Analyzing Morrison's Macro Environment Using PESTLE Framework

This report provides a PESTLE analysis of Morrison's, a major UK supermarket chain. The analysis examines the macro-environmental factors impacting Morrison's business strategy, including political factors like Brexit, economic factors such as currency fluctuations and inflation, social factors like changing consumer demographics and health concerns, technological advancements in waste reduction and data analysis, legal standards related to food safety, and environmental initiatives focused on reducing carbon emissions and waste. The report highlights the opportunities and threats Morrison's faces within the retail industry, emphasizing the need for strategic adaptation to maintain profitability and productivity. The PESTLE analysis framework provides a comprehensive understanding of the external factors influencing Morrison's, enabling informed decision-making and strategic planning.

Global Business Environment

Contents
MACRO ENVIRONMENTAL ANALYSIS..................................................................................3
PESTLE FRAMEWORK................................................................................................................3
REFERENCES................................................................................................................................5

MACRO ENVIRONMENTAL ANALYSIS
PESTLE analysis delivers deep understanding into the macro environment of the retail
industry.. Morison is the smallest of four largest supermarkets consisting of Tesco, Sainsbury
and ASDA in state of United Kingdom. Company is established as food retailer organizations
having 500 stores providing robust online home delivery system. The business deals between
food and grocery with proper procurements and manufacturing facilities.
Morrison focus on ensuring quality and building trust with its customer (Zhao and Dou, 2019).
The model will comprising of political, economic. social, technological, environmental and legal
factor playing an important role in determining business strategy for overcoming different
challenges faced by Morrison.
PESTLE FRAMEWORK
Political factor
Brexit was the major political events bring a harsh level of uncertainty with the changes in
policies and regulation (Mihailova, 2020). There is huge impact in multiple government’s
legislation on UK food retailer. This created major changes in consumer behaviour towards
certain commodity with adverse effect on Morrison profitability.
Economical factor
Brexit caused a significant fluctuation in currency along with creating major level of
inflationary pressure. There was rise in oil prices which resulted in contracting consumer budgets
and created a negative impact of Morison productivity and profitability. On the other hand, firm
can clearly look into international expansion with private labelled food products
Social factor
The rise in age populations in presenting various opportunities for Morrison to expands
the business in differ direction with diverse food product. In addition, increase in education and
health concern in consumer of UK providing major opportunity for firm expansion in in organic
and healthy food products.
Technological factor
Investment in technology is done by Morrison for reduction of waste. This make business
more sustainable and consumer oriented. Morrison have started to implement latest technology
and digital data in business regarding identification of emerging trends and better customer
3

service satisfaction (MORRISON, 2020). Morrison need to have proper research and
development in building in house software and system.
Legal factor
There is major complication with food safety and legal standard such as the FSA targets
on campylobacter level (Perera, 2017). There are several ethical trade audits are taken by the
government to ensure proper integrity of business prevailing in retail sector. The firm have
proper compilation policies and guidance supporting major compliances with several regulation.
Environment factor
Morrison is taking serious step to reduce operation carbon emission by 30% by the year
2025. In addition, firm have reduced poly boxes in supply chains along with launching returnable
bins for fish product (Rastogi. and Trivedi, 2016.). Zero waste have been directed to landfill in
the manufacturing sites. offering plastic free fruits and veg options.
Hence use of PESLTE have provided intense company knowledge in effect form the different
environmental factor (Morrison company history. 2018). They were helpful in providing the
significant opportunities and threat to company. Morrison have to clearly deal with several
challenges with appropriate strategies to create major level of profitability and productivity to the
business.
4

REFERENCES
Books and Journals
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Zhao, J. and Dou, X., 2019. A Study of British Organic Food Market.
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external
risks in construction projects. International Research Journal of Engineering and Technology
(IRJET), 3(1). pp.384-388.
Mihailova, M., 2020. The state of agriculture in Bulgaria–PESTLE analysis. Bulgarian Journal
of Agricultural Science, 26(5). pp.935-943.
MORRISON, J., 2020. GLOBAL BUSINESS ENVIRONMENT: Towards Sustainability? Red
Globe Press.
Online
Morrison company history.2018. [ONLINE] Available through < https://www.morrisons-
corporate.com/about-us/company-history/>
Morrison (Wm) Supermarkets Plc PESTEL & Environment Analysis.2019. [ONLINE] Available
through <fernfortuniversity.com/term-papers/pestel/nyse4/6837-morrison--wm--supermarkets-
plc.php>
What is PESTLE Analysis? An Important Business Analysis Tool.2018. [ONLINE] Available
throughhttps://pestleanalysis.com/what-is-pestle-analysis/#Asking_the_Right_Questions
5

6

7

8