Report on M&S Global Value Chain Configuration - Unit 5L4Z0025_2122_9F

This report examines the global value chain configuration of Marks & Spencer (M&S), referencing Porter's value chain model to analyze primary activities such as inbound logistics, operations, outbound logistics, marketing & sales, and service, as well as support activities. It explores how M&S configures these activities globally, including the use of joint ventures, foreign direct investment (FDI), and contract manufacturing to establish a presence in host locations. The report emphasizes the importance of global value chains for companies like M&S to gain profit from the design, manufacture, and export of specific commodities, highlighting the strategic decisions involved in international production, commerce, and investment. The analysis considers how M&S structures its operations abroad through contracting and offshoring, driven by globalization, and assesses the effectiveness of joint ventures as a key method for maintaining global value chain activities.

Global business
configuration

Table of Contents
1. For a firm of your choice explain through reference to theory . &other secondary sources the
different activities within its global value chain &how these are configured...............................................3
2. Explain through reference to theory, a method the firm used to establish one or more global value
chain activities within a particular host location e.g. words) Joint Venture, FDI, contract manufacturing. .7
References.................................................................................................................................................10

1. For a firm of your choice explain through reference to theory .
&other secondary sources the different activities within its
global value chain &how these are configured
Porters value chain model
In order to address the requirements of the organization maintain all the sources &
conduct all the activities in order to manage as per to follow the global value chain, it is
necessary to apply Porters value chain model which can useful to manage the various activities
within the global value chain (Reddy, Chundakkadan and Sasidharan, 2020). Porter's Value
Chain determined that how system really works & how inputs can effectively become consumer-
purchased outputs. Marks &Spencer is the most popular retail organization in United Kingdom
which mainly operating their business all around the globe. As per to maintain every activities,
manager of the Marks & Spencer utilized this value chain model so that company can effectively
manage their performance level globally. With the help of this approach, Porter proposed a chain
of operations typical to all businesses, whereby Porter divided into primary &support activities
which are discussed below in context of Marks & Spencer -

Figure 1Porter's Value Chain, 2019
Porter created a summary value chain which mainly considered by most of the
organizations including Marks &Spencer to look at all of their operations & see just how they're
linked. Because the approach value chain operations are carried out influences costs & revenues,
this instrument can assist the company in order to identifying the key success factors for any
company. Some appropriate activities are considered by Marks & Spencer which are as follows-
Primary Activities
Inbound logistics – Internally, they are all the mechanisms that deal with obtaining, organizing,
&transferring inputs. Your supplier connections are critical to generating value in this situation.
M&S maintains complete openness about the provenance of input products &materials
throughout the incoming logistics process. The corporation begins to construct its supply chain
by selecting dependable suppliers & producing high-quality goods. During warehouse
operations, replacement is completed quickly (Masiero and et. al., 2017).
 Relationship characterized by trust &comprehension that is long-term & non-contractual.

 In terms of product definition, material management, quality control, &so on, an
integrated business process with sources is required.
 An information &knowledge should be shared across the supply chain.
Operations
These are the operations that convert inputs into outputs that are then sold to clients. Your
operational systems generate value in this area. In the operating process, there is strict quality
control. Monitoring &managing items from raw materials to completed goods by dealing directly
with producers rather than through intermediaries. The actions related to the manufacturing
&assembly processes are inferred. M & S employs so-called innovative packaging technologies,
which help to maintain the food safety &quality goods in transit.
 Subcontracting manufacture to vendors under highly strict terms
 The supplier was responsible for stockholding charges.
 Collaboration between franchises
Outbound logistics
These operations are responsible for getting your product or service to the consumer. These
systems include things like collecting, storage, & distribution, &they might be online or offline
to the company. Marks & Spencer information regarding stock availability & delivery is provided
to retailers & logistics. The volume of output provided to retail shops has been anticipated in
advance (Liu and et. al., 2018).
 franchise arrangement in a foreign country such as Greece, Indonesia, Thailand, or
elsewhere
 spot for a Good Store
Marketing &sales

With the help of this method company can effectively manage their marketing & selling activities.
Marks &Spencer improve their value because value comes from the benefits like -
 Relaxing shopping experience
 Good value for money items of high quality
 diverse variety of goods &services
Service
In order to manage services, Marks and Spencer take and appropriate actions. Marks & Spencer
utilize the value chain model to uncover ways to collaborate across different departments in the
chain, allowing them to add tremendous value to their goods &maintain competitive advantages.
 Providing the best level of client service
 Methods of sourcing
 an Investment &consumers' faith in the company
 Maintenance of high quality
 Capability to supply high-quality, dependable &consistent products

