Value Chain Model and Internal Environment Analysis of Marks and Spencer

Business
Environment

Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Value Chain Model............................................................................................................................3
Overview of Mark & Spenser............................................................................................................4
Internal environment..........................................................................................................................5
Reflection on Value Chain Model.....................................................................................................7
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9

INTRODUCTION
Business environment is a collection of individuals, groups, entities & other factor
that sometimes not be in control of company and impact on the overall performance as well
as growth of the organisation. It include both external and internal factor, which impact on
the efficiency as well as profitability of the company (Arnold, Beauchamp and Bowie, 2019).
It is important for an organisation to analyse the affect of internal and external factors as it
help in rising productivity and leads to positive outcome as well. For the present report,
Marks and Spencer is taken into consideration. It is a multinational retailer whose head office
is situated at Westminster, London. The company mainly offer high quality food products
and clothing. Marks and Spencer was founded in the year 1884 and at present it offers
product as well as service in more than 15 countries. The report cover value chain analysis
model in relation to chosen company. In addition to this, internal environment analysis is also
describe in the report.
MAIN BODY
Value Chain Model
It is also term as Porter’s chain analysis that is a business management concept
proposed by Michael porter. It is basically a collection of activities that is performed by
companies in order to develop to their customers. By the assistance of this, an organisation
can gain an insight regarding the impact of external factors on the activities as well as
performance of the company. In addition to this, it create an opportunity for companies to
attain competitive advantage at marketplace that leads to increase in profitability of the
organisation. The value chain model is categorised into two activities that is primary as well
as secondary activities. The primary activities involve outbound logistics, operations,
marketing & sales service, inbound logistics whereas secondary activities consist of
technological development, human resource department, recruitment, infrastructure and so on
(Akhtar and Sushil, 2018). All these activities is define below in relation to the chosen
company:
Primary activities
 Inbound logistic – Herein, the relationship with suppliers is included along with the
activities required to store, disseminate as well as receive inputs.