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Operations Management

Trimester III

COE, NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

2020-2021

SUBMITTED TO:
Prof. Sanjiv Ray

SUBMITTED BY:

Anup Kashiwar A019

Nidhi Koul A020
Neha Kumari A023
Tanvi Raj A036
Sarthak Rawat A038
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Operations Management Assignment

By Group No. 4
Entity: Zomato
Tag line: "Never have a bad meal"
Zomato is online food delivery start-up, which was founded in July 2008 by Pankaj Chaddah
and Deepinder Goyal. Zomato is one of the largest food aggregators in the world. They
provide food delivery options from partner restaurants in selected cities in addition to this
they also provide the menus, information, user- rating and reviews about the restaurants and
cafes. They are currently present is 24 countries and 10,000+ cities globally, they have 5000+
employee in the organisation and their revenue of 2,486 crore
1. What is the purpose or objective of the entity?

As per the statement given by Pankaj Chaddah, co-founder and COO of Zomato, there
vision is to make Zomato a global platform when someone somewhere is looking for
food locally, he also added that they want Zomato to be the ‘Google’ of food
They do not want anyone to have bad meal.

“The mission is simple that nobody has a bad meal! Life is too short to miss out on
fun and food” this was stated by one of the former employees of Zomato this indicates
that Zomato wants to focus on Quality of the meal, and wants to make the process of
food delivery engaging their customer

Zomato also claims that they are committed to nurturing a neutral platform and want
to help different and variety of establishments to maintain their high standards by the
means of Hyperpure. Hyperpure is an initiative started by Zomato to deliver hygienic,
high quality and fresh ingredients and supplies to their partner restaurants.

2. How are they performing with respect to the above objectives?

In order to justify their objectives and to work on them they have identified few areas
and are working on them, the areas are:

a. Accessibility: Zomato is actively working for boosting the accessibility for

customer, there delivery services are getting more global presence they are
reaching to more and more cities, they are also working on their table service
reservation and corporate catering through food@work
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b. Affordability: With the success of Zomato Gold the benefits of providing

interesting and variety of choices was witnessed by Zomato, they try to make the
food more affordable to their customer by giving them heavy discounts

c. Assortment: Zomato is also trying to drive the force of assortment, they have been
empowering their customers to find few partnered restaurants to explore the new
tastes and experience across different cities in the country. By working on the
meticulous information of the users they are able to give the informed choices to
the customers.

3. What are performance gaps?

- As per the above objective and the efforts to implement the objectives we can
observe that Zomato is mainly focusing on the end customer and taking steps only
to improve their service.

- But Zomato have two segments of customers and they are:

a. The end customers (the one using Zomato service)
b. Their partnered restaurants

- Zomato also have to take equal efforts to improve the service of their second
segment of customers i.e., their partnered restaurants

- From the mission statement it was known that Zomato do not want their customer
to have the bad food or the bad experience, issues have been reported by the
customers of facing both issues. This can be because of their aggressive
expanding policies, due to which they have to compromise on the quality of
product or service served.

4. What steps should be taken to improve the performance?

Below are the few ways, incorporating which they can improve on their performance:
- Aggressive expanding is good, but it should not hamper the quality of services
promised by the Zomato, at the end of the day their motto is to serve good food.

- They should train there employee well before sending them on field to work.

- Zomato should also try and work on the different policies which won’t be a
burden to the restaurants.

- Following are certain parameters where Zomato can work with the restaurants
owners to make their policies better and which indirectly will help them to
improve the performance:
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a. Paid Publicity: 72% of Zomato’s income come from the advertising of the
registered restaurants, Zomato charge the restaurants certain amount for
certain visit which is very high (Approximately Rs. 10 to 15 per visit)
conversion rate for this visit is very low, yet restaurants have to pay them to
survive the market. This is unfair with the small restaurants that serve good
food, they will never be highlighted just because they can’t afford this. When
ultimate aim is to serve the good food, these factors need to be modified.

b. Similarly discount driven promotion and high commission rate are something
due to which there are conflicts between the owner of the restaurants and the
Zomato, in order to cope up with the competitor this kind of promotional
activities are done

c. Fake Review: Restaurants give diners free food and discounts in exchange of
reviews and in one of my conversation with a Zomato manager, they
themselves recommended doing this! Zomato is well aware of the restaurants
that does this and they don’t really care about this even though it is against
their policy.
Since, the main objective of Zomato is that they do not want anyone to have bad
meal then they should modify or work on the policies which prevent them from
doing so.