Reflective Analysis of Internal Business Environment

This report provides a reflective analysis of the internal business environment of ASDA, a British supermarket chain, using the value chain model. It includes an overview of the company and its internal environment, as well as a reflection on the value chain model. The analysis highlights the primary and support activities that contribute to the company's competitive advantage.

Reflective analysis of the internal business
environment.

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Value chain model..................................................................................................................3
ASDA Company overview.....................................................................................................4
Internal environment..............................................................................................................5
Reflective on value chain model............................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Internal business environment is a component of the business environment, which is
reflected and composed of various elements present inside the organization. This can effect to
the internal activities of business and its growth factors. The present report is based on “Retail
sector — ASDA company” which is British supermarket chain. The company is deals in various
products and services which are related to daily routine. The report will include internal analysis
of business environment by using value chain model. Here is also described overview of
company and its internal environment. At the end of report will highlight the reflection on value
chain model.
MAIN BODY
Value chain model.
The value chain analysis is a process where a firm identifies its primary and support
various activities which are added values to its final products. This helps to analysis all those
activities in order to reduce costs and increase differentiation. This represents the all internal
activities of firm which transform inputs into outputs. This is very important process of internal
analysis of company. This creates more effectiveness for company by analysing each and every
internal activity. This analysis strategy tool used to analyse the activities of company. These
strategies have a great aim and goal which is to design and recognize most valuable activities of
company in effective manner (Drogalas, Karagiorgos and Arabatzis, 2015). This improves and
provides best competitive advantage for business in effective manner. On the other side, this
looks into the every internal activity which are analysis reveals at their company gain the higher
competitive advantage or various disadvantages. This is an important and valuable for company
and for its growth factors.
In that company compete with differentiation advantage which will try to perform its
activities in the better manner by performing internal activities at lower price and costs after than
the competitors are done their all activities by performing activities. Like when companies are
able to produce goods and services at lower price than market price as well as provide superior
products and earn more profits and goodwill at market place. This model is divided into two
parts such as primary and secondary activities. The primary activities are includes inbound
logistics, operations, outbound logistics, services, sales and marketing activities. On the other
side, support activities like infrastructure of company, human resource management,

procurement and technology. All the primary activities are added values directly in production
process of company. That are not necessary important than the support activities. Present day’s
competition is based on the advantage mainly from the technological improvements as well as
innovation in the business processes and models (Eulerich and Lenz, 2019). Meanwhile, other
such activities like research and development and normal management are the most important
and effective sources of various different advantage to company. This increases various activities
for adding more values and performance for company in effective manner. On the other side,
primary activities are generally the main sources of cost advantage at their costs easily identified
for every activity and properly managed by company for achieve goals and objectives of
company in effective manner.
ASDA Company overview.
As per the report here is select retails business which is more familiar in UK. The retial
sector is the part of economy which is made up of businesses which sells goods and services
through the stores, on the internet to the public. The retail sector is easily operates but in that
requires more capital to sets the outlet of company. The retail is process of selling consumer’s
goods and services to customers through multiple channels of distribution to earn a profit and
increase or improve company performance in market. In order to complete the report here is
select ASDA stores Ltd which is British supermarket retailer which Leeds. ASDA is operates in
United Kingdom by dealing in various products and services. The company is founded in the
1949. The company is deals in various products and services like grocery, general merchandise
and other financial services (Gallemore and Labro, 2015). The company has 165000 employees
with 633 numbers of locations in the market place.
The ASDA group have aim is to provide a goods and services which are cheap and more
affordable to the public. This also offers higher quality of products at the lower price is another
aim of company. In order to covers and achieve goals and services company hire eligible
employees and buy products from highly competitive suppliers. The company have their various
competitors in the market place who are beat company by selling more effective quality of goods
and services at the market place. Also, company is reducing packaging costs of products. This
creates more effectiveness for company and for its growth which is higher. The company also
provide better customers services through those customers are higher attracted towards company

and highly contribute in growth of company. With the help of this, company have greater and
higher customers pool which are more loyal for company.
Internal environment.
Above mention discussion about the value chain model which is help to analysis internal
environment of company. This creates more effectiveness for company and its growth factor.
This is very important part of company because their helps to turns inputs into outputs. For the
report selected company is ASDA which is Retailer Company which is deals in various products
and services which are basic needs of customers (Janda and et.al., 2016). This section is analysis
the internal environment of ASDA Company by using values chain model which is produce by
Porter are as follows:
Primary activities: these activities of company are directly involved in producing as well as
sales goods and products to the targeted customers. The primary activities of ASDA are as
follows:
 Inbound logistics: This is very important and effective for develop strongest relationship
with suppliers as per the support is very necessary to receive and distribute the products.
Without analysing the inbound company is faced various challenges in development of
product phases. In that company need to make focus on raw material o finished products.
 Operations: Operation department of company which is analysing operational activities
rises when the raw material arrives. At this stage, company is ready to process the various
raw materials into the finish goods and directly introduce in the market place (McFarlane
and Curran, 2016). It includes the both operation which are related to manufacturing and
services. This help to improve productivity and profit margin of ASDA.
 Outbound logistics: this involves the activities which are deliver products and services to
the targeted customers with help of different kinds of intermediaries. Warehousing,
material handling and order processing as well as delivered to destination are the
outbound logistics. If company is analysis and managed timely optimal cost and
delivered process is put negative impact on quality of product but it maximises the
customer satisfaction and increases growth opportunities for company in effective
manner.
 Marketing and sales: This is very important and effective stage of company where
company is promoting their product and services at market in effective manner. only

