Management

Operations Management

Customer Benefits Packages and Value Chains

Introduction

This report discusses the products & services of two different organizations. One of them is serving products and the other is serving services. The two different organization selected in this report are Dominos and Disney’s grand Californian Hotel. Dominos offers products to its customers while Disney’s grand Californian Hotel delivers its prominent services to its customers. In hotel industry the price, size, quality and quantity of the services are affected by the operation management system. In this report, the Customer Benefits Package which is offered to the customers is being contrast and compared (Vlajic, et al., 2012). The strategic vision, competitive priorities and the strategy of both the organizations will be defined in different manner. Further, there is another comparison to be done in the value chain design and the structure of both the organizations from customer’s and management’s perspective. Thus, this report helps in finding the most appropriate operation management function for gaining organization success.

Discussion

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Similarities and differences in Benefits Package

Customer benefit package is interconnected to operation management. It involves both tangible and intangible goods & services. The customer benefit package states that the basic offering which any organization gives to their consumers to attract them and to meet the desired satisfaction level.  Dominos is the leading pizza delivery company in the world. It has a large customer base and has always cared for its customers keeping them as their priority. The strategic vision of Dominos is to serve its customers with the best of its products, and with economical prices (Bartleby, 2006). On the other hand, the strategic vision of Disney’s grand Californian Hotel is to serve its guests with the best and excellent services.  Dominos has an attractive Customer Benefits Package for its customers like it offers a wide range of fresh and tasty pizza’s to its customers.  While on the other hand, Disney’s grand Californian Hotel is the most famous hotel in the world to stay with. It gives it customers an overwhelming experience which cannot be easily vanished from their minds. It is also effective to develop brand value and image of the company among the customers.

Dominos have given free Wi-Fi services to its customers so that they can access the internet on their visit. on the other hand, Disney Hotel have also wifi and other services been offered to the customers like Disney Character Dining, Disney Character Wake-up Calls, etc (Sehlinger, et al., 2016). Dominos have offers for its customers like Free delivery service, 30 minutes delivery guarantee, 15 minutes take-away guarantee, Credit card payment for the online orders, and exciting offers for purchases in future. Further, the strategic position and priorities of dominos is to focus on establishing a restaurant that is friendly and welcomes its customers, provide them economical menu and in contrast to it, Disney’s grand Californian Hotel focuses on attaining the competitive edge by letting its customers experience the most prominent services (Getawaytoday, 2013). Dominos has revised its menu after keeping in mind the needs of the youngsters and have given special offers on festivals on the other hand, Disney’s grand Californian Hotel have given more prominent services such as themed pools with attractive water slides, outdoor hot tubes, dry cleaning service, workshops of arts and craft for children, and computer games and movies.

In addition, Disney’s grand Californian Hotel also provides early reservations to the theme park and other services like customer care services which are available 24*7 that helps in having an insight on the issues the customers are facing. Whereas, dominos provides different kinds of pizzas as well as calzones, burger pizzas, chocolate mousse etc. It is identified after analyzing that customer benefit package adds value to the products and services which are offered by both the organization to their customers.

Similarities and differences in the Value Chain Design and Structure

The value chain design and structure of a manufacturing and a service company is alike in a way of enhancing the supply chain and delivering the goods to the consumers on time. But there are some differences also between the value chain design of Dominos and Disney’s grand Californian Hotel. The market demands in both are based on different factors. In Disney’s grand Californian Hotel, the market demand is based on factors such as season, tourism, etc. But in Dominos, the market demand is based on the changes which are taking place over time. In service organization, it is very essential to adapt to the ever changing climate quickly (Penner, et al., 2013). Apart from this, the response time in Dominos is a lengthy process whereas the Disney hotel is required to meet the potential and hidden needs of its customers or guests in its value chain.  In customer’s perspective, there are differences in the technology integration in the value chain design and the structure to refine the quality of the products & services. The reason being that dominos being a manufacturing firm uses high technology systems such as ERP, CRM, etc. in its supply chain. On the other hand, Disney’s grand Californian Hotel being a service firm is struggling with its initial technology system and trying to improve and upgrade its technology systems.

