Value Creation - Case Study Example

Assignment 3 University name Student name Student id Course Date Table of Contents Value creation 3 The services and products creating value 3 Steps in creating customer value 4 Step 1: understanding the value of customers 4 Step 2: understanding value proposition 4 Step 3: identifying the segments that can maximize the value creation 4 Step 4: Focusing investments on the valuable customers 4 Strategies for value creation 4 Business strategy 5 Stakeholder strategy 6 Financial strategy 8 Conclusion 9 References 11 Value creation Gloria café has been adopting various strategies aimed at creating value. The strategies have been balancing the positive of the business to increase sales while ensuring that the various stakeholders of the firm are considered. This has enhanced the corporate responsibility of the firm making it more responsible to its stakeholders such as customers and employees. Most of the strategies employed by the company have been focusing on enhancing the loyalty of the customers by ensuring that they are satisfied (Bruderer, 2015). The management of Gloria café has been customer oriented where it has provided that the strategies employed can meet the needs of the clients in a better way. The service delivery has been ensuring convenience of the customers by offering the service at the right time. For instance, the operations of the cafe have been targeting the train travelers that have been able taking coffee early in the morning as they wait for the train. This has ensured that the travelers can take their breakfast as they wait for the train. Besides, other services such as availability of the newspapers have been assisting in meeting the needs of the customers by keeping them informed about the current issues happening. The clients do not need to go far to buy the newspapers hence enhancing customer satisfactions (Zhang, 2013). Also, the customers who are not able to buy the newspapers can be in a position to read the newspapers while in the café. This has been playing a significant role in keeping the customers comfortable as they wait for the train. The services and products creating value The services and products of Gloria cafe shop that have been making value to the customers include espresso beverages, fruit juices, brewed coffee, and granite ice. The business has been ensuring that the services and the products are tailored in a way that can guarantee satisfaction of the customers (Pinson, 2008). The company management has been able to meet the needs of the market by coming conducting research that can help in assessing the needs of the clients. The study makes the company aware of the needs of the customers in the market hence tailoring its products to meet the diverse requirements of the market. Steps in creating customer value In the process of developing strategies that can guarantee customer value, Gloria café has been utilizing the following steps. Step 1: understanding the value of customers Gloria café has ensured that it knows the values of the customers to ensure that it can deliver services that can of value to the clients. Step 2: understanding value proposition Gloria café has ensured that the clients do get benefits of the services less the costs. This has been involving determining the level of satisfaction of the customers. Step 3: identifying the segments that can maximize the value creation Customers have different perceptions hence creating differences in the perceptions of the segments of the market. Gloria has ensured that the attributes of the services that are attractive in various segments are maximized. Step 4: Focusing investments on the valuable customers Gloria café has been investing its funds in the segment that it can serve best hence ensuring that it can be competitive in that segment. Strategies for value creation The company has been ensuring that it achieves its goals by coming up with the best strategies that can guarantee the success of its operations. The strategies adopted have been assessing the external environment to ensure that the strategies formulated are in a position to align the strategies of the company with the business environments. The management has been considering the culture of the company in the process of formulating its policies to ensure that the strategies being implemented are in a position to incorporate the culture of the organization. The culture of the organization has been aiming at ensuring that the clients are satisfied by the products and services offered by the company (Wang and Wang, 2014). The ways that the company has been using in the process of coming up with strategies that can ensure value creation include addressing financial policies, interactions with stakeholders and business operations. Business strategy Business strategy of the company di entails forecasting in the process that can enhance the service delivery of the company. The management of the company has been aligning the company operations to ensure that thy can be in a position to meet needs of the market. This has been achieved through ensuring that the company keeps pace with the industry trend hence ensuring its relevance the industry (Sward, 2015). The company has been forecasting on the possible future changes to make sure that they can adjust the operations to utilize the future opportunities availed by the changes. The business has been involving the stakeholders in making decisions that are aimed at making it competitive in the market. The different stakeholders have been given the opportunity to give their opinions on the best ways that can ensure that the company is competitive in the market. The stakeholders that have been actively involved in the decision-making process can include customers and employees. Involving the customers has been making them submit their opinions concerning the ways that can guarantee their satisfaction. The views of the customers are then considered in the process of making decisions for enhancing service delivery (Lindic & Marques, 2015). They have been advising the management on how they think the business operations can be changed to improve the service delivery. The employees are usually in a better position to assess the customer satisfaction from particular services through considering the complaints coming from the customers. Business strategy has been assisting the company in making decisions concerning the allocations of resources. The management has been able to assess the areas that need to be given the opportunity to the process of resource allocation. The priority of the business operations is entirely dependent on the contributions of the activities in the success of the business. This can entail considering the strategic moves that can guarantee the best utilization of the available resources. Therefore, business strategy has been playing a vital role in the process of ensuring that the company is competitive in the industry (Sward, 2015). However, for the business strategy to achieve the desired results, the policies adopted need to be assessed while considering the potential value creation of the alternative utilization of resources and capital. Stakeholder strategy The company has a stakeholder strategy where it has been considering the various interests of the stakeholders. For instance, the interest of the employees has been given priority to ensure enhanced productivity. The business has been considering the employees as the first customers in the organization hence ensuring that their interests are met. The interests of the employees can include