Strategic Planning Final Project: Morrison's - Qualifi Level 7

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This report provides a comprehensive strategic analysis of Morrison's supermarket, a leading player in the UK retail industry. It begins by outlining Morrison's goals and objectives, including its vision, mission, and organizational values. The report then develops a strategic plan, considering stakeholder analysis and the impact of various stakeholders on the company's operations. MEA's competencies, including core and distinctive competencies, are explored using Porter's generic strategies. A value chain analysis identifies primary and support activities, highlighting competitive advantages and the organizational structure. External and internal environmental factors are assessed through SWOT and PESTLE analyses, followed by an examination of organizational and global strategies. The report concludes with discussions on strategy implementation, evaluation and control mechanisms, and organizational change initiatives. The analysis leverages various strategic frameworks and models to provide a holistic view of Morrison's strategic position and future direction.
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STRATEGIC PLANNING
FINAL PROJECT
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Table of Contents.
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
1- Goals and objectives of Morrison's.........................................................................................3
2 Strategic plan............................................................................................................................4
4- MEA's Competencies..............................................................................................................5
5- Value chain..............................................................................................................................7
6- External and internal environmental analysis........................................................................10
7- Organizational strategy..........................................................................................................11
8- Global strategy.......................................................................................................................12
9- Strategy implementation........................................................................................................12
10- Evaluation and control.........................................................................................................13
11- Organizational change.........................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15
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INTRODUCTION
Strategic planning is defined as procedure that drive the attention of individual person in
an organization toward conducting strategic action and taking decision to achieve set aims &
objectives. This process is used by varied organizations, for purpose of determining goals and
tactics that are essential to accomplish each aim. The current assignment will be based on
Morrison's , which falls under the category of leading supermarkets in the UK. The aim of this
report is to highlight the strategic objectives and aim of chosen company. It will also explain an
option by establishing options model and its fitness for purpose. The report will clarify the
impact of stakeholders, possible strategic directions, evaluation of macro and micro
environmental analysis and feasibility of options. Furthermore, lastly the study will justify risk
assessment internal factors, plan review, control and monitoring as well as risk analysis.
TASK
1- Goals and objectives of Morrison's
Morrison's falls under the list of top 10 supermarkets that has been established their
ventures within UK and across the nation successfully. It has sustained in the market from longer
time, because of having skilled and knowledgable workforce such as 1,10,000 employees, who
are able to achieve strategic aims and objectives.
1.1 Vision statement-
Organization tend to achieve its vision and that is to make & cater food that contribute to
increase consumers satisfaction level, more than last few weeks or months (Company History,
2022).
1.2 Mission-
The mission of Morrison's is to be more competitive in term of gaining consumers
attention and making their shopping experience pleasurable.
1.3 Organizational value statement-
Supermarket and its management mostly focus on providing quality, fresh and better
quantity of products to customers, after considering their needs and requirements in appropriate
manner. It is quite essential for company to do so appropriately, because of varied reasons. For
example, the main reason behind adding value and providing the same to target audience, is
consumer satisfaction as firm tend to satisfy each and every person, which in turn provide a lot of
benefits to organization such as in term of generating revenue, increasing profitability,
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productivity and more. It may effort to locally source produce wherever it is possible as it aids to
sustain for next 12 years in the market.
2 Strategic plan
2.1-Where Morrison's were-
In the recent time, chosen supermarket may hold 6th position in the market, which is want
to replace and become number one.
2.2- Where do it wants to be-
It may tend to reach at top position in the retail industry, against all supermarkets, which
is quite beneficial and essential for rapid success.
2.3- How will it get there-
The most effective way to get the position where firm seek to reach is pricing strategy,
quality and satisfactory quantity of products.
Stakeholder analysis
The best way to determine the impact of each stakeholder on Morrison's and its overall
venture operations is stakeholder mapping. It defines as a process of determining and
categorizing key stakeholders that are included in aim achievement and success of business
(Stakeholder Analysis, 2022). This concept may segregate each stakeholder in different category
that define their power and level of interest toward organizational success.
Stakeholders Expectations Influence on company
Government The stakeholder who fall under
this category, may hold high
power and take interest in
extreme level, to grow venture
of Morrison's, because in turn
the overall process provide a
lot of benefits to them.
They may put major impact on
supermarket in term of
offering growth opportunities.
Investors The expectations of this
stakeholder is high.
They may put positive impact
on company in term of
achieving set aims and
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objectives.
Competitors They may expect to beat other
brands in the retail industry
and gain all the benefits as top
supermarket in the nation.
