Business Environment Analysis: A Value Chain Report on Next Plc

This report presents a reflective analysis of Next Plc's business environment, focusing on the application of Porter's value chain model. It begins with an introduction to the concept of business environment and value chain analysis, emphasizing the impact of various internal and external factors on an organization's decision-making process. The report then delves into a detailed examination of Next Plc, a British multinational retailer, providing a company overview that includes its history, mission, vision, and business strategies. The core of the analysis involves applying Porter's value chain model to Next Plc, dissecting its primary activities (inbound logistics, production, outbound logistics, marketing and sales, and services) and supporting activities (firm infrastructure, human resource management, technology development, and procurement). The analysis highlights how each activity contributes to the company's overall performance and competitive advantage. A reflection on the value chain model is provided, emphasizing the model's effectiveness in identifying areas for improvement and enhancing business activities. The report concludes by summarizing the key findings and reiterating the importance of analyzing the business environment and implementing value chain strategies to achieve organizational goals and maintain a competitive edge.

Reflective analysis of
businesses
environment

INTRODUCTION
Business environment can be describe as a collection of macro and micro factor that has
impact over organisation as well as its decision making (Babu, 2012). There are various factors
of business environment such as clients, customers, suppliers, technology and so on. Value chain
analysis refer as a process through which primary and support activities for adding value to final
product. Company chosen for this report is Next Plc. This company is offering good quality
fashionable products such as cloths, accessories, footwear and so on. Next Plc company was
established in 1864 and founder of this organisation is Joseph Hepworth. This report includes
evaluation value chain model. It consist analysis of internal environment in order to analyse
primary and supportive activities of organisation.
MAIN BODY
Value chain analysis mode
This model is introduced by Michael Porter and the motive of developing this model is
to analyse and evaluation different business activities. Porter's Value chain analysis model
completely focus on organisational activities as well as systems with service users. This model is
very helpful in analysing those activities of respective organisation that help in creating value as
well as competitive advantage (Belás and et. al., 2015). Value chain model of Next PLC
company will help to analyse its primary and supportive activates that will lead to attaining good
edge over further competitive organisation. This model will ultimately adding value as well as
increasing the profits of company. Value chain model will help in enhancing sales and profits of
organisation by improving its business activities.
This model includes primary as well as supporting activities which is helpful in meeting
with desired goals and objectives of organisation. Both of these activities are further divided into
several activities that will have straight and unintended impact over business. It is important for
Next Plc company to take business decision by considering the impact of these activities on
organisation. Porters has classified value chain analyse model into two different activities such as
supporting activities as well as main activities. In primary activities of this model there are five
different activities. This includes inbound logistics, production, outbound logistics, marketing

and sales and services. Where as in supporting activities, infrastructure of firm, HRM,
technology development as well as procurements. All of these activities are considered as an
essential part organisation. Primary activities of this model will lead to have immediate impact
over production of goods. Maintenance, sales as well as provide support to products and services
which are offered by respective company. Supporting activities is important for business as it
assist primary activities of Next Plc company. Support of these activities will aid in leading
primary activities in appropriate way (Craig and Campbell, 2012). Both primary and secondary
activities will lead to improve performance as well as production of respective company. The
advantage of value chain model is that it is flexible in nature and help management of respective
company to adopt changes in business environment. There are some drawback of this models it
that it has very less or limited experts. This model will not help in enhancing the information
system of respective company.
Company overview
Next Plc company is one of the leading organisation that is rendering its goods as well as
services to several part of the world. This is British multinational company which is dealing in
retail sector. Next Plc company is designing and developing high quality products such as cloths,
shoes, heels and other footwear as well as different types of fashionable accessors. This company
is offering products for women, men as well as children. This is UK based company and its
headquarter is located in Enderby, Leicestershire, England, United Kingdom. This company was
developed in 1864 and founder of Next Plc company is J Hepworth and Son (Next Plc, 2020). It
has open first Next Plc store for women products on 12 February of 1982. Next Plc company
has 546 store all around the world till 2015. This organisation is developing its products and
services by considering market trends as well as needs and requirements of service users.
Objective and business strategies of Next Plc company includes improvement in products ranges
as well as sales of organisation (About Next Plc, 2020). This company is focusing on enhancing
experience as well as satisfaction of customer. This organisation is increasing the number of
profits though online sales.
Mission of Next Plc
The mission statement of Next Plc company includes that it want to become the natural
choice of the retailer. This company want to expand its business in function in different parts of
the globe as well as improving customer experience.

