Morrison's Limited Report Plan Essay Example | Topics and Well Written Essays - 1750 words

Morrison's Limited Report Plan - Essay Example As of the end of 2006, Morrison’s Limited has 11.3% of the UK grocery market share, with Tesco in the lead with 30.6% and Asda in second place by market share with 16.3%. Morrison’s has grown quite impressively in the last decade. In 2004, they reported a large and healthy increase in sales and operating profits. However, it faced some problem areas as well in the form of the acquisition of Safeway which has been dragging down Morrison’s overall profit levels. There have been some solutions suggested to the problems Morrison’s currently faces. To increase the currently low performance of acquired stores like Safeway, Morrison’s needs to put in a little extra investment in the stores while increasing the rate of conversion simultaneously. Also the converted stores need to be revamped according to Morrison’s clientele and demographic. In the UK grocery market, Morrison’s has an image of a trust worthy place to buy grocery from that will offer its clients down-to-earth prices for quality products. The brand has never let frills become more important than the core needs of the business and thus added benefits have not been at the expense of the core functions. The management at Morrison’s targets controlling and cutting costs, making a lean operating profit, making its supply chain process more efficient and trying to revamp and bring up to the level expected by the Morrison’s brand, stores like Safeway. There is nothing glamorous or glittery about Morrison’s however, this may be a plus point for the brand as a reason why customers are loyal to it. The biggest challenge it thus faces is to evolve in response to its diversified customer base as it expands with time. At this point in time, Morrison needs to explore every possible avenue that it can exploit to gain a competitive advantage in a growingly competitive market. Thus, numerous company-wide initiatives were launched to be implemented so th at the company could improve its self and thus gain an edge over its competitors. Some key variable the firm was working with were increasing sustainability, improving working across the organization by making it more efficient, increasing savings and adjusting and adapting well to the fast moving dynamic modern market. Some solutions that were put forward were targeted towards increasing leverage in a specific area of expertise. The main idea also incorporated improvements in the form of process specialists, consumer relationship management, improving procurement technology and supply chain and enhancing change management capability of the company. Efficiency and effectiveness were to be increased substantially and it was expected that these measure would in turn improve the levels of capability and experience in the workforce. The approach to be implemented had to be collaborative and operational across the organization at all levels. Employees were to be motivated and trained to the effect of increasing the business’s overall efficiency, level of savings, and improving to cultural and behavioral change in modern times and markets while making sure that none of these measures caused any substantial operational setbacks for the company. (Proxima, Case Study). Morrison’s has used several growth strategies to expand as it did over the