2. Explain through reference to theory, a method the firm used to establish
one or more global value chain activities within a particular host
location e.g. words) Joint Venture, FDI, contract manufacturing
It is necessary for the company is to maintain their global appearances and also enhance the
effectiveness of the global value chain. It is determined that value chain is considered term which
refers to the whole set of specific operations that Marks and Spencer do to deliver a product from
conception to end usage and well beyond. Marks and Spencer manager need to maintain their
designing, manufacturing, transportation, marketing & customer service so that company can
easily manage their global operations and manage the value chain activities. Marks and Spencer
need to maintain the global value chain activities with the help of global value chains are
becoming increasingly important as evidence of how many aboard countries can gain profit from
the specific conception, manufacture & export of a specific commodity (Nguyen and et. al.,
2020).
In order to maintain the global value chain activities, it is necessary for the Marks and
Spencer to maintain some activities like international production, commerce & investing all
these activities are considered as the most specific area of corporate about so global supply
chains in which the different phases of the promotional and manufacturing process are spread
over many nations. Marks and Spencer manager manly motivated to structure their appropaiet
operations abroad through contracting & offshore of activities as a result of globalization.
In order to maintain global chain activities, Marks and Spencer needs to adopt some
appropriate activities which are discussed below -
Joint Venture
Joint venture is considered as the most effective method which refers that when two or
more firms join forces to establish a new company, it is also called as an international joint

venture. The businesses stay distinct, but share costs, profits & losses on the basis of these terms
of a joint venture agreement. As per to manage the global value chain, it is not mandatory to
exporting is not the only option company can also considered as international joint ventures
which is considered as another option (Wölfel, 2017).
FDI
It is a cross-border transaction wherein an investor from one country has a long-term
stake in and considerable influence over a company from another country.
A foreign direct investment is famously known as the FDI which can considered as the most
effective method to maintain the global chain activities. In context of this method, the purchase
of a stake in Marks and Spencer by a corporation or investor based outside of the country's
boundaries. In general, the word refers to a commercial decision to buy a significant share in or
buy a foreign company completely in effort to expand its activities to a new territory.
Contract manufacturing
This is also containing as the most effective method which can maintain some specific
business activities and involved that when a manufacturing business outsources part of its
production process to a third party, this is also known as the contract manufacturing.
Companies employ contract manufacturing to save money on labour, equipment, and other price
increases. A contract manufacturer is a company that gets into an agreement with a company to
effectively make components & systems for that organization (Jovanovic and Morschett, 2021).
On the basis of above discussed method, it is determined that joint venture is considered
as the most effective value chain method which can useful to maintain the global value chain
activities of the Marks and Spencer. It is determined that joint venture is a partnership between
two or more companies that pool their resources and skills to pursue a common objective. The
company's risks and benefits are also shared. The purpose to utilizing joint venture is that it can
provide various benefits to the company such as shared investment , shared expenses technical

expertise & know-how , new market penetration , new revenue streams, intellectual property
gains , synergy benefits , enhanced credibility, barriers to competition and improved economies
of scale.

References
Jovanovic, J. and Morschett, D., 2021. International resource configuration of product-related
services in the digital age–An analysis of its antecedents. Journal of Service
Management.
Liu, H., Li, J., Long, H., Li, Z. and Le, C., 2018. Promoting energy and environmental efficiency
within a positive feedback loop: Insights from global value chain. Energy Policy, 121,
pp.175-184.
Masiero, G., Ogasavara, M.H., Jussani, A.C. and Risso, M.L., 2017. The global value chain of
electric vehicles: A review of the Japanese, South Korean and Brazilian
cases. Renewable and Sustainable Energy Reviews, 80, pp.290-296.
Nguyen, H.M., Onofrei, G., Truong, D. and Lockrey, S., 2020. Customer green orientation and
process innovation alignment: A configuration approach in the global manufacturing
industry. Business Strategy and the Environment, 29(6), pp.2498-2513.
Reddy, K., Chundakkadan, R. and Sasidharan, S., 2020. Firm innovation and global value chain
participation. Small Business Economics, pp.1-21.
Wölfel, K., 2017. Approaches for Automating ERP Category Configuration for SMEs.
In Enterprise Information Systems and the Digitalization of Business Functions (pp.
66-98). IGI Global.