Search icone
Search and publish your papers

Morrisons going to China

Or download with : a doc exchange

About the author


About the document

Published date
documents in English
case study
26 pages
1 times
Validated by
0 Comment
Rate this document
  1. Part 1 - Company current situation, SWOT, BCG
    1. Morrisons Presentation
    2. SWOT analysis of Morrisons
    3. The BCG Matrix
  2. Part 2 -Overview of the chosen country using IDG model, and 12 C tools
    1. China ID
    2. IDG models of China
    3. China 12 C Framework analysis
  3. Part 3 - SMART objectives
    1. S for Specific
    2. M for Measurable
    3. A Achievable
    4. R Relevant
    5. T Time-based
  4. Part 4 - Market entry strategy
    1. The theoretical framework
    2. The Joint Venture partnership
  5. Part 5 - Gantt chart and budget plan
    1. The Gantt chart
    2. The budget plan

Wm Morrison Supermarkets Plc or Morrisons, as it is commonly known, was founded by William Morrison in 1899, and is now led by his son Ken Morrison. From an egg and butter stall in Bradford, the company developed into market stalls until 1985 when a small store was opened in the town center. From 1958 to 1967, Morrisons kept on developing and went public in 1967.

In March 2004, Morrisons took over Safeway creating a new force in the UK food retailing market. Morrisons is currently in the midst of the acquisition process of Safeway. This would be a long-term process and according to a Mintel report , the customer hasn't yet linked the two brands. With this acquisition, Morrisons is the new force to be reckoned with in the UK retailing environment behind the three giants, with 13.1% of market share.

The main strength for the group constitutes its continual focus on quality and value, while remaining competitive on price. The Morrisons supermarkets, according to the same Mintel report, are renowned ?for their no nonsense, no frills approach to retailing?. Moreover, Morrisons has enjoyed a strong financial record since its listing on the stock market in 1967. Morrisons also got its own strong brand reputed for its quality and value.

?The board of Safeway continues to believe that a joint venture with Morrisons represents an opportunity to create a new dynamic force in UK food retailing?, said David Webster, Safeway chairman.

The acquisition process of Safeway require lots of expertise and experience. There is currently some debate regarding the future of Morrisons and its ability to merge the Safeway outlet into the group.

[...] The following figure from the book ?International Business', 2nd edition, from Stuart Wall and Bronwen Rees, represents the different options for Morrisons to penetrate the Chinese market. Taking into consideration the previous analysis of the country we want to get in, the joint venture partnership seems to be the best fit for our company. We will then analyze this option for our case. Figure7. Market entry strategy (Source: International Business, 2nd edition Stuart Wall Bronwen Rees, Prentice Hall, Financial Times p.313) 4.2 The Joint Venture Stuart Wall defines Joint Venture as the creation of a new identity in which both the initiating partners take active roles in formulating strategy and making decisions. [...]

[...] With this acquisition, Morrisons is the new force to be reckoned with in the UK retailing environment behind the three giants, with of market share. Figure1. UK top ten food retailers' market share (Source: Mintel report Food retailing UK November 2004) Morrisons in numbers more than 450 stores in UK equipped with petrol stations 4th largest supermarket chain Annual turnover of billion 10 million customers a week of share in the UK grocery market and one of the fastest growing supermarket chains more than 150,000 employees working in stores, distribution centers and head office administration functions (Source: student pack from Morrisons, ) 1.2 SWOT analysis of Morrisons In order to present the company's strengths and weaknesses, the SWOT analysis will be examined. [...]

[...] Major players' turnover evolution in China (Source: _China) This market is expected to grow by in 2008. According to an article issued on the AP-Foodtechnology website, deregulation of the Chinese retail market is set to provide significant opportunities for international food retailers in the next few years as restrictions that earlier limited foreign players to joint ventures in the major conurbations have been lifted?. (Simon Pitman reports). This new market opportunity has already been exploted by the major players which have recorded massive growth. [...]

Similar documents you may be interested in reading.

The Bluest Eye, by Toni Morrison

 Philosophy & literature   |  Literature   |  Presentation   |  09/27/2006   |   .doc   |   8 pages

The value of the Chinese Renminbi (RMB), its management and risks associated with investing in China

 Economics & finance   |  Finance   |  Case study   |  09/29/2010   |   .doc   |   6 pages

Top sold for marketing

Final Strategic Analysis Report BIC

 Business & market   |  Marketing   |  Case study   |  09/29/2010   |   .doc   |   39 pages

Analysis of marketing business "Smartbox"

 Business & market   |  Marketing   |  Case study   |  09/29/2010   |   .doc   |   41 pages