Reflective Analysis of the Internal Business Environment

Reflective analysis of the
internal business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Value chain model..................................................................................................................1
Aston Martin Company..........................................................................................................2
Internal environment..............................................................................................................3
Reflection on value chain model............................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Internal business environment mainly composed of various factors and components that
are basically present inside the organisation and affect the various choices, decision making and
activities of the organisation (Passetti, Cinquini and Tenucci, 2018). The aim of this essay is to
provide an understanding and reflection about the use of value chain model to examine the
internal environment of an organisation which includes both primary and supporting activities of
a business firm. The organisation selected to meet the aims and target of this easy and
assignment is Aston Martin, the information and brief about which is also form a part of this easy
and provided on this report.
Value chain model
The value chain model which is also known as the Porter’s Value chain analysis was
developed and created by Michael Porter. He has explained value chain model as a collection of
activities and tasks that are basically performed by every company and organisation to create
value for its customers and clients (Value Chain Analysis, 2019). Thus, the main aim of value
chain model is to maximize the value addition for customers which lead to and facilitates the
competitive advantage and higher productivity and profitability for an organisation. The strength
of this model of the Porter’s Value Chain is its approach the main focus of which is on the
systems and other activities which are related with the desires and end product provided to
customers as its central principle rather than having a focus on departments and other accounting
expense categories of the organisation (Prentice, 2018). The value chain model basically links
the systems and activities with each other and emphasis on demonstration of its effect and
influence created on costs and total profit of the company. Thus, use of value chain model makes
it clear where the wastage of sources and resources while the process of value creation can be
reduced or minimized to maximize the profits of the organization for achievement of target of
cost efficiency in the organisation during the process of value creation and production of product
and services for customers. Porter has described a chain of activities and task that are common to
all businesses and he has divided and categorised these activities into primary and support
activities which are shown as below.
1