Morrisons reported a 2.5pc drop in like-for-like sales for the six Essay

Morrisons reported a 2.5pc drop in like-for-like sales for the six weeks to December 30 - Essay Example To be noted, the company does not possess any online facility in order to sell or provide customers with efficient services. This hinders the company’s efficiency as compared to other large brands such as Aldi, Tesco, Asda and Sainsbury’s among others. Moreover, the company is reported to have only 12 convenience stores in the UK and around 455 stores in London suburbs, which again makes its consumer reachability weaker than its competitors in the global perimeter. As a consequence, logistics problems faced by Morrisons gave rise to its competitive disadvantages, not only in the local and national contexts, but also from foreign competitors (Ruddick, 2013). In modern organisational structures, logistical operations are often argued to be a significant facet of supply chain management, which aims to build and secure corporate competencies as well as sustainability of the company in the long-run (Morgan et al., 2012). Referring to the case of Morrison, the problems faced by the company can be evidently related with the aforementioned statement, where the failure of the logistics in led to the 2.5pc decline in the like-for-like sales. ... However, given the limited reach of Morrison, with 12 convenience stores only, 455 grocery stores in the suburb London and no online stores, the company faced certain limitations in serving its targeted large customer base. On the contrary, owing to the perfectly competitive market scenario, national and global brands proved to be more efficient in attracting as well as efficiently serving the customer base and thus, creating pressure on Morrisons’ sales performances. . Morrisons is primarily involved in dealing with food as well as grocery items, tanking among the largest UK retailer. The company employs around 132,000 employees who are entrusted with the job of serving its customers with quality standard (Wm Morrison Supermarkets plc, 2013). Morrisons is a company identified for its better value-added services. The company offers its products and/or services through its manufacturing units or facilities following a traditional logistics mechanism. Although the traditional lo gistics form assists the company to preserve its control over the quality of the products and/or services retailed in the UK market, the element also hampers its competencies and global expansion prospects to a certain degree (Wm Morrisons Supermarkets plc, 2013). The traditional logistical operations are usually based on the notion that acquiring different business units within one value chain can enable the company to have a better control over the flow of goods and/or services. Morrisons, following the same strategy has been able to maintain a better coordination within its logistics in a cost effective manner. Furthermore, its vertically integrated logistics chain has been facilitated Morrisons with the opportunity of minimising the bargaining power of suppliers which in return