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Value Chain Analysis of Marks and Spencer

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Added on  2020-12-29

Value Chain Analysis of Marks and Spencer

   Added on 2020-12-29

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Business Environment
Value Chain Analysis of Marks and Spencer_1
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1a) Porter's 5 force model for identifying and analysing current environmental influence onindustry........................................................................................................................................1b) Value chain model to analyse internal business environment of firm....................................3c) Adaptations that will helps the company to reduce impact of external factors on businessenvironment.................................................................................................................................4d) Usefulness of the Porter’s 5 Forces model and its limitations................................................6CONCLUSION................................................................................................................................7REFERENCES ...............................................................................................................................8
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INTRODUCTIONBusiness environment is defined as total of internal and external factors that influencefirm and its operations. It is a marketing term which refers factors and forces that affectsenterprise ability for building and maintaining successful relationship with customers. There aredifferent factors such as external and internal environment which affect business (Belás and et.al., 2015). The given assignment is based on Marks and Spencer (M&S) which is Britishmultinational retailer founded in 1884 at Westminster, London. It deals mainly in selling brandedclothes to United Kingdom market. Also deals in home products, luxury food items to fulfilsneed and requirement of people. In this report will be discussing about Porter five force modelfor analysing macro environment of retail business and value chain model to analyse internalbusiness. Adaptation and limitation of porter five force model are also discussed.MAIN BODY‘Industry analysis and possible adaptations’a) Porter's 5 force model for identifying and analysing current environmental influence onindustryThe five forces analysis is a useful tool which will be utilized to determine level ofcompetition within inner environment of business. This tool serves as a structure used toascertain quality in terms of gain to industry. As per Porter, M.E (1980), the state of competitionin an enterprise look on five forces which represent micro-environment. In this analysis, thoseimportant operational element of micro-environment will be known and examined. Marks andSpencer (M&S)is an organisation founded in 1884 in UK by Michael Marks and ThomasSpencer. This is one of the leading company in retail sector (Budhwar and Debrah, 2013). ThisReport demonstrates about Porters five forces to give a better market representation to Marks andSpencer. Bargaining Power of Customers;Buyers are demanding a lot and want to obtain bestofferings available by paying lowest price as possible. This put force on M&S profitability forlong period of time. The smaller and more powerful customer base is of M&S, the higherbargaining power of buyer and higher their ability to seek increasing discounts and offers. Theycan also address bargaining power of purchaser by constructing a large base of customers. Thiswill be helpful in two ways like it will diminish bargaining power of the customers and it willprovide a chance to firm to sleek its sales and production process. Bargaining power of
Value Chain Analysis of Marks and Spencer_3

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