Value Chain Model of Marks and Spencer


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Question :

This assessment will cover following questions:

  • Marks and Spencer is a retail company of UK. Examine the Value Chain model proposed by Porter (1985).
  • Select and determine a business familiar to you that operates in UK.
  • Apply the Value Chain model to analyze the internal environment of Marks and Spencer.
  • Review the usefulness of the Value Chain Model in helping you to understand the internal business environment of Marks and Spencer.




Answer :
Organization Selected : Marks and Spencer


The business environment is the expression of all the external factors that affect the business. The business environment can also be expressed as the environment in which a company or an organization run its operations. In this report Marks and Spencer(M&S) is taken as an organization. Marks and Spencer has an established business in retail sector. This report will express the complete brief about Value Chain Model proposed by Porter. The internal environment of the organization will also be analysed in this report based on the Porter value chain model. This report gives the proper aspect to analyse the business as per the value chain model.


Value Chain Model

Value chain model of emphasis. on the suitable structure of the business that can make a space for the company's products in the market (Decock and Spiessens,2017). This model of value chain helps the industry in establishing the most suitable space for the company's products or services in the market. Value chain model focuses on the structure of the organisation as well. Organisational structure play the major role in the productivity of the company. Strong operational structure always put a positive impact on company's productivity and performance. Value chain models provide the base to the company for analysing its internal capabilities regard to the operations. All the factors that create its space in the process of sale of the company's products are a part of this value chain model. Porter value chain model is divided in two parts. One can be expressed as the primary activities and the other one is more defined as the support activities.

Primary Activities:

Primary activities are concerned about the selling of the company's products or services (Simatupang, Piboonrungroj and Williams, 2017). Primary activities helps in establishing the most suitable base to sale the company's products in the market. Primary activities of value chain model involve Inbound Logistics, operations, outbound logistics, marketing and sales and services . All the primary activities related to the value chain model are totally focused about making the most convenient base to reach the target consumers of the company's products or services.

Support Activities:

Support activities are more about the company's operational structure. Support activities focus totally on the company's structure and its related resources (Gómez-Luciano and, 2018). Support activities comprise with Firm infrastructure, Human Resource Management, Technology Development and Procurements. All these activities emphasis on the advancement of the company's structure or resources to provide more suitable base to the company for conducting all its operations in the most productive way possible.

The value chain model contributes to the organization in taking all the competitive advantages for the company in the market by analysing all the internal factors as well as external factors associate with the business. All the aspects of the value chain model are focus more taking all the competitive advantage for the company in the market. Competitive advantage give more space to the company in the market to expand its customer base and generate more profits. Value chain model strengthen all the internal and also the external aspects of the company's operations and improve the efficiency of the company.

Marks and Spencer

Marks and Spencer(M&S) is a public limited company established in 1884 by Michael Marks and Thomas Spencer. Head quarter of the company locate in Westminster, London. M&S is a major British multinational retail brand (Hernandez Serrano, Greenhill and Graham, 2015). M&S serves worldwide in almost 1463 locations as per the latest data. Archie Norman is the current chairman of the company. Steve Rowe is positioned as the Chief Executive in the company. Marks and Spencer is well-known brand in clothing brands, food products and home products. M&S is listed in London Stock Exchange and it is also a part of FTSE 250 Index. M&S currently owned 959 stores across the UK that include 615 stores deals only in food products. M&S provide all the major brands related to all the segments it offers. M&S was the first retailer of British in 1998 to make the pre-tax profits of £1billion. After the satisfying domestic growth management of M&S planned to expand its business further. The company initiated its expansion process by opening seven stores in Canada in the year 1973. M&S becomes the global brand today with operating in almost 1463 locations across the globe. As per the present data Marks and Spencer is providing employment to more than eighty thousand people worldwide. Marks and Spencer restructured its entire operations time to time as per the requirements of the business and also to provide the best services and products to all its potential consumer base. As per the emerging trends and requirements of the consumer's management of the Marks and Spencer also upgraded the infrastructure of the company and the services as well. The company initiated its online services in the mid of 2000. Such improvements in its structure impacted the profitability of the company and also enhanced the potential consumer base for the company.

Internal Environment

The internal environment expresses the company's internal structure based on the company's operations. Marks and Spencer internal environment can be expressed in a following way.

Primary Activities:

The primary activities of M&S can be expressed as follows.

Inbound Logistic:

Inbound logistics involves the supplier of all the products of the M&S. Inbound logistics is all about receiving all the products from the suppliers (Rasheed and Rasheed, 2015). It also includes the maintaining and storing of all the stocks in the company's premises. M&S structured a well efficient policy for all its inbound logistics that involve all the brands of M&S. Inbound logistics played the very crucial role in the operational structure of the Marks and Spencer.


