Value Chain Model and Analysis for TESCO

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Value Chain Model-....................................................................................................................3
TESCO-.......................................................................................................................................4
Internal Environment-.................................................................................................................5
VRIO analysis of TESCO:..........................................................................................................6
Reflection on the value chain model ..........................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Value Chain model is introduced by Michael Porter. This framework is helpful for
analyzing peculiar activities by which company can develop value and competitive advantages.
Whereas Inbound logistics consists of storing, receiving, inventory control and scheduling for
transportation.
TESCO plc trade as Tesco. It is the multinational general and groceries merchandise
retailer. The company had its head office at Welwyn Garden City, Hertfordshire, England, UK. It
was established by Jack Cohen in 1919. The above report includes Value Chain Model and
company's overview. Report further carried forward with explanation to the internal environment
and the report ends with the refection on Value Chain Model.
Value Chain Model-
Value Chain Model is also known as the Porter's Value Chain Analysis. It is the business
management concept which is developed by the Michael Porter. The Value Chain Analysis is
being explained in the book of Competitive Advantage in 1985 written by Michael Porter. Value
chain is set of activity which are performed by organization for creating value for their
consumers. Value creation develops added value that lead to the competitive advantages. So that
higher profitability can be created for company (Swinnen and Kuijpers, 2019). The Value Chain
Analysis mainly focus on activities and system with consumer as central principles rather than on
the various department and categories for accounting expenses.
In this system activities and system are linked with each other and thus further
demonstrating effect which it had on profit and costs. It consists of number of activity which are
named as primary activity and support activity. In which primary activity have a direct impact on
production, sales, maintenance and support of goods and service which is to be supplied. Primary
activities are assist by support activity and thus base is formed for a company. The support
activity such as human resource management is important among primary activities operations
but along with that they also support other activity that are outbound logistics and services. It is
an approach in which business functions are break down into strategic relevant activities by
which utility is added in goods and services. The aim of framework is to maximize value
creation along with minimizing cost. It is the internal process by which organization can design,
sell, produce, support and deliver products. Value Chain analysis is thus dependent on basic
fiscal principle of the advantages.