Reflective Analysis of the Internal Business Environment

Reflective Analysis of the
Internal Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Value chain model by Porter.......................................................................................................3
Sainsbury's overview...................................................................................................................5
Internal environment analysis by value chain model..................................................................6
Reflection on value chain model.................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The value chain model is a framework of the Michael Porter which help to analyze the
specific activities through which company can create competitive advantage and value. Inbound
logistic includes transportation, including receiving, scheduling etc (Barnier and Wright., 2017).
This report will cover Sainsbury for the study which is the largest chain of supermarkets
in United Kingdom. This report will analyze value chain model by porter and explain this
properly. It will also provide overview of the company in detail which is aim of the overall
project. This report will include SWOT analysis of the Sainsbury and analyze companies
strength, weakness and opportunities and threats . In the end of this report will provide reflection
on the value chain management and explain how this chain work and what are the benefits of
value chain model.
MAIN BODY
Value chain model by Porter
There are two activities in Porter's value chain model which is supportive activities and
primary activities. Primary activities has direct impact ion the companies activities such as sales,
production of goods, services, products and maintenance (Harrington and Carawan., 2016).
These activities are important for the company to convert Row material into the finished goods
and provide to the Customers, so they can satisfy their needs and their demands. These activities
are consisted with some elements which are -
Inbound Logistics
Inbound Logistics are the process which involve storing, receiving and internal
distribution of the Row material or the products or service basic ingredients. It is important for
the companies to create better relationship with the (supplier) of their row material so company
can value and add some value in their products.
Production
Production is the process where companies employees convert input into the finished
products or half-finished products (Katz, Du Preez and Louw., 2016). Operational function of
the company are the guiding principle for the creation of the product value.
Outbound Logistics
Outbound Logistics are the activities which is refers to the delivery of the services and
product to the consumers. Outbound activities include includes transportation of the goods,

distribution of the goods, storing and instance. Marketers and distributor of the company delivery
the product direct to the customers, or they store in the companies so customers can buy those
products and satisfy their needs and their demands.
Marketing and sales
This is one of the important process of the company where company advertise their
products in the market so customers can know about the product and what are the specification in
the product and how product can help them to full fill their needs (Leonidou And et.al., 2017).
This helps to make new customers and company can increase their growth by using the products
marketing. There are some tools which is used by the companies for their product promotion.
This includes digital marketing. Sale, T.V advertisement etc.
Services
Services include all activities which maintain the products or service value to customers
as soon as a relationship has formed which can be based on the procurement of products &
services. The service profit chain model is another model which is specifically designed for
service management and organizational growth.
Support activities of the value chain model
Support activities in the Porter's value chain model assist with the primary activities of
this model and these activities are form on the basis of any company. For example- Activities
like HRM is important for the primary activities, but they also support other activities of the
company.
Firm infrastructure
Firm infrastructure concern with the supportive activity of the company which enable the
company to maintain their day to day operations (McFarlane and Curran., 2016). Activities such
as Finance management of the company, line management, and handling of the administrative
are the perfect example of these activities which helps to create value for the company.
Human resource management
HRM is supportive activities of the firm because HR manager of the company recruit,l
select and train the right employees for the company. They provide the support to the company
and bring skillful employees for the company, so they can run the companies activities.
Technology development