Value Chain Model and Internal Environment Analysis of Mark & Spenser

Business
Environment
LSBM103 - Part B

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 is sum total of internal as well as external factors which
influence a business. In simple term it can be said that, external and internal both factors
influence each other as well as also work together which affect working of an organisation
(Calabrese and et. Al., 2018). So it is necessary for business firm to evaluate business
environment in effective manner because it will result in implementing positive outcomes and
reducing negative effects. This report is based on Mark & Spenser which is major British
multinational retailer whose headquarters is located at Westminster, London. They are
specialist in selling high quality clothing’s as well as food products. Respective organisation
was founded in 1884 and serving at worldwide level. In relation to M&S respective report
will discuss Value Chain model and internal environment analysis.
MAIN BODY
Value Chain Model
Value chain model is also known as porter's value chain analysis which is an Business
Management concept developed by Michael porters. In simple terms it can be said that value
chain is collection of activities which an organisation perform for creating value for their
customers. In addition to this it create competitive advantage foreign business from as well as
also result in higher profitability (Rogers, 2018). It is divided into part first is primary activity
and second is secondary activities. Here primary includes inbound logistic, operations,
outbound Logistic, marketing and sales services. On the other hand, secondary activities
include recruitment, human resource management, technological development and
infrastructure (Porter's Value Chain, 2016). Explain explanation of these are as follows :-
Primary activities of Value Chain Model
 Inbound logistic – Within this relation with suppliers are includes and also activities
which needed to receive, store as well s disseminate inputs.
 Operations – It is related to activity which is needed for transforming raw material
(inputs) within outputs (finish goods i.e., product and services).
 Outbound logistics – Within this activities are covered which needed for collecting,
storing and distributing outputs.