Operations Management: Customer Benefits and Value Chain Report

This report provides a comprehensive analysis of operations management, focusing on the value chains and customer benefit packages of two distinct companies: Telstra, a service-based telecommunications provider, and Rolls Royce, a manufacturer of luxury goods. The report begins with an executive summary and introduction to the core concepts of the value chain and customer benefit packages, highlighting their impact on productivity and brand loyalty. It delves into the customer benefit packages offered by both companies, examining their service offerings, target customer segments, and strategies for enhancing customer relationships. The report then compares and contrasts the value chain designs and structures of Telstra and Rolls Royce, discussing the advantages and disadvantages of each approach, and exploring how they define their operations strategies. This includes an analysis of their strategic visions, competitive priorities, and the critical elements of operations management necessary for success. Furthermore, the report discusses the advantages and disadvantages of value chain analysis and provides a detailed overview of the organizational structures, leadership teams, and operational strategies employed by each company to achieve their business objectives. The report concludes with a discussion of the competitive advantages that companies can gain through strategic value chain management. The report includes relevant references and a bibliography.

Running head: OPERATIONS MANAGEMENT
Operations Management
Name of the Student:
Name of the University:
Authors note:

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Executive Summary
The report is based on the value chain of the companies that provide two different products.
One of the companies provides products based on goods and another company provides
products that are a service. The value chain is the pillar of a company; it helps in the increase
in productivity and the service that the company provides to the customer. The advantages
and disadvantages of the value chain have also been discussed in the report elaborately. The
customer benefit package is also a crucial part of the business that helps in the development
of the company and establishes brand loyalty. Various factors improve the working of the
company. The operation is an important part of the company and the way they deliver its
product.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Conclusion................................................................................................................................10
Reference list............................................................................................................................11
Bibliography.............................................................................................................................13

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Introduction
The value chain is the activity of providing quality products to the customers. The value
chain harms the functioning of the company. The value chain boosts the service provided to
the customers, it enhances the relationship with the customers increasing brand loyalty. The
value chain is interrelated with the customer benefit package, wherein the involvement with
the customer increases the quality of the product or the service (Mol, 2015). Customer benefit
management is the experience or believes that the customer receives while dealing with the
company.
The companies referred for a better understanding of the report are Telstra that provides
service to the customers and Rolls Royce that provides products to the customers. Telstra is a
telecommunication company providing service to Australians from the last forty years. It was
founded in 1975. Telstra has a revenue of $26 billion with employees of 32,000. Rolls Royce
is a brand that has been providing luxurious motor cars for high-class clients. It was founded
in the year 1998. It has its headquarters in Goodwood and West Sussex, England in the
United Kingdom. It has been serving worldwide with employees of 1300. It has a revenue of
1,572.9 corers GDP (Ryu and Lee, 2017). The two companies taken have a great difference
in the services or products they provide along with the revenue. Telstra provides
telecommunication whereas Rolls Royce is a brand that has been providing luxurious cars.
Hence, the structure and the value chain varies for both companies.
Discussion
The customer benefit package is the service or the toolkit that is provided to the customers.
Various packages are available for the customers of Telstra. Telstra provides occasional
bonuses for the customers. They have designed various internet and calling plans for the
customers. They have been recently providing the Telstra Easy Control 102 Twin at $20,

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which the actual price is $59 wherein the customer can save $39 (www.telstra.com.au 2019).
Telstra provides its customers with Telstra TV, where the customers can enjoy Netflix, Stan,
Kayo, Foxtel Now, live sports, catch up TV and more. It also provides search across apps
with the help of a smart remote. They are providing a bonus of $125 Telstra TV Box office as
well with Telstra TV. These are the few services that Telstra provides its customers, which
makes it different from other brands.
Rolls Royce targets the higher-class people of society. It ensures that the customers are
provided with the best support and the products meet the needs of the customer's demand. It
ensures that the customers are provided with the best quality products. Rolls Royce does not
compromise with its products. It does not even compromise or provide any sort of offers for
the customers (www.rolls-royce.com 2019). As it is a very costly brand, it provides its
services of providing spare parts to the customer’s doorstep. They assure the customers are
provided with the best services. They have developed a great employee with training that
helps in providing the best service to the customers. The companies provide two different
services to the customers, yet bot the companies try to provide the customers with the best
service they can (Payne, Frow and Eggert 2017). Rolls Royce is a very luxurious brand,
which helps the customers providing service to their nearest store or their doorsteps whereas
Telstra provides the best services improving the quality of the network and providing
packages that help in the increase in the brand name.
The value chain varies from company to company. The service that is provided to the
customers is the value chain service. Telstra has a very strong customer service that helps in
managing the service by the company. It outsources technical support to Teletech for an
increase in the reputation of the service, quality, and efficiency of the clients. The customer
care service helps in improving the service and reduction of the cost. This helps in the
development of the relationship with the customers enabling develop brand loyalty. Telstra is