Marks and Spencer is a retail company so it runs not any production activity as its operations but it takes care about the production activities of all the brands associated with the M&S. Production plays the very crucial role in the quality of the products (Kumar and Rajeev, 2016). M&S is a very well-known brand of selling high quality clothing, food and home products. Quality of the products also impact the brand image of the company and the imerging image of the M&S in the retail sector depicts the fact that the quality of all the products of M&S are satisfying as per the consumers requirements.

Outbound Logistics:

Outbound logistics involves the supply of all the products of Marks and Spencer. Based on the value chain model Marks and Spencer maintained the well efficient supple chain management system. Marks and Spencer sale all its products online as well. The company maintained the efficient supply chain for all the online orders and all the offline as well. Company carry the system to deliver all the products in the least time possible so the consumer can fulfil all the needs.

Marketing and Sales:

Marks and Spencer has the well efficient marketing team. Value chain model has the strong importance towards the marketing of the products. Marketing team of M&S always innovate with the multiple marketing channels. M&S use various medium to advertise all its products which include social media marketing campaigns, radio, television and multiple modes of marketing that generate the most profitable result not just in the sales of the products but because of that company could shine its brand image.


Management of M&S focus a lot on the services related to all its products. Services becomes the very crucial aspect of consumers satisfaction. The company carry to approach to resolve all the issues of consumers within the stipulated period of time. Well efficient services becomes the major reason behind the success of the company in the retail sector.


Marks and Spencer management always improvised in the infrastructure of the company. Company always focused on the infrastructure improvement (Anselmsson and Bondesson, 2015). Infrastructure is not just about the construction of buildings but company tried to install all the resources that could improve the efficiency of the company. Infrastructure plays the major role in company's smooth operations process. Management of the M&S maintained the well efficient operational structure based on all the requirements of the company as per the latest trends.

Human Resources:

M&S has a worldwide business operation that requires sufficient number of employee base. The company currently providing employment to more then eighty thousand peoples across the globe. M&S sustained its human resources based on the company's requirements. Marks and Spencer also focused on improving the skills of all its work force. The company run timely programs that guide all the employees of the company about all the latest inclusions in the retail sector that also did put a positive development in the productivity of all the employees.

Technology Development:

M&S practices a good policy of involving all the latest technology in the operational structure of the company (Romero and, 2016). Technology upgraded the operational capabilities of the company that resulted in the quick practice of all the activities of the company's operations. The company included all the latest technology time to time as per the policy of the company.


M&S Management always look forward to the maintenance and up-gradation of all the company's resources. The company framed a policy to maintain all the infrastructure and also to install all the latest development that can ease the company's operations.


The value chain model played the major role in the growth process of Marks and Spencer. The company expanded its business worldwide with the clear policy frame based on the value chain model. Management of M&S involved all the latest practices in the operations of the company that provided major growth perspectives to the company. Value chain model also heled Marks and Spencer in cope-up with all the requirements of the consumer which also contributed in consumer satisfaction. Satisfaction of the consumer's play the major role in the brand image of the company. M&S could expand its operations across the world in a very reasonable period of time and the good practices of the model is probably one of the major reason behind such expansion. Value chain model also instructed the management of Marks and Spencer in the up-gradation process of the company. With the clear understanding of the models the company could upgrade its structure with all the useful inclusion of technology and other infrastructure as per the need of the company. Value chain model provides the systematic analysis of the company's requirements and the available resources of the company. M&S could utilise all its resources in the optimum way possible that also improved the work efficiency of the organisation. As per the requirements of the company M&S timely run all its campaign related to the recruitments of the employees. Based on the model of value chain Marks and Spencer HR team maintained the good policy of recruitment as per all the needs and demands of the company. Services becomes the major image of the company for the consumers. M&S carry the policy of consumer satisfaction. The management of the company put satisfaction of the consumer's at its utmost priority based on the value chain model. This practice of consumer satisfaction policed the brand image of the company that resulted into increasing sales figures of company's products in all the segments. Clear knowledge and practices of the value chain model provided the sustainable environment to the company across the globe and also provided major growth and expansion perspectives to the company.

Also Read -Value Chain Model Analysis


This report concludes with all the essence of the business environment. The role of the business environment in the operational structure of the company has concluded in this report. All the important aspects of the value chain model has been concluded briefly in this report. Impact of the value chain model has been concluded in the detail in this report. The internal environment and its related aspects have also been concluded in this report. Detailed analysis of value chain model related to the company's internal environment has been concluded in detail in this report. Reflection has also been concluded in this report based on the outcomes of the operational practices of value chain model. All the generated outcomes from the inclusion of value chain model in the company's operations has been concluded in detail in this report.To get more details about online assignment help ask our experts.

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