Morrisons Bandar - Strategic Management - Sainsbury, Tesco and Asda
First and foremost, the supermarket has ownership of 89% of the portfolio of its store. As a result, the takeover threat it is exposed to is less significant, and it has greater security when it comes to its investors. Another thing is that Morrison's property, equipment and plant assets value is approximately equivalent to 7.5 billion pounds. The value is higher compared to the capitalization of its current market. Morrison's supermarket debt compared to the equity ratio is 19% that is regarded as lowest in the firm. As much as the profits prior taxes are above by 45% to around 449 million pounds implicate a growth that is positive which it enjoys. The firm was named the year's retailer in 2008 award, which enhanced friendliness of the firm. It is the United Kingdom's great strength and Safeway acquirer of many years back has made it boost its current form. It has been of a better value particularly on deals of BOGOF. The company has also vested on the value in each and every stock of it.
Firstly, the company has got no Internet business of home shopping compared to other arch rivals like Sainsbury, Tesco and Asda (Thompson & Martin, 2010). The situation can drag the company to a late stage because electronic commerce is a business that is ever growing. It also provides customers with convenience and potentiality to get into the markets from an international view. Another weakness facing this firm is that there is an absence of the scheme dealing with loyalty card that has been used by its competitors to trace the trends of consumers and provide discounts to customers. Moreover, dissimilar to its competitors, it does not provide its customers with food deals that are meaningful.
[...] It also tries to put across a message that some foods are suitably kept in the fridge while some at room temperature. Lastly, the Morrisons should work with the sourcing company within the locality to make it achieve it aims, goal and objectives (Thompson & Martin, 2010). Reference Don Edwards & Associates Ltd Consumers' shopping wants and UK grocery retailing: Are consumer needs being met? Research Paper. Burnham: Don Edwards & Associates Ltd. Thompson & Martin, F Strategic management: Awareness and Change. 6th ed. Hampshire: Cengage Learning. [...]
[...] This is because their stores' posters that are situated externally communicate BOGOF deals than the quality of food. Opportunities There are obvious opportunities that have been prevailing right back down the years and have been cracked. For instance, source marketing with organic, schools, food labelling, recycling and local produce. There is always reasoning that supermarkets apply strict measures on suppliers, thereby creating a connection with workers of those suppliers and making their live better could produce committed shoppers. This, in turn, would create good public relations. [...]
[...] This is because the company is burdened with the task to protect its price and concurrently continue with the task of pushing the angle of its food quality. Solutions to Improve Morrison's Plc. The first step that the company should consider is the suitability of organic growth. This move is acceptable with the growth objectives of the company, and it will enable Morrisons to guard its USP. The move also reduces risks as it is the main business. The approach can be a conservative means in a way that the company fails on growth opportunity via market development or NDP or feasibility diversification. [...]
[...] Morrisons should also incorporate suitability of online shopping. This will have an international effect on their products. Although their current operations strength is on grocery sales and store food, the move will broaden its sales. Moreover, Morrisons should look into the suitability of superstores. As there may be a presence of market gaps in markets, the superstores will be more suitable. For the new territories investment and expansion, there should be financial investment. The initiative will also involve building of joints abroad in order to gain coverage internationally. [...]
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