Competitors may hold power
to put negative impact on
organization success.
Suppliers A supplier may expect to
obtain a lot of benefits while
working with a company such
as Morrison.
They may do not put much
impact on organization,
because number of suppliers
accessible in the corporate
world.
Customers Customers expect to obtain
satisfactory products from
Morrison's and purchase
quality items.
They may hold low power to
affect supermarket success in
extreme level, because
organization may already
consider their needs and offer
products in cost effective
manner (Sriatmi and et.al.,
2021).
Employees An employee expect to get
better facilities in the
workplace, which is quite
essential for company to do so.
They may put negative impact
on Morrison's growth and
success, when employees do
not valued in the firm.
4- MEA's Competencies
4.1- MEA's core competency-
Technology utilization-
The core competency of Morrison's is that its management and employees, in order to
achieve strategic aims and objectives may utilize the best digital technologies in the workplace.
It may help firm to increase its productivity, performance and profitability level, even better than
other supermarkets in the United Kingdom.
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Conflict management-
In the organization, Human resource team is able to resolve employees issues and take
approach to provide strategic directions that help to build wide and strong workforce in the
workplace.
4.2- MEA's distinctive competency-
Safety measures that firm may take to prevent consumers and employees from harmful
factors, is the best examples of distinctive competency, as it may able to do this activity in
appropriate manner (Guntoro and Widiyanti, 2021).
Another ability of chosen brand its quality products, that it may plan to provide everyone,
without making any differences between them.
4.3- Porter's distinctive competency-
Porter's generic strategic model may apply in the context of varied organizations, for
purpose of providing and specifying strategic options in different manner. It encompasses four
different types of strategies that a company such as Morrison's, may consider according to
business environment situation, whether it is related to internal or external. These tactics are;
Cost leadership-
This strategy drives the attention of management and organization toward taking action
or decision to reduce costs related to products, as it may aid to gain the attention of new
consumers and provide reason to retain with existing target audience (Introduction to Porter’s
Generic Strategies., 2022). It may also enable firm to take pleasure of increasing profitability
and productivity, more than its rivals.
Differentiation-
Another strategy that current model covers is differentiation, which Morrison's and its
management may consider, to grow and gain competitive advantages (Chiu and et.al., 2021). It
may allow organization to add more value in products in term of making them unique or
different from other items, that might be offering by other supermarkets.
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Market segmentation or focus-
According to current strategy or strategic option, it is essential for supermarket to
concentrate on niche markets and comprehend dynamics of this term, which is important and
beneficial for continuous growth as well as organizational success, from national to international
level.
Porter's generic strategic framework is valuable as it defines four types to tactics that help
to meet organizational need, goals and objectives successfully (What Are The Benefits Of Cost
Leadership Strategy, 2022). For example, Morrisons in order to reach desire outcomes by
consider and utilize specific strategy such as cost leadership, which enable brand to gain
competitive benefits in bulk and give tough competition to its rivals. With this strategy firm may
increase its market size.
5- Value chain
5.1- Value chain components
Primary activities-
Inbound logistics-
Illustration 1: Porter's Competitive Strategies
(Source: Porter's Generic Strategies, 2022)
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Morrison's is able to gain all the benefits in certain manner, as it may lead accessibility of
supply and do not have any issue with supply chain management. By conducting this activity,
firm may run its venture successfully.
Operations-
Organization along with above also conduct this activity in appropriate manner, that in
turn lead to increase customer base and enhance their satisfactory level (Jadhav and Mannar,
2021).
Outbound logistics-
Morrison's may conduct outbound activity successfully in term of offering variety of
grocery items to consumers in its stores on time.
Marketing & sales-
For purpose of generating excellent brand image in the market, organization is able to use
traditional and non-traditional marketing approaches that help to gain benefits in bulk such as aid
to increase sales.
Service-
With skilled and talented staff members, supermarket is able to offer the best and most
satisfactory consumer services to individual person before and after product purchasing.
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Support activities-
Firm infrastructure-
Along with above activities, firm may able to solve legal matters as well, because it may
have legal and supportive team. It may also have different departments, among each skilled
people are working.
Human resource management-
With experience and knowledgable, HR management and team members, organization is
able to retain and acquire new consumers, who may provide benefits to brand.
Technology-
Organization by using advanced technologies may give tough competition to rivals,
which in turn lead to increase its consumer base, profit margin, etc.
Procurement-
Another competency that make Morrison's power and sustainable is current one. For
example, firm may have excellent relation with suppliers who are able to provide sustainable
goods or raw materials that organization use to provide more value to target market.
