revision strategic.docx - Morrisons Strategic Analysis Name Institution Date 2 Table of Contents Executive Summary.3 Introduction.4 Morissons

revision strategic.docx - Morrisons Strategic Analysis Name...

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Morrisons Strategic Analysis Name Institution Date
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2 Table of Contents Executive Summary ......................................................................................................................... 3 Introduction ...................................................................................................................................... 4 Morissons Supermarkets .................................................................................................................. 5 External Analysis of Chinese Market .............................................................................................. 6 Political Market ............................................................................................................................ 6 Economic Factors ......................................................................................................................... 7 Social Factors ............................................................................................................................... 8 Technological Factors .................................................................................................................. 8 Environmental Factors ................................................................................................................. 9 Legal Factors .............................................................................................................................. 10 Morrisons Resources, Capabilities and Competencies .................................................................. 10 Resources ................................................................................................................................... 10 Capabilities ................................................................................................................................. 11 Morissons Vision and Mission Statement ...................................................................................... 12 Mission statement ...................................................................................................................... 12 Vision Statement ........................................................................................................................ 12 Recommendations .......................................................................................................................... 14 References ...................................................................................................................................... 16
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3 Executive Summary China is growingly becoming a viable commodity market in the globe. The Chinese government has been able to come up with friendly tax policies thus creating a more conducive environment for foreign investors who are increasingly establishing their businesses in the region. Morrisons is a global retail giant which is based in the United Kingdom. The firm is ranked fourth after Asda and Tesco Sainsbury. This report analyses Chinese market environment to ascertain whether it is suitable for Morrisons to enter into the market. The report analyses major factors in the Chinese market that are likely to affect the company’s strategic choices. Furthermore, the report also provides recommendations on the key strategies that the company should apply to succeed in the Chinese market environment
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4 Introduction In recent years, China has become the best and suitable business destination for foreign investors (A’Hearn &Venables 2013). Some of the major reasons why the China has become a strategic global market are the nature of its domestic market and its potential capability for growth. These are some of the primary reasons why many multinational firms invest in the Chinese market (A’Hearn &Venables, 2013). This report conducts the external analysis to identify factors that are likely to influence Morrison's performance in the Chinese market. Furthermore, the report evaluates Morrison's strengths and weakness and ascertains whether the company has the capabilities to compete effectively within Chinese domestic market. Chinese Market China is ranked as the second largest economy globally with a GDP of approximately 11,383620 million USD as per the 2015 International monetary Fund (IMF) report (Lee 2015). China’s economic growth rate is unmatched globally and its economy was projected to register an annual growth rate of 9.7% as per the 215 report (Lee 2015). The report released by the IMF in 2016 suggests that China occupies 83rd position globally in terms of per capita GDP ratio which is approximately 15,098 USD (Lee 2015). According to Zhu (2012), Chinas’ economic transformation in recent years has become a subject of research from scholars from different academic fields (Zhu 2012). The Chinese economic growth has been attributed to controlled domestic market. China is ranked as the second populous nation in the world with a population of nearly 1.3 billion inhabitants (Ke 2015). China’s real disposable income has increased at 12% rate annually. This has led to an increase in retail spenders groups mainly the middle class (Ke 2015). The desire by Morissons to invest in the Chinese market influenced the conception of this report.
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