In: Operations Management
. Imagine you were advising KFC on how they need to emphasize the customer orientation of every link in their value chain. To support this, lay out the key links in KFC’s value chain and evaluate how each step is critical to creating customer value.
The value chain involves the activities in the business enterprise to improve the company's competitive strength. It includes both primary and secondary activities. Primary activities include activities that have a direct connection with the processes of the company. On the other hand, secondary activities have no direct connection with the company's primary operations. For example, ensuring product quality is a part of primary activities, and Human Resource Development is secondary. It is because Human Resource Management does not directly help the productivity and efficiency of the commodities. The first step in the value chain process is to list down the enterprise's primary and secondary activities. The consumers benefit from the first step because they get to know the firm's ambit. The second step in the process is to analyze the cost of the product. The second step also affects the consumers because they need to know the price that they have to pay for a particular product. The third step is to identify the opportunities first. The consumers get an advantage from the step because they become aware of the companies that first launch the product. The next steps include logistics, which involves the manufacturing and production of the goods. The last step is marketing and related services. The last step influences the consumers as they decide to buy the product because of the marketing strategies, and re-purchase it. Hence, the value chain affects the consumers most appropriately. KFC has the responsibility to keep the consumers in the loop for every step to avoid any chaos, in the end, as the company needs to make the right quality products and advertise them accordingly to attract more customers.