Value Chain Model for Tesco Organization

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
Task 1...............................................................................................................................................4
Value chain model.......................................................................................................................4
Task 2...............................................................................................................................................6
Tesco organization.......................................................................................................................6
Task 3...............................................................................................................................................7
Examine the internal environment...............................................................................................7
Task 4...............................................................................................................................................9
REFLECTION.............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment refers the total of all macro and micro environmental factors which
influences the business. Macro environmental factors are political, economical, demographical
forces, technological, legal and environmental factors etc. these factor also known as external
factors which gives impact on organization operations. On other hand micro environmental
factors are distribution channels, suppliers, customers, employees and public etc. These factors
also known as internal factors which gives impact in organization performance. To understand
business environment there is an example of Tesco company. It is British multinational
groceries' company. It is famous as general merchandise retailer company in UK. This report will
cover value chain model.
Task 1
Value chain model
The set of operation which perform in particular industry in order to present specific
goods and their services for business market. This framework comes from business or industry
environment. It5 is proposed by Michael Porter in 1985. This model is specially designed take
competitive advantage in business market (Yu, Wang and Brouthers, 2016). Value chain model
gives direction for two level such as firm level and industry level. In firm level value chain
model gives more values to products rather than activities. On other hand industry value chain
model gives values to operator who assists to pass products by the mediators such as distributors,
suppliers, employees etc. thus value chain model helps to achieve sustain competitive advantage
in business market.
Value chain analysis is the procedure which helps organization to recognizes primary
activities and supportive activities. These actions enhance values of final goods and their services
and examines effectiveness of the activities (Chan and Ma, 2016). Based on the analysis supports
to decrease cost or enhance differentiation of products from other products. The concept
represents internal activities in which organization interconnect with procedures such as
transforming raw material into final products. Activities are divided into two forms-
Primary activities: These are essential activities which helps to add values of products so that
organization enables to take competitive advantage in business market. Primary activities are -
Inbound logistics: this is important activities in which arranges flow of materials, parts and
inventory from supplier to manufacturing, warehouse and retail stores. In simple term particular