Internal environment is a component of business environment (Cheung and Pires., 2015), it is composed with the various different element which is already present in the organization.
This report take John Lewis company for case study, which is U.K based company. This report will describe value chain model which is introduced by the Porter. It will also describe a business of the John Lewis which they operate in UK this report will provide overview of their business. It will use value chain model and explain internal and external environment. In the end this report will provide reflection of whole report on business environment.
Explain value chain model by Michael Porter and explanation of primary activities in this model
Michael Porter's Value Chain
Value chain is the combination of the organizational system which is uses to make profit. Giving the impotence to the value chain management Porter has make tool for the analyze, which is known as Porter's (Cho and Lee., 2017). This tool can help John Lewis to take competitive advantages in the market, and they can show their presence in the market and increase their brand name. It helps to define what is companies standing and how they can take competitive advantages in the target market.
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Porter's break value chain analysis distributed I the 5 primary activities. Then the author convert them into the 4 activities which assist to support activities which is primary. The primary activities of the value chain are-
In this category of the business includes warehousing and inventory control on the companies row material (Drogalas, Karagiorgos and Arabatzis., 2015). This also helps to cover and make good relationship with suppliers. For example, A e- commerce companies inbound the logistics world be storing and receiving from the manufacturer of the product and then it plans to sell it to the customers through their e- commerce side.
operations of the company include the conversion of the row material into the finished goods or any kind of service. This also includes the changing all the companies input and make them ready as a output. For example - John Lewis company purchase their row material from the suppliers and after receiving the row material they convert row material into the finished good, so they can sell it to the customers.
All the activities in the companies workplace distributed, and they make final goods to the customers and the customers of the companies considers as a outbound logistics. This can also induce the distribution and products delivery but also include the dispersion system and storage and can be the external and internal.
Marketing and sales
Marketing and sallling scheme to enhance the target proper consumers and visibility of the customers â like promotion, advertisement, and the pricing strategies- are included in the sales and marketing of the company. Basically we can say that all the activities which can help company to attract customers to buy their product and services (Ketata, Sofka and Grimpe., 2015). For example- company give advertisement on T.V so customers can attract toward the product.
This includes the activities which helps to maintain the companies product to enhance the experience of the customers. This includes maintenance of the product, refund, customer services, exchange etc. this all activities come under the services and it plays important role for the company and help to provide satisfaction to customers.
Description of the John Lewis company business
John Lewis & partners are the chain of departmental stores, and they are operating this chain thorough the U.K and their headquarter is in U.K. Concession s of this company are also located Australia and Ireland 's republic. This chain is a worker closely-held multiple company which is known by a John Lewis Business partnership. This company was found in 1565 and partnership was created by the Swpedan Lewis. Currently they are the largest co-operative company in the United Kingdom. This chain has been secure or promised and to never knowingly undersold- it will forever at the lowest match a prices offers by the national high street competitors which helps to attract customers in their departmental stores.
This companies first store was opened in London in 1864 and now they are having 51 stores till; now in the U.K and more than 38000 employees are working in their departmental stores. They are also having online website where p[role can order their product from their home and company will deliver customers product directly to their home (Kraja and Osmani., 2015). This help company to gain competitive advantages, and they are a famous in all over the U.K. As of October of the 2018, the John Lewis Partnership has been operated 52 John Lewis stores from the briten. The Oxford Street store are really staring in the 1864 (rebuilt in the 1953 following epoch-making bomb harm in War), is the astronomical run by the proper partnership.52 out 35 of the stores are tralatitious stores and 12 stores are the 'John Lewis at home' shops.
Use of value chain model to examine inner environment of the John Lewis company
Internal environment is a component of business environment, it is composed with the various different element which is already present in the organization. This is impotent for the John Lewis company to make their internal environment good, so they can take competitive advantages in the market. Internal environment can have huge impact on the company and this can be affected by the Porter's value chain, and they can understand what are their weakness and strengths.
Primary activities of the company
Â this is the procedure of the company which help to convert row material into the final good which company can sell to the buyers (McFarlane and Curran., 2016). This covers the physical creation of the product , transportation of the product and selling of the product and many more. Those five activities are the inbound logistics, outbound logistics, operations , marketing and selling and services (John Lewis partnership annual report, 2019).
