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Page 1: Value chain analysis case study
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Value chain analysis

The value chain is concentrating on the activities starting with raw materials till the conversion into final goods or services.

A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter in his 1985

Value chain analysis is basically familiarizing yourself with the business and making improvisations in the business

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History

It was formed in the year 2010 .The owner is Mr. Mohan Nawani along with the 2 partners Mr. Rajesh Nawani and Mr. Kumar Nawani.T3 i.e. is Tasty Tangy Twisty is basically restaurant & it provides catering service as well. It was Mr. Mohan Nawani’s childhood ambition to be an hotelier as he grew up reading books of Mr. Vittal Kamat, the great tycoon in the hotel industry

T3 will soon transform itself from a small scale restaurant to a boarding lodging hotel industry, it will be the first one in Pimpri locality

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Raw Materials NAME OF SUPPLIERS

1. Food grainsSpices

Nandlal Asanand

2. GroceryFruits and Vegetables

Star Bazaar

3. Diary ProductsMilk, Butter, Cheese, Ghee

(Amul Products)

Basant Agency

4. BakeryBread, Pizza base, Burgerbuns,

Monginis and Star Bazaar

5. Water and Soft Drinks India Sales and Basant AgencyThese are the permanent suppliers of the restaurant and they are selected because of personal

relations, good quality, products at reasonable rates.

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Inventory Storage

1-2 Months Daily Basis

2 Weeks3 Months Daily Basis

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Number of employees

Cooks – 4 main cooks with 3 helpers and utility people

The customers are served by 3 waiters The management staff comprises of 2

managers -1 working at the top and other at the middle level. The top level handles the cash counter and maintains the accounts for sale

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Problems faced by T3 & solutions to it

Problems

Consistent in Nature

Fights among staff

Demand for long leaves

Demand for advance salary

Rare in NatureInventory

Management

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Consistent Problems

1. Fight among the staff Solution – the problem should be communicated

with the top level manager2. Demand for long leavesSolution-Allot them fixed leaves .In case of

extension of leave they will be charged penalties3. Salaries in advance Solution-Salary should not be provided in advance

for a greater than a period of 2 months

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Rare Problems

1. Inventory Problem: At time it so happens that the cook realizes that he is running short of certain raw material. That needs to be served to the customer immediately. At such times the raw materials are bought are high prices

Solution-the cook should keep a record of inventory at a personal level. He should be more careful and intimate well in advance about storage of raw material

2. Management Problems: The manager sometimes receives late delivery of raw materials from certain suppliers

Solution-There should be alternate suppliers for such emergency

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Reasons Why Customers Visit The Restaurant?The customers visit the restaurant because of: affordable prices, good quality food, taste, good ambience, spontaneous service, hygiene, cordial customer relations cleanliness

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What Is Done To Achieve The Required Targets?

Attractive advertisements, discounts, attractive offers & combos, free home delivery, complementaries, happy hours.

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T3’s Value Chain

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•Management issues

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T3 Vs Competitors

I. JRRS ERP Software for Hotels & Restaurants Safe Inventory, theft EOQ ROL MIN MAX Material consumption Automated PO SchedulesII. Seating ArrangementIII. Availability of parkingIV. Mobile Service

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Our Suggestions To T3

CCTV Enhance skills so as to reduce wastages Account for idle time Exclusive variety New branches

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