The purpose of this report is to enlighten the reader about the operations management process initiated in an organization The report explains about the customer benefit packages of two different companies along with the comparison of their value chain activities. Customer Benefit Packages refers to the set of tangible as well as intangible resources of the company that customers identified, pays for, utilizes and attains experience in the market. Customer benefit packages and value chain concepts are identified as two significant components for the business. The report compares and contrasts the customer benefit packages of McDonalds (product based) and Uber Eats (service based) organizations. Both the organizations are a part of the fast food industry only. More details about the report are discussed below:
Customer benefit packages play an important role in the process of operations management in a company. This aspect includes both tangible and intangible benefits that the customers attain when they purchase the products from the company. This value can be real or perceived that a customer may attain while the use the products of the particular organization. When the company combines its primary product with the additional products, then it is known as total product. So, it can be said that different goods and services combine together in order to make the company adds value in the primary product that the customers purchases from them in the market (Yu, et. al., 2016). Thus, it should be noted that every organization present in the target market aims to thrive to offer complete customer benefit package so that they can increase their sales in the target market. The CBP also helps the company in attaining competitive advantage in the target market. The company McDonalds and Uber Eats provides primary products and services in that market with peripheral goods so as to gain customer loyalty in the market (Slack 2015).
McDonalds is one of fast growing fast food chain present in the market of Australia and other parts of the world. The company started its business in the 1967 in United States and then entered in other parts of the world. In the current era, the organization has more than 37000 stores worldwide under which more than 385000 employees work together. The product offered by the company includes hamburgers, soft drinks, French fries, shakes, coffee, chicken, flavoured tea etc. The company has a different specialized menu for the breakfast as well. The breakfast menu of McDonalds includes cookies, hotcakes, biscuits, sandwiches etc. The products offered by the company have dignified names such as McPuff, McFlurry Orea Shake, McNuggets, Mc Veg Burger etc. The only place where the company lacks in the target market is its social media presence. The company is not present on any social mmedi platform or online delivery platform (McDonalds 2010). However, now McDonalds has joined hand with Uber Eats and various other companies as with the help of which, customers can easily receive the products of McDonalds at home. McDonalds being a product based organization provides customer benefit package to its potential customers in the market so that they can maintain their image and remain in competence as well. The below mention is customer benefit package of McDonalds Company.
The above mentioned customer benefit package of the company McDonalds explain that the primary product of the company is to offer hamburgers, coffee, flavoured tea, shakes, fries etc. to the customers. The company serves family friendly environment to the customers to feel free while coming with families at the outlet. Also, the organization provides low cost meals to the customers with speedy delivery as well. The customer benefit package of the company also includes peripheral goods like free Wi-Fi, breakfast menu, and many other perks that helps the customers to stay longer at the outlet of the company and attain better satisfaction as well. The peripheral goods of the company helps the organization to make repeated sales in the market as it attracts the customers (Swink, et. al., 2017). The peripheral goods acts like additional services for which the customers are not paying to the company. These goods offered by the company are valuable for the customers in terms of time and cost saving.
Further, this aspect of the customer benefit package adds appeal to the target market on a whole and increase per visit spending of the customers with the products of McDonalds. The above customer benefit package diagram explains that there are different products that the company offers the market. The end block explains the overall satisfaction that the customers receive by using the products of the company. Further, it should also be noted that the company also started the breakfast menu with an aim to compete with Starbucks that also serve breakfast to its customers (Anand, and Gray, 2017). This scheme attracts the potential customers in the market. Also, the company has introduced a new way to reduce the waiting time of customers by creating two drive through lanes. As the company is situated in high traffic areas, so this aspect improves the satisfaction level of the customers. Increasing market share of the company clearly depicts the effectiveness of the customer benefits packages of the company (Spring, et. al., 2017).
Uber Eats is an online food delivery organiation that was inaugurated in the year 2014 in United States of America. The company has its headquarter in California and operates its business by partnering with different restraints for delivery of food. The company is effectively working in the market by partnering with different restaurants worldwide. Also, now people can order their food through the Uber Eats app of the company that has various outlets listed on their website. The smartphone application is very simple and easy to use that provides on time delivery to the customers within 30 minutes or less. The service organization provides menu from breakfast to dinner to the customers. Many locations are open 24*7 so as to enhance the satisfaction level of the customers (Uber Eats 2018). The food is delivered to the customers through vans, bikes, or by walk.