ensuring a healthy working environment that can enhance their productivity. Addressing the interests of the workers have guaranteed the commitment of the employees to ensure the success of the business (Geracie, 2014). For instance, employees have been motivated hence making them willing to support and work towards implementing the strategies formulated. Reflecting the interests of the stakeholders has been considered as critical in ensuring successful implementation of value creating strategies. The management of the business has made sure that the employees are trained in the best practices that can ensure that they are in a position to enhance their productivity (Sward, 2015). The training has been considered as a continuous process where the employees are being trained in the most current service delivery practices to guarantee excellent service experience. This has ensured that the employees have the most relevant services delivery skills in the industry. Gloria café has made sure that the customers are considered in the affairs of the business hence ensuring that they are satisfied. The company has put in place a loyalty program that has been geared towards making the customers loyal to the products of the enterprise. The loyalty program has been geared towards ensuring that the client's value can be enhanced. This includes making the customers interests a priority in the process of making decisions concerning the designing of the products (Barnes, et al. 2013). The business has ensured innovativeness by coming up with unique service features that can guarantee customer satisfaction. For instance, the management of Gloria café has started offering online services to make the service delivery more convenient by meeting the needs of the customers at their places of work. The customer experience has been enhanced by employing the stakeholder strategy that has been considering the experience of the customers. Gloria café has been committed to ensuring that the experience of the customers can be enhanced by offering excellent services to the customers. The business ensures that it has mechanisms in place that can make the customers give back their feedback concerning their service experience (Geracie, 2014). The feedback from the customers has been great benefits to the business in ensuring that the services offered can meet the market demands. For instance, Gloria café has been relying on the feedback f the company to enhance service delivery through constant improvement of the various areas of the provision of services identified. The feedback can make the company aware of the areas that need improvements and the necessary changes in the service delivery mechanisms. Financial strategy The company has adopted healthy strategies of management of the financial status of the business. The financial strategy of the business entails enhancing the efficiency of the operations of the company by managing the costs of services. In the process of managing the costs of operations, the company has been adopting capital intensive mechanisms where it has ensured that the activities of the business are automated. The automation of the operations of the business has been geared towards ensuring that the costs incurred can guarantee adoption of competitive prices. The financial strategy of the company has outlined the best practices that need to be employed in the management of the enterprise resources (Baregheh, et al. 2014). The financial management practices established have been ensuring that the necessary ethics in the administration of the business resources are assured. This has enhanced accountability and responsibility of the management. The appropriate controls have been put in place to ensure that the revenues are not lost through fraud, especially through billing. Gloria café has been using target marketing to make sure that the marketing activities of the company are targeting individual customers who can be in a position to purchase the services of the business. This has assisted in managing the costs associated with marketing activities. Targeting the customers who can guarantee potential market as they have the demand for the products and services of the company. Timing has been an important aspect of the process of managing the operations of the business where the management has been timing the availed opportunities (Capon & Hulbert, 2014). Timing has assisted the business to ensure that the opportunities are utilized before the competitors can realize them. Using the opportunities in the market before the competitors can make a company competitive in the market hence affecting the financial performance of the enterprise. Conclusion In the process of ensuring that the company creates value for the customers, the company has been providing quality services. The quality of the services has been assured by the employing workers who have the needed experiences that can ensure that the needs of the customers are met. The employees have the necessary skills that can make sure that the services delivered can surpass the expectations of the customers. Besides, the company has been ensuring that the employees are motivated to make sure that they are committed to providing quality of the services and products (Pinson, 2008). The management has realized the benefits of using technology in enhancing the service delivery and quality. Technology has been assisting the employees in ensuring that the quality is maintained. For instance, the company has been using technology to create efficiency and effectiveness in the service delivery. This has ensured that the customers are served within the shortest time possible. Also, the company has established online services to ease service delivery and meet the needs of the customers better. References Barnes, C., Blake, H., & Pinder, D. (2013). Creating & Delivering Your Value Propositon: Managing Customer Experience for Profit (pp. 40-41). United Kingdom, London: Kogan Page Limited. Baregheh, A., Rowley, J. and Sambrook, S. (2014), "Towards a multidisciplinary definition of innovation", Management Decision, Vol. 47 No. 8, pp. 1323-39. Kambil, A., Ginsberg, A. and Bloch, M. (1996), "Re-inventing value propositions", Working Paper IS-96-21, New York University, New York, NY. Bruderer, E, W. (2015). Benefits of a Strong Value Proposition. Retrieved from http://businessinsavannah.com/bis/2013-01-21/benefits-strong-value-proposition Capon, N., & Hulbert, J. (2014). Managing Marketing in the 21st Century: Developing & Implementing the Market Strategy. Wessex, Inc. Geracie, Greg (August 15, 2014). The Guide to the Product Management and Marketing Body of Knowledge: ProdBOK(R) Guide (1 ed.). Product Management Educational Institute. p. 279. Pinson, L. (2008). Anatomy of a business plan: the step-by-step guide to building your business and securing your company's future. aka associates. Touche Ross & Co. (1988). The business plan. Touche Ross & Co. Sward, David (2015). Measuring the Business Value of Information Technology. Intell Press. Wang, W.T. and Wang, C.C. (2014), "An empirical study of instructor adoption of web-based learning systems", Computers & Education, Vol. 53 No. 3, pp. 761-74. Zhang, Z. (2013). Business English students learning to write for international business: What do international business practitioners have to say about their texts?. English for Specific Purposes, 32(3), 144-156. http://www.bcg.com/expertise/capabilities/corporate-development-finance/value-creation-strategy.aspx http://www.fastcompany.com/3015225/leadership-now/3-ways-to-create-value-that-lasts Read More