Value Chain Analysis Model and its Impact on Mark & Spencer

This report discusses the value chain analysis model and its impact on the performance of Mark & Spencer. It explores the primary and secondary activities of the model and how they contribute to the overall functioning of the company. The report also provides an overview of Mark & Spencer, its mission, vision, and values, and discusses the internal environment of the company. The conclusion highlights the importance of assessing the external business environment for gaining a competitive advantage.

Business
Environment

INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Value Chain Model............................................................................................................................3
Overview of Mark & Spenser............................................................................................................5
Internal environment..........................................................................................................................5
Reflection on Value Chain Model.....................................................................................................8
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9

INTRODUCTION
Business environment refersto the sum total of both internal and external
elementswhich highlyaffects the overall business functioning. In short, it can clearly be said
that internal as well as external factor s directly or indirectly affect each other which as a
result influence working of the business entity in positive and negative way. Therefore, it is
quite essential for a business entity to examinethe overall business environment so that they
can get favourable outcomes and reduce any sort of negative impact. Inthe present report
Mark & Spenser is chosen as the base organization which is a British multinational retailer
company.Headquarters ofM&S is establishedat Westminster, London and was founded in the
year 1884. Companymainly deals in providing high quality food and clothing products across
the whole wide world. are specialist in selling high quality clothing’s as well as food
products. In context of M&S thepresent report going to discuss about internal environment as
well as about the impact on performance of the company.
MAIN BODY
Value Chain Analysis Model
This is a model popularlyknown as porter's value chain developedby Michael
portersand is a Business Management concept. In general meaning, it hasbeen said that it is a
collection of various task and activities mainly performed by business entity in order to
develop or create value to the consumers. Furthermore, it helps in gainingcompetitive
advantages at the marketplace and raise the overall profitability of the company in an
effective manner. Value chain analysis model is categorized into two main parts which are
primary as well as secondary activities. In context ofprimary activities various elements are
included such as inbound andoutbound logistic, operations, marketing alongwith sales
services. Whereasin case of secondary activities factorswhich are included are infrastructure,
recruitment, technological development as well as human resource management. Both
primary and secondary activities are going to be discussed as follows in a detail manner along
with their key essential elements.
Primary activities

 Inbound logistic –Inthis element, it has been said that relationship with suppliers
playsvital role in order to create value. It includes all those activities where storage,
received as well as transportation of goods.
 Operations –It refersto the activity of Marks & Spencer which includes
transformation of raw material into finished goods. This is one of the most essential
activity which help in producing high quality products and services. Outbound logistics: This refers to the activities associated with delivering
productsand services to the users. It includestransport, storage aswell as distribution
channel. Marketing and sales: Itdefine as the process linked with placing products or services
at marketplace whichconsist of manufacturingand managing customer relationships. Services: It refersto one of the most important activity helps in maintaining value to
customers as soon as relationship will be developed according to the procurement of
goods and services.
Support activities: Firm infrastructure: It definesas a supporting activity in an organization with the
help of which they can perform their day to day operations in an effective manner.
Forexample, line management, administrative handling are the one who help in
creating value to the products and services. Human resources management: Human resource are the essential element of an
organization with the help of which goals and objectives of the company can be
accomplished in an effective manner. Technology development: Itis a support activity associated with the development of
goods and services in internal as well as external manner. By modifying strategies and
adopting technologies as per the changing environment, company can effectively add
value to their offerings.
 Procurement: This activity is linkedwith procuring services to theusers. It is very
essential for the management team to consider procurement in order to retain their
customers for a longer period of time.
It refers to one of the most essential and effective model with the help of which business
organisation can manage their whole functionality in an appropriate manner. Along with this,
implementation of this model help in performing day to day operations effectively which
increases the overall profitability of the company.

Overview of M&S
M&S is aBritish multinational retail businessorganisation whose headquarters is
established in Westminster, London. The company was established in the year 1884, by
Michael Marks & Thomas Spencer. Marksand Spencer is a retailbusiness entity deals in
clothing, food and home products. In United Kingdom, M&S have around 979 stores wherein
615 stores sales only food items. Eachand every business entity have their own mission,
values as well as vision statementwhich are going to be discussed as follows:-
 Mission–Marks & Spencer mission statement is to develop or create inspirational and
high quality goodsand services to theircustomers.
 Vision–Vision is to be set standard in front of their competitors available at the
marketplace.
 Values – In reference to Marks and Spencer, value of the company is there high
quality products, service, trustas well as innovation.
In addition to this, there are some essential objectives related with Mark & Spenser goingto
be discussed as follows:
 Employeeorientation –For every business organisation, their staff members plays
very essential role as they contribute huge share in the growth and development of the
organization. In context of M&S, managers as well as leaders of the company retain,
attract as well as motivate their potential employees by improving their performance
and by providing them growth opportunities.
 Organisational goalsand objectives – Objectivesof Mark & Spenser is to attain their
leadership in the sector of food and clothing products. For this, they need to modify
their strategies and policies according to the changing needs and requirements of
customers.
Internal environment
MichaelPorter’s value chain model is famous for its appropriate working around the
world. In context of Marks and Spencer, the value chain analysis signifies that every
activities and function does not require the similar level of analysis. Therefore, the first and
foremost level of using Porter value chain analysis for assessing the significant activities and
functions as per the delivery of products as well as services. In reference of Marks and
Spencer’s, there are primary and secondary activities which are going to be mentioned below:

Primary activity: In primary activity, there are different activities which are related
to the manufacturing and marketing of products as well as services in order to target its
customer. In reference of Marks and Spencer’s, the manager focuses on producing and selling
of goods for satisfying the customer. Therefore, primary activities can increase the
performance level of business organisation which is going to be mentioned below:
Inbound logistics: In reference of M&S, It is important to build a good relationship
with its dealer. There are different issues and problems which are faced by the business firm
without assessing inbound logistics in an effective manner. It is necessary for the company to
manager different activities and functions in suitable manner for converting the raw material
into finished products. For example, the raw material is purchased in order to start the process
of making finished products in order to target large number of customer at marketplace.
Operations: Herein, the business firm start the process of conversion of raw material
into finished product. In context of Marks and Spencer’s, the manager focuses on
transforming the raw material into finished goods for selling them in the marketplace. There
are different functions which is performed in operational activities such as wrapping,
managing, collecting as we as testing and so on. They focus on both producing as well as
service sector at marketplace. It helps them in increasing the productivity as well as
efficiency level in order to gain competitive advantage over rival firm at marketplace.
Outbound logistics: In outbound logistic the finished goods is provided to its customer
through intermediaries. Therefore, it helps in storage, material holding, processing as well as
finally transporting the products to its customer. In context of Marks and Spencer’s, the
manager of this company focuses on providing goods to its customer in timely manner. If
there is a perishable product then they deliver them quickly.
Marketing and sales: Herein, the business firm use different promotional tool such as
advertising, publicity, sponsorship as well as event in order to attract large number of
customer. In context of Marks and Spencer’s, the manager focuses on offering superior
quality products and services to its customer at relatively affordable cost. It helps them in
increasing sales as well as profitability level within business organisation.
Services: Services is connected to pre-sales as well as post-sales which are provided by
Marks and Spencer’s in order to increase the customer loyalty and trust for the business firm.
In addition to this, a post sales service helps them in increasing brand image and reputation at

marketplace. They can adopt the different tools such as word of mouth for offering
appropriate support services to its customer quickly.
Secondary activities: The secondary activities provide support to the primary value
chain activities at marketplace. In context of M&S, there are different activities which are
going to be mentioned below:
Firms’ infrastructure: For the firm infrastructure, it is necessary for business firm to
manager quality, finance as well as strategic management and many more. In reference of
Marks and Spencer’s, the manager focuses on managing the infrastructure in an effective
manner.
Human resource management: Herein, it is necessary for the HR manager of business
firm to recruit, select, and conduct training as well as providing rewards according to the
performance of staff member at workplace. It helps them in performing the business activities
and functions in an effective manner. In discourse to Marks and Spencer’s, it is necessary to
recruit and select talented employees in order to reduce the competitive pressure within
business organisation.
Technology development: It is necessary for business firm to implement advanced
technology for performing business activities and functions in an effective manner. In
reference of Marks and Spencer’s, the manager focuses on adopting latest technology for
increasing the productivity as well as profitability level at marketplace.
Procurement: In context of M and S, the manager emphasised on procuring the different
items such as raw material, procedure as well as delivering the goods and services to its
customer.
Reflection on Value Chain Model
The porter introduced the value chain analysis model as well as it is essential for
business firm to assess the external environmental factor. It is divided into two parts such as
primary and secondary activity. In context of Marks and Spencer’s, the manager emphasised
on providing superior quality products and services to its customer in order to gain
competitive advantage over rival firm. In addition to this, there are different activities and
functions to be performed in better way for gaining productivity as well as profitability level
at marketplace.

CONCLUSION
From the above mentioned report, it has been analysed that it is necessary for business
firm to assess the external environmental factor in order to gain competitive advantage over
rival firm at marketplace. In addition to this, there are internal as well as external factor
which imposes direct impact on the performance of business organisation. Apart from this, it
is important for the company to assess the external factor which imposes both positive and
negative impact on the performance of business firm. Beside from this, Michael Porters can
assess the external factor for working effectively within business organisation.

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