Value Chain Model and Internal Environment of Aston Martin Report

This report provides a reflective analysis of Aston Martin's internal business environment, utilizing the value chain model developed by Michael Porter. The introduction establishes the essay's purpose, which is to examine how the value chain model can be applied to assess an organization's internal environment, including both primary and supporting activities. The report begins with an overview of the value chain model, explaining its components and purpose of maximizing customer value for competitive advantage. It then provides background information on Aston Martin, detailing its history, global presence, and product range. The core of the report applies the value chain model to Aston Martin, breaking down its primary activities (inbound logistics, operations, outbound logistics, marketing and sales, and services) and support activities (firm infrastructure, human resource management, technology development, and procurement). The analysis highlights how each activity contributes to the company's overall value creation. The reflection section summarizes key learnings from the analysis, emphasizing the model's utility in identifying value-adding activities and areas for improvement. The conclusion reinforces the importance of the value chain model in understanding and optimizing a company's internal environment for enhanced productivity and profitability. References are provided to support the analysis.

Reflective analysis of the
internal business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Value chain model..................................................................................................................1
Aston Martin Company..........................................................................................................2
Internal environment..............................................................................................................3
Reflection on value chain model............................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Internal business environment mainly composed of various factors and components that
are basically present inside the organisation and affect the various choices, decision making and
activities of the organisation (Passetti, Cinquini and Tenucci, 2018). The aim of this essay is to
provide an understanding and reflection about the use of value chain model to examine the
internal environment of an organisation which includes both primary and supporting activities of
a business firm. The organisation selected to meet the aims and target of this easy and
assignment is Aston Martin, the information and brief about which is also form a part of this easy
and provided on this report.
Value chain model
The value chain model which is also known as the Porter’s Value chain analysis was
developed and created by Michael Porter. He has explained value chain model as a collection of
activities and tasks that are basically performed by every company and organisation to create
value for its customers and clients (Value Chain Analysis, 2019). Thus, the main aim of value
chain model is to maximize the value addition for customers which lead to and facilitates the
competitive advantage and higher productivity and profitability for an organisation. The strength
of this model of the Porter’s Value Chain is its approach the main focus of which is on the
systems and other activities which are related with the desires and end product provided to
customers as its central principle rather than having a focus on departments and other accounting
expense categories of the organisation (Prentice, 2018). The value chain model basically links
the systems and activities with each other and emphasis on demonstration of its effect and
influence created on costs and total profit of the company. Thus, use of value chain model makes
it clear where the wastage of sources and resources while the process of value creation can be
reduced or minimized to maximize the profits of the organization for achievement of target of
cost efficiency in the organisation during the process of value creation and production of product
and services for customers. Porter has described a chain of activities and task that are common to
all businesses and he has divided and categorised these activities into primary and support
activities which are shown as below.
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Figure 1Porter's value chain model, 2019
(Source: Porter's value chain model, 2019)
A number of activities are included in Porter’s Value Chain Analysis namely primary
activities and support activities. Primary activities are those which have an immediate and direct
effect on the production, maintenance, sales and support of the products or services that are to be
supplied to customers. The inbound logistics, operations or production, outbound logistics,
marketing and sales and all other related maintenance services form a part of primary activities
on the basis of value chain model. Beside this, the secondary activities are those which assist or
support the primary activities and for the basis for all organisations (Mak and Chang, 2019). The
activities that form a part of secondary task or activities are firm infrastructure, technology
development, human resource management and procurement.
Aston Martin Company
Aston martin is an exclusive, modern sports car brand which is providing a unique heritage
to its customer across the world (Aston Martin, 2019). This organisation was formed in 1913 and
is established by Lionel martin and Robert Bamford at London, UK. Aston martin has become an
iconic global brand which is considered as a synonym of style, performance, luxury and
exclusivity and a company that provides the best fusion of latest technology, graceful styling and
time honoured craftsmanship to develop a range of critically acclaimed sports cars. The current
range of award-winning sports and performance GT cars gives Aston Martin its strongest line up
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in the marque’s history. Throughout 2013, Aston Martin’s centennial year, the company added
the exhilarating V12 Vantage S, elegant Rapide S and the ultimate convertible Aston Martin;
Vanquish Volante. These cars have joined an established range comprising Vanquish Coupe,
DB9 and V8 Vantage. Information for all models is available through the ‘models’ area of this
media site (Hassanien and Dale, 2019). Boasting a top speed of 205mph, V12 Vantage S
becomes the fastest production Aston Martin in the firm’s 101-year history, with the exception of
the ultra-exclusive One-77. In contrast, Rapide S combines Aston Martin’s characteristic
performance with the practicality of four seats, cloaked in one of the most graceful bodies.
