Marketing Report: PESTEL Analysis Impact on Morrison's Decisions

This report presents a PESTEL analysis of Morrison Supermarkets, examining the impact of political, economic, social, technological, environmental, and legal factors on its marketing strategies. The introduction highlights the importance of marketing in identifying customer needs and analyzing external and internal factors for company expansion. The main body delves into each PESTEL factor, providing examples relevant to Morrison's operations in the UK. The political stability, trade regulations, and corporate tax rates are discussed, along with the economic factors like GDP growth and unemployment rates. Social factors, including consumer attitudes and cultural nuances, are analyzed, alongside technological advancements and their impact. The report also considers environmental concerns, such as pollution, and legal aspects like labor laws. The conclusion summarizes how PESTEL analysis helps companies navigate external threats. References to academic sources are provided.

Marketing across
Boundaries

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
PESTEL analysis and its importance for marketing decisions....................................................3
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Introduction
Marketing is the wide concepts which include communicate with customers, identify
their needs and wants, analysing best promotional tool for company and many others. Marketing
department of company plays an important role in success of that company. It helps in analysing
external and internal factors for expansion of company (Wirth, 2018). It is necessary to identify
what all factors impact upon company and its decision making process and it is only identify its
marketing department. Morrison is the chain of supermarket which is founded by William
Morrison in the year1899. Its headquartered is located in Bradford, England, UK. The following
report covers PESTEL analysis of Morrison and their impact upon decision making process by
marketing manager of same company.
Main Body
PESTEL analysis and its importance for marketing decisions
PESTEL analysis is used to analyse external environment of a company and to know
how it impacts upon their business functions and what all actions will be taken by the company
to overcome the threats of external factors. PESTEL analysis of Morrison Company is explained
below-
Political factor- Political factor of PESTEL analysis include political stability, corporate tax,
trade regulations and many others of a country (Höpel, 2018). In context of UK, their political
stability helps many companies to grow well without any interference. Secondly they have no
trade restrictions for the companies based in UK. Therefore, Morrison can trade with other
countries with few legal documents. In this case marketing manager of Morrison must grab this
opportunity and analyse external environment of other companies and make decisions whether
they expand their business in few focused countries or not. They have high corporate tax which
is 19% which is harmful for company because they have to pay more tax from their retained
earnings.
Economical factor- This factor includes GDP growth, unemployment rate, corruption
rate, and many others. In context of UK they are popular for their economical growth in the
world (Marinović-Matović and Arsić, 2020). They have high GDP growth, good condition of
population’s living standards, good condition of infrastructure and many others. They are facing
drawback in economical condition in just one factor and that is unemployment rate. Due to

Covid 19m Pandemic UK’s unemployment rate raise up and reached at the point of 5.1% which
means their almost 5% of population is sitting ideal without any job to earn livelihood. In this
situation marketing manager of Morrison must provide jobs to those individuals who are eligible
to do a job but they are not getting opportunity to find a good job. Giving employment will help
the economy to lower their unemployment rate and this will directly impact positive upon
company to gain good reputation.
Social factors- Social factors covers attitude, belief, nature, mindset religion, culture and many
others of a country (Samusenko, Plaskova and Prodanova, 2020). In context of UK, their
population have positive mindset to buy a qualitative product. They are supposed to live
qualitative life and they have the habit to purchase good quality of goods. They did not bother
about little high prices but they are bothered to lose quality from their life. Hence, in this
condition marketing manager of Morrison must keep their product with high quality whether the
production cost increases but they need to provide good quality of products to their customers to
gain their trust and loyalty. On the other hand there are many strikes help in UK due to
discrimination on religion, skin colour and man y others. The population of UK is sentimental
and sensitive in terms of emotions. Hence, in this condition the marketing manager of Morrison
must choose that promotional tool which will provide them maximum benefit and which is
supposed to aware a large group of customers together. Secondly, marketing manager makes
sure that they should not convey some wrong message through their promotional activity that
will hurt their customers feeling. They should not point out any specific religion in their ads.
Technological factors- This factor states that what is the condition of technology within a
economy (Markosyan, 2020). In context of UK, they have modern and advanced technology that
other countries ask UK to export their tools and machines in their country. Hence, their good
technology helps Morrison to produce good quality of products by saving time. Here, marketing
manager must analyse the requirements of their company for machines and tools and in case they
found lack of machines then they must order updated machine to produce qualitative products.
Environmental factor- It include the condition of climate, weather, temperature,
pollution control, tourism rate and many others. In context of UK, their tourism arrival is is high
due to their good condition of climate and weather. Hence, this is an opportunity for Morrison to
gain more customers by attracting those tourists toward their products and other offerings. Here,
in this condition the marketing manager of Morrison must analyse purchasing power and habit of

that tourist by conducting surveys and they must adopt those promotional methods which
influence the tourists to purchase products from Morrison’s store. On the other hand UK is
having high air pollution that there almost 8% people die due to air pollutants presented in air.
Here, the marketing manager of Morrison must use the new strategy of using air purifiers in their
stores and offices to protect the health of their employees.
Legal factors- It includes all the laws and rules & regulations made by the government
for the benefit of people (Lim, 2020). In context of UK, they made laws for their people benefit
to live life in a proper discipline. Some laws of UK like Minimum Wage Act, Health and Safety
Act, Employment Act and many others are made to protect the rights of workers and to develop
their life standards. Hence, legal laws of UK help Morrison to conduct their daily operational
activities in proper discipline by considering that their workers are the main assets for their
business. Marketing manager of Morrison must consider that their department is following legal
laws or not and in case of avoiding legal laws they will get punished. Hence, it is essential for
marketing manager to apply all legal laws in their business.
Conclusion
From the above information it is clearly concluded that Marketing is the concept which is used to
analyse marketing conditions. It is essential for every company to analyse their internal as well
as external environment for the company’s benefit. PESTEL analysis is used to identify external
factors of a company and helps to identify how they will impact upon the business activities.
Therefore, using PESTEL analyse will help the company to take those actions which help them
to keep them self safe from the threat of various external factors.

References
Books and Journals
Höpel, T., 2018. Friedemann Pestel, Kosmopoliten wider Willen. Die „monarchiens “als
Revolutionsemigranten.(Pariser Historische Studien, Bd. 104.) Berlin/Boston, De
Gruyter Oldenbourg 2015. Historische Zeitschrift. 306(1). pp.225-227.
Lim, Y.J., 2020. The PESTEL Model Application to Ok Boomer and TikTok from a Public
Relations Perspective. Journal of Media Research-Revista de Studii Media. 13(37).
pp.94-110.
Marinović-Matović, I. and Arsić, L., 2020. Ecological dimension of PESTEL analysis in small
enterprises in the Republic of Serbia. Recycling and Sustainable Development. 13(1).
pp.63-71.
Markosyan, H., 2020. Development of a Business Plan for a Battery & Jewelry Parts
Wholesaler (Doctoral dissertation, California State University, Northridge).
Samusenko, AS, Plaskova, NS and Prodanova, NA, 2020. The Analysis of the External
Environment to Determine the Practical Focus of Applied Research. Complex Systems:
Innovation and Sustainability in the Digital Age: Volume 1 . 282 . p.245.
Wirth, N., 2018. Hello marketing, what can artificial intelligence help you with?. International
Journal of Market Research. 60(5). pp.435-438.