Analysis of Customer Benefits Packages and Value Chains in Operations

This report provides a detailed analysis of the value chain systems of two companies: The Boeing Company (aircraft manufacturer) and Qantas Airways Limited (airline service provider). It examines the value chain from both customer and management perspectives, comparing and contrasting their structures, advantages, and disadvantages. The report delves into the customer benefits packages of each firm, exploring how they are designed and delivered. Furthermore, it analyzes the operations strategy, strategic vision, and competitive priorities of both organizations, offering insights into their future objectives. The report highlights the differences in value chain designs between a manufacturing and a service-oriented company, providing a comprehensive understanding of their operations management approaches and strategic visions. This analysis includes discussions on primary and supporting activities, logistical considerations, marketing strategies, and technological impacts, offering a well-rounded perspective on the subject.

Running head: CUSTOMER BENEFITS PACKAGES AND VALUE CHAINS
Customer Benefits Packages and value chains
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1CUSTOMER BENEFITS PACKAGES AND VALUE CHAINS
Executive summary:
This report is providing the idea about value chain system of two companies. One is aircraft
manufacturing company and the other one is airline service providing company. In the first
part of the report is giving the detail analysis of value chain system for both of those
companies form the customer’s viewpoint and from the managerial viewpoints. Next in the
report is providing the advantages and disadvantages of value chain that applicable for both
of those companies and at the ending part of this report is providing the analysis of different
strategic visions and missions of two companies in case of derive their future objectives.

2CUSTOMER BENEFITS PACKAGES AND VALUE CHAINS
Table of Contents
Introduction:...............................................................................................................................3
Analysis the Value Chain Management of different organization:............................................4
Form the Customers’ viewpoints:..........................................................................................4
For The Boeing company:..................................................................................................5
For Qantas Airways Limited:.............................................................................................5
Form the Managements’ viewpoints including the advantages and disadvantages of Value
Chain Management:...................................................................................................................5
For The Boeing company limited......................................................................................5
For Qantas Airways Limited..............................................................................................7
Advantages of Value chain........................................................................................................8
Disadvantages of Value Chain Management.............................................................................9
Analysis of companies’ different operations strategy and operation management....................9
The Boeing Company limited................................................................................................9
For Qantas Airways Limited................................................................................................10
Conclusion................................................................................................................................11
References:...............................................................................................................................12

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Introduction:
Organizations have their strategies that used to apply in their business, which include
the strategy of information, strategy relating to organizational and also the strategy about the
company. In general, Value chain is defined as an activity scale or strategy, which is
incorporating all these individual strategies accordingly. This value chain is consisting the
product designing, manufacturing, marketing of a product, distribution of products and
services also. The value chain for each and individual companies depend upon the structure
that prepared to achieve the overall organizational goal. However, customer benefits
packages can be defined as the new schemes, which is primarily provided to make sufficient
for the customers.
In case of explaining the value chain system of two different companies, belonging to
the same industries selected one company is Qantas Airways Limited, engage in providing
services to the customers, and the other one is The Boeing Company engage in
manufacturing, designing and selling aircraft, airplanes, satellites and telecommunication
equipment.
Qantas airways limited is one of the largest airline service provider in Australia and
also the third oldest airline in the world, which is founded in 1920. Such airline is engaged in
providing airline services internationally. Its headquarters are located in Sydney. According
to the reports in 2014, Qantas had a 65% share of the Australian domestic market and
providing services 14.9% of all passengers travelling in or out of Australia. Qantas achieved
in 2018, an amount of $980 million profit through the turnover amounting to $17,060 million.
At present, the company is engaged with 30,248 employees for providing airline and other
related services to the users (Qantas.com 2019).
The Boeing Company is an American multinational company that engages in design,
manufacture and selling of airplanes. It is considered as one of the largest aerospace

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manufacturing company globally. This company was established by William Boeing in the
year 1916. According to the 2017 revenues report, it is considered as the fifth-largest defence
contractor in the world, and the largest exporter in the USA followed the dollar value. Its
headquarters based in Chicago. In the year 2018, the company earned a revenue amounted to
$101,127 million, and after deduction of annual expenses, the generated net income was
$10,460 million throughout the year. At present this company is providing remuneration
around $153000 employees (Boeing.com 2019).
Analysis the Value Chain Management of different organization:
In the case of value chain for a manufacturing entity, starts with the using of raw
material for manufacturing the product and involves everything that added with the product
before it provides to the customers for their benefits. The Boeing Company, it starts from the
manufacturing of their aircraft and related products in case of providing such benefits to the
public. In case of a service organization; Qantas Airways Limited, such analysis of value
chain commences with providing the airline service to the customer and ends with using the
benefits of such service by the final users (Bustinza etal. 2015).
Form the Customers’ viewpoints:
The value chain of any business considers as the concepts of creation of the values for
a customer. It is same as the concept of the supply chain, which is categorised in different
stages of productions. From the supply of raw material to the sale of the final product to
providing the benefits to the consumer are segregated in the supply chain. The main
difference between supply chain and customer value chain is that while supply chain is
focused on measuring the cost, the customer value chain is based on increasing the products
or services value to the end-user. In the case of analysis, the Customer value chain involves
the different steps that provide ultimate satisfaction to the end-users (Alcacer and Delgado
2016).

