Morrisons Supermarkets Plc - Assignment Example

? Morrisons Supermarkets Plc. – Retail Executive Summary This paper mainly highlights the operations of the organization of Morrison Supermarket Plc.Along with this, it also describes the external and internal environments of the organization as well as the brief evaluation of the position on the basis of PESTEL and SWOT analysis made to analyse the external and internal environment. It also includes a conclusion and recommendation that clearly depicts that Morrison supermarket holds a strong position and market share in the region of UK among others. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Current operation of Morrisons 4 Analysis of Morrisons Supermarkets Plc external business environment 4 Analysis of Morrison’s internal business environment 6 Critical evaluation of Morrison’s strategic position 9 Recommendations 10 Conclusion 10 References 11 Introduction Current operation of Morrisons Morrisons Supermarkets Plc is one of the most renowned supermarkets within United Kingdom. Being headquartered in England, it operates successfully in 504 stores. Among which, 455 stores are operating in and around UK and the remaining in other parts of England. Due to its wide range of products it attained the fourth position in case of retailing among other supermarkets in the entire region of UK. Other than this, some of its stores are also present in English Midlands, Scotland, South East as well as north of England. Other than this, most of the stores of Morrisons operate in larger supermarkets presenting wide range of groceries and home-wares as well as electronics, clothing and furniture’s as compared to its rival players. Although, Morrison does not offer the facility of online shopping, still its range of customers is increasing with a considerable extent. Due to which, its market share is also enhancing with 11.3% along with a revenue of ?18.116 billion in the year 2013. Side by side, the net income of the organization is also enhancing with ?647 million in the year 2013. Analysis of Morrisons Supermarkets Plc external business environment The external environment of Morrisons Supermarkets Plc might be analysed with the help of an analytical tool, PESTEL. Political- one of the most important political factors that highly influences the strategies utilized by the retailers is growing trend of health-conscious products. It is mainly to decrease the level of obesity among the citizens of UK. Due to which, the government of UK is presenting huge number of campaigns so as to increase the level of awareness over obesity. Side by side, they are also presenting the details or extent of the nutrients that might help an individual to attain a healthy and fit body. So, all the supermarkets are trying to present or display the products including the exact mixture of nutrients to help the customers, in reducing obesity. Side by side, they are also presenting the GDA for men and women so as to maintain a healthy body. The prime objective of such strategy is to retain the older customers and to attract the new ones so as to remain competitive in the market. Otherwise, the supermarkets like Morrison’s might lose its range of customers and reputation in the market among others. Economic- inflation offered high impact over the prices of the products of the supermarkets and many other retail organizations. Due to which, the supermarket owners had to present products with lower prices so as to retain its brand image and range of customers. Side by side, the decrease in the rate of the disposable income also created a substantial impact over the buying behaviour of the customers. Therefore, in order to fulfil their requirements and demands, the supermarket players had to present wide range of product lines. It is done, so as to match their incomes, living standards and life styles. Therefore, only due to the presence of varied types of products, the supermarkets like Morrison’s became successful in retaining its range of customers and profit margin in such challenging scenario (Russell & Cohn, 2012, p. 234-278). Social- one of the well-known social factors is changing of habits and buying behaviour of the customers. Due to which, the customers are now changing their buying habits from premium products to value-added ones so as to reduce their expenditure. Side by side, it also helped in maintaining the changed habits of the customers. Technological- recently the total sale of the supermarket is getting reduced due to the interruption in the information technologies (internet services). As a result, a maximum extent of the supermarket owner such as Morrison is trying to disconnect the lines of information technology that is adversely reducing the sale of the products. Environmental- in order to reduce the impact of pollution, the supermarket named Morrison stopped the use of plastic carry bags for the customers. This helped in reducing the impacts of wastes and pollution on the environment. This proved extremely effective for the organization in enhancing its brand image within the minds of the loyal customers (Roger, 2001, p. 567). Legal- the strict set of operations such as health and hygiene, safety measures, effective handling of chemicals restricted the operations of Morrisons in the market of UK as compared to others. Therefore, by analysing the above mentioned points, it might be evaluated that in order to remain competitive within the market of UK, it is essential to offer varied types of technologically innovative products with balanced nutrients and materials. So, that it might retain the customers for longer period of time in the market among other competitors. Analysis of Morrison’s internal business environment The internal business environment of Morrison Supermarket might be analysed with the help of the analytical tool: SWOT. Strengths- High brand recognition- Morrison supermarket comprises of very high brand