ECONOMICS

Economics

Contents

Introduction:3

Discussion4

Background:4

MajorProducts and Services6

Market structure7

Top Competitors8

Pricing and non price strategies8

Performance analysis:10

Revenue Analysis11

Conclusion:12

References14

Economics

Introduction:

One of the largest supermarkets chain in United Kingdom is the Wm Morrison Supermarkets PLC. It offers a variety of own and branded products. The head Quarters of the company are in Bradford, United Kingdom. It has employed a total of 131,207 people, out of which 74,038 are part-time employees, after 29th January 2012.

In the financial year ended January 2012, the company recorded the revenues of £17663 million. These revenues were 7.2% higher than the previous year FY2011. In FY2012, the operating profit of the company summed up to be £973 million (approximately $1,558.6 million), increasing 7.6% than the last year. There was also an increase seen in the Net profit of 9.2% compared to the last year. The net profit figure for FY2012 was £690 million (approximately $1,105.2 million).

In the food retailing industry, Morrison is the fourth largest retailer by sales in United Kingdom. By the end of the financial year, FY2012, 475 stores were operated by the company, each of its stores ranging in size from 3000 to 40000 square feet. It also had 300 petrol filling stations. On weekly basis, approximately the Morrison stores are visited by 11.4 million customers. Currently the company only operates in the Retailing segment. The primary focus of the retail stores of the company is on offering fresh products in a valued rate. The fresh food counters at Morrison allow a customer to select meats and fish, baked goods or bread, desserts, juice or puddings among other products. The company itself has a variety of its own brands. The petrol filling stations and the dry cleaning services are also offered by the company at its stores.

The company buys fresh food from farmers and the production facilities are owned by the company itself. Through this method, Morrison has a larger control over its supply and production. The commercial operations at Morrison are managed through fully owned subsidiaries, which include insurance, farmers, Neerock, Wm Morrison and many others.

Discussion

Background:

In 1989 William Morrison, who was an egg and butter dealer, founded the Morrison Company. In Bradford, the company opened its first store in 1958. The first supermarket was opened by Morrsion was in Victoria in the year 1961. In 1967 the trading on the London Stock Exchange was started by the company.

The company moved its operation to Lancashire inn 1978 and it also acquired the Whelan Stores in the same period. The first distribution centre was opened by the company is 1998 at Wakefield. In 1990, the operation at the distribution centre was expanded.

At the Gadbrook Park in Cheshire. The company opened its second distribution centre on 1997. Later in 1998 the first store was opened in 'Erith' and in the year 2000, the second one opened in 'Rhyl'. In 2004, the company's first store was opened in Scotland and in the same year an acquisition was made by the Morrison to acquire its Competitor known as ...