Porcini’s Pronto Case Analysis Questions Value chain elements most important to helping the “Pronto” In the midst of competition, it only takes competitive advantage to survive in any business venture (Koduah, 2008). Indeed in the case of Pronto, making or selecting workable and appropriate value chain elements may hold the key to sustainable competitive advantage and eventual growth of the company. Value chain is being suggested because for micro enterprises such as Pronto, the Micro LINKS (2008) observes that “value chain approach is used to drive economic growth with poverty reduction through the integration of large numbers of small enterprises into increasingly competitive value chains. ” With the end market approach, Pronto will be focusing on the final determinants of the products and services that are rendered.
In this case, the end market will be the consumer of the cuisine served by the company. Because the company will be dealing with different destinations of consumers, it will be possible to benchmark key attributes such as quality, price, reliability of supply, flexibility and time from order to delivery and it pertains to the specific group of customers it is dealing with (Campbell, 2008).
To achieve the full benefit of such customer value creation model however, it is important to have in place key capabilities to support the model. In the view of the customer, value creation is noted by OMalley (2011) to entail “making products and providing services that customer finds consistently useful. ” This means that the capabilities to put in place must focus on giving customers what is consistently useful. To this effect, three core capability components shall be created.
These are resuscitation of employees to be motivated to give off their very best, creating an interactive and technology based customer relationship management system that will integrate the views of customers on the capabilities of the company in decision making and finally having a peer reviewed quality assurance system in place to check the output of product and services from the company. These three capabilities are sure to create value for the customer because they are all customer oriented, ensures quality and allows for the inputs of the customer to determine the final output of the company.
This way, interventions can be put “against competitors, industry stakeholders can see where they have a competitive advantage and where they need to upgrade in order to compete” (Campbell, 2008). Pros and cons of a “company-owned” approach for Pronto The decision of going for company-owned approach for Pronto has its own merits and demerits. In retail and service department of businesses, Botti, Briec and Cliquet (2009) are of the view that “plural form tends to be the most popular organization form compared to purely franchised or purely company-owned systems. ” There are however some advantages of going solo.
First, it creates a more stable and secure work portfolio than when it is owned by a number of people or through shareholding. In this end, Mealey (2011) asserts that “being you own boss is another wonderful benefit, so long as you are responsible. ” Again, company-owned approach comes with the advantage of having the power to manipulate the affairs of the company to achieving your very visions and missions. Indeed most restaurant owners do not have it easy starting.
However such zeal is often cut short if the company is not manned by them only. On the disadvantages, it is common knowledge that getting assess to external funding from financial institutions as an individual is more difficult than when it is done in the name of a company. Source of funding is therefore a problem. Finally, it makes work and decision making generally stressful. As Mealey (2011) notes, company-owned approach is characterized by kissing one’s weekends and holidays goodbye because there will always be people to attend to. REFERENCE LIST Botti L, Briec W, Cliquet G.
Plural forms versus franchise and company-owned systems: A DEA approach of hotel chain performance. 2009. Web. September 23, 2011 Campbell Ruth. Key Elements of the Value Chain Approach: Briefing Paper. 2008. Accelerated Microenterprise Advancement Project (AMAP). USA Koduah F. R. Surviving Business Competition. 2008. PrintMark Publication: Durban. Mealey L. Is Owning a Restaurant Right for You? 2011. Web. September 23, 2011 Micro LINKS. Key Elements of the Value Chain Approach. 2008. Web. September 22, 2011 OMalley, Paul. Value Creation and Business Success. 2011. The Systems Thinker, Vol.
9, No. 2. Available online from http: //www. pegasuscom. com/levpoints/valuecreate. html