recognition in the markets of UK due to the presence of wide range of products of varied qualities and price categories. Due to the presence of wide range of products, customers of varied income groups might very easily select their quality of goods (Mennen, 2011, p.335-390). Wide range of products- Morrison comprises of wide range of products in varied categories such as furniture, clothing, grocery and many others. Due to which, the level of sale of the products gets enhanced resulting in amplification of its profit margin and revenues as well (Lorat, 2009, p. 235-278). High brand image- due to the large array of customers along with large range of value added products, the brand image of Morrison is extremely high as compared to others in the market. High profit margin- due to high range of sale of the products, the profit margin of Morrison supermarket is extremely high. This is also another imperative strength of the organization as compared to others in the market. Numerous discount facilities- Morrison supermarkets are also presenting varied types of discount facilities to its customers in various festive seasons. Due to which, many new customers get attracted towards these supermarkets in order to avail such facilities (Kotler & Kotler, 2012, p. 456-489). Weakness- No online site available- due to the interruption in the internet connection, the management of the Morrison supermarket disconnected the connection of internet. As a result, many customers desiring to purchase any product through online sites might not be able to avail such facilities. Due to which, many loyal customers are getting diverted towards other brands online sites. As a result, a larger part of the sale is lost due to such negligence of the organization. So, it acts as one of the greatest weakness of the organization (Pahl & Richter, 2009, p.343-356). Specific timings- the supermarkets of Morrison always get closed in specific timings. As a result, many customers had to get back to their residences without purchasing their desired products. Offers mainly present on selected brands-due to which, maximum extent of the customers fail to avail the discounts on varied other brands (Miller & et. al., 2011, p.256-289). Opportunities- Expansion in new regions- the supermarkets of Morrison always comprise of the opportunity of expanding in varied other regions of UK. As a result, the range of customers might get enhanced along with its profit margin and total sale as well. Side by side, the brand image and reputation of the organization might also get enhanced as compared to others (Kotler, 1999, p. 346- 378). High customer relationship- due to the maintenance of high customer relationship, the range of total sale is also increasing rapid rate as compared to others in the market of UK (Kotler, 2002, p. 356-389). Volume of organised retiling is increasing- due to enhancement of organised retailing; the range of customers is also increasing along with its profit margin as well. Threats- Lack of trained staff- due to lack of trained staff, the sale of products is also reducing at a significant extent as compared to others (Kotler, 2009, p.235). Change of government policies- due to the change of the government policies, the sale and range of customers are also decreasing at a rapid extent among other supermarkets (Cadle & et. al., 2010, p. 34). Critical evaluation of Morrison’s strategic position According to the high brand image and recognition in the market of UK, the total sale and revenue of the Morrison Supermarket is increasing rapidly. Along with this, due to the presence of varied types of products, customers of varied income groups and living standards might avail facility to purchase the products. Side by side, all the customers might very easily avail the facility of discounts on the products presented by Morrison Supermarket. So, it might be depicted that Morrison attains a very reputed position in the market as compared to others. Side by side, as it is widely expanding, its brand value and equity is also increasing significantly in the market among others (Bohm, 2009, p.234). Recommendations In order to increase the popularity and brand image of Morrison supermarket, it is essential to implement an online site. This might prove effective in enhancing its total sales and revenues as well. Side by side, the organization might also try to recruit trained staffs within the organization so as assist the customers at the time of purchasing any products. This might prove effective in increasing its total sale and brand value as well. Conclusion Conclusively, it might be stated that the brand value and recognition of the organization of Morrison might be enhanced by increasing its variety of products. Along with this, if the range of discounts presented over the products might be increased, then the range of customers may also be increased. References Bohm, A. 2009. The SWOT Analysis. New York: GRIN Verlag. Cadle, J. & et. al. 2010. Business Analysis Techniques: 72 Essential Tools for Success. New York: BCS, The Chartered Institute. Kotler, M. 2009. Marketing management. . London: John Wiley & Sons. Kotler, P. 1999. Kotler On Marketing: How To Create, Win, and Dominate Markets. . London: John Wiley & Sons. Kotler, P. 2002. Marketing Places. . London: John Wiley & Sons. Kotler, P. & Kotler, M. 2012. Market Your Way to Growth: 8 Ways to Win. London: John Wiley & Sons. Lorat, N. 2009. Market Audit and Analysis - Page 6. London: Routledge. Mennen, M. 2011. Strategic Analysis - Page 4. New York: GRIN Verlag. Miller, F, P. & et. al. 2011. Pest Analysis. London: VDM Publishing. Pahl, N. & Richter, A. 2009. SWOT Analysis - Idea, Methodology And A Practical Approach. New York: GRIN Verlag. Russell, J. & Cohn, R. 2012. SWOT Analysis. New York: GRIN Verlag. Roger, S, C. 2001. Marketing Strategies, Tactics, and Techniques: A Handbook for Practitioners. London: Greenwood Publishing Group. Read More