Analysis of Value Chain Model and its Implication on Internal Environment of Unilever

Business
Environment
AS 2

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Analysis of Value Chain Model...............................................................................................................3
Company overview..................................................................................................................................4
Internal environment analysis with Value chain model...........................................................................5
Reflection on Value Chain model............................................................................................................7
CONCLUSION...........................................................................................................................................8
REFRENCES..............................................................................................................................................9

INTRODUCTION
Business environment is consider as integration of factors which can be internal as well
as external, these factors impact on the business operations and functions. The respective factor
will include several factors such as change in demography, competition at marketplace, rules and
regulations and many more (Babu, 2012). Organization taken for this assignment is Unilever, it
is a public limited company which operating their business at consumer goods industry. It is
founded in year 1929 and it’s headquarter is situated at London, United Kingdom. Topics
described in report are value chain model and its implication on internal environment of
respective firm.
MAIN BODY
Analysis of Value Chain Model
Value chain is defined as method which is used to represent internal practices or activities
that are conducted by a company in order to transform or convert inputs into the outputs. On the
other hand value chain analysis is consider as procedure in which an organization identify their
primary as well as supporting activities which help them in adding values to their products
(Belás and et. al., 2015). They also conduct analysis of these costs in order to minimize or reduce
costs or enhance differentiation. Moreover it will also help a firm in analyzing most valuable
resources as well as activities which help them in gaining competitive advancement at the
marketplace.
In value chain model activities are divided into two type i.e. primary activities and
support activities. Further these activities are sub divided into different section like primary
activities include inbound logistic, operations, marketing and sales, services and outbound
logistic whereas support activities sub division are firm infrastructure, human resource
management, technology and procurement. These activities are consist of several cost drivers
such as economies of scale, learning, capacity utilization, degree of vertical integration, linkage
among activities, interrelation among business units, timing of market entry, geographic location
and many more (Craig and Campbell, 2012). Along with this in respect of Unilever there are
various benefits which are gains by respective company such as lead to development of profits,