PEST(LE) Analysis - Essay Example

The above acquisition enabled the entity to have access to Safeway’s massive resources. This allowed Morrison to add its outlet and capture additional clientele. The acquisition was a strategic step that sought to kick-start its expansion across England (Morrison 2012). Safeway had stores in southern England and Scotland. This was a strategic acquisition since the Safeway gave Morrison a chance to challenge the supremacy of its competitor in the Southern region and Scotland subsequently kick-starting Morrison’s expansion strategy.

The acquisition increased the quantity of Morrison’s stores. Consequently, the entity could avail its products to the southern regions. The entity also sought to increase its profitability by increasing its operational efficiencies. Morrison evaluated the profitability of it stores and disposed those that were reducing its profitability and overall efficiency. Operational efficiency is vital in retail businesses. Operational efficiency ensures that an entity capital is put into profitable activities.

Therefore, the entity disposed off some of its stores. This allowed the entity’s management to focus on stores with potential to bring in additional clientele (Morrison 2011). Morrison further terminated its venture with British Petroleum (BP). Morrison had entered into a venture with BP. The venture allowed the entity to create open stores on BP’s petrol stations. . The expansion of the entity did not only entail increasing its sales but also increasing the value the entity offers to the clients.

Additionally, it sought to improve its procedures ensuring that they can handle its undertaking appropriately. Proper management and efficiency were catalysts to the expansion of the entity. The management ensured that the entity could attract additional clientele through marketing (branding) and maintaining an ideal corporate image (Morrison 2010). PEST Analysis This is a technique, which enables an analyst to evaluate the position of an entity in relation to certain factors, which determine the fortunes of an entity.

The factors include political, economic, socio-cultural and technological factors. Political/legal Factors Morrison conforms to the company act, which contains provisions that elaborate the formation and operation of such an entity. If the entity infringes any of the clauses of this law, then the entity would face numerous legal consequences. The entity initiated its operations in the agricultural sector. Consequently, considerable portions of the entity’s products are from the agricultural sector.

Such products face numerous laws as authorities endeavour to protect the citizenry. The entity has to ensure that its food products meet the required health standard. The health sector has instituted numerous laws, which seek to secure the safety of the citizens. Additionally, the entity faces countless laws pertaining to the sale of alcohol. The entity was labelled reluctant in the implementation of laws pertaining to sale of alcohol. As such, the entity was instructed to demand identification documents from individuals purchasing alcohol