5Operations Management
being helped by the Teletech in the sustainability of the overall reduction of the cost to
support their operations. Rolls Royce has been a very costly brand that has been providing its
service to limited people of society. It has been founded in the year 1998 and the revenue is
high compared to other costly brands (Cagliano et al., 2015). It does not compromise with the
products that they avail to the customers. As it is a very high profiled brand, the spare parts
are delivered to the doorsteps of the customers. Roll Royce does not compromise with the
products that they are providing to the customers. Due to the high pricing of cars, it is
available only in limited stores.
Telstra provides its services to the customers through communication whereas Rolls Royce
provides its products by displaying on stores. Telstra is a brand that has been serving for
forty-four years whereas Rolls Royce is a brand serving for a decade. Telstra has been
providing its service to almost all the customers of Australia and Rolls Royce is a brand that
targets only the richer section of the society (Savino, Manzini, and Mazza, 2015). Telstra
provides better service to the customers with the increase in the number of networks whereas
Rolls Royce provides its service by increasing the quality of the product and working of the
automobile.
Telstra has developed its organizational structure and the leadership team. For the rapid
delivery and effective working of the networks, there have been new technologies that have
been introduced by Telstra. To deliver changes, they have developed end-to-end and
technological division. This will help in the increase of the technical capabilities of product
development and management as well. There has been the entry of innovation in the
networks and support the building of 5G and the internet (Ghezzi, Cortimiglia and Frank
2015). It runs an enterprise for serving the Australians and international business and the
government customers as well for a market-leading solution. Consumer and small business

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for developing the customer relationship. Network and IT for supporting the network
superiority and digital experience.
Rolls Royce is a technology and global leader. It has been operating in 48 countries with
35,200 employees almost. Various functions have been divided among the HR functions,
research and development function, financial function as well. The prime reason for the
proper working of Rolls Royce is the rule and the policies. The HR looks after the proper
hiring and the policies of the company. The research and the development team help in the
increase in the sustainability of the company. It provides areas of innovation for flourishing
the organization. It helps the business to have a competitive edge and plans for the future
(Hong, Zhang and Ding 2018). The financial team looks after the pricing policy of the brand
ensuring high profit along with quality production.
The company creates the value chain looking at the production and the step required for the
production of the products. There are various advantages and disadvantages of the value
chain, which allows the company to break segmentation and helps in achieving higher
revenue. The following are the advantages of the value chain:
 There are five primary activities help in the increase in the cost of creating value. The
five value chain activities are inbound logistic, outbound logistic, operations, services,
marketing, and sales. In case the company creates the advantage of any one of the five activities with the
value chain analysis, there will be hick in the competitive advantage as well as in the
overall profit of the company (Brakman and Van Marrewijk 2017). For the increase in
the efficiency of the company, the company finds out the generic value chain activity
and works on it.