Thus, since the first Aston Martin was crafted more than a hundred years ago, they had a
talent for creating beautiful cars started from a small London workshop and now has grown to
become an internationally admired luxury brand. Aston martin is having a efficient global
presence and its operation are spread in six continents that include more than 50 countries of
world that consist China, Turkey, Qatar, Austria, France, Denmark, Riyadh, Jordan, Germany,
Greece, Monaco, Italy, Russia, Sweden, Canada, Peru, United States, South Africa, United
Kingdom, and Kuwait (Grewatsch and Kleindienst, 2018). The company has opened a
showroom in Abu Dhabi at Etihad Towers. This move cements its place in UAE but still its
headquarters base and main manufacturing site at Warwickshire in England. A big role in
success of Aston martin is played by their employees who are passionate for machines,
propulsion, engine and racing. There passion and talent makes them able to build and develop
the cars that are faster, more powerful, thrilling, comfortable and more beautiful than the
previous one.
Internal environment
The internal environment of Aston Martin includes all the activities and operations
conducted within the organisation with the aim of providing best services and product to its
customers (Arnett, Sandvik and Sandvik, 2018). To develop a better understanding about the
internal activities and role of the primary and supportive activities in creating value for customer
started from acquiring raw material till using them to produce something useful and desirable for
consumer use of value chain model is made. An explanation of Porter’s value chain model in
context with the internal environment and various activity of Aston martin is provided below:
Primary activity
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These are the activities that are directly associated with the physical creation,
maintenance, sale and support of products and services provided and supplied to customers.
Following are the primary activities carried out in Aston martin for ensuring supply of desirable
products to customers:
Inbound Logistics- This activity is associated with receiving, storing and internal
distribution of raw material or other basic integrants required for manufacturing of a product.
The Aston martin is having a very efficient relation with its suppliers to ensure a smooth and
timely availability of all required raw material, batteries, engines, etc to have a uninterrupted
production of products (Yang and Weber, 2019).
Production- These are basically a set of transformation activity that converted raw
material and inventory into a finished product and includes operations like machining,
packaging, assembly, equipment maintenance, testing, etc. aim at creating best quality product
for customers. The operational system or production department of Aston martin is located at
London which is quite efficient and provides relevant guiding principle for creation of value for
customers.
Outbound logistics- These are the activities and tasks associated and related with the
delivering and distribution of product and services to the end customers. The main activities
included in outbound logistics are mainly includes storage, distribution system and transporting
network of an organisation (Cheah, Amran and Yahya, 2019). Aston Martin is having a strong,
powerful and well connected and coordinated distribution network that includes various
dealership programs and its own exclusive showrooms for ensuring timely supply of its product
to its customer with great connivance.
Marketing and sales- These are the activities and process related with putting and
introducing a product or services in the target market that includes generating and managing the
effective relationship. Aston martin is having an effective marketing and sales strategy to remain
apart and superior to its competitors in the market which includes best channel selection,
advertising, promotion, selling, pricing and retail management (Srinivasan and Jomon, 2018)..
Services- These activities are related with maintaining the value of product after it has
been purchased by customers. Aston martin also provide proper after sale services to its
customers which includes customer support services, repair services, installation, training for
effective use, spare parts management, up gradation, etc.
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Support activities
These are the activities which provide support and aid in effective function of primary
activities through facilitating an assistance and framework for them. The main support activities
that are forming a part of internal environment of Aston martin are as follows:
Firm infrastructure- It is basically associated with firm’s support system that allows an
organisation to maintain and fulfil its day to day to operations effectively. The accounting,
administrative, legal, fiancé public affairs and other general management activities of Aston
martin are fall under these support activities that ensures an uninterrupted and effective flow of
working (Landrum and Ohsowski, 2018).
Human resource management- These activities are associated with development of
workforce which is a key element for success of any organisation. The Aston martin have a well
structured HR process and activities to ensure recruitment of talented and creative employees
and beside thus timely staff training and coaching is also provided to enhance their knowledge
and make them able to efficiently support all other activities of organisation (Tourky, Kitchen
and Shaalan, 2019).
Technology development- These activities are related with managing and processing
technology and information associated with keeping a phase with latest innovation and
improvements in technology. Various activities are conducted by Aston martin with the aim of
minimizing cost of information technology for staying current with technological advances, and
maintaining technical excellence for creation of best value and product for customers.