5CUSTOMER BENEFITS PACKAGES AND VALUE CHAINS
For The Boeing company:
The Boeing Company is mainly engaged in manufacturing, designing and selling of
airplanes. In the case of designing and manufacturing the airplane, the company needs to take
proper care that must be beneficial for regular customers. The company need to maintain
proper strategy while performing the design and also need to concentrate on the objectives of
customer-oriented. The company need to construct and manufacture their products and
machinery according to customer benefits.
For Qantas Airways Limited:
The company engaged in providing airline services to the customers. From the users'
viewpoint, the organization needs to develop its structure of providing services so that each
and every intended user can get the benefits of such airline services. The users generally want
to contribute as much as the lower amount is possible for such airline services, so using that
point of views the organizations needs to reduce their charging cost or maintain a lower level
of cost so that every intended user can get such services properly.
Form the Managements’ viewpoints including the advantages and disadvantages of
Value Chain Management:
In the case of analyzing the value chain design and structure for the purpose of
evaluating the advantages derived by both those companies from the management view point
are categorized into two different ways. One is primary activities and the second one is
supporting activities (Curry 2016).
For The Boeing company limited
Primary Activities: Generally those are the activities that directly relate with the design,
manufacturing, maintenance, sales and support etc. it consisting such followings;

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Logistics relating to Inbound
It includes all the process of manufacturing, design and distribution of inputs relating
to production aircraft. The management needs to improve the ways of manufacturing and to
design each and individual parts of such aircraft so that it can provide the ultimate benefits to
the service receivers. With the modifications and proper improvement in those fields, the
organization would able to earn its overall objectives (Fleer and Stenzel 2016).
Operations
It includes such activities where the inputs are used to convert from the raw product to
the final product for the purpose of ultimate consume by the consumers. In such steps, the
management needs to maintain high quality so that it can provide the products as per
customers’ requirement.
Logistics relating to outbound
In those activities the organization needs to deliver the products as properly so that the
consumers can get the benefits of such products efficiently.
Supporting Activities
Usually those are the activities that used for supporting purposes of those primary activities.
Purchasing of raw products
In case of manufacturing the aircraft and related products the company needs to
purchase raw products that helps to manufacture such final products. The management need
to maintain proper care while purchasing those individual inputs relating to aircraft in case of
manufacturing those airplanes.
Human Resource Management
Followed the HRM in the case to maintain the overall organizational structure of the
company. With proper HRM, the company generally recruits candidates, hires employees,
provide training and other activities so that the organization can able to earn an overall

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organizational goal. The management needs to improve those fields so that it can affect while
manufacturing the aircraft by the company (Thompson, Strickland and Gamble 2015).
For Qantas Airways Limited
Primary Activities: For Qantas those activities are like providing proper airline service
facility to the consumers so that they can get the benefits of using such services.
Logistics relating to Inbound
In the case of airline services, many companies are generally involved for providing
service; those are like the aircraft manufacturer, food service provider, airport, fuel
companies and even the labor unions also. In case of any breakdown occurred in the
accessibility of any one of the above mentioned service line than the total airline service got
effected. The management needs to maintain proper chain in transferring such services and
also the quality & control so that the organization can achieve its overall objectives (Schena
2017).
Marketing
The organization generally persuade the customers to use their services instead of
using the competitors’ services, so that the organization can able to earn their focused
revenues. The management needs to improve their marketing strategy to compete with other
service providers (Fredendall and Hill 2016).
Service
Qantas is the service providing organization. It provides airline facilities to publics.
The management needs to improve their activities and also the quality of services so that it
can able to provide the service as per the customers’ requirement.
Supporting Activities: In case of service industries the organization needs to follow those
supporting act to conduct their performance efficiently.