As the company operates in different parts of the world so the customers can easily log in the app and order food from Uber Eats even if they are at different location also. The delivery partners of the company also gains the opportunity to deliver the food to customers even if they are at different place, they can pick up the order and deliver it by van, bike or on foot. The delivery partners earn money by delivering the food at the right time and at right location. There is presence of many fast food chains in the market that have partnered with Uber Eats so as to deliver their food to customers at their doorstep. Further, it should also be noted that the customer base of the company McDonalds do not want to products at low cost but they want doorstep delivery as well. Resulting in which, McDonald has partnered with Uber Eats so as to deliver their products to customers on time. Delivery through Uber Eats is now available at 5000 stores at 37000 locations of McDonalds’ Company (Uber Eats 2018).
The above given chart incorporates the customer benefit package for Uber Eats Company that is providing online food ordering and conveyance administrations to a vast gathering of people around the world. The essential administrations of Uber Eats are to take the food delivery requests of clients, to pick their request from particular eatery and conveyance it to the potential clients. Aside from this, different services like peripheral services at Uber Eats has made its application and site more inventive and innovation so client can track the advance of request through its application (Rothaermel 2015). It has cooperated with the eateries and conveyance accomplices. The general population who would prefer not to go outside for eating have different variety of food served by different outlets to provide it to the customers through its application and site. Moreover, it has set the conveyance charges as indicated by the area of clients. From the above graph, it can be expressed that Customer Benefit Package is useful for the clients. It can help the association in increasing more competitive advantage from its rivals (Netessine, & Christopher 2009).
Nevertheless, both of the associations i.e. McDonalds and Uber Eats are maintaining their business tasks in fast food industry yet nature of their working are entirely different. McDonalds is the association that is providing physical items to the clients while Uber Eats is providing food conveyance administration services to its potential clients. There are a few contrasts in the client advantage bundles of both the associations. The above given graphs demonstrate the Customer Benefit Packages of McDonalds and Uber Eats Associations (McDonalds 2010). McDonalds has primarily centered around improving the nature of its food items. The organization is attempting endeavors to convey its fast food items and beverages to customers and bring down costs than its rivals. Besides, the company spotlights on giving unique eating experience to the clients. It has empowered the association in increasing more focused edge over its rivals, for example, Burger Lord, BurgerFarm and so on (Grant 2016).
As opposed to this, Uber Eats is the service association that is giving food requesting and conveyance administrations. The customer benefit package of this associations demonstrates that the significant spotlight on this association is on enhancing food delivery to the clients. They just focus on conveying food on time with the goal that they can hold existing clients and make new clients as well. The general population at Uber Eats don’t center around the nature of food and its quality but it is the obligation of food outlets or restaurants (Bhasin 2016). The Customer Benefit Package of the association shows that peripheral services of Uber Eats will likewise help the association in growing its business everywhere throughout the world. From the examination, it can be expressed that customer benefit package of McDonalds is completely centered around its fast food items while Uber Eat’s is centered around conveying food in given time frame (Al Abid, and Karim, 2017).
For an organization, it is important to create an effective value chain process so as to reach on the top most position of the target industry. The below mentioned table shows the value chain design model of McDonalds Company:
Primary Activities:
Inbound Logistics |
Operations |
Outbound Logistics |
Marketing and Sales |
Service |
• The company buys raw material including vegetables from the pre-defined suppliers. •Backward vertical integration process has been used in McDonalds. |
• Speedy food production process has been developed •It does not have more apparatus in its kitchen. •Online food delivery using Uber Eats application (McDonald, & Wilson, 2016). |
• The company is committed to maintain quality standards while offering products to its customers. •Warming and clean environment •Sustainable packing and waste management |
• The organization McDonalds has initiated an extensive advertising campaign (Heizer, et. al., 2017). •Television, Newspaper and social media •Events and sponsorships |
• Quality food offering •Offers and discounts •Free Wi-Fi services •Gift vouchers to regular customers |
Supporting Activities:
The below-given model shows the supporting activities of McDonalds Company:
The above charts demonstrate that McDonalds has made a compelling quality chain. It has all around prepared and qualified staff and it has received innovation advancements. The organization has made its versatile application that gives online nourishment requesting administrations to clients. It is drawing in greater work by giving them adaptable working hours. Supporting and essential exercises of the organization are supporting association in creating a bigger number of incomes and benefits than its rivals (Haksever, and Render, 2018). The above table demonstrates its essential exercises which assume a vital part in the development and achievement of association.
