Analyzing the Business Environment of Tesco using Value Chain Model

BUSINESSS
ENVIRONMENT

TABLE OF CONTENTS
1. INTRODUCTION.......................................................................................................................3
2. Value Chain Model......................................................................................................................3
3. Tesco Organisation......................................................................................................................4
4. Internal environment of the company..........................................................................................5
5. Reflection on Value chain model................................................................................................7
6. CONCLUSION............................................................................................................................8
REFERENCES................................................................................................................................9

1. INTRODUCTION
Business environment is about the internal and external factors which affect the business
activities, both factors simultaneously influence the business in their own ways. The aim of this
report is to analyse the business environment of Tesco using value chain model. Report has
discussion on the value chain model, how it affects the business. Tesco is chosen for studying the
macro and micro environmental factors which directly or indirectly influences the business
activities along with discussing the internal environment of the company. Further it has reflection
on the value chain model for better understanding.
2. Value Chain Model.
According to previously suggested models of profits, it is very necessary for the business
that it regulates the business activities in terms to earn profit. So Michael Porter suggested Value
Chain Model in 1985, it links the primary and other supportive activities of business (Ghawana
and et.al., 2016). Porter developed this value chain framework to analyse the activities for the
acquisition of raw material to handover it to consumer. This makes a chain.
Illustration 1: Value Chain Model
This model supports the activities which are referred as primary: inbound logistics,
operations, outbound activities, marketing and sales, services (Horng, Chang and Chen, 2016). In
this model inbound logistic are explained as it is the starting activity which is about receiving