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Exercises Customer Delight
Exercises Customer Delight
Name
How long in MFB and how do they make life easier for customers?
You will have a 2-3 minutes to introduce your partner, your partner should time you!
Porter's value chain is a model that can be used as part of the strategic analysis stage of the strategic
planning process and is particularly useful to assess whether an organisation has a sustainable competitive
advantage.
Porter developed the value chain to help identify which activities within the firm were contributing to
a competitive advantage and which were not. The approach involves breaking down the firm into five 'primary'
and four 'support' activities, and then looking at each to see if they give a cost advantage or quality advantage.
Primary activities
Inbound logistics - receiving, storing and handling raw material inputs. For example, a just-in-time
stock system could give a cost advantage.
Operations - transformation of the raw materials into finished goods and services. For example, using
skilled craftsmen could give a quality advantage.
Outbound logistics - storing, distributing and delivering finished goods to customers. For example,
outsourcing delivering could give a cost advantage.
Marketing and sales - for example, sponsorship of a sports celebrity could enhance the image of the
product.
Service - all activities that occur after the point of sale, such as installation, training and repair, e.g.
Marks & Spencer's friendly approach to returns gives it a perceived quality advantage.
Secondary activities
Firm infrastructure - how the firm is organised. For example, centralised buying could result in cost
savings due to bulk discounts.
Technology development - how the firm uses technology. For example, the latest computer-
controlled machinery gives greater flexibility to tailor products to individual customer specifications.
Human resources development - how people contribute to competitive advantage. For example,
employing expert buyers could enable a supermarket to purchase better wines than competitors.
Procurement - purchasing, but not just limited to materials. For example, buying a building out of
town could give a cost advantage over high street competitors.
All organisations in a particular industry will have a similar value chain, which will include activities such as:
Linkages
It is vital that the linkages between the different elements of a value chain are considered.
Firstly this is to ensure consistency - for example, a differentiator will want to ensure that any cost advantages
within the value chain do not compromise overall quality. Secondly it may be that through linking separate
activities more effectively than competitors, a firm can gain a competitive advantage.
Value networks
The organisation's value chain does not exist in isolation. There will be direct links between the inbound
logistics of the firm and the outbound logistics of its suppliers, for example. An understanding of the value
system and how the organisation's value chain fits in to it will therefore aid in the strategic planning process. A
value network is a web of relationships that generates economic value and other benefits through complex
dynamic exchanges between two or more individuals, groups or organisations.
Tangible value exchanges - involve all exchanges of goods, services or revenue, including all
transactions involving contracts and invoices, return receipt of orders, request for proposals,
confirmations or payment.
Intangible knowledge exchanges - include strategic information, planning knowledge, process
knowledge, technical know-how, collaborative design, policy development, etc.
Benefits
Proponents suggest that the value chain model has many benefits, including:
It provides a generic framework to analyse both the behaviour of costs as well as the existing and
potential sources of differentiation.
Activities that are not adding value can be identified and addressed – for example, improved so they
do add value or outsourced if this is not possible.
It emphasises the importance of (re)grouping functions into activities to produce, market, deliver and
support products, to think about relationships between activities and to link the value chain to the
understanding of an organisation's competitive position.
It makes it clear that an organisation is multifaceted and that its underlying activities need to be
analysed to understand its overall competitive position.
It is an attempt to overcome the limitations of portfolio planning in multidivisional organisations.
Rather than assuming that SBUs should act independently, Porter used his Value Chain analysis to
identify synergies or shared activities between them and to provide a tool to focus on the whole
rather than on the parts.
After understanding the concepts in this exercise, create a SIMPLE DIAGRAM for EACH
TEAM MEMBER showing their link in the value chain. Who are there suppliers and who are
there customers
Exercise 3 – CS Mindsets
Common Internal Customer Service Mindsets
1. Ye mera kam nahi hai (not owning the customer)
2. Apka kam ho jaiga (delaying or taking casually)
3. Khidmat (serving people regardless of personal benefit)
Discuss one example of each mindset per group that you may have experienced?
Example of Ye mera kam nahi hai
Example of Khidmat
How can we CHANGE the first two mindsets? What are the hurdles? Cultural, Personal?
You now have an idea of how other person thinks! Generally people have ANY 2 dominant
modes, sounds/feelings or pictures/feelings, see what you have! Now confirm with them!
Errors: sometimes a person depending on his mood will show a certain type of personality, if
you ask someone to describe a loved one’s deaths, there is a chance they will use more
feeling words compared to a music concert!
Exercise 6 – Dale Carnegie – how to win friends & influence people summary (buy the book)
Read the following – and summarize into your and your group’s Khidmat Mission Statement
The book summary is at https://www.hubspot.com/sales/how-to-win-friends-and-influence-people-summary and
http://blog.gembaacademy.com/wp-content/uploads/2014/07/How-to-Win-Friends-and-Influence-People-Book-Summary.pdf
1 Challenges
2 Solutions