Illustration 2: Porter's Value Chain Model
(Source: What is Value Chain Analysis, 2021)
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5.2- Competitive advantages.
Low pricing strategy, standard services and quality products are one of those factors that
enable organization to gain competitive advantages in bulk, in term of increasing profitability,
generating revenue, etc.
5.3- Organizational structure
For purpose of managing venture and outlets in appropriate manner, Morrison's may
utilize hierarchical organizational structure, which enable brand to run and manage each
operation successfully and in systematic manner.
6- External and internal environmental analysis
6.1- SWOT analysis
Strengths Weaknesses
The biggest strength of chosen
supermarket is its skilled and
knowledgable workforce, among
which each candidate is able to grow
venture rapidly and enable firm to gain
competitive benefits in bulk.
Another strength of chosen
supermarket is efficient distribution
network, that aid to distribute each
product in the stores appropriately.
Lack of geographical presence is the
biggest weakness of supermarket that
may put impact on venture growth.
Largest number of product recalls is
another weakness that affect the way
firm take decision.
Opportunities Threats
Growing consumers habit regarding
online shopping
Rising demand for vegan and organic
food items.
Increasing competition in the market
Pandemic
6.2- Pestle analysis-
Political factor-
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Political stability in the UK and other factors such as tax rate, trade policy, etc. may put
positive impact on Morrison's retail industry. It may offer firm chance to expand venture globally
and establish new outlet in the profitable market.
Economic factor-
Income level, education, economic growth, etc. terms are included in list of economic
factors that affect a sector and companies that are operating under that. For example, in case of
Morrison's, economic growth, income extent and other factors affect positively as individual
person is able to purchase low cost items.
Sociological factor-
This category of component put positive impact on supermarket, in term of offering
chance to retain and gain the attention of more potential buyers, who tend to purchase organic
and vegan food items.
Technological factor-
Technology advancement put similar impact on company as above factor does, because it
may provide marketer chance to set great image in the mind of consumers, via using and
developing excellent promotional plans and strategies.
Legal factor-
Employment laws, business contracts, customers safety regulations and policies, put
negative impact on Morrison's, as any change related to these terms may affect current practices
of company, which is not suitable for its rapid growth.
Environmental factor-
Customers and governmental bodies in the recent time concentrate on environmental
sustainability and also take this thing into concern, which put direct impact on supermarket
positively. As organization may already take steps to become a sustainable brand in the market
by considering CSR concept.
7- Organizational strategy.
7.1- Diversification strategy
Morrison's may utilize this strategy, because it helps to meet business objectives and
goals in term of introducing a new item which in the recent time consumers prefer to purchase
and tend to buy from long time (Xie, Wang and Miao, 2021).
7.2- Vertical integration strategy
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With this tactic, firm may take pleasure of increasing productivity, as it may permit
management to streamline their key operations by taking ownership of multiple phases related to
production procedure, more than rely on external vendors or suppliers.
7.3- Horizontal integration strategy
Along with above, firm may take current strategic approach into its consideration, as it
may allow it to acquire new venture and merge with another that help to increase business size
and generate revenue more than the expectations of stakeholders.
8- Global strategy
Market expansion is one of the best global tactic that Morrison may take into its
consideration and then conduct practice accordingly, which is quite essential and important for it
to do so successfully. It will plan to enter into UAE, where growth chances accessible in bulk.
9- Strategy implementation
9.1 Key elements
Product-
It is important for Morrison's to consider and use this element for purpose of strategy
implementation. For example, firm may take approach to provide quality products and focus on
same process that aid to expand venture successfully.
People-
With skilled, knowledgable and talented employees, organization may implement current
strategy and gain benefits via same action in bulk.
Place-
The best way to implement strategy is place selection and establishment of venture into
UAE, where people are quite health conscious and take approach to buy products accordingly.
Promotion-
Another action that supermarket considers, to implement strategy in practical manner is
current one. For example, with social media and other marketing channels, marketer may enter
into new market such as UAE in form of generating awareness about market expansion of
Morrison's.
9.2 Associated risks
Financial risk-
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Market expansion decision encompasses different types of risks such as current one. It
may put negative impact on firm success, when budget goes beyond expectations of management
and organization need more amount to enter and establish venture into UAE.
Operational risk-
Inappropriate control in regard to operational activities and employees may create this
risk, which is important for company to overcome further.
Emerging or new demand of consumers-
Sudden changes related to customers needs and emerging demand may consider as
another risk that associate with expansion process and affect business strategy implementation.