Inbound logistics are where purchases of the John Lewis company like row material store in their inventory and company. It effect the companies internal environment and employees get row material according to their needs. Company have make good relationship with the supplier, so they give those products in low prices and John Lewis company sell those products on their stores in affordable price range to the customers, and they can satisfy their demand and needs.
Operational of the companies such assembling of the product, printing all comes into the operation of the company. Employees of the John Lewis use the company resources to convert them into the final product so company can gain competitive advantages. John Lewis company prefer limited resources in their inventory and their employees pack the material and sell it on their departmental stores. They put the label of their company and sell those products by their laboal.Â
Outbound logistics are customers of the John Lewis company (Pati And et.al., 2018). After the packing and labeling of the product they bring those products to their department all stores and sell their finished goods and customers give money in exchange for the product. This helps customers to fulfill their needs and demand. Main motive of their business is to satisfy customers demand with the quality product and low prices. They are using low price range strategies in which customers get quality products in low price range, so they can buy the product and satisfy their demands.
Marketing and selling
John Lewis company is promoting their product in the social media applications like , Facebook, twitter, Instagram etc. this is main strength of this company (Qiu and Chang., 2019). They are targeting to the people who are interested to buy their product and this platform increase their company to take competitive advantages, and they are also making their business successful. T.V advertisement also help John Lewis to gain their customers locality they are giving advertisement for their stores in the famous channels of the U.K and this is incensing their popularity in the market. In their online sides they also provide discount and sales which helps to increase their customers and most of the prole in the United Kingdom buy their product from the online side of the John Lewis (John Lewis partnership, 2017). Customers get huge discount on the products, and they get high quality product on the low prices ranges. In offline stores also they give exciting offers to the buyers, so they can buy expensive quality of the products on the low prices, for the promotion they call celebrities on their stores so prole can visit their stores and buy product from their stores.
Online stores of the company have option to talk with the customer care, customers can call to the John Lewis company and customer care of they company will help them to solve their quality. They give limited time change offer to the customers. If customers found and problem or product is not working after the purchase then they can change their product with the another product. If they find that product is having quality issue then they also offer services such as refund of the product.
Reflation of report
Value chain management model help me to understand internal business environment of the John Lewis company and I also understand what are their weakness and their strength. Company strength is their advertisement and customers satisfaction (Sloberg and Nilsson., 2019). They are promoting their product in the online and offline both which increasing the numbers of the customers in the stores recently they have stock up for the environmentally savvy shoppers on the occasion of Christmas in which company has stock up on the loose vegetables with the environmental-savvy shoppers. Customers can buy vegetables without any packing, so they can check the quality of the veritable, Which shows their internal environment of the John Lewis company. Value chain model help me to understand that who are their supplier and how they store their resources in the inventory. John Lewis company stores are well decorated and good environment so workers of the company can work with their full potential and give their best. John Lewis company operation are well maintained which shows that company is their employees and well-trained, and they all kn ow what their responsibility and work in the company. If we talk about customers, company is mainly focus o the customer's satisfaction by providing them low price products. Internal environment of their store is warm and better so this attracts customers to attract toward the shop, and they can get better experience in the shopping of the products in their stores (Wahab, bin Mohamad Shah and Faisalmein., 2019). This model help me to understand services of the John Lewis company which is impotent for the company to satisfy their customers and come to know that they are providing best services to the customers and it is helping customers to solve their problems and their quires. They can talk with the customer care of the company if they are having any problem, if they order any product from online store of John Lewis company then they can talk with them and change those products on their offline stores and one of the best thing is their refund policies. This help company to increase their reputation in the market.
As per the report has analyzed John Lewis company for the case study, which is U.K based company. This report has been described value chain model which is introduced by the Porter and explained the primary activities of the company. It also has been described a business of the John Lewis which they operate in U,K. This report has been provided overview of their business and brief description of the company. It has been used value chain model and explain internal and external environment of the John Lewis company. In the end this report has been concluded reflection of Value change model report on business environment of the John Lewis company.
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