Morrisons going to China

Résumé du document

Wm Morrison Supermarkets Plc or Morrisons, as it is commonly known, was founded by William Morrison in 1899, and is now led by his son Ken Morrison. From an egg and butter stall in Bradford, the company developed into market stalls until 1985 when a small store was opened in the town center. From 1958 to 1967, Morrisons kept on developing and went public in 1967.

In March 2004, Morrisons took over Safeway creating a new force in the UK food retailing market. Morrisons is currently in the midst of the acquisition process of Safeway. This would be a long-term process and according to a Mintel report , the customer hasn't yet linked the two brands. With this acquisition, Morrisons is the new force to be reckoned with in the UK retailing environment behind the three giants, with 13.1% of market share.


The main strength for the group constitutes its continual focus on quality and value, while remaining competitive on price. The Morrisons supermarkets, according to the same Mintel report, are renowned "for their no nonsense, no frills approach to retailing". Moreover, Morrisons has enjoyed a strong financial record since its listing on the stock market in 1967. Morrisons also got its own strong brand reputed for its quality and value.

"The board of Safeway continues to believe that a joint venture with Morrisons represents an opportunity to create a new dynamic force in UK food retailing", said David Webster, Safeway chairman.

The acquisition process of Safeway require lots of expertise and experience. There is currently some debate regarding the future of Morrisons and its ability to merge the Safeway outlet into the group.

Extraits

[...] This will help Morrisons benefiting from the help of the local labour, the use of the partner distribution network and the global help in penetrating such a market. Concentration The map enclose shows the density of population. The map provides by the http://www.iiasa.ac.at/ react to area over 150 persons per sqkm. This map shows the major concentration of the population on the east cost. The inland population regroup over 30 millions Chinese. They mainly live from agriculture and recorded the poorest income. Figure6. Chinese population repartition (Source: http://www.iiasa.ac.at/Research/LUC/ChinaFood/data/maps/pop/all_1_m.htm ) In such a project a concentration of the activity on the coast would be recommended. [...]

[...] The SMART objectives give a guideline to the company and will be straight forward. 3.1 > for Specific Penetrating the Chinese food retailing business Short term: In-depth research of a partner ship to set a joint-venture with a key Chinese player Make contact, exchange of information Prepare a proposal of a joint venture agreement with the local partner Prepare a communication plan, taking in consideration the local culture Long-term: Achieve enough turn over to increase the number of shop Reach the break heaven in year of market share in year 2 Developed the network on the entire coast side (Reach 200 supermarkets in year 3.2 > for Measurable By the use of theoretical tools such as the Gantt chart, and a close monitoring of our sales will help us to measure and control the project. [...]

[...] Even if the some barriers has disappeared since the, the cultural and language approach remain a true barriers in doing business in China. A full understanding of the culture, habit, beliefs and value is required. For example a quick research on the meanings of the colours in China revealed that the black colour, which is the dominant colour in the Morrisons logo, is connected with eviland death, so is white. In such a project of expansion project in China, the logo should be redesigned replacing the black by the red for example, of the yellow colour, which means, royalty, prosperity and luck. [...]

[...] Morrisons also got a strong own brand which is know from its quality and value. board of Safeway continues to believe that a combination with Morrisons represents an opportunity to create a new dynamic force in UK food retailing”, said David Webster, Safeway chairman (Source : http://www.wireddesk.net/am/acme/infoind/news/news_20030123152256.xml ) With this surprising deal, Morrisons currently face the acquisition of Safeway which require lots of expertises and experience. There is currently some debate on the future of Morrisons and its ability to merge the Safeway outlet into the group. [...]

[...] It could also be through a Joint Venture using the network already established of a partner. Commitment Taking in considerations the culture differences between the British and the Chinese culture, as well as the beliefs and values, in order to avoid any shock culture, the uses of the local management style and labour would be recommended. The economical advantage of the local wage would be another advantage. In order to maximize the commitment of the staff, a wages plan, higher than the normal one could be implemented. [...]