Critical Assessment of Morrisons Essay Example | Topics and Well Written Essays - 2000 words

Critical judgment of Morrisons - Essay ExampleThus, there are many challenges which the present groceries are facing in the UK market. Hence, in the present business scenario, organisations need more sustainable and effective tools to gain advantage in this emulous environment. Looking at the current crisis which the beau monde is facing, powerful strategic operations and new market diversifications are crucial for profitability and sustainable growth in the future. The current operations of the retail giant entangle convenience stores and supermarket chains. The company follows a vertical integration strategy for the current distribution system. The supermarket chain of Morrison is before long distributed into six major areas of United Kingdom. Except for its petrol stations, the company does not provide any allegiance schemes. away from that, the company does not provide any online shopping service, a strategy which they are flavor seriously now. At present the company has three distribution centres based in UK. Other small operations of the organisations include kidscare, an online website selling wines and a clothing brand. The logistics and supply chain processes are monitored by the company itself. The biggest advantage of implementing this model is the cost advantage to the company. The company does not require middle men in their operations and thus they are able to provide their products and services at a lower legal injury compared to their competitors. The company target also respond to any change in trends of customers purchasing. The organisation is family owned and flora in a closed loop. Thus, ownership is an important aspect of their business. The current business scenario of the company is trauma because of volatility in the flip foods market.... The current business scenario of the company is suffering because of volatility in the fresh foods market. The food and grocery market has seen a dramatic change, as a result of the chang e in strategies and logistics of the overall industry. Morrisons have reported a continuous loss in sales for a period of six weeks from November till December 2012. According to this report from telegraph, though the industry saw an overall decrease in sales, the loss incurred by Morrison was more compared to its competitors from the industry. Reports suggested two possible causes for the deep loss. Lack of satisfactory number of convenient stores and no online presence unlike its competitors were considered as major contributors of the loss. So far, the company has established only 12 convenient stores in the nation. Looking at the increasing popularity and acceptance of convenience stores it can be said that the organisation is losing out a large chunk of sales on this format. Apart from this, the market penetration of the retail chain is scattered, with major stores based out of town. The organisation also lacks straightlaced penetration in affluent and popular grocery place s in London.