Porter’s Value Chain Model: Assessing the Internal Environment of Tesco

Reflective Account

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Value Chain Model......................................................................................................................3
Tesco............................................................................................................................................4
Internal Environment...................................................................................................................5
Reflection on Value Chain Model...............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The internal environment of a business organisation comprises of various factors all of
which have immense impact on the performance, productivity and profitability of the business
organisation in the consumer markets. These internal environment of a business organisation can
be assessed my using the Porter’s Value Chain model for its operations and functions (Koc and
Bozdag, 2017). This report details on the Porter’s Value Chain model, evaluates the internal
environment of Tesco using the value chain model to identify its value adding services and
operations and reflects on its usefulness. Tesco is a multinational retail giant operating in the
retail industries for the last 101 years successfully.
MAIN BODY
Value Chain Model
The value chain is a business model which enables company in framing full range of
activities which is needed to create high quality products and services within internal and
external business production. The purpose of value chain is to increase high production
efficiency, so the company leverages high maximum value for the least production cost through
which products can be delivered efficiently. The Porter value chain is an integral part of logistics
business into which various resource are invested for gaining strong business targets and
effectively bringing high profit margins for long term investment. Porter value chain explains
inbound logistics, operations and outbound logistics, marketing and sales, services. The goal of
the five set activities is to create value that exceeds the cost of conducting the activity therefore
generating higher profits. Inbound logistics enable in forming strong base on which resources
can be transported within production department with high efficiency and functional energy is
leveraged on the basis (Simatupang, Piboonrungro and Williams, 2017). Outbound logistics can
be attained with higher productive scale services which are programmed into products delivery
among sales services driven into stores through which higher diverse functioning is enabled.
Marketing and sales services being a high evolving parameter on which higher business targets
can be set for further development, generating larger profits which are an integral part of
company production chain services.