sustainability: In sustainable it helps to company for adapting change or shifting make
better efforts to change towards establishing a new change implementation process (Nelson, and
Luetz, 2019). Furthermore, sustainable change can better feeds on itself where it better creating
on constant improvement. Furthermore, role of sustainability factor in change management for
better transformational change:
 Aspiration: It is link with desired based constant improvement where most of achievers
are born within this. There are some of aspire to change because of youthful innocence
where education or new technology acquired.
 Crises: The greatest change occurs on the edge of chaos. Crises gives focus with better
urgency and seriousness to change. It reactive in nature on which following heart attack ,
as per organisation the crises can be addressed on the basis of financial, market or
economic downfall, recession rate.
 Opportunities: The change should be purpose with solid business foundation. It should
be procactive where for individuals it could be wealth, greed, promotion etc.
Evaluation :
As per above change management process it will include about its role in risk, cost and
sustainability factors. In these factors change management play wide role to mapping the
situation in which risk factor is having high influence (Sukawati and et. al., 2021). For Cost, it
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depends upon change implement situation through which it specify high or low cost involvement
at the time of budget preparation. At last, sustainability role in change management creates issues
for company in long term sustain within competitive marketplace.
CONCLUSION
From above report of Strategy evaluation is summarise a proper planning of strategy
which specifically company adopts to make their changes effectively for positive outcomes.
Vision, control, budget and other factor plays an important role at the time of preparing staretgy.
Some of external tools use to assess strategy implies in market like VRIO, Pestle and Porter five
forces framework to evaluate opportunities and challenges of retail industry business.
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leading change in change-resistant institutional environments. In Sustainability and the
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Online:
Steven C., 2020. Porter Five Forces of Morrisons Company. Available through
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