Value Chain Model

This document discusses the value chain model and its application in analyzing the internal environment of Mark & Spencer. It explores the primary activities such as inbound logistics, operations, outbound logistics, marketing, and services, as well as the supporting activities including company infrastructure, human resource management, technology development, and procurement. The document also reflects on the usefulness of the value chain model in understanding the internal business environment and capturing competitive advantages.

VALUE CHAIN MODEL

Table of Contents
TASK 3............................................................................................................................................3
Value chain model to analyse the internal environment of Mark & Spencer..............................3
TASK 4............................................................................................................................................5
Reflection on usefulness of value chain model............................................................................5
REFERENCES................................................................................................................................6

TASK 3
Value chain model to analyse the internal environment of Mark & Spencer
Primary activities-
Inbound logistics-
It is the activities that is concerned with distributing, storing and receiving the inputs that
go into creation of services and products of Mark and Spencer. Company won GBS supply chain
award and significantly lead within market because of their sustainability program to make step
changes in their international supply chain (Han and et.al., 2018). Firm obtain commendation
from Ec that provide business a European business Awards for environment (Lehmacher, 2017).
Developing strong connections with suppliers is quite beneficial for company as they provide
raw materials. Without analysing in bound logistics, company cannot be able to develop good
quality products, it creates barriers in goods development procedure. Relationship with suppliers
add value for business as well as consumers, it helps to receive materials on time that company
used and convert into final products. With the help of effective relations between suppliers and
M&S allow business to gain competitive advantages as it strengthen its supply chain.
Operations-
The significance of analysing operational activities rise when company is ready to
procedure its raw materials into final good and raw material arrives as well as launch it within
specific marketplace (Smith and et.al., 2017). M&S is able to maintain their equipment at
workplace effectively, they have skilled workers or team of members who are able to repair the
existing equipments that enhance the productivity and performance of business by which they
can gain competitive benefits for longer term. By increasing the productivity throughout
maintaining equipments organization can achieved consistent economic progress and set strong
basis for competitive advantages.
Outbound logistics-
It is concerned with distribution, collection and storing of goods to consumers, Mark and
Spencer work with in shopping and in store shopping through home catalogue, click and collect
and online shopping, it is the main activities of business that help to gain competitive advantages
(Lancaster and Massingham, 2017). By providing online shopping opportunities to consumers
M&S add more value for their potential clients as they allow people to purchase their products in
large amount. Organization continues to invest in warehousing, in Bradford company acquired

new warehouse recently which serve as automated store NDC for home business and clothing
(Sarli, Leone and De los Milagros Gutiérrez, 2016). It helps to increase the position of business
within market higher than before which is beneficial for them.
Marketing-
It helps in making consumers aware of goods and convince them to buy services or
products. Marketing activities is also essential for M&S like the other one, it helps to drive
potential consumers towards purchasing (Verhoef and Bijmolt, 2019). Digital division Mark and
Spencer venture lab perform with lean begin up technologies to improve and enhance shopping
experience for local people. Multi- channel expectations permits clients to seamlessly shop using
online, mobile, catalogues and through visit in store. Organization is able to focusing on
providing digital experience to its consumers which is valuable for people as well as business, it
contributes to enhanced and engaged target market more through engagement via multi social
media platforms.
Services-
It includes all of those actions that will enhance and maintain goods value, Mark and
Spencer realized to maintain consumers loyalty which is quite beneficial for overall business,
help to retain people and gain competitive benefits through this (Maxwell, 2017). They offer
great customers service because it is essential for maintaining consumer loyalty that help to
increase product availability and firm speed of delivery to people.
Supporting activities-
Company Infrastructure-
The infrastructure of M&S denotes range of activities such as financing, legal matters
handling, strategic and accounting management. M&S have effective infrastructure management
it allows them to optimize value of entire value chain (Andreolini and et.al., 2019). Company
effectively control and manage infrastructure activities that help to build strong position in
market and strengthen competitive positioning as well.
Human resource management-
The role of human resource is to support attainment of entire strategic business objectives
and plan (Bailey and et.al., 2018). HR is the strategic business partners of M&S they are able to
design work positions by reward, carrier planning, hiring and employee development.
Organization achieved their cost minimization objectives effectively, because of effective

Human resource management who are able to analyse the costs of training and hiring with their
relative return. It adds value for business and help to gain competitive advantages by having
skilled workers.
Technology development-
The technology development activity provide many benefits to M&S as it help to
enhance the performance of company and increase operational efficiencies rather than before
(Swenson, Gravitz and Lightner, 2017). Organization is able to used current technologies within
their business structure that help to seed up the procedure of manufacturing goods in less time
and save cost of extra labour.
Procurement-
It denotes procedure included in buying inputs that range from raw material, equipments,
supplies and machinery necessary for manufacturing finished goods. M&S highlight areas where
value is added, procedures is optimized, cost efficiency is achieved and differentiation basis is
set, all these things allow company to gain competitive benefits.
TASK 4
Reflection on usefulness of value chain model
In my opinion value chain is very useful and effective in understanding internal business
environment of Mark and Spencer. Organization create benefits in above five activities through
value chain analysis, it helps to capture competitive benefits as well as increase the overall
profitability. Value chain help me to understand the crucial internal activities of company as it
help to identify value added activities of business clearly and define who all activities are
beneficial. I think that value chain model is beneficial for all the companies working under some
specific sector, it helps to improve their abilities to manage, capture and track consumers as well
as marketing requirement to better planning and services activities for proper cost estimates.
While there are range of advantages of using value chain model, there is one
disadvantage or limitation. The main challenge of conducting this kind of analysis is that
sometimes I cannot be able to identify organization strategy and vision, company also lost these
when their operations is divided down into segments.

REFERENCES
Book and Journals
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environmental sustainability in low velocity industries. Journal of cleaner
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Lehmacher, W., 2017. Circular Economy and Society. In The Global Supply Chain (pp. 113-
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Smith, P.J and et.al., 2017. Distributed work in the National Airspace System: providing
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