Vision of Next Plc
Next Plc company vision is to help its employees in order to improve their performance
as this will help in achieving excellence in business. This company want to continuously increase
it business operation in order to set standards for fashion industry.
Internal environment analysis with Value chain model
There are several factors of internal business environment that have influence over
corporate practices and its performance. This is very essential for firm to evaluate and examine
all of these factors to accomplish activities of firm in appropriate way. Porter's value chain model
is developed in 1985 and the motive of developing this model in to provide guidelines to
organisation as well as manage its activities in correct manner.
This model will help Next Plc company to focus on organisation system as well as activities in
order to meet with the needs to clients and customers (Glova, Sabol and Vajda, 2014). Porter's
has classified value chain model into two parts which is primary and supportive actives. All of
these activities are mention in below in respect to Next Plc company.
Primary activities of value chain model
This includes various activities which play an essential role in providing products and
services to customers. These activities will lead to have direct impact on performance as well as
productivity of organisation. Inbound logistics – In this activities respective company will be receiving, storing,
inventory control as well as scheduling transportation. Inbound logistics includes the
overall process thorough which respective company in collecting and storing its raw
material (Epifanova and et. al.,2015). Next Plc needs to collect high quality raw material
for develop high products so it is essential that this company is performing inbound
logistics activities in effective manner. Production – This can be describe as process or method though which respective
company is converting its raw material into finished goods. Production activity includes
transformation of inbound goods to outbound products. It essential for Next Plc to usage
correct as well as appropriate products in order to attract large number of customers. Outbound logistics – This activity of organisation is related to the delivery of finished to
to targeted customers. It is essential that Next Plc company to offer its developed

products to service users to fulfil their requirement. Outbound logistic activities includes
storage or inventory of finished goods, delivery of products, distribution, transformation
and so on. Next Plc company needs to maintain warehouse as well as handle material in
effective manner in order to provide products to different customers. Marketing and sales – This is one of important activity of organisation that will help in
achieving desired goals and objectives. It is essential for Next Plc company to conducting
its marketing and sales activity appropriately. Marketing as well as sales activity includes
advertisement, promotion as well as sales of products to targeted service users. This
activity will lead to have direct impact over profitability of Next Plc company. Services – This is also primary activities of organisation as this will help in developing
and maintaining strong relationship with customers (Hillary, 2017). It is essential for
Next Plc company to provide effective services as well as full fill after sales needs of
customers. This will lead to building strong brand image in market.
Supporting activities of value chain mode
There are different supporting activities and these activities provide support to primary
activities. Supporting activities in context of Next Plc company is mention below in detail. Firm infrastructure – This includes various activities such as planning, legal, finance,
quality management and many more. Firm infrastructure play a very supporting role to
primary activities of organisation. This will help in manage as well as maintain daily
activities of company and help in conducting it effectively. Human resources management – Human resource is crucial part of organisation as this
is related to staff member working in organisation. Next Plc company needs to manage
its human resource activities in effective manner as this will help in achieving desired
goals and objectives (Hilton and Platt, 2013). Human resource management activities in
majorly related to recruitment, development, compensation of employees. Technology development - It is significant for respective company to use new and
advance technology in its business process as this will help in achieving success in
organisation. Technology development activities of organisation will provide support to
all primary activities of Next Plc company.

 Procurement – This activity is related to the raw material, servicing, building, machines
and so on. Next Plc needs to focus of procurement activities as it support in development
of products as well as help in effective functioning of daily business activities.
Reflection on Value Chain model
While understanding and determining the internal environment of business as well as
value chain model I have analysed that this is very effective model. I have identified that Porter's
value chain model is beneficial for organisation as this will help in achieving desired goals and
objectives. There are two major activities such as supportive and primary activities. It is very
important for respective company to identify and evaluate all primary and secondary activities of
organisation so that company can gain competitive advantage over other rival companies. As per
I have analysed that by implementing value chain model in organisation, it can enhance its
activities as well as performance. Primary activities will help Next Plc company to purchase
right quality product for producing as well as outbound of final products. I have determined that
marketing and sales activities of respective company will lead to increase its profits. Though this
study I have understand that supporting activities of Value chain model will lead to provide
support to primary activities. With the help of primary and secondary activities respective
company will be able to conduct business activities in effective and efficient manner. It is
significant for company to meet with the needs and want of customers in order to enhance their
experience. This will help in developing better relationship with customers as well as creating
strong market image. Thought this study I have analysed that happy customer will help in
enhancing the sales or profits of company. Value chain model is effective way though which
optimum utilization of all resources as well as manage its business activities.
CONCLUSION
As per the above report it has been summarised that it is essential for organisation to
analyse business environment. This play a crucial role in performing business task as well as
achievement of desired objectives. Value chain model is established for supporting as well as
guideline company to leading its actions in appropriate way. This model in very helpful for
organisation to increase its business activities as well as meet with the needs of customers. This
model includes primary and supporting activities that will lead to analysing internal business
environment. Though this company will be able to get complete in sight about organisation as

well as its activities. So implementation of Porters value chain model will help company to gain
competitive edge over other rival companies.

REFERENCES
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Online
Next Plc. 2020. [Online]. Available though:<https://www.nextplc.co.uk/about-next/our-history>.
About Next Plc. 2020. [Online]. Available though:<https://www.nextplc.co.uk/about-next/at-a-
glance>.