Procurement- These are the activities related with getting resources which are needed to
operate the various functions and operations of organisation (Strang, 2018). The Aston martin is
having activities and process to enter into a market and effectively managing the relationship
with suppliers and includes negotiation to arrive at the best prices and also includes making
product purchase agreements with suppliers and outsourcing agreements to facilitate support for
logistic activity.
Reflection on value chain model
The journey of writing this essay and completing this assignment is full of information and
knowledge that has provided significant amount of knowledge and information about value chain
model. It has been learned by me that value chain model is developed by Porter’s in with the aim
of developing and identifying various activities that are conducted in all organisation with the
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aim of creating value for its customers. The automotive sector of UK is fast growing and rapid
changes and innovation are going n in this sector thus, the organisation selected for this easy is
Aston martin which is a well known and famous brand of exclusive sports cars. It had been
evaluated by me that internal environment of Aston martin also includes a wide range of
operations to ensure the regular supply of its product to provide the maximum value for its
customers. A range of activities are there which facilitates transformation of inventory into
finished products with marinating the cost efficiency in its operations. All these activities are
divided into two categories by the Value chain model which includes a set or chain of primary
and supportive activities.
The main aim of making use of value chain model is to recognise the activities that are
most valuable to the firm and that can be improved to have competitive advantage. I have learnt
that value chain analysis is a tool that helps in identifying those activities and tasks which
facilitates quickly reduction in cost, optimizing effort, eliminating wasteful activities and task
with the aim of increasing productivity and profitability of organisations through better value
creation for customers.
CONCLUSION
On the basis of above report it can be concluded that the internal environment of an
organisation comprises of various activities and operations that are necessary to create value for
consumer. Use of value chain model is made to get a better understanding about these activities
and their role in creating value and providing a suitable product or services to customers. These
activities are classified as primary and supportive activity where primary activity are directly
associated with manufacturing of product while supportive activities are there to assist and
ensure smooth operations of other activities.
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REFERENCES
Books and journal
Passetti, E., Cinquini, L. and Tenucci, A., 2018. Implementing internal environmental
management and voluntary environmental disclosure: does organisational change
happen. Accounting, Auditing & Accountability Journal. 31(4). pp.1145-1173.
Prentice, C., 2018. Linking internal service quality and casino dealer performance. Journal of
Hospitality Marketing & Management. 27(6). pp.733-753.
Mak, A. H. and Chang, R. C., 2019. The driving and restraining forces for environmental
strategy adoption in the hotel Industry: A force field analysis approach. Tourism
Management. 73. pp.48-60.
Hassanien, A. and Dale, C., 2019. Hospitality business development. Routledge.
Grewatsch, S. and Kleindienst, I., 2018. How organizational cognitive frames affect
organizational capabilities: The context of corporate sustainability. Long Range
Planning. 51(4). pp.607-624.
Arnett, D. B., Sandvik, I. L. and Sandvik, K., 2018. Two paths to organizational effectiveness–
Product advantage and life-cycle flexibility. Journal of Business Research. 84. pp.285-
292.
Yang, X. and Weber, A., 2019. Who can improve the environment—Me or the powerful others?
An integrative approach to locus of control and pro-environmental behavior in
China. Resources, Conservation and Recycling. 146. pp.55-67.
Cheah, J., Amran, A. and Yahya, S., 2019. Internal oriented resources and social enterprises’
performance: How can social enterprises help themselves before helping others?. Journal
of cleaner production. 211. pp.607-619.
Landrum, N. E. and Ohsowski, B., 2018. Identifying worldviews on corporate sustainability: A
content analysis of corporate sustainability reports. Business Strategy and the
Environment. 27(1). pp.128-151.
Strang, K. D., 2018. Strategic analysis of CSF’s for not-for-profit organizations. Measuring
Business Excellence. 22(1). pp.42-63.
Tourky, M., Kitchen, P. and Shaalan, A., 2019. The role of corporate identity in CSR
implementation: An integrative framework. Journal of Business Research.
Srinivasan, K. and Jomon, M. G., 2018. Personal Effectiveness and Self-efficacy as Predictors of
Individual Role Efficacy: An Analysis Based on PLS Path Modeling. South Asian
Journal of Management. 25(4). pp.28-53.
Online:
Value Chain Analysis. 2019. [Online] Available Through<
https://strategicmanagementinsight.com/tools/value-chain-analysis.html>.
Aston Martin. 2019. [Online] Available Through< https://www.astonmartin.com/en-us/>.
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