Discuss about the Operations Management for Customer Benefits Packages and Value Chains.
The reported paper has been developed to understand the contrast features of operations management in two different organisations. Herein, two organisations have been identified to complete a case study analysis on primary Customer Benefits Package (CBP) and Value Chain designs based on the management’s as well as customer’s viewpoint. One of the identified organisations is Apple Inc that deals in physical, electronic products (Campbell, 2008). On the other hand, JP Morgan Chase has been considered as the other corporation that provides a comprehensive range of investment banking solutions and asset management services to the massive client base.
The support operations of JP Morgan Chase have offered philanthropic initiatives to the clients so that they can promote financially viable growth. Understandably, both the organisations have figured out distinct Customer Benefits Package according to the suitability of operations management. Being an electronic product manufacturing firm, Apple Inc has identified a substantial primary CBP to meet the demand of the target demographics all over the world market. Contradictorily, JP Morgan Chase has recognised its CBP and Value Chain design to deliver integrated financial services to the clients. Being one of the market-leading pecuniary services, JP Morgan Chase has boosted SMEs’ financial development providing management services and banking solutions (Ahmad, Hussain, & Rajput, 2015).
In the contrasting discussion scenario of a primary CBP of Apple Inc and JP Morgan Chase, substantial understanding of the business functions of both the organisations must be identified. The real story behind Apple Inc’s success has relied on company’s obligation to innovating and integrating electronic product manufacturing. Being one of the most popular hardware and software manufacturing brand in the global market, the organisation has always uniquely positioned in the competitive market with products such as the iPad, Macs, iPod, iPhone, and Apple Watch. Since the beginning of the era of twenty-first century, the organisation has developed a plethora of electronic products that have found no replaceable electronic gadgets. Most importantly, the market segmentation of the organisation has identified customers belong to high-class society (McIvor, Humphreys, McKittrick, & Wall, 2009). The innovative and uniqueness of the Apple products have managed to impress more than 50 million global customers. Product pricing has not been an issue for the company as the products are unique to the target demographics. The primary CBP of Apple Inc has been much more technology oriented. Primarily, the organisation has set trends to the customers. Meanwhile, the innovation has contributed to manufacturing such products that have produced to impress the customers. In services, the organisation has offered clinical, technical assistance providing the latest software upgrade to keep the trend moving forward (Madhani, 2014).
On the other hand, primary CBP of JP Morgan Chase has vividly distinct from that of Apple Inc. Being one of the leading financial services of the global market, JP Morgan Chase & Co has developed significant initiatives as a part of primary Customer Benefits Package. In contrasting to the CBP of Apple Inc, JP Morgan Chase’s CBP has been designed to provide customer support in investment banking and corporate asset management services (Hatzakis, Nair, & Pinedo, 2010). The ability to deliver meaningful banking solution and corporate management to the SMEs, multinational organisations, government firms has been the primary strength in primary Customer Benefits Package (Hitt, 2016). The customers have appreciated the organisational executives and employee engagement to the strategic decision-making of the client’s business growth. In this way, shared commitment to the clients has been offered to the SMEs and other corporate clients to become financially secure. The JP Morgan Group and its Foundation have significantly committed to the business customers so that they can utilise their resources for economic growth (Mihiotis & Konidaris, 2007).
In order to discuss the value chain design of both the organisations, some of the key points must be taken into consideration to show the distinct differences. The Value Chain design of Apple Inc has concentrated on outbound logistics, marketing and sales, and quality customer services (Imami, Vuksani, & Gruda, 2013). Through the identification of current market trends, Apple Inc has tactically utilised its direct and indirect logistic channels to conduct the net sales. According to the inventory data, 28% sales have been concluded through direct sales whereas 72% has been done through indirect sales in 2014-15 fiscal years (Cheng, Rehman, Seneviratne, & Zhang, 2015). Apart from that, public relation programmes, promotional events and significant advertising concepts have been applied to improve the productivity of value chain. Furthermore, the value chain design of Apple Inc incorporates exceptional customer services so that the target demographics can be convinced during sales (Gubman, 2015). The technical-savvy executives have got each and every answer to demonstrate the functionality and capabilities of Apple manufactured devices (Rogers, Stone, & Foss, 2008).
