Value Chain Model for Analyzing Internal Environment of Unilever

Business Environment

Table of Contents
Table of Contents...........................................................................................................................2
INTRODUCTION...........................................................................................................................3
Value chain model proposed by Porter.......................................................................................3
Background of Unilever..............................................................................................................4
Value chain model for examining internal environment.............................................................5
Reflection of usefulness of value chain model...........................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment has made up of internal and external factors that impacts on the
performance of an organization in both positive and in a negative manner (Deasy and et.al.,
2016). This study is based on Unilever consumer goods company. This study is going to show
some importance of value chain model which helps the company in creating value for its
customers and taking competitive advantages. Further, it will also show some internal
environmental factors such as company's own strengths, weaknesses which are being analysed
with the help of value chain model. By identifying all factors and their impacts, company make
some changes in its strategies accordingly.
Value chain model proposed by Porter
Value chain model is mainly focused on transformation process of input into output by
making up sub systems and making this critical process easier. By implementing this model
suggested by Porter, company can add value and control all activities like maintaining balance
between demand and supply to reduce cost. For transformation process and changing input into
output all organizations including Unilever requires to have effective resources such as: Labour,
money, materials, equipments etc. The main aim of value chain model is to increase quality of
production process and determining costs which affects profits. According to Porter (1985), there
are some primary activities by which Unilever can make its production process easy and
effective such as:
Inbound logistic: It includes all those activities which is related to receive and store
inputs. For making this function successful, company tries to maintain an effective relationship
with suppliers.
Operations: It includes all those activities which help the company in transforming raw
materials or inputs into final products.
Outbound logistics: It includes all activities which are being performed by manager to
collect, store as well as distribute output.