LSBM103 Business Environment Report: Marks and Spencer Analysis

This report delves into the business environment, focusing on Marks and Spencer (M&S) as a case study. It begins with an introduction to the business environment and the factors that influence it, both internal and external. The core of the report analyzes M&S using Porter's Value Chain Model, dissecting primary activities like inbound logistics, operations, outbound logistics, marketing and sales, and services, as well as secondary activities such as procurement, human resource management, technology development, and infrastructure. The report examines M&S's internal environment, including supply chain management, technological application, marketing strategies, human resource management, services, and infrastructure development. A reflection section provides insights on the value chain model and its impact. The report concludes by summarizing the key findings and their implications for M&S's business strategies. References and a table of contents are also included.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Value Chain Model of Porter.......................................................................................................4
Marks and Spencer.......................................................................................................................5
Internal Environment...................................................................................................................6
REFELECTION...........................................................................................................................7
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9
MAIN BODY ...............................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment can be defined as the factors that put an impact in conducting
business activities. These factors include internal as well as external factors. Factors that
influence business environment put an impact on customer relationship with business
organisation. In this report Marks and Spencer is taking as an organisation. This report is brief
about the Value Chain Model that is proposed by Porter. This report also brief about the Marks
and Spencer that is taking as an organisation to state about business environment. This report
also analyse the internal environment of the organisation based on the Value Chain Model.
MAIN BODY
Value Chain Model of Porter
Value Chain Model was introduced by Michael Porter in 1985 best-seller competitive
Advantage to enhance the productivity of the company's products and services. It is the set of
actualities that can be performed to enhance the productivity. This model helps the businesses to
take competitive advantages from the value addition. This model comprises with two activities
primary activities and the secondary activities.
Primary Activities: Primary activities of value chain model involve certain activities that are
part of production and sales of the final product. It involves activities as below.
Inbound Logistics: Inbound logistic involve the inputs of the company that is required to
produce the final product of the company (Simatupang, Piboonrungroj and Williams, 2017). It
includes raw material and its associated actions such as receiving, warehousing and issuing of
raw material to the production team.
Operations: Operations involve all the activities to convert the raw material into the final
product of the company. It can even be stated as a process to produce the final product out of the
raw material. It involves machining, packaging and other related activities.
Outbound Logistics: Outbound logistics involve all the activities related to the despatching of
final product for sale (Hernandez Serrano Greenhill and Graham, 2015). It involves collecting of
final product, storing and distribution of the final product to various sellers..
Marketing and Sales: After the final product is despatch in all the stores the process of
marketing and sales take places. This process is to make all the potential customer base aware
about the product and to make it trendy. It involves all the advertisement related aspects, pricing,
channelizing and all related activities to sale the product.

Services: Services involve all the post sales activities. Services built the customer relationship. It
is even crucial to sustain the unsatisfied customer's (Wan and Wu, 2016). It includes Installation,
repair, training, parts supply and project adjustment.
Secondary Activities: Secondary activities can also be called as support activities. It is the
activities to support the primary activities of the company.
Procurement: Procurement under this task involve purchase of machinery, laboratories and all
other assets to conduct the production of the final product. All the assets to run the company are
included in this process of procurement.
Human Resource Management: It involves all the activities related to the men power in the
company. All the processes of hiring, recruiting, training and development related activities.
Technology Development: Technology development involve all the activities to advancement
the organisation with the help of the latest technology. Technology development include
installation of all the latest technology in the organisational structure.
Infrastructure: Infrastructure involve the whole structure of the company not just individual
activity (Karlik, Maksimtsev and Iakovleva, 2016). It includes planning, finance, legal and all
other activities related to the management. Infrastructure gives the complete boost to all the
activities related to the company.
Marks and Spencer.
Marks and Spencer(M&S) was established by Michael Marks and Thomas Spencer in the
year 1884. M&S has a headquarter in Westminster, London. M&S is currently the major retailer
in the British constituency. M&S is listed in London Stock Exchange and it is a part of FTSE
250 Index (Liu, Xu and Lin, 2017). Archie Norman is the current chairman of M&S and Steve
Rowe is the Chief Executive of the company. M&S serves in Marks 1463 locations worldwide as
per the current states of 2019 and it owns 959 stores across the UK that include 615 stores deal
only in food products. M&S deals in all the major brands in retail and food sector. More than
eighty thousand people are employed by M&S across the globe. In 1998 M&S was the only
British Company to generate pre-tax profits of over 1 billion pound. M&S became very much
popular in UK market by introducing the policy of selling only British Products in the early 20th
century. This policy made M&S more reliable brand in the UK market and that enhanced the
company's profitability as well.