On the other hand, JP Morgan Chase and Co has laid a solid foundation for developing sustainable value chain design to stay ahead in the competitive financial services industry. The reputation of previous 200 years has been effectively utilised to provide banking and money-management solutions (Safizadeh, Field, & Ritzman, 2013). Through the identification of a definite market, the organisation has promoted external growth strategic model that involves acquisition tactics to complete the service activities such as asset management, security services and commercial banking solutions (Dess, 2012). Significant research and analysis of market have been the key term to operations management of JP Morgan. In value chain model, the organisation has included Eclipse tool to determine and deliver the most effective banking applications to the business customers. The organisation has delivered attractive low-cost solutions and satisfactory market advice to secure the financial positions of the clients (Swink, 2011).
To identify the differences in organisational structure, a critical analysis of the same has been done. Apple Inc’s organisation framework has been effectively monitored through the dedication of the employees and research and development team’s performance. Primarily, the contribution of Steve Jobs could not be ignored in this regard. Jobs had created a unique organisational culture within the business environment to become the leader of electronic hardware industry providing technologically sound products (Elliot, 2012). Contradictorily, JP Morgan’s management team, financial analysts’ team and marketing executive team have held the key to the business success (Davis Browning, 2011).
Both the value chain design model has been significantly crucial for the business perspective of the two identified firms. First of all, Apple Inc’s value chain design’s advantages and disadvantages can be presented to show the worth of the same. Meanwhile, Apple Inc’s value chain model has increased the sales of the organisation to prove its success. The outbound logistics of the value chain design has confirmed that the sales figure will be higher in every fiscal year (Cheng, Rehman, Seneviratne, & Zhang, 2015). Significantly, the marketing communication strategy has promoted the sales networks to ensure a high volume of sales through different distribution channels. As far as disadvantages are concerned, Apple Inc’s value chain model is so much costly in compared to other electronic product manufacturing firms (Tang Saili, 2012).
On this note, JP Morgan Chase & Co’s value chain design has helped the organisation to stay ahead of the principle business competitors such as Bank of America, HSBC, CITI Bank and BNP Paribas. The value chain model of the financial services has provided significant management strength to dominate the investment banking, private banking, retail banking and commercial banking sectors in the different market. Furthermore, the value chain design of the business of JP Morgan has ensured lower costs and efficient services to hold the leading position in financial services sector (David, 2013).
Latest operational strategy and competitive priorities have always helped a business corporation to make significant growth in any given market. Under the existing market scenario, Apple Inc’s R&D team must take the responsibility to keep the innovation trend moving for successful business operations (Phillips, 2010). The strategic vision of Apple should be concentrated on latest electronic gadgets that no one has been manufactured till date. Along with that, retain the Apple savvy customers around the globe will be the competitive priority of the electronic product manufacturing firm (Nonala & Kenney, 2011). On the other side of the flip, JP Morgan Chase & Co must identify latest financial scopes and models to upgrade OneBench and Eclipse financial tools to offer latest banking solutions and management commitments to their loyal customers. Lowering the services cost and effective financial position of the firm will be the primary objectives for JP Morgan Chase. Understandably, to gain significant competitive advantage in financial services industry, the organisational management must concentrate on free resources for latest projects and efficient services terms to be followed.
Conclusion
Both Apple Inc and JP Morgan Chase & Co have developed strategic operations management according to the requirement of its massive customer base. Through the identification of current market trend in the global electronic industry, Apple Inc has figured out the perfect value chain design and organisational structure to rule the market. By manufacturing latest innovative hardware and software using modern technology, Apple Inc has featured the most astonishing products to the particular target demographics in the global arena. Being an efficient electronic goods manufacturing corporation, Apple’s innovation concepts have been identified as the best strategic approach to set up competitive advantage.
Product uniqueness and rarity have certainly helped the organisation to meet the expectations of the target demographics. On the other hand, quality management support and superlative employee engagement of JP Morgan Chase & Co have contributed to the operations management success. The organisation has perfectly identified the competitive priorities in the business arena to support the strategic vision of the corporation to become the market-leading financial and banking services supporting the business growth of the massive client base globally. In this way, both the organisation has determined sustainable advantages through their value chain designs.
References
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