Business Environment AS 2.

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 considered as integration of factors which can be internal and
external too, these factors have impact on the operations and functions of a business. The
respective factor will include several factors such as change in demography, competition at
marketplace, rules and regulations and many more (Babu, 2012). Company considered in this
assignment is Unilever, it is a public company which operates its functions in the 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 and activities which assist them in gaining competitive advantage at the marketplace.
In value chain model activities are split into two type i.e. primary and support activities.
Further these tasks are sub divided into different section like primary tasks comprise of inbound
logistic, operations, sales and marketing, services along with outbound logistic whereas support
activities sub division are firm base, HRM, technology and acquisition. These tasks consist of
several cost drivers such as cost reduction, learning, utilization of capacity, degree of vertical
combination, linkage between tasks, interrelation of units of business, time at which the market
entry is done. Along with this in respect of Unilever there are various benefits which are gains by
respective company such as lead to development of profits, develop cooperation among
employees, provide high return on investment, enhance competition at marketplace, help in
supplying products at global level and many others.