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There is a small distribution network in both dominos and Disney’s grand Californian Hotel as both provides the products or services directly to their respective customers. Dominos provides the products from its stores whereas Disney’s grand Californian Hotel provides its prominent services through its hotel chains.  In management perspective, the different manual processes like interaction among human beings make the value chain design labour intensive. Because of it, the value chain design and structure of Disney’s grand Californian Hotel, there exists a low automation in upgrading the efficiency and standardization. It is also difficult to identify and manage the ever changing needs of the customers and it is difficult to alter each service’s content. Further, it made difficult to compute and supervise the quality of service in the value chain design for the management. However, it is not easy for the management to ascertain the effectiveness of the services as they are not tangible. Dominos being a manufacturing firm, made it vital not to produce and consume the products at the same time. On the other hand, in Disney’s grand Californian Hotel it is not possible to produce and consume the service at different time as it occurs at the same point of time. It is because the services cannot be stocked and kept for future use they have to be consumed at the same time. The service starts as soon as the supplier or the consumer issues the input. The handling and scheduling of the capacity also turns out to be challenge for the management (Chen, et al., 2010). The role of transportation is also different in both the organizations. There is a big role of transportation in the case of Dominos but on the other hand, the role of transportation is very less in the value chain of Disney’s grand Californian Hotel. Due to the high transportation cost there is an effect on the cost of the operation in Dominos. However, Disney’s grand Californian Hotel is more customer-oriented as it continuously focuses on the changing needs of its customers and their requirements. In Disney Hotel, the customers have an essential role to play in the quality of service and the service delivery process. In the management point of view, Dominos has always payed due attention on the needs of its customers throughout its value chain design and structure, and has never allowed any deviations in this area. On the other hand, Disney Hotal has also made its customers its first priority. The supply chain of Dominos is innovative and creative as it ensures that all the purchases will be managed centrally across all its franchises throughout the globe. It has a lean production which is based on just in time stock control and management.

Suggestions

After analyzing the above report, it can be identified that there are more difficulties and issues for the service organization in value chain design and structure as compared to the manufacturing organization.  It is suggested to the service firm, i.e. Disney’s grand Californian Hotel to shift its focus towards its service delivery in a way to improve its service quality. The company should carry out research on timely basis so as to determine the potential needs and requirements of the customers. It is also difficult for the service organizations to focus on factors such as tangibility, assurance, responsiveness, and reliability, etc.  All these factors can be helpful in improving the service quality of the organization and to control the issues related to value chain (Christopher, 2016). However, manufacturing firms like Dominos should also shift their focus on the marketing strategies so as to make their value chain practices more effective. Dominos also needs to increase the customer satisfaction and add value to its products by reducing its operation cost.

 Summary

It can be concluded from the above study that, companies offer primary goods and services to its customers in order to gain a competitive edge and to retain for a quite long time in the marketplace. Apart from this, it can also be stated that there are various differences in the value chain design and the structure of the organization between service and manufacturing organizations. Due to the immediate requirement to provide the service according to the customers’ expectations, the service organization faces more difficulties and issues in the value chain design.

References

Bartleby (2006) [Online] available at: https://www.bartleby.com/essay/Compensation-and-Benefit-in-Dominos-Pizza-FKCV5BEKVC (Accessed: 11 August 2017).

Chen, H., Lindeke, R. R., & Wyrick, D. A. (2010) Lean automated manufacturing: avoiding the pitfalls to embrace the opportunities. Assembly automation, 30(2), pp. 117-123.

Christopher, M. (2016) Logistics & supply chain management. UK: Pearson.

Getawaytoday (2013) [Online] available at: https://www.getawaytoday.com/blogs/2013-03-28/top-10-reasons-to-stay-at-disneys-grand-california (Accessed: 11 August 2017).

Heskett, J. L., Sasser, W. E., & Schlesinger, L. A. (2010) The Value Profit Chain: Treat Employees Like Customers and Customers Like. USA: Simon and Schuster.

Jin, L., He, Y., & Song, H. (2012) Service customization: To upgrade or to downgrade? An investigation of how option framing affects tourists’ choice of package-tour services. Tourism Management, 33(2), pp. 266-275.

Penner, R. H., Adams, L., & Rutes, W. (2013) Hotel design, planning and development. USA: Routledge.

Resnick, S. I. (2013) Extreme values, regular variation and point processes.USA: Springer.

Sehlinger, B., Kubersky, S., Testa, L., & Selga Jr, G. (2016) The Unofficial Guide to Disneyland 2017. USA: Unofficial Guides.

Tan, K. C. (2001) A framework of supply chain management literature. European Journal of Purchasing & Supply Management, 7(1), pp. 39-48.

Vlajic, J. V., Van der Vorst, J. G., & Haijema, R. (2012) A framework for designing robust food supply chains. International Journal of Production Economics, 137(1), pp. 176-189.

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