Reflective Analysis of the Internal Business Environment

Reflective Analysis
Of The
Internal Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
a) Value Chain Model............................................................................................................1
b) Company............................................................................................................................2
c) Internal environment..........................................................................................................3
d) Reflection on Value Chain Model......................................................................................5
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................8

INTRODUCTION
Internal business environment is considered as the element of business environment that
consist of several factors present inside of an organization which may impact on workplace and
their decision making (D'Aquila, 2013). A firm may adopt numbers of model in order to conduct
analysis of their internal business environment such as value chain model which that is
developed by Porter. Organization selected for this assignment is Sainsbury which is public
limited company operating in retail industry at United Kingdom. The main aim of conducting
this report is to enhance knowledge about value chain model and its effectiveness. Report will
also include information about respective company as well as it will also describe about
evaluation of internal environment of Sainsbury.
MAIN BODY
a) Value Chain Model
Value Chain Model is also known as Porter's Value Chain Analysis which is a business
management concept that is developed by Michael Porter in year 1985 by his book named
Competitive Advantage. Michael Porter defined respective model as a collection of activities
which are generally performed by an organization in order to create value for their customers at
potential marketplace (Daspit and et. al., 2013). Value Chain model helps in creating additional
value through that firm can gain competitive advantage as well as high profitability at
marketplace. In respective model an organization is split into two parts i.e. primary activities and
support activities and it is essential for management to consider both the parts while developing
decision. Through respective model a company management able to understand how they can
add values to their products or services so that they ask more than the cost for the additional
value, that help in generating profit margin.
Along with this there are several sub elements are there which are included in two parts
of respective model like primary activities include inbound logistics, operations, outbound
logistics, marketing and sales as well as service. On the other hand support activities include sub
elements like procurement or purchasing, human resource management, technological
development and infrastructure. Value chain model also help in representing the internal
practices of a firm that are engaged in transforming inputs into outputs so that company can
attain their desire goal and target effectively as well as successfully. In addition to this there are
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