Value Chain

Value Chain

1. Analysis and Management of The Value Chain

   • Quality
     • Two meanings: 1.- The characteristics of a product or service that bear its ability to satisfy stated or implied needs.
     • 2.- A product or service free of deficiencies
     • The consumer is the most important part of the production line, quality should be aimed at the needs of the consumer
     • Customers have different product needs, they will have different quality expectations; this results in a comonly used definition of quality
     • Quality of design
   • Dimensions of Quality for manufactured products.
     • Performance: Basic operating characteristics of a product e.g: Car mileage.
     • Features: The "extra" items added to the basic features, e.g: leather interior in a car.
     • Reliability: The probability that will operate properly within a expected time frame.
     • Conformance: The degree to a which a product meets pre-established standards.
     • Durability; How long the product lasts; its lifespan before replacement.
     • Serviceability: The ease of getting repairs, the speed of repairs
     • Aesthetics: How a product looks, feels, sounds, smells or tastes.
     • Safety: Assurance that the customer will not suffer injury or harm of a product.
     • Other perceptions: Subjective perceptions based on brand name, advertising, and the like.
     • Time and timeless: How long must a customer wait for the service and is completed on time?
     • Completeness: Is everything the customer asked for provided?
     • Courtesy: How are customers treated by employees?
     • Consistency: Is the same level of service provided to each customer each time?
     • Accessibility and convenience: How easy is to obtain the service?
     • Accuracy: Is the service performed right every time?
     • Responsiveness: How well does the company react to unusual situations, which can happen frequently in a service company?

2. Case study analysis: What are the characteristics of Chinese catering industry?

   • Dominated by state-owned and collectively owned enterprises
     • Reform period: quantity expansion, large scale development and brand upgrading strategy
       • Facing a good development opportunity as a result of social development, improvement in people`s livelihood, lifestyle change
         • Urbanization has driven catering development in China
           • Catering industry is an economic sector seeing earliest market-oriented reform in China.
   • Case study analysis: What was the path taken by Meizhou Dongpo amidst competition?
     • Standardization to become a large-scale Chinese cuisine chain
       • Direct control vs franchise chain for expansion
         • Most Chinese restaurants only pursue uniform brand and uniform management
           • Build uniform standards on corporate image design, food safety management, quality management, HR management

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