Q: Analyse the value chain of CTC as depicted in the movie.

Which activities are the end customer

value creation activities, and which are the activities incurring costs but not creating much of a
value for the end customer? How do you define ‘the end customer’ here and the impact your
value chain creates for them?

Answer:

The value chain provides a useful tool for managers to examine systematically where value may be
added to their organizations. This tool is useful in that it examines key elements in the production of
a good or service, as well as areas in which value may be added in support of those primary
activities. Inbound logistics, operation outbound logistics, marketing and sales, and service are the
main operations in the value chain. Infrastructure management, human resource management, and
purchasing are examples of secondary or support tasks.

The movie essentially emphasizes the tension between the traditional and modern methods of
managing human resources. Human resource procedures used to be kinder and more considerate.
But for young human resources professionals, it's all about the business's bottom line and laying off
employees is just a part of the workday.

One of the 24 termination engineers tasked with terminating an employee on behalf of the customer
is Ryan Bingham (George Clooney), a corporate downsizer. His business provides services for
"employee termination help." These "termination engineers" travel the globe and simplify the lives
of employers by posing as experts in "outplacement counselling. There are many characters in Up in
the Air who have no back-up plans. For instance, Ryan Bingham bases his entire moral code on his
work. Flying and traveling are symbols of freedom to Ryan. He feels valued when he earns frequent
flier miles and hotel rewards. He feels qualified because of his position at work. He is able to meet
his fundamental needs thanks to his independent working style.

What transpires, though, when his supervisor forbids him from going since modern technology
allows him to remotely terminate employees? He is faced with an empty life and an empty flat.

What happens when Ryan takes a risk and attempts to act seriously interested in a woman he met
while traveling? He fails. Then he reverts to his previous superficial behaviour. There are many
characters in Up in the Air who have no back-up plans. For instance, Ryan Bingham bases his entire
moral code on his work. Flying and traveling are symbols of freedom to Ryan. He feels valued when
he earns frequent flier miles and hotel rewards. He feels qualified because of his position at work.
He is able to meet his fundamental needs thanks to his independent working style.

Value chain analysis is a technique for assessing each activity in a company's value chain to identify
areas for improvement. You are prompted to think about how each phase adds or subtracts value
from your ultimate product or service when you conduct a value chain analysis. In turn, this can
assist you in realising a competitive advantage, such as: lowering costs by improving the
effectiveness of each value chain activity and lowering the costs as a result. Product differentiation is
the process of making a product stand out from the competition by devoting extra time and money
to activities like research and development, design, or marketing.

Similarly in the movie later the travel costs are cut by making the firing process an online non
sentimental one.

When we do a value chain analysis of CTC we are able to understand the primary and secondary
activities involved. The first step in conducting a value chain analysis is to understand all of the
primary and secondary activities that go into your product or service’s creation. If your company
sells multiple products or services, it’s important to perform this process for each one.

As for CTC the major activities involve firing people for their end customer, that is their client
companies which outsource the job of firing to them. Secondary activities involved in this are travel,
flights, stays, etc.

Other important points while we do value chain analysis for CTC:

Retailers are down 20%.

Auto Industry is in the dump

Housing Markets doesn't have a heartbeat

It is one of the worst time on record for America

CTC keeps 23 people on road at least 250 days per year

It's expensive and inefficient as stated by Natalie

CTC is incurring high fuel costs and insurance premiums for their terminating engineers.

Natalie comes up with a GLOCAL framework with the idea of an online termination strategy.

Strategy Packets to be sent in advance during the time of terminating employees

CTC’s inflated travel budget is eviscerated by 85%

Determining which corporate tasks may and cannot be digitized is crucial in the era of artificial
intelligence and virtual reality. In the movie, Natalie uses a remote technique of terminating people
to reduce costs by 85%, and her supervisor also supports her strategy.

In retrospect, the updated model faces a number of risks, including client litigation, a decline in
consumers, fired staff turning to suicide, etc. Why? Considering that people react to people. Face-to-
face termination of employees is a much more humane method than terminating them from behind
a computer screen. At the time of getting dismissed, people would be upset and at their most
vulnerable, and firing them remotely would not satisfy their emotional demands.

The business lesson to be learned from this is that technology cannot completely replace
interpersonal relationships. It might make doing business more enjoyable, but it can also be the
reason for a company's demise. The instance of a female Tech Mahindra HR official terminating
another employee over a phone call, which went viral and was strongly criticized by the industry, is a
current and highly relatable example. Lack of human contact in the business sector is highlighted by
the inhumane way the employee was fired, without a detailed justification for why or how they were
abruptly requested to go.

Implement Thoughtful Solutions

Implementing ideas that are based more on hearsay and gut instinct than on solid data-backed study
is sure to fail in the long term. In the movie, Natalie forgoes the research phase and seeks to
terminate an employee remotely. This was a mistake on her side because she hadn't yet developed a
thorough understanding of the company's employees and how they would act in certain
circumstances. The answer was therefore destined to be unimportant. The lesson here is that
corporations should exercise empathy to comprehend what people see, feel, and experience before
considering putting out a solution.

The film is really about the old guard in human resources versus the new guard. The older
generation is usually more caring in the workplace: they understand how difficult it can be for
someone to be made redundant after 30 years of service. But young graduates don't always
understand that. They just think: "Fine, sack 'em, it's a cut-throat world." I really hope that's not the
shape of things to come.