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Technological Department
For a service providing organization technology is the vital element. Those
technological fields are performed by the managing and processing department according to
their knowledge. Through the minimization of technical cost, using advanced technology and
with excellent technical skills the organization can able to improve the organizational
structures (Savino, Manzini and Mazza2015).
Infrastructure
Those are the companies’ supporting system and functions that company need to
maintain on daily basis. The organization needs to maintain legal, accounting, administrative
and also management with proper infrastructure so that the organization can able to provide
proper service to their customers (Hernández and Pedersen 2017).
Advantages of Value chain
 One of the main advantages of the value chain design is the tools relating to flexible
strategy so that both those organizations can able to change itself according to their
customer’s requirement (Qian, Agarwal andHoetker2012).
 Using proper value chain design the companies are able to diagnose and make some
competitive benefits comparing the both cost and differentiation.
 With proper value chain both of those organizations are able to understand the issues
that involved with the commitments that made towards for the development of
customers value.
 Using such value chain with SWOT analysis both those organizations are able to
understand their own powers, abilities and also the weaknesses, comparing with other
marketable competitors (Herrera 2015).

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Disadvantages of Value Chain Management
In the case of value chain design and structure, both the companies having some
major disadvantages, that effecting while conduct the value chain functions properly.
Sometimes due to lack of proper managerial influence and operations breakdown, both the
manufacturing and service, providing the company’s overall strategy and missions are lost.
However, an organization is not able to link with the activity of performance along with the
chain together; the performance of the organization cannot be evaluated effectively. In case
of an effective value chain system, the flexibility is the strength, but sometimes, the
organization may not able to relate as per the chains requirement. Sometimes in case of
evaluating, the value chain system, both those organization have to spend a huge amount as
expenses that are simultaneously effecting in the company’s profit. One of the major problem
that both the company face is the lack of experts for evaluating the value chain systems (Hill
and Alexander 2017).
Analysis of companies’ different operations strategy and operation management
An operation strategy is defined as a specific plan of how an organization will
allotment its valuable resources in order to provide support in their products or services and
infrastructures. Strategic visions in general terms means the direction that the company wants
to follow in case of achieving its overall goal, a strategy is defined as the method or plan that
choose by the organization in case of derive the desired future goal and the competitive
priorities are defined as dimensions, which is must need to follow by the organization in case
of providing support to the marketing demand of products or services in which the firms want
to compete with other competitors (Kano 2018).
The Boeing Company limited
This organization is mainly involved in manufacturing aircraft relating to commercial
and defense. Boeing, in the present situation, is considered as one of the leading company in

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relation to manufacturing aircraft products and ingredients. For Boeing, the overall strategy is
to increase their annual returns along with making customers beneficial products. This
company generally provides 737,747,767,777 groups of planes and also some business jets
for commercial uses. In the present, the company is also engaged in providing aviation
services, aircraft modification, and training to the intended pilots and also provide some
technical advice to customers worldwide. The company is also continuing its development
activities relating to 787-10 and the 737 max and 777X program. As the strategy the company
intending to make some innovations in its manufacturing system and also provide some depth
coverage in civil aerospace strategies. According to the reports, companies total gross order
was 1015 in 2018, the company intending to increase its order number up to 1200 through the
using of new segments during the period of 2019. The company reported an order backlog of
US$479 billion in 2018. The commercial aircraft services became very competitive in today’s
market due to market liberalizations. To compete in such a market position, the company
needs to reduce its offer price and also provide some beneficial services among the
customers. The company also need to implement some leaders in case of creating teamwork
and also need to provide proper training to create skilled employees (Macdonald,
Kleinaltenkamp and Wilson 2016).
For Qantas Airways Limited
Qantas airways limited is considered as one of the largest airline service provider in
Australia and also the third oldest airline in the world, which was founded in 1920. Such
airline is engaged in providing airline services internationally. As the operating strategy, the
company wants to achieve top quartile total shareholder returns relating to ASX100 and
global airline. For such purpose, the company revolves around six strategic pillars, which is
underpinned by the financial framework. Such six strategic pillars are; maximize the leading
domestic position through branding, building a resilient and sustainable Qantas International

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growing efficiently with partnerships, Aligning Qantas and jester with Asia’s growth,
Investing in customer brand data and digital, Diversification and growth at Qantas Loyalty,
Focus on people culture and leadership. The company need to fulfil all those strategic in the
case to maintain their financial growth and market stability (Mudambi and Puck 2016).
Conclusion
It is concluded that this report is providing a clear idea about the strategy and value
chain of two different company with the same industry lineup. One is airplanes and relating
to aircraft product manufacturing company, and the other one is airline service Provider
Company. This report commences with the details of both those companies and their present
position in the global market. Next to the report is providing details of the value chain and the
effect of such chain system in both of those companies. After that, it provides an analytical
view of this value chain system from both the customers and the managerial viewpoint. In
case of analyzing from the managerial viewpoints it segregated in two ways, one is primary,
and the other one is supporting activities, which is classified in inbound, outbound,
marketing, technology, infrastructure and in operations. Next, the report is providing details
of the advantages and disadvantages that both are the company faced in case of evaluating
their value chain system. At the ending, this report is giving the complete details of
companies’ strategic visions, strategy and the effective policy so that both the company can
able to earn their future objectives efficiently.