Porter's Value Chain Model: Analysis of Marks & Spencer's Business Environment

Business Environment

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
This easy explains about Porter's Value chain model, which is a business management
concept. That includes process to convert raw material into finished goods, and activities
followed by a company for value creation. Mark and Spencer is taken as an organisation, which
is British multinational retailer in UK. This essay explains about value chain model and about the
company's background. Also, it includes analysis of the internal environment of the company
with the help of value chain model and also, involves the reflection on usefulness of the model.
MAIN BODY
Differentiation is very important in today's saturated market, Value chain Explain that
how an organization differentiate their product by analysing the chain event which occur within
their company. The value chain model also known as Porter's value chain analysis, the concept
developed by Michael Porter in 1985. Value chain model is a collection of activities that are
performed by a company to create value for its customers. Value Creation create added value
which leads to competitive advantage (Niebuhr, 2016). This includes the process from start to
finish. Thus, it is a system that is used by company to make profits. Porter's chain has numerous
activities such as primary and secondary activities. The activities which provide strength,
sustainability to the company called primary activities, and the activities used by the company
for differentiation and maintenance called as secondary activities. Both activities Primary and
Secondary are important for the company.
Primary actives, these activities, have impact the production, maintenance and sales of
product and services. These activities include, Inbound Logistics which involve receiving,
storing and distribution of raw material and it also include relationship with supplier.
Operations, these include those activities which convert input into output which means it
converts raw material into finish good or semi-finished goods (Liao, Hu and Ding, 2017).
Outbound Logistics these related to delivering the finished goods and services to customers,
also storage and transportation and distribution. Marketing and sales, it includes advertising,