Answer

1.                                       Value Chain Design and Structure: Deloitte and McDonald’s Company Analysis

   Background

   Over the years, the rate of competition among different firms has sharply increased. Therefore, different firms have employed different strategies to create customer value, and increase the bargaining power of customers in the market.  On the contrary, while firms have been observed to offer similar goods and services, some have been considered superior to others. What makes a firm superior to others? Placing customers at the center of the business has been considered effective for success of a business. While diversified firms have implemented similar strategies to create customer value, some have gone an extra mile to provide unique experience for their customers. McDonald’s Corporation is the largest fast food restaurant in the United States of America (Our Company: McDonald’s, 2017). Deloitte Company, on the other hand, is a consultancy firm that offers a range of consultancy services in such aspects as risk management, financial advisory, task and other services to both public and private companies and individuals across the globe. McDonald’s Corporation and Deloitte have adopted different Customer Benefits Packages as well as value chain designs and structures, to gain competitive bargaining power in their respective industries (Deloitte Operation & Strategy Plans, 2017). This paper analyzes the primary customer benefit package employed by McDonald and Deloitte to enhance customer experience. The paper gives a further analysis of value chain designs and structures adopted by the firms to create customer value for competitive bargaining power.

   Primary Customer Benefits Package

   While a Customer Benefit Package refers to those goods and services that customers are ready to pay for, Primary Customer Benefit Package has been identified as core benefit offered by companies to attract customers while satisfying their needs (Monczka et al., 2015). McDonalds Corporation is the largest fast food restaurant across the globe. The company, widely known for its great hamburger, was founded in 1940 with the aim of providing quality fast foods across the U.S. (Our Company: McDonald’s, 2017). McDonald’s offers a variety of fast food ranging from beef burgers which are composed of hamburgers and big mac, chicken sandwiches, pork, chicken and other products such as salads. Due to increasing competition in the food and beverage industry, the company strives to be the best quick service, delivery restaurant across the globe. McDonald’s, therefore, recognizes the importance of placing customers at the center of its business. Apart from offering quality products, the company has implemented additional customer benefit services to enhance customer’s experience. Firstly, the company offers low-cost meals to ensure customers of all income levels have a taste of the company’s delicious meals. Secondly, the company offers quick customer experience to ensure customers are attended to as soon as possible within the customer’s time limit. Thirdly, the company has installed free Wi-Fi for customers to surf the internet or have their work done while they enjoy their delicious meal at the restaurant. The company has also invented two drive through windows, to increase the numbers of customers served (Our Company: McDonald’s, 2017).

   While investment opportunities are adamantly increasing in the contemporary business world, chances of longevity are declining, forcing many companies to perform a market analysis on how best to survive in their respective industries. The rate of competition in the consulting industry has, therefore, increased forcing companies to employ unique strategies to remain competitive. Deloitte is a consultancy firm that offers consultancy services to a range of customers such as private and government institutions in matters related to taxes, audit, and assurance, financial risks and company merging and acquisition (Deloitte Operation and Strategy Plans, 2017). In addition to providing the required services, the company offers primary Customer Benefit Package to enhance customers’ experience at the company, while satisfying the customer’s needs. For instance, the company has employed qualified professionals in different industries to increase service delivery at the company. The company also offers quality services at low costs to attract more customers (Christopher, Payne, & Ballantyne, 2013). Finally, the company has taken advantage of the internet for easy accessibility to its customers across the globe.

   Value Chain Design and Structure

   A value chain entails activities that companies execute to create customer value (Monczka et al., 2015). Michael Porter, in his book about competitive advantage, proposed five value chain elements: inbound logistics, operations, outbound logistics, marketing and sales and services, and how the value chain activities are integrated to determine costs and profits for an organization (Christopher, 2016). McDonald’s Corporation maintains a high-value chain to gain competitive advantage in the industry. Fundamentally, the company embraces all the elements as proposed by Porter in gaining competitive bargaining power over its competitors.

   Inbound Logistics

   McDonald’s has identified a specific supplier for its raw materials to ensure a proportionate increase in capital and labor and vice versa. The company has maintained suppliers who not only offer quality products, but also cost-effective suppliers who contribute to the success of the company.

   Operations

   While other restaurants maintain different kitchens for cooking different meals, McDonald’s has a large kitchen through which all meals are cooked and served (Our Company: McDonald’s, 2017). The mass-production process, however, requires a distribution channel through which food is transferred to restaurants across towns. The company, therefore, transports foodstuffs from the distribution center to other restaurants through food trucks which carry specific foods to their destinations.

   Outbound Logistics

   McDonald’s Corporation aims at providing quality foods in a clean environment. The company, therefore, provides nutrition information to its customers and serves balanced food choices according to customer specifications (Our Company: McDonald’s, 2017).