10- Evaluation and control
10.1 Evaluating effectiveness of strategy-
Market expansion as global tactic is effective because of several reasons, such as it may
help to build wide and strong customer base. The current strategy provide a lot of benefits to
supermarket in term of gaining potential and profitable investors, through which it may expand
business more across national boundaries internationally or in international level.
10.2 KPIs
Profit margin, customer satisfaction and revenue growth are the best key performance
indicators that Morrison's and its administration may consider, to measure the success of current
expansion tactic (McGinley, Moran and Goggins, 2022). It may enable them to determine
success criteria, which is important and beneficial too, to do that.
10.3 Monitoring performance across venture functions
Return on capital is appropriate technique that supermarket may utilize to monitor the
performance across business functions. It may allow firm to determine the gap between current
and further years success such as profitability, which drive its attention toward taking strategic
action.
10.4- Strategic decisions
Internal and external business environmental analysis, current market trends
determination, etc. are included in list of those decisions that firm may take to grow, before
entering into new market.
11- Organizational change
11.1 Change initiatives
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Morrison's and its management may take initiative to make possible modifications in the
context of organizational culture and technology implementation. For example, it may create
environment that help to fulfil employees needs. It may also take action to update each
technology that support to increase productivity.
11.2 Anticipated outcomes
Organization and its stakeholders may expect to increase profitability, supply chain
efficiency, customer base, productivity and performance level of brand, which is possible when
management may take decision to utilize the best and useful tactics like above accessible for
better organizational performance and success.
CONCLUSION
From above analysis, it has been concluded that organization by using strategic options
and following the same, has achieved set aims and objectives in competitive manner. It has
gained competitive advantages in bulk and retained potential consumers along with gaining the
attention of new. Furthermore, firm has overcome the negative impact of each factor in effective
manner in term of adopting and using the best strategies. It has considered the expectations,
needs, interest and power extent of stakeholders that aid to grow venture successfully. From this
report it has been identified that risk assessment developed prevented firm from major risks that
impact negatively upon business growth and success.
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REFERENCES
Book and Journals
Chiu, Y and et.al., 2021. A multi-item batch fabrication problem featuring delayed product
differentiation, outsourcing, and quality assurance. International Journal of Industrial
Engineering Computations. 12(1). pp.63-78.
Guntoro, R. and Widiyanti, M., 2021. THE ROLE OF DISTINCT COMPETENCY AND
LEARNING ORGANIZATION IN ENHANCING FIRM’s SUSTAINABLE
COMPETITIVE ADVANTAGE. International Journal of eBusiness and eGovernment
Studies. 13(2). pp.103-122.
Jadhav, M. H. and Mannar, M. G. V., 2021. Uptake of encapsulated ferrous fumarate double
fortified salt in the public distribution system in India: a value chain analysis. Global
Health: Science and Practice. 9(4). pp.832-845.
McGinley, O., Moran, P. and Goggins, J., 2022. An Assessment of the Key Performance
Indicators (KPIs) of Energy Efficient Retrofits to Existing Residential Buildings.
Energies. 15(1). p.334.
Sriatmi, A and et.al., 2021. Stakeholder Mapping Analysis on the Scaling-Up Nutrition
Movement during the 1000 Days of Life between the Urban and Rural Government
Areas. Unnes Journal of Public Health. 10(1). pp.68-77.
Xie, Z., Wang, J. and Miao, L., 2021. Big data and emerging market firms’ innovation in an
open economy: The diversification strategy perspective. Technological Forecasting and
Social Change. 173. p.121091.
Online
Company History. 2022. [Online]. Available Through:
<https://www.morrisons-corporate.com/about-us/company-history/>
Introduction to Porter’s Generic Strategies. 2022. [Online]. Available Through:
<https://getlucidity.com/strategy-resources/introduction-to-porters-generic-strategies/>
Porter's Generic Strategies. 2022. [Online]. Available Through:
<https://www.mindtools.com/pages/article/newSTR_82.htm#:~:text=According%20to
%20Porter's%20Generic%20Strategies,Cost%20Leadership%2C%20Differentiation
%20and%20Focus.>
Stakeholder Analysis. 2022. [Online]. Available Through:
<https://www.productplan.com/glossary/stakeholder-analysis/>
What Are The Benefits Of Cost Leadership Strategy? 2022. [Online]. Available Through:
<https://www.consultantsreview.com/news/what-are-the-benefits-of-cost-leadership-
strategy-nwid-1138.html>
What is Value Chain Analysis? 2021. [Online]. Available Through:
<https://www.geektonight.com/value-chain-analysis/>
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