Value Chain of Uber Eats
Being placed in an online platform, the company Uber Eats has established its value chain model effectively. In includes both primary and supporting activities. The value chain analysis of the company is mentioned below:
Primary Activities:
Input |
Operations |
Outbound Logistics |
Marketing and Sales |
Service |
• The organization tracks the order from application and picks the order from food outlets. |
• The operations at Uber Eats are effectively designed and performed •Development of website and application •Partnerships with restaurants •Picking and delivering the food to end users |
• The company is committed to offering food delivery service on time. •Effective packaging and distribution strategies •Well-trained delivery partners (Hitt, Xu, and Carnes, 2016). |
• The organization is engaged in advertising and promotion activities. •Discounts and cash back offers. •Referral amount on first order |
• Food delivery services •Maintenance of website and application •On-time delivery (Bromiley, and Rau 2016) |
Supporting Activities of Uber Eats are presented in the below-diagram:
Both of the above outlines demonstrate the value chain analysis of Uber Eats Company. The supporting activities at Uber Eats are helping its supporting activities to convey the items effectively. By utilizing this value chain model, organization can expand its client base and accomplish expanded incomes in aggressive business condition (Walker, et. al., 2015).
From the above examination, the value chain analysis of the two organizations can be analyzed effortlessly. One might say that supporting activities assume a vital part on account of McDonalds as it needs to build up a compelling foundation of infrastructure and human resource activities. On account of Uber Eats, innovation assumes a pivotal part as their business is completely centered around online stage. Primary activities are more critical for McDonalds than Uber Eats. The value chain analysis of both the organizations is favorable for their business activities (Mahadevan, 2015).
The vision explanation of McDonalds company is to wind up the best fast services in food to its customers. At McDonalds, turning into the best means offering services, values and magnificent nature of food products and beverages. The association is actualizing a viable activities technique that incorporates viable quality administration, just in time production and successful item plan. Under its activities methodology, the significant focal point of this firm is on giving magnificent item quality on most reduced costs in the business. It is utilizing viable procedures to improve the administration quality and client’s sustenance encounter. McDonalds is highly preferred for its qualitative food so the company should strategies in such a way so as to innovate their menu should that value is derived in the target market (Maylor, et. al., 2018).
The competitive priorities of McDonalds are putting forth the amazing quality at bring down costs. It is empowering the association to remain aggressive in drive-thru food industry.
The vision explanation of Uber Eats is to offer the dishes and formulas to clients from their most loved eatery outlets everywhere throughout the city. Uber Eats has executed a compelling activities procedure with the goal that it can offer its services adequately. The association has made focus on preparing its conveyance accomplices with the goal that they can convey the food items on time (Choi, Cheng, and Zhao, 2016). Operations of the organization are gone through its site and application so it is concentrating on upkeep of application and site. The company Uber is known for providing its on time delivery services to the customers in regards to which the customers expectation is becoming greater with time that the company needs to fulfil (Lee, and Tang, 2017).
The competitive priority of Uber Eats is to give food conveyance immediately on time. It is additionally offering adaptability by expanding its working and conveyance hours.
Conclusion and Recommendations
Also, it is therefore prescribed that companies need to center around their activities administration. The organizations should endeavour to end up more imaginative in their item and administration contributions. As an item based association, McDonalds should cooperate with other food conveyance applications, for example, Foodpanda, KFC, Pizza Hut and so on. By doing this, it can build its client base. To upgrade activities, the organization ought to give preparing to its staff so it can manage the guests adequately. Uber Eats need to set up its physical stores with the goal that clients can contact in the circumstance of any conveyance issue. The client mind support should be more powerful as it will have positive effect on the clients’ purchasing choice. Along these lines, organizations can upgrade their activities services and it will be useful for authoritative achievement. From the above report, it can be inferred that both the association are giving an entire client advantage bundle however in various way. The real explanation for this distinction is their tendency of work like one organization is putting forth products and another is putting forth services in comparable area.
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