Business Environment and Its Related Aspects

University: Bloomsbury institute london

  • Unit No: N/A
  • Level: High school
  • Pages: 10 / Words 2521
  • Paper Type: Essay
  • Course Code: LSBM103
  • Downloads: 681
Question :

This assessment will cover following questions:

  • Marks & Spenceris a retail industry in UK. Determine the Value Chain Model proposed by Porter (1985).
  • Select and explain a business familiar to you which operates in the UK.
  • Use the Value Chain model to examine the internal environment of your chosen business.
  • Review on the usefulness of the Value Chain Model in helping you understand the internal business environment of your chosen company.


Answer :
Organization Selected : Marks and Spencer


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.


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.

1. 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.

2. 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.

3. 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.

4. 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..

5. 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.

6. 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.

7 Secondary Activities:

Secondary activities can also be called as support activities. It is the activities to support the primary activities of the company.

8. 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.

9. 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.

10. 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.

11. 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.

a) 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.

b) 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.

c) 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.

d) 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, 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.

e) 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.

f) 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.


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.

Also read:- Impact of Government on The Structure and Operation of a Business Organisation


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. To get more details about online assignment help ask our experts.


  • 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. In2016 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, 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.
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