Value Chain Model and its Impact on Marks and Spencer

This report discusses the value chain model and its impact on Marks and Spencer. It analyzes the internal environment of the company and how the value chain model contributes to its growth and expansion. The report also reflects on the outcomes of implementing the value chain model in the company's operations.

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Value Chain Model.....................................................................................................................3
Marks and Spencer......................................................................................................................4
Internal Environment..................................................................................................................5
Reflection....................................................................................................................................7
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................8

INTRODUCTION
Business environment is the expression of all the external factors that affect the business.
Business environment can also be expressed as the environment in which a company or an
organisation run its operations. In this report Marks and Spencer(M&S) is taking as an
organisation. Marks and Spencer has an established business in retail sector. This report will
express the complete brief about Value Chain Model proposed by Porter. Internal environment of
the organisation will also be analysed in this report based on the Porter value chain model. This
report gives the proper aspect to analyse the business as per the value chain model.
MAIN BODY
Value Chain Model
Value chain model of emphasis. on the suitable structure of the business that can make a
space for the company's products in the market (Decock and Spiessens,2017). This model of
value chain helps the industry in establishing the most suitable space for the company's products
or services in the market. Value chain model focuses on the structure of the organisation as well.
Organisational structure play the major role in the productivity of the company. Strong
operational structure always put a positive impact on company's productivity and performance.
Value chain models provide the base to the company for analysing its internal capabilities regard
to the operations. All the factors that create its space in the process of sale of the company's
products are a part of this value chain model. Porter value chain model is divided in two parts.
One can be expressed as the primary activities and the other one is more defined as the support
activities.
Primary Activities: Primary activities are concerned about the selling of the company's products
or services (Simatupang, Piboonrungroj and Williams, 2017). Primary activities helps in
establishing the most suitable base to sale the company's products in the market. Primary
activities of value chain model involve Inbound Logistics, operations, outbound logistics,
marketing and sales and services . All the primary activities related to the value chain model are
totally focused about making the most convenient base to reach the target consumers of the
company's products or services.

Support Activities: Support activities are more about the company's operational structure.
Support activities focus totally on the company's structure and its related resources (Gómez-
Luciano and et.al., 2018). Support activities comprises with Firm infrastructure, Human
Resource Management, Technology Development and Procurements. All these activities
emphasis on the advancement of the company's structure or resources to provide more suitable
base to the company for conducting all its operations in the most productive way possible.
Value chain model contribute to the organization in taking all the competitive advantages for the
company in the market by analysing all the internal factors as well as external factors associate
with the business. All the aspects of the value chain model are focus more taking all the
competitive advantage for the company in the market. Competitive advantage give more space to
the company in the market to expand its customer base and generate more profits. Value chain
model strengthen all the internal and also the external aspects of the company's operations and
improve the efficiency of the company.
Marks and Spencer
Marks and Spencer(M&S) is a public limited company established in 1884 by Michael Marks
and Thomas Spencer. Head quarter of the company locate in Westminster, London. M&S is a
major British multinational retail brand (Hernandez Serrano, Greenhill and Graham, 2015). M&S
serves worldwide in almost 1463 locations as per the latest data. Archie Norman is the current
chairman of the company. Steve Rowe is positioned as the Chief Executive in the company.
Marks and Spencer is well-known brand in clothing brands, food products and home products.
M&S is listed in London Stock Exchange and it is also a part of FTSE 250 Index. M&S currently
owned 959 stores across the UK that include 615 stores deals only in food products. M&S
provide all the major brands related to all the segments it offers. M&S was the first retailer of
British in 1998 to make the pre-tax profits of £1billion. After the satisfying domestic growth
management of M&S planned to expand its business further. The company initiated its
expansion process by opening seven stores in Canada in the year 1973. M&S becomes the global
brand today with operating in almost 1463 locations across the globe. As per the present data
Marks and Spencer is providing employment to more than eighty thousand people worldwide.
Marks and Spencer restructured its entire operations time to time as per the requirements of the
business and also to provide the best services and products to all its potential consumer base. As
per the emerging trends and requirements of the consumer's management of the Marks and

Spencer also upgraded the infrastructure of the company and the services as well. The company
initiated its online services in the mid of 2000. Such improvements in its structure impacted the
profitability of the company and also enhanced the potential consumer base for the company.
Internal Environment
Internal environment expresses the company's internal structure based on the company's
operations. Marks and Spencer internal environment can be expressed in a following way.
Primary Activities: Primary activities of M&S can be expressed as follows.
Inbound Logistic: Inbound logistics involves the supplier of all the products of the M&S.
Inbound logistics is all about receiving all the products from the suppliers (Rasheed and
Rasheed, 2015). It also includes the maintaining and storing of all the stocks in the company's
premises. M&S structured a well efficient policy for all its inbound logistics that involve all the
brands of M&S. Inbound logistics played the very crucial role in the operational structure of the
Marks and Spencer.
Production: Marks and Spencer is a retail company so it runs not any production activity as its
operations but it takes care about the production activities of all the brands associated with the
M&S. Production plays the very crucial role in the quality of the products (Kumar and Rajeev,
2016). M&S is a very well-known brand of selling high quality clothing, food and home
products. Quality of the products also impact the brand image of the company and the imerging
image of the M&S in the retail sector depicts the fact that the quality of all the products of M&S
are satisfying as per the consumers requirements.
Outbound Logistics: Outbound logistics involves the supply of all the products of Marks and
Spencer. Based on the value chain model Marks and Spencer maintained the well efficient
supple chain management system. Marks and Spencer sale all its products online as well. The
company maintained the efficient supply chain for all the online orders and all the offline as
well. Company carry the system to deliver all the products in the least time possible so the
consumer can fulfil all the needs.
Marketing and Sales: Marks and Spencer has the well efficient marketing team. Value chain
model has the strong importance towards the marketing of the products. Marketing team of M&S
always innovate with the multiple marketing channels. M&S use various medium to advertise all
its products which include social media marketing campaigns, radio, television and multiple

