essay

Michael E. Porter devised theoretical frameworks for analysis both an organisations external environment (the Five Forces Model) and internal competencies (the Value Chain). Apply the two models to an organisation of your choice and conclude briefly outlining how this analysis might inform the development of a successful strategy for the organisation going forward.

American Michael Porter was born May 23rd 1947. After initially graduating in aeronautical engineering, Porter achieved an economics doctorate at Harvard; staying at the university and becoming a Professor there. He is a leading authority on company strategy and the competitiveness of nations and regions. Michael Porter’s work is recognized worldwide, renowned for his theoretical frameworks for analysis both an organisations external environment (the Five Forces Model) and internal competencies (the Value Chain). Michael Eugene Porter, is the chair for Harvard Business Schools program dedicated for newly appointed CEOs of very large corporations.

Marks & Spencer plc, locally known as Marks and Sparks, or simply, Marks is a major British multinational retailer, with 703 stores in the United Kingdom and 361 stores spread across more than 40 countries. Marks specialize in selling affordable, good quality clothing and luxury food. Marks & Spencers was founded by Micheal Marks and Thomas Spencer in the late eighteen hundreds. Marks and Spencers became the first British retailer to make a one billion pre-tax profit in 1998.

Marks & Spencers an organisation applying both of Michael E. Porters theoretical frameworks, the Five Forces Model and the Value Chain. The Five Forces Model is a tool, which is quite simple but very effective, and powerful, it helps interpret where...

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...velopment – Technological development is vital, organisations need to maintain the same level of technology as other rival companies, for example computerized self checkout machines; customers might find it more convenient for them, a easy hassle free check-out procedure without any human interaction.

Infrastructure – These are a company’s support systems, and the functions that allow it to maintain daily operations. Accounting, legal, administrative, and general management are examples of necessary infrastructure that businesses can use to their advantage.

Porters Value Chain model and his Five Forces theory, are so effective and work brilliantly as portrayed in Marks and Spencers. He has created a foundation for the organisation and a strategic organised plan, which organisations like Marks can thrive from, less mistakes can also be made through the process.