   Marketing and Sales

   McDonald’s acknowledges the importance of expansion to create brand awareness, thus increasing company sales. The company has, therefore, employed thousands of employees to efficiently serve millions of customers in over 119 countries across the globe (Our Company: McDonald’s, 2017). Besides maintaining extensive advertising strategies such as television and newspaper, the company has sponsored sporting events to create more awareness across the globe.

   Services

   Besides offering quality products to its clients, the company has implemented free Wi-Fi services to enhance the customer experience at the company. While enjoying their meals, customers can surf the internet through their laptops and phones at no charge. The company also offers child parties through arrangements with the company’s manager.

   Advantages of McDonald’s Value Chain Design and Structure

   McDonald’s value chain design and structure are deemed beneficial for both managers and customers in various ways. Firstly, by maintaining constant cost-effective suppliers, managers can reduce operating cost, while increasing the company’s profit. Secondly, by enhancing customers’ experience through extra services such as Wi-Fi, the company anticipates more customers thus increasing their profit. Thirdly, customers are more likely to benefit from the free Wi-Fi since they can work and finish their obligation at the comfort of the company.

   Disadvantages of McDonald’s Value Chain Design and Structure

   McDonald’s value chain and design are, however, expensive to both customers and managers in various ways. For instance, managers are more likely to incur more costs creating customer value. On the other side, customers are more likely to incur the costs for free services through increased food prices.

   Deloitte Value Chain Design and Structure

   As a service company, Deloitte Consultancy firm acknowledges the importance of supply chain as an integral part of total value chain of the company (Deloitte Operation and Strategy Plans, 2017). The company has maintained a high supply chain system to enhance its competitive advantage in the industry.

   Supply Chain Planning

   Deloitte Company maintains a highly effective supply chain planning system to balance demand and supply. Moreover, through the system, the company identifies available opportunities and available technology to counter supply and demand issues.

   Inbound Logistics

   Deloitte Company takes into consideration its sourcing, purchasing, and supplier relationship management strategies. The company, therefore, assesses the supply market and executes sourcing strategies to meet customer demand. The company has provided a further analysis of how customers can purchase services and payment services.

   Operations

   Deloitte Company has initiated a highly operational system to enhance customer experience in the company (Deloitte Operation and Strategy Plans, 2017). The company has taken advantage of technology to offer a quick delivery of services to its customers.

   Marketing and Sales

   Deloitte Company employs various strategies to create market awareness. For instance, the company provides various advertisements through the internet. The company has also created brand awareness through billboards, newspapers, and televisions across the globe.

   Advantages and Disadvantages of Deloitte Value Chain and Structure

   The supply chain planning method employed by the company is useful to managers since managers can balance between demand and supply to counter service deficits in the market. The company’s service structure is, however, not effective since it does not provide greater customer experience at the company.

   Company Operational Strategies

   McDonald’s Company

   McDonald strives to become the leading fast food restaurant across the globe. The company has a vision of becoming a progressive burger delivery company by providing excellent customer experience. The company’s operations system, therefore, concentrates on improving its products, developing healthy relationships with suppliers, training and monitoring employees towards providing excellent services as well as improving equipment to increase efficiency (Our Company: McDonald’s, 2017). For the company to achieve its vision of leading the fast food industry, it has embraced its competing priorities to counter competition in the industry. For instance, the company maintains healthy relationship with its suppliers to lower its operating costs. The company also differentiates its market and products to ensure everyone gets a taste of its product despite their income level or market. Nevertheless, the company should create a healthy relationship with its employees to enhance the organization’s success. By engaging employees in the company’s operations, managers will increase the decision-making process for the benefit of the company. Engaging employees will also help managers identify employee challenges, thus catering for employees’ needs hence increasing performance (Mone & London, 2014).

   Deloitte has a vision of providing excellent services to clients across the globe (Deloitte Operation and Strategy Plans, 2017). The company strives to create long-term value for its customers. The company has, therefore, employed professionals in all operating industries to ensure its clients receive quality information (Deloitte Operation and Strategy Plans, 2017). Nevertheless, the company should create customer value to enhance its success in the industry. For instance, the company can provide a customer feedback platform through which clients can communicate their experiences and areas of improvement. By creating customer value, the company is more likely to enhance its sustainability in the industry.

   Conclusion

   Overall, customer benefit packages have enhanced the success of both companies in the contemporary business world. McDonald Corporation is perceived to be the largest food restaurant in the United States of America. Deloitte Company, on the other hand, is considered among the best consultancy firms across the globe. Both companies’ success has, however, been enhanced by customer benefit packages employed by the companies to attract more customers. For instance, while McDonald has installed Wi-Fi to enhance customer experience, Deloitte has employed low cost benefits to attract more customers. Nevertheless, the success of the companies has been through their value chain design and structures, which guide the companies’ operations towards success.