Morrisons supermarket - financial report - page 11
Keywords: Morrisons,Finanial report,supermarket,performance of morrisons
By maya on 02/05/2008
Level: Master's degree (MA, MBA, MSc, MEng, MRes, MPhil etc)
Page Number: 11 of 14 pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14
non-executive directors are appointed. From a long term perspective, Morrison’s is commencing searching for a new Chief Executive Officer, but the current CEO, Bob Stott will still remain his post till succession is determined and handover smoothly and efficiently. Morrison’s will continue to move towards its chosen business model of operating large supermarket under its brand name. The anticipated outcome of the business performance needs to be observed, but up to now, all board members are diligently contributing the success of Morrison’s, since there is strong potential to make a growth in the long run.
APPENDIX 1
SWOT of Supermarket Industry
STRENGTHS
Continued growth of supermarkets has seen them become `one-stop shops', offering more diverse services, either in-store or through partnerships.
Expansion into non-food lines will see supermarket's use their buying power to reduce prices.
Their dominant position in the market allows them to cater for the needs of specific customers, and to offer all customers the opportunity to discover a wide variety of products. WEAKNESSES
Supermarkets need to develop other means of competition, rather than relying primarily on price.
For the major companies to be changing both their store formats and their distribution networks at the same time increases the possibility of problems in the supply chain.
Diversification of store formats is occurring in parallel with more centralized supply networks: as the number and variety of store brands a chain offers increase, so do the particular supply needs.
OPPORTUNITIES
The supermarket multiples are ideally placed to offer an even greater range of non-food goods than at present. This is a key growth area for the major companies.
The growth of the major multiples as `one-stop' shops, places them in a position to offer a variety of services to their customers.
Research suggests that the consumers would not be hostile to the development of the hypermarket format found elsewhere in Europe. THREATS
Grocery spending tends to be one of the last areas affected by recession, the recent slow-down in consumer spending has put price in the focus of many customers' minds.
Supermarkets continue to grow and thrive in the UK. However, a significant number of groups, oppose the dominance of the supermarket multiples, such as farmers and countryside groups.
Government legislation aimed at limiting out-of-town developments will make it difficult for supermarkets to obtain planning permission for new out-of-town stores.
APPENDIX 2
PESTEL Analysis
Political The British Retail Consortium (BRC) is the main trade body for the
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