The current share price is 562. 00p while the value calculated here is only 58. 4p. In addition, the ROE is only 1. 4%, which is far below the cost of equity capital. Therefore, we recommend a sell decision in this case. Morrison Wm Morrison Supermarkets PLC is engaged in the operation of retail supermarket stores and associated activities. Its business is mainly related to food and grocery.

During the fiscal year ended February 4, 2007, it operated 368 Morrisons stores, with 10.

5 million square feet of retail space. Through its stores, Wm Morrison Supermarkets PLC offers a range of goods, which include fresh foods, groceries, home and leisure products, beers, wines and spirits. In April 2005, the Company created a company called Rathbone Kear Limited, in which it holds 80% interest. Rathbone Kear Limited engages in bakery business and distributes pre-packaged bakery products. (http://finance. google. com/finance? q=LON%3AMRW)

Corporate Responsibility

During the first quarter of 2005 Morrison undertook a trial offering customers the facility to return their carrier bags for recycling. Initially conducted in 15 stores, mainly in the South and South East of England, the trial has proved successful, indicating the potential to recover approximately 60kg per week in materials, which equates to over 3 tonnes over a 52 week period from each participating store. It is currently considering extending this trial.

In addition to complying with the Producer Responsibility (Packaging Waste) Regulations, it is working to find innovative packaging solutions to eliminate or reduce the need for packaging, in line with meeting the shared objectives of the Courtauld Commitment. To this end we are currently pursuing a number of projects with the Waste and Resources (WRAP). Throughout the year Morrison has taken on board its customers’ comments, enhancing its range in accordance with their requirements.

Action resulting from this process has included extending its premium ‘Best’ range, introducing more organic foods and increasing the supply of locally sourced produce. In recognition of its role in the health debate, its ‘Eat Smart’ range continues to develop and it is also further developing its ‘Free From’ range to include Morrisons brand products. More than 4,000 changes to product packaging and presentation have included a review of its on-pack labelling to include energy, protein, carbohydrates, sugar, fat, saturated fat, fibre, sodium and salt, together with Guideline Daily Amounts (GDAs).

Its on-going salt reduction programme has achieved lower salt levels for hundreds of products, including ready meals, bread, soups, cooking sauces, cereals, snacks, and sandwich fillings. (hewlett packard competitive strategy) Sustainability issues have also been high on its agenda with significant work involved in further developing our fish procurement policy to ensure we are buying from the most sustainable sources and finding the least depleted stocks. This has resulted in some change to its range during the past year and it continues to review its policy as it addresses relevant issues.

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