Reflective Analysis of the Internal Business Environment

REFLECTIVE ANALYSIS OF
THE INTERNAL
BUSINESS ENVIRONMENT
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Table of Contents
Value chain analysis....................................................................................................................3
Operates business in the United Kingdom ..................................................................................4
McDonald value chain analysis...................................................................................................5
Reflection on value chain analysis...............................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Value chain analysis is used to enhance profits by creating goods or services that the
consumers are willing to pay attention rather than the cost to develop it (Mudambi and Puck,
2016). Firm like McDonald must decides why they wants to enhance its values chain within the
context of its competitive benefit to differentiate among its competitors. Present report lay
emphasis on the description of the Value chain model through Porter. A description to the
franchise business such as McDonald firm as it operates within the United Kingdom. It also
focuses on the internal environment of Mcdonald by primary and secondary activities.
Furthermore, it highlights on the Reflection regarding value chain model that assist to determine
internal environment of firm.
Value chain analysis.
It is considered as a combination of a system regarding a firm that able top utilizes to make the
money. To create services or product , a value chain analysis made of different subsystems. It
involves the process from beginning to end (Jaligot and et.al., 2016). This analysis is utilized as
a tool for recognizes activities in as well as around a firm.
Classification regarding value chain analysis
Primary activities – These are the kinds of the functions that can be directly concerned
accompanied by the conversation regarding input into output as well as circulate activities that
are known as Primary activities. It involves
Inbound logistics- Here in this process different range of actions such as storing,distributing as
well as receiving that can makes the available services and goods regarding process called
operational process. Such as transportation,handling and stock control (Fernandez-Stark and
Gereffi, 2019).
Operations- It involves the activities that able to modify input raw materials to the product
ready for sale, it is known as final product for sales such as operations. The activities came
under this criteria are assembling, machining, packaging.
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Outbound logistics- As per the name suggests these are the kinds of actions that assist in
storage,collecting as well as delivering of the services and product to the consumers within
inbound logistics (Hamilton-Hart and Stringer, 2016).
Sales and marketing- All the actions such as sales,marketing, research ,advertising,public
relations that can be used to make consumer aware regarding services and product as well as
creates demand for it,came under marketing.
Services- It means that the services can be provided by the consumers to maintain or improve
the values regarding product such as it involves after sales services,financial services and many
more.
Support activities- These are the kinds of the actions that aids primary activities in achieving
them as well as assists such actions. It includes
Development of technology
It needed development for heavy investment that takes years for development and research, its
advantages can be enjoyed for various years (Rosales and et.al., 2017) .
Human resource development-It is considered as the activities that are most common that excels
all the activities of the firm. It encloses overall selection,promotion,transfer,retention dismissal
of the employees and also their appraisal.
Infrastructure
It is the management system that able to gives ,its services to the firm. It includes
finance,planing, information,government affairs and quality control.
Procurement-Here the actions served the firm ,through supplying all the crucial inputs such as
machinery,material as well as other consumable items that are needed by the firm regarding
primary activities (Tadesse and Fayera, 2018).
Operates business in the United Kingdom
Franchise- This kind of business already established firm ,for example McDonald's that is
owned through franchisor but can be managed through a franchisee. To use their business
model franchisee sells the rights to the franchisor who can to pay the ongoing fee. Start-up cost
and workload cost can usually lower,relationship with suppliers, marketers and Distributors
already exists,business finance is acquired. Thus, huge amount of ongoing fees restrict
franchise's benefits that are long term also cheaper operating methods that can be utilises unless
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