M&S initiated its International expansion with the launch of stores in Canada in the year
1973. M&S moved to further expansion after having the success in Canada market. It further
expanded its business in other part of the world. Currently M&S has a worldwide base in the
market and currently it is dealing in more than 1400 locations all over the world.
Internal Environment
Internal Environment involve the application of Value Chain Model in the internal aspect
of the Marks and Spencer.
Supply Chain Management: Marks and Spencer has a advanced supply chain management
system that becomes crucial part of the operational structure (Bendul, Rosca and Pivovarova,
2017). This supply chain management system take care of all the issues that are associated with
inbound logistic and also with outbound logistic. Supply chain play the crucial role in company's
operational structure not just in the operations activities but also in the sales of the final products.
All the shops of the company are connected in this system and with the complete subservience of
the supply chain management company run all its business.
Technological Application: Marks and Spencer has utilised the technology in its operational
structure in the best way possible. Technology plays the major role in all the operational
structure of the company. Marks and Spencer try to operate all the operations with the effective
utilisation of technology (Kumar and Rajeev, 2016). Technological advancement play the major
role in the on time operation process of the company and that also provide the major boost to
company's profitability. Company stay connected with all the suppliers, consumers and all the
external as well as internal factors that play the crucial role in the operations of the company.
Value chain emphasis a lot on the operation process of the company and Marks and Spencer
management has utilized it in the best way possible in its operations with the proper guidance of
this model.
Marketing of Products: Marks and Spencer utilize all the effective and efficient marketing
channels to give the proper boost to all its products. Marks and Spencer products are well-known
in the retail market and effective use of marketing strategy has played the crucial role in such
popularity of its products. Marks and Spencer has seen the major growth in its sales and that is
the result of an effective marketing campaign.
Human Resource Management: Marks and Spencer has provided employment to human
resource in all over the world. M&S has the well efficient human resource because of its efficient

human resource management. Human resources play the crucial role in company's growth and
development and the efficiency of the human resources play the crucial role in such development
(Rudi and et.al., 2017). Human resource management is a tough task because it also involves the
growth of all the people that are currently employed in the organisation. M&S has taken care of
all its work force and as a result of that company's employees carry the well-balanced life style
across the globe.
Services:M&S included services as its prime objective. Service includes both at the time of sale
and also include post sales services (Anselmsson and Bondesson, 2015). M&S is well-known for
its services all the people who sale the company's products are well efficient and educated.
Management of M&S has also taken care the post sales services that include taken care of all the
issues of the customer's. M&S has managed customer care services to cure all the issues of the
consumers. This has given the better image to the company in the retail market.
Infrastructure Development: Management of M&S has taken care of all the development
related to the company's infrastructure. All the company's infrastructure is well managed and
developed in all over the globe. Infrastructure plays the crucial in building the market image of
the company and management of M&S has taken care of the infrastructure of all its premises.
REFELECTION
Value chain analysis model gives positive impact on company and supports to understand
internal business environment (Kim, 2016). I understand primary and supportive activities of
business by the value chain model. Primary actives are inbound logistics, operations, outbound
logistics, marketing & sales and services etc. By operation i enables to understand customer
expectation and reviews regarding product quality and services. On the basis of reviews
organization gives values to their customers by offering desired products. To enhance customer
experience organization offers online services to customers where customer enables to buy
product. I analyse company gets more profit by this new technology. As far as i think logistic
also assists me to understand outside and inside material arrangement where i enable to assemble
relation of supplier and manufacture in company so that they give high quality product. While
outbound logistic assistant me to get customer requirement in organization. Marketing also help
me to understand potential customer requirement and beside of this i understand competition in
market which can give impact on company performance. This model helps me to get how to give
value to customers and how to sale products so that company gets values by the customers. I

