The SWOT and the PESTLE Analysis of Morrison Plc Essay - 1

The SWOT and the PESTLE Analysis of Morrison Plc - Essay Example This paper illustrates that expanding the network of new stores is a unique opportunity for Morrison and the current discount policy and other incentives from competitors to the retail customers are the biggest threat to the company. In the PESTLE analysis, tax imbalance puts the unfavorable effect on Morrison’s performance. Inflation offers similar challenges. Socially, Morrison has signed ethical audit agreement and technologically it has replaced manual system with machines. Legally, it may face litigation cost whereas environmentally it has received an award for reducing carbon footprint. Organisations face numerous internal and external threats. For assessing and understanding the type and level of their impact on their financial performance, different macro analysis tools are used including the SWOT and the PESTLE analysis. The SWOT analysis is mostly used for assessing both internal and external capabilities and challenges in which strengths and weaknesses evaluate the internal capabilities whereas the opportunities and threats are used for investigating the external factors which directly or indirectly affect the financial and operational performance of organizations. Similarly, the PESTLE analysis is a typical external environment tool which is fundamentally used to highlight those factors which have the capability to affect the organizations. in this regard, it is important to point out that the PESTLE analysis reflects only those factors which are beyond the control of organizations and they are only required to adjust their strategic marketing for avoiding or gaining advantage from the effects of external factors. In this regard, Morrison has different internal strengths and weaknesses and there are some threats along with opportunities for the organizations. In the following parts of this report, first Morrison’s background is provided in which some basic information for the company has been given. It is followed by the SWOT analysis in which Morrison’s existing competence level has been evaluated. Subsequently, before the conclusion and recommendations part, the PESTLE analysis has been carried out.