modes of marketing that generate the most profitable result not just in the sales of the products
but because of that company could shine its brand image.
Service: Management of M&S focus a lot on the services related to all its products. Services
becomes the very crucial aspect of consumers satisfaction. The company carry to approach to
resolve all the issues of consumers within the stipulated period of time. Well efficient services
becomes the major reason behind the success of the company in the retail sector.
Infrastructure: Marks and Spencer management always improvised in the infrastructure of the
company. Company always focused on the infrastructure improvement (Anselmsson and
Bondesson, 2015). Infrastructure is not just about the construction of buildings but company
tried to install all the resources that could improve the efficiency of the company. Infrastructure
plays the major role in company's smooth operations process. Management of the M&S
maintained the well efficient operational structure based on all the requirements of the company
as per the latest trends.
Human Resources: M&S has a worldwide business operation that require sufficient number of
employee base. The company currently providing employment to more then eighty thousand
peoples across the globe. M&S sustained its human resources based on the company's
requirements. Marks and Spencer also focused on improving the skills of all its work force. The
company run timely programs that guide all the employees of the company about all the latest
inclusions in the retail sector that also did put a positive development in the productivity of all
the employees.
Technology Development: M&S practices the good policy of involving all the latest technology
in the operational structure of the company (Romero and et.al., 2016). Technology upgraded the
operational capabilities of the company that resulted into quick practice of all the activities of the
company's operations. The company included all the latest technology time to time as per the
policy of the company.
Procurements: M&S Management always look forward to the maintenance and up-gradation of
all the company's resources. The company framed a policy to maintain all the infrastructure and
also to install all the latest development that can ease the company's operations.
Reflection
Value chain model played the major role in the growth process of the Marks and Spencer.

The company expanded its business worldwide with the clear policy frame based on the value
chain model. Management of M&S involved all the latest practices in the operations of the
company that provided major growth perspectives to the company. Value chain model also heled
the Marks and Spencer in cope-up with all the requirements of the consumer's that also
contributed in the consumer satisfaction. Satisfaction of the consumer's play the major role in the
brand image of the company. M&S could expand its operations across the world in a very
reasonable period of time and the good practices of the model is probably one of the major
reason behind such expansion. Value chain model also instructed the management of Marks and
Spencer in the up-gradation process of the company. With the clear understanding of the models
the company could upgrade its structure with all the useful inclusion of technology and other
infrastructure as per the need of the company. Value chain model provide the systematic analysis
of the company's requirements and the available resources of the company. M&S could utilise all
its resources in the optimum way possible that also improved the work efficiency of the
organisation. As per the requirements of the company M&S timely run all its campaign related to
the recruitments of the employees. Based on the model of value chain Marks and Spencer HR
team maintained the good policy of recruitment as per all the needs and demands of the
company. Services becomes the major image of the company for the consumers. M&S carry the
policy of consumer satisfaction. The management of the company put satisfaction of the
consumer's at its utmost priority based on the value chain model. This practice of consumer
satisfaction policed the brand image of the company that resulted into increasing sales figures of
company's products in all the segments. Clear knowledge and practices of the value chain model
provided the sustainable environment to the company across the globe and also provided major
growth and expansion perspectives to the company.
CONCLUSION
This report conclude about all the essence of business environment. The role of business
environment in the operational structure of the company has concluded in this report. All the
important aspects of the value chain model has been concluded briefly in this report. Impact of
the value chain model has been concluded in the detail in this report. Internal environment and
its related aspects has also concluded in this report. Detail analysis of value chain model related
to the company's internal environment has been concluded in details in this report. Reflection has
also concluded in this report based on the outcomes of the operational practices of value chain

model. All the generated outcomes from inclusion of value chain model in the company's
operations has been concluded in detail in this report.
REFRENCES
Books and Journals
Anselmsson, J. and Bondesson, N., 2015. Brand value chain in practise; the relationship between
mindset and market performance metrics: A study of the Swedish market for
FMCG. Journal of Retailing and Consumer Services.25. pp.58-70.
Decock, S. and Spiessens, A., 2017. . Face-threatening e-mail complaint negotiation in a
multilingual business environment. Current Issues in Intercultural Pragmatics.274.
p.129.
Gómez-Luciano, C.A. and et.al., 2018. Sustainable supply chain management: Contributions of
supplies markets. Journal of cleaner production.184.pp.311-320.
Hernandez Serrano, M.J., Greenhill, A. and Graham, G., 2015. Transforming the news value
chain in the social era: a community perspective. Supply Chain Management: An
International Journal.20(3). pp.313-326.
Kumar, D. and Rajeev, P.V., 2016. Value chain: a conceptual framework. International Journal
of Engineering and Management Sciences.7(1). pp.74-77.
Rasheed, H.S. and Rasheed, H., 2015. Performance implications of internet-based information
technology in value chain management. International Journal of Information Systems
and Supply Chain Management (IJISSCM).8(2).pp.1-13.
Romero, D. and et.al., 2016. StrategicPlanning Framework forSMEServiceOrganisations:
Competitive, Value Chain and Operational Models & Toolkit.
Simatupang, T.M., Piboonrungroj, P. and Williams, S.J., 2017. The emergence of value chain
thinking. International Journal of value chain management.8(1).pp.40-57.
Online:
Value Chain Modeling, 2019. [Online] Available Through
<https://www.smartsheet.com/value-chain-model>