Application of Value Chain Model in Marks and Spencer

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Value Chain Model......................................................................................................................3
Company......................................................................................................................................5
Internal Environment...................................................................................................................6
Reflection on Value Chain Model...............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Value Chain Model, illustrated by the Michael Porter is an effective tool in the strategic
planning of the company and the manner in which the internal environment of the company is
operating (Porter's Value Chain, 2017). The following essay will illustrate the application of the
value chain model in analysing the internal activities and the Marks and Spencer company will
be specifically analysed where the different activities will be clearly analysed. Lastly, the report
will also involve a reflective account on the efficiency of the Value Chin model on the internal
environment of the M&S company.
MAIN BODY
Value Chain Model
Value Chain signifies the range of activities that are adopted by the companies or manufacturing
units in order to deliver a product that has certain inherent value attached to it (Zamora, 2016).
The value chain model given by Porter illustrates the primary activities and support activities
which a firm is required to perform and further expands into industry level value chain and
global level value chain.

The value chain of a firm is the part of a larger value system i.e. an industry level value chain
and a value chain,a t each activity point adds in the overall value of the product.
Primary Activities: The primary activities in a value chain consists of the five major activities
i.e. inbound and outbound logistics, operations, Marketing and sales and service. Inbound
logistic helps in determining the inward movement of the raw material form suppliers, operation
details the entire manufacturing process, outbound logistic determines the storage and outward
movement of the manufactured goods and service, the marketing and sales activity illustrates the
promotional activities and offering the product to the customer and lastly services where after
sales services are given to the customer (Kumar and Rajeev, 2016). These help the firms in
creating competitive advantage and differentiate their product from others.
Support Activities: The effectiveness of these activities helps in increasing the quality of the
primary activities' outputs in the firms. There are four types of support activities that are adopted
by the firms i.e. Infrastructure, Technology, Human resource and Procurement. Infrastructure
such as accounting practices, financial control, quality etc. helps in monitoring the activities and
technological advancement helps in integration of the latest equipment in the manufacturing
Illustration 1: Porter Value Chain
Source: Porter's Value Chain, 2017