It also has a long standing management team to support such expansion. The level of service it gives to the customers is also high. The internal weakness of the company is that it is dependent on the market of UK. It is also uncertain over the long term acquisitions it has undertaken. It has a lower quality of Safeway estate. Their business model is very labour intensive. The external opportunities which the company now faces are the diversification of its business into new market. It has generated synergies through Safeway merger. Another opportunity facing the company is their expansion through online medium. It has decided to increase operations online. The Morrison faces many threats from its surrounding environments like Price wars. It is quite possible for its main competitors to engage in price wars. The UK grocery industry is undergoing a change and the company also need to adapt to the change. Hence if the company can’t take advantage of this position it will lose out in the market. Next the macroeconomic forces affect the company. Political forces which affect the company are changes in government policies like taxation polices. Any change of it will minimise the profit margins for the company in such competitive environment. The economic forces which affect them are their local suppliers of the products like meat etc. which keeps control over the quality of the food. Another advantage which the company have is that it helps to keep the prices in check. Morrison has launched a way of recognising a colleague’s job profile by giving National Qualified Certificate. This is their way of changing the lifestyle of the employees. They have also launched a campaign aimed “Let’s Grow” which provides free gardening equipment to the local schools so that a healthy social balance in the society can be maintained. The IT infrastructure of Safeway was down-graded and hence it needs to improve on it. Morrison faces legal risk with respect to the government policies regarding pollution control. It is a limited liability company and hence has to follow the legal way of doing business according to the companies Act. The company also has to take care of the environmental aspects like using long-life reusable bags instead of the free non –degradable plastic bags. As far as the financial performance of the company is concerned the revenues has increased by over 7 percent in 2011 while the gross profit has increased by around 6% in 2011. The operating profits have increased by around 7.60% in 2011 which is more than the increase in is gross profit. Hence the company has been able to decrease the operating costs. CW2 Executive Summary In United Kingdom the supermarket chain store is on rise. In this report we will take a look at one such supermarket store named Morrison Supermarket. We will take a look at the marketing strategies of the company which it used employed in their normal course of business. Being a grocery store it has to continuously change its marketing strategy to keep in line with the other competitors. We will also look at the different models like BCG and Ansoff and analyse the ways used to employ their marketing strategies. Lastly we will take a look at the other strategies the company can employ to further increase their business growth. Contents Executive Summary 4 Contents 5 Introduction 6 Analysis and Critical evaluation of Morrison’s Supermarkets 6 Analysis of Strategic Direction of Morrison’
Morrisons Supermarkets CW1 -Summary Morrison Supermarket is presently UK’s fourth biggest retail super market. The company has around 425 stores throughout the country. It has been facing tough competition from number of competitors like Tesco, Sainsbury’s and Asda…
Based on this research it is highly recommended that both Morrisons and Tesco management must continue implementing their current strategic marketing strategy of market penetration. Furthermore, it is highly recommended that both Tesco and Morrisons must continue to adopt their current marketing strategy.
In order to curb this issue the management of Morrisons opened 43 new stores in the year 2009/2010. These new stores required investment in refurbishment, however, as soon as the stores were ready to be used the staff and the whole group of Morrisons started struggling to strengthen the reputation of Morrisons for the value and quality of products it offers.
According to the study conducted Threats of new entrants are potentially high in the UK retailing sector. Development process of superstores is lengthy and requires heavy capital investments. Also, Tesco, ASDA, Sainsbury’s and Morrisons make up 80% of the retail market in the U.K giving them the benefits of an oligopoly.
The organizations expect the suppliers to use innovative techniques in their practices to meet the requirement of the customers. The organization should maintain a healthy relationship with the suppliers. In order to maintain the healthy relationship the organization should follow some ethical standards while dealing with the suppliers (Palepu, et al., 2007).
In the present business scenario, organisations need more sustainable and effective tools to gain advantage in this competitive environment. Looking at the current crisis which the company is facing, powerful strategic operations and new market diversifications are crucial for profitability and sustainable growth in the future.
hat this purchase may have constituted a bad decision on the part of Morrisons Financial Management, since it has impacted adversely upon shareholder earnings. It may be argued that adequate thought and planning has not been given to the acquisition of the Safeway chain stores,
urring in the external environment of the firm, changes in the demographics of the workforce, greater emphasis on the growth of profitability of the business, changes in technology, intellectual capital and also other never ending transformations occurring around organisations
oning can be seen as some of the main elements that affect Morrison’s capacity to maintain adequate profitability levels and generate value for the shareholders as well.
A special attention will be dedicated also to the evaluation of share price from one side in light of the
The growth of supermarkets have also raised a question with regard to whether the dominance of the big four supermarkets in the grocery market mean that there is an increased risk of consumers getting a poor deal.