Business Environment and Value Chain Model of Porter

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Value Chain Model of Porter.......................................................................................................4
Marks and Spencer.......................................................................................................................5
Internal Environment...................................................................................................................6
REFELECTION...........................................................................................................................7
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9
MAIN BODY ...............................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment can be defined as the factors that put an impact in conducting
business activities. These factors include internal as well as external factors. Factors that
influence business environment put an impact on customer relationship with business
organisation. In this report Marks and Spencer is taking as an organisation. This report is brief
about the Value Chain Model that is proposed by Porter. This report also brief about the Marks
and Spencer that is taking as an organisation to state about business environment. This report
also analyse the internal environment of the organisation based on the Value Chain Model.
MAIN BODY
Value Chain Model of Porter
Value Chain Model was introduced by Michael Porter in 1985 best-seller competitive
Advantage to enhance the productivity of the company's products and services. It is the set of
actualities that can be performed to enhance the productivity. This model helps the businesses to
take competitive advantages from the value addition. This model comprises with two activities
primary activities and the secondary activities.
Primary Activities: Primary activities of value chain model involve certain activities that are
part of production and sales of the final product. It involves activities as below.
Inbound Logistics: Inbound logistic involve the inputs of the company that is required to
produce the final product of the company (Simatupang, Piboonrungroj and Williams, 2017). It
includes raw material and its associated actions such as receiving, warehousing and issuing of
raw material to the production team.
Operations: Operations involve all the activities to convert the raw material into the final
product of the company. It can even be stated as a process to produce the final product out of the
raw material. It involves machining, packaging and other related activities.
Outbound Logistics: Outbound logistics involve all the activities related to the despatching of
final product for sale (Hernandez Serrano Greenhill and Graham, 2015). It involves collecting of
final product, storing and distribution of the final product to various sellers..
Marketing and Sales: After the final product is despatch in all the stores the process of
marketing and sales take places. This process is to make all the potential customer base aware
about the product and to make it trendy. It involves all the advertisement related aspects, pricing,
channelizing and all related activities to sale the product.

Services: Services involve all the post sales activities. Services built the customer relationship. It
is even crucial to sustain the unsatisfied customer's (Wan and Wu, 2016). It includes Installation,
repair, training, parts supply and project adjustment.
Secondary Activities: Secondary activities can also be called as support activities. It is the
activities to support the primary activities of the company.
Procurement: Procurement under this task involve purchase of machinery, laboratories and all
other assets to conduct the production of the final product. All the assets to run the company are
included in this process of procurement.
Human Resource Management: It involves all the activities related to the men power in the
company. All the processes of hiring, recruiting, training and development related activities.
Technology Development: Technology development involve all the activities to advancement
the organisation with the help of the latest technology. Technology development include
installation of all the latest technology in the organisational structure.
Infrastructure: Infrastructure involve the whole structure of the company not just individual
activity (Karlik, Maksimtsev and Iakovleva, 2016). It includes planning, finance, legal and all
other activities related to the management. Infrastructure gives the complete boost to all the
activities related to the company.
Marks and Spencer.
Marks and Spencer(M&S) was established by Michael Marks and Thomas Spencer in the
year 1884. M&S has a headquarter in Westminster, London. M&S is currently the major retailer
in the British constituency. M&S is listed in London Stock Exchange and it is a part of FTSE
250 Index (Liu, Xu and Lin, 2017). Archie Norman is the current chairman of M&S and Steve
Rowe is the Chief Executive of the company. M&S serves in Marks 1463 locations worldwide as
per the current states of 2019 and it owns 959 stores across the UK that include 615 stores deal
only in food products. M&S deals in all the major brands in retail and food sector. More than
eighty thousand people are employed by M&S across the globe. In 1998 M&S was the only
British Company to generate pre-tax profits of over 1 billion pound. M&S became very much
popular in UK market by introducing the policy of selling only British Products in the early 20th
century. This policy made M&S more reliable brand in the UK market and that enhanced the
company's profitability as well.