Question

Consider the value chain for a restaurant. Identify one major business activity for each of the five-core business processes. For each activity, specify one important decision the restaurant will have to make.

Answer 1

Considering the value chain for a restaurant. In a value chain there are five primary activities and four supporting activities.

Management should take decision on all activities involved in recognising primary and support activities.

Let us discuss the major business activities and decisions taken regarding each activity.

Let us first discuss primary activities:

Inbound logictics: it is related to storage and in transport of goods in the business.

For inbound logistics, the decisions taken by management for restaurant is that all the food materials brought in the restaurant for preparing should be kept in proper cold storage so that they do not get waste if kept in storage for long time.

Coming on to the next that is operations, the major decision taken is that all the food processed should pass through the germ free machine to protect customers from COVID 19 fever.

The next is outbound logistics. The management should take decision that as soon as the food is ready to be served and going out from storage, it should reflect on the respective tables that their food is ready and so that the customers could reach the counter to receive their meal. Earlier there required someone to call order numbers to which customers paid less attention.

And meals should be passed on a proper conveyer belt do that food is being transferred in correct sequence as per order made.

The next is marketing and sales. Regarding this the most decision should be to hie to increase he sale. The restaurant should open their online website from where people can even book meals online. And thus will increase sales plus they are also able to do their marketing thus way to reach a wider area.

The last primary activity is services, to improve the services rendered by the restaurant, restaurant should make write feedbacks from customers from both the one who order online and the ones coming to restaurant

After getting feedback, restaurant should work on the issues which reflected a negative feedback regarding the restaurant. This way restaurant can improve its services.

So here we have decided all the decisions to be taken for primary activities.

Coming on the support activities :

Procurement is a support activity, and the major decision regarding this could be taken that, all the food items should be preserved properly and should be kept at a place with full safety. Regular sanitizing of the place should be done where food items are procured.

Coming next to technology development, management should develop its technology towards online marketing and make its market strong. By the use of latest technology, site should be made highly developed so that customers faces no problem in ordering from their restaurant.

The next support activity is human resource management which requires an important decision on management of human resources. An estimate should be made, how much people are required for manufacturing process and how many are required for the purpose of serving. Accordingly people have to be managed. Any mismanagement would lead to disruption in rendering proper and regular services on time.

Next and last is the firm infrastructure, it is very important for any business. The management should take care that the infrastructure of restaurant should be such that is should attract people proper use of lights to settle the minds of people should be used. This would attract more and more people to the restaurant.

Hence these are the decisions taken on all activities that are included in the value chain of a restaurant.