Reflective Analysis of the Internal Business Environment

Reflective Analysis of the
Internal Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Value chain model by Porter..................................................................................................3
TASK 2............................................................................................................................................5
Overview of the company......................................................................................................5
TASK 3............................................................................................................................................5
Internal environment of Tesco................................................................................................5
TASK 4............................................................................................................................................8
Reflection on value chain model as its usefulness.................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Value chain is an effective tool which includes several internal activities that helps an
organization in prioritizing activities and analysing its core strengths and weaknesses (Lebherz
and Hartmann, 2017). This study is based on Tesco Plc which is a British retailer and having
headquarter is in England, UK. This study is going to show some primary and supportive
activities of value chain model developed by Porter's which are being performed by all type of
companies. It will further, show effectiveness of this model in analysing internal environmental
factors such as strengths, weaknesses of Tesco with the main aim of taking competitive
advantages.
TASK 1
Value chain model by Porter
Value chain analysis is an effective strategy and tool developed by model which helps an
organization in analysing its internal activities. The main aim of Porter's to develop this model is
to support organizations in identifying that which activities are the most valuable that can give
them competitive advantages opportunities. Porter's value chain analysis is also known as a
business management developed for taking competitive advantages by the company. This
analysis mainly focuses on some activities and system with clients as the central principle rather
than departments. It has several activities which are divided into 2 parts such as primary and
supportive. Primary activities of an organization consists of those activities who have direct and
immediate impacts on the production, sales and support of products. As per the Porter's primary
activities are described as below:
Primary activities
Inbound logistic: It includes all those activities which are concerned with receiving,
storing as well as distributing of raw materials of products. It is important for manager of the
company to create value of this activity and for that they need to maintain a good relation with
suppliers (Porter and Kramer, 2019).
Production: It includes all functions which converts raw materials into finished goods or
semi-finished products. For creating value of this activity, operational system is the main
principle and key.

Outbound logistic: It includes those activities which are concerned with delivering
products of the company to customers. For example: storage, distribution and transport.
Marketing and sales: After producing products, it is important to introduce products to
customers and bring products into the market. It includes activities of promoting products along
with managing customers relationships. Maintaining relationship with customers is the main key
of creating value of this activity.
Services: It includes all activities that maintain value of products of the company to
customers. It can be done by developing customers relationship based on the procurement of
products (Lee, 2018).
Support activities
These are activities who support company in performing primary activities efficiently and
make them successful. There is a strong connection between primary activities and supportive
activities such as; HRM supports outbound logistic and other primary activities.
Organization's infrastructure: It is a secondary and support activity which makes an
organization able to maintain and perform its daily operations successfully. Some examples of
this activity by Porter's includes: financial management, administrative handling and line
management.
HRM: It is concerned with the development of HRM. Some examples of this activity
includes: recruitment of employees, training to them, compensating and retaining of them.
Technology development: It includes all those activities which helps an organization is
developing its products after producing them by making them innovative and creative. Some
examples are: technology development and innovation and these create value as well.
Procurement: All activities of this supporting relates to the procurement to services the
customer from the organization. It includes managing relationship with customers and suppliers,
negotiation with them to purchase products from suppliers at the best prices, outsourcing
agreement etc.
So, from the above it can be said that, companies use both primary and supportive
activities as building blocks to create valuable products and taking competitive advantages
(Lindman and et.al., 2016).