understand retaining customer in company requires good relation so that they retain. I also get
that communication plays vital role for establishing good relation with customers, clients, partner
and society. This factor supports organization to improve employees communication skills at
workplace. In that state employees capable to build relation with customers. This factor supports
me to understand employees objectives regarding job which can lead drastic change in
employees performance in company. Value chain analysis model help me to analyses product
effectiveness where i get organization unable to keep product effectively in market which leads
ineffectiveness in company. This model helps organization to improve product position in
market by offering advance services to customers. Thus primary activities supports me to
analyses internal environment of company and model helps to improve internal environmental so
that organization enable to take competitive advantage.
While supportive activeness are firms infrastructure, human resource management,
technology and procurement etc. Through the model i understand supportive activities can lead
effectiveness in organization. Such as infrastructure in which includes accounting, legal, finance,
control, public relation and generic management. I analyse organization's infrastructure is not
appropriate that why organization unable to guide employees in company. This model helps
organization to make mission so that number of department enable to achieve mission of
company. I observe HRM department unable to build good relation with employees, as result
crisis occurs between employees regarding their job and salary. This model assists human
resource management to improve their relation with employees as result employees productivity
enhances at workplace. i analyses organization unable to take competitive advantage due to lack
of technology where organization improves technology by the help of value chain model. Such
kind improvement leads profitability in M&S and supports to promote product in global market.
Thus value chain analysis supports to analyses internal environment and model supports to
enhance brand value in global market.
CONCLUSION
This report conclude about the business environment and its related aspects. This report
concluded the value chain model proposed by Porter. Internal environment of the selected
organisation has also concluded in this report based on the value chain model introduced by
Porter. All the aspect of the value chain model that can be a part of the organisation has

concluded in brief in this report. This report also concluded about the usefulness of the value
chain model and all the outcomes that could initiate by applying this value chain model.

REFRENCES
Books and Journals
Anselmsson, J. and Bondesson, N., 2015. Brand value chain in practise; the relationship between
mindset and market performance metrics: A study of the Swedish market for
FMCG. Journal of Retailing and Consumer Services. 25. pp.58-70.
Bendul, J. C., Rosca, E. and Pivovarova, D., 2017. Sustainable supply chain models for base of
the pyramid. Journal of Cleaner Production. 162. pp.S107-S120.
Hernandez Serrano, M.J., Greenhill, A. and Graham, G., 2015. Transforming the news value
chain in the social era: a community perspective. Supply Chain Management: An
International Journal. 20(3). pp.313-326.
Karlik, A. E., Maksimtsev, I. A. and Iakovleva, E. A., 2016, May. Modern architecture of global
value chains and value chain management of Russia. In 2016 XIX IEEE International
Conference on Soft Computing and Measurements. (SCM)(pp. 518-520). IEEE.
Kim, J., 2016. The platform business model and strategy: A dynamic analysis of the value chain
and platform business(Doctoral dissertation, The University of Manchester (United
Kingdom)).
Kumar, D. and Rajeev, P. V., 2016. Value chain: a conceptual framework. International Journal
of Engineering and Management Sciences. 7(1). pp.74-77.
Liu, J., Xu, F. and Lin, S., 2017. Site selection of photovoltaic power plants in a value chain
based on grey cumulative prospect theory for sustainability: A case study in Northwest
China. Journal of cleaner production. 148, pp.386-397.
Rudi, A and et.al., 2017. Biomass value chain design: a case study of the upper rhine
region. Waste and biomass valorization. 8(7). pp.2313-2327.
Simatupang, T. M., Piboonrungroj, P. and Williams, S. J., 2017. The emergence of value chain
thinking. International Journal of value chain management. 8(1).pp.40-57.
Wan, Z. and Wu, B., 2016. When suppliers climb the value chain: A theory of value distribution
in vertical relationships. Management Science. 63(2). pp.477-496.