produce best quality of products at lower price and adding various features are not create
values, here also have to puts efforts on sales and marketing of product of ASDA. This
helps to customers for getting updates about company products in detailed manner.
 Services: the company is provide the best and effective pre post and post sales services to
customers which is plays an important role for developing customer loyalty. In the
present customers are more modern who are considering post sales services which are
important as marketing and various promotional activities.
Support activities: those are plays a very important and effective role in company for
coordinating and facilitating the primary value chain analysis (Naidoo and Gasparatos, 2018).
The company have various benefits from support activities.
 Firm infrastructure: this denotes the various ranges of activities like quality
management, handling rules and regulations, planning as well as strategic management.
This help to complete and effective infrastructure of company. ASDA Company is able to
control activities which are strength for company’s competitive advantage.
 Human resource management: This is very important and effective part of company
which is evaluating by different human resource aspects. This includes recruiting,
selecting, rewarding, performance and training (Value chain analysis, 2018). This is very
effective management of ASDA Company which helps to reduce competition pressure
based on motivation and skills of their workforce. Through that company is also achieve
goals and objectives by offering training to their employees.
 Technology development: currently the all businesses are based on technology and its
management. This help to make effective production, distribution and human resources
activities which are very important of technology development.
 Procurement: this involves purchasing process which inputs the various range of
equipment, raw material, suppliers and machinery. This is very important for producing
best raw material in finished goods and products.
Reflective on value chain model.
The internal environment analysis is very important and effective for business. That is
gives vary effective reflection on company and its growth factors. This helps to analysis all the
primary and supportive activities which are helps to company for increase their cost advantage.
The retail sector is got cost advantage by using value chain model and analysis system. This

creative and effective process of company. With the help of this ASDA company is able to make
higher competitive advantage in their competitive era. I have analysed that it is important for
company and its growth factors. This helps to analysis all those important primary and
supportive activities which are important. Those includes inbound and outbound logistics,
operations and other factors which are considers more important and essentials for ASDA
company (Souza-Monteiro and Hooker, 2017). this is important and effective for company to
make proper process of using raw material to turn inputs into higher quality of finished goods.
On the other side, as per analysis without supportive activity company is not able to
complete in their competitive advantage in competitive era. This reflects more important like
human resource management is important and effective for company in order to hire and train
employees of ASDA Company to manage and improve performance in the market place.
Another is technology; this is supportive activity help to analysis market needs as well as
customers. Through that company is able to satisfy needs of customer and build higher loyal
customer base for company. This is very helpful and manageable for company needs in an
effective manner. this is all about making possible for products, finances and information which
flows and optimise processes in that they flows and create better values in the relationship
between companies as well as for improving the overall efficiency for effective business process.
That is reflects possible growth for company (Swaffield, Evans and Welch, 2018).
This provides higher benefits for company to manage their higher image and goodwill in
the market place. this help to evaluate value chain management which is helpful for maximizing
space in warehouse and enhancing logistics. The information management is a proper manual
task and transporting freight involved different modes of transport product at the destination.
Growth in industry, this is another importance with value chain analysis of internal environment
of ASDA. This is creates needs making their strategies that go tho beyond the strategy for
enhance logistics and of processes. With the help of this company get more competitive
advantage in industry by gaining cost advantage by attracting more customers at market place.
As per the analysis, it is understand that the internal environment analysis of ASDA by
using value chain model is helpful for managing all the primary and supportive activities which
are more important and effective for company and its growth factors.

CONCLUSION
From the above study it had been concluded that the internal environment analysis has
important for managing growth of company. This creates more effectiveness for company to
meet the needs of customers as well as for gaining higher competitive advantage with cost of
product. The report had based on retail business in UK and ASDA Company. The value chain
analysis had been important and effective for company to maximize profit and improve
performance of company within the market place. At the end of report it had been given
reflection on value chain analysis of company and its importance for company to manage their
profit margin in effective manner.

REFERENCES
Books and Journals
Drogalas, G., Karagiorgos, T. and Arabatzis, K., 2015. Factors associated with internal audit
effectiveness: Evidence from Greece. Drogalas, G., Karagiorgos T. &Arampatzis K.
(2015). Factors associated with Internal Audit Effectiveness: Evidence from Greece.
Journal of Accounting and Taxation. 7(7). pp.113-122.
Eulerich, M. and Lenz, R., 2019. Internal auditing’s organization and relationship to other
governance functions.
Gallemore, J. and Labro, E., 2015. The importance of the internal information environment for
tax avoidance. Journal of Accounting and Economics. 60(1). pp.149-167.
Janda, K. B. and et.al., 2016. The evolution of green leases: towards inter-organizational
environmental governance. Building Research & Information, 44(5-6), pp.660-674.
McFarlane, J. and Curran, R., 2016. Business Organizations The Internal Environment.
Naidoo, M. and Gasparatos, A., 2018. Corporate Environmental Sustainability in the retail
sector: Drivers, strategies and performance measurement. Journal of Cleaner
Production. 203. pp.125-142.
Souza-Monteiro, D. and Hooker, N., 2017. Comparing UK food retailers corporate social
responsibility strategies. British Food Journal. 119(3). pp.658-675.
Swaffield, J., Evans, D. and Welch, D., 2018. Profit, reputation and ‘doing the right thing’:
Convention theory and the problem of food waste in the UK retail sector. Geoforum. 89.
pp.43-51.
ONLINE
Value chain analysis. 2018. Online. Available through:
<https://strategicmanagementinsight.com/tools/value-chain-analysis.html>