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 It is a flexible strategy tool especially for looking into the business. It helps in keeping
an eye on the competitors and industry value chain. It enables to create a competitive advantage based on cost and differentiation as well. It helps in the understanding of the organizational issues that are related to the
commitment towards customers as if it focuses on the activities that are required to
deliver the value proportion (Yamin, Sinkovics, Lee and Gereffi, 2015). It is the mainstream in the business school. It helps in the proper understanding of the
working of the business and the market. Any type of business such as manufacturing, retail or service can use it. The business
can be small as well as big (Bustinza, Bigdeli, Baines and Elliot 2015).
Along with the advantages, there come disadvantages. There are many advantages of
conducting value chain analysis whereas there is only a disadvantage, which may affect
the overall working of the company.
 It affects the vision of the organization while operations are broken down into
segmentation (Taglioni and Winkler 2016). It is important to create efficiency in
each of the company’s value chain while linking up of activities may lead to the
downfall of the activities.
 Often companies start to use value chain, which may be a disadvantage to form
the best value chain.
 The scope of the value chain is intimidating, this can take a lot of work for
finishing the value chain as the competitors can identify and understand the key
difference and strategy drive (Kozluk and Timiliotis 2016).
 The operations expert and the supply chain can easily adopt the value chain idea,
thus it can have an impact on the strategic understanding, analysis and creating
competitive advantage will be reduced.

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 The structuring of the business information system is not easy for getting
information on the value chain analysis.
 Some companies cannot use the value chain in the right way, which may lead to
the destruction of the value chain (Havice and Campling 2017).
Rolls Royce sells its products to the higher class, rich people of the society. Hence, the
method of operation of Rolls Royce is different compared to other brands. The strategies look
into the aspect of the recent trends and make sure that the product manufactured is updated
and meets the future power need (Gopal and Thakkar, 2016). Rolls Royce focuses on the five
elements: vitalize existing capabilities, Champion electrification, reinvent with digital,
transforming the business and building of a balanced portfolio. Rolls Royce has a strong
knowledge of its strengths and opportunities in the market. It uses its strengths in the proper
vitalizing of the capabilities in producing the products as well as assure that the customers are
aware of the strengths of Rolls Royce. Rolls Royce provides high costed luxurious cars;
hence, there is no use of a campaign through advertisement or promotion through social
media. Rather it is promoted through magazines or is promoted through celebrities. Rolls
Royce uses various other different ways of promotion for attracting the posh people. It keeps
a keen eye on the working of the business and on the customers' review, which helps in the
improvement of the products. It provides products for long term value and does not
compromise with its products (Bustinza, Bigdeli, Baines and Elliot 2015). As it is a luxurious
brand, is availed only in limited store, and makes sure that the spare parts of the cars are
available at the customers’ doorstep for the convenience of the customers.
Telstra has been spreading in other countries and it requires a strong operation for providing
service to a large number of people. It has developed a strong operational team for providing
the customer's satisfactory results. There is an increase in the number of networks for the
better and significant service provided to the customers (Durugbo and Erkoyuncu 2016).

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Telstra has a separate team that looks into the aspect of Integrated Operations Management.
Its task is to empowering monitoring, management, alerting and reporting all the signals in
one for removing complexity in managing multiple vendors, carriers, technologies, and
applications. The Integrated Operations Management collects information from a simple
network management protocol, which is capable of a comprehensive view of the health of the
network management (Fosso Wamba, Ngai, Riggins and Akter 2017). Telstra has developed
a strong team of providing service through tele calling. The targets in showing care for their
customers, work better for their progress. The main aim of Telstra is staying close to the
customers providing them with the best experience that is helped by the operations team in
achieving it. Telstra makes sure that the service provided is worth the value.
Telstra has been building and operating telecommunications network and market voice,
mobile network, internet access in Australia. Its vision is to improve the way of living of the
people in Australia and their work. They focus on the mission of building technology and
easy the use and values of customers. They strive to serve and know the customer better than
anyone else. It has an annual revenue of $26 billion (Abdul'aal 2018). Telstra has several
competitors such as Vodafone, PCCW global as well as Singtel. However, there are various
telecommunication services in Australia; the customer tries to avail the service of Telstra for
its unique service that it provides. It stands one of the top telecommunication services in
Australia.
The Rolls Royce is a pre-eminent engineering company that focuses on the world-class
power and propulsion systems. Rolls Royce has been providing its services to the richer
section of the society and has a vision as pioneers; Rolls Royce provides the best solution to
the market with innovation. This enables them in the understanding of the opportunities and
challenges that the customers face (Kwon, Lee and Yoo 2019). Rolls Royce believes that the
three key trends will define the future of power needs. Rolls Royce has been a competition

10Operations Management
for several brands in the past years and ranked among the top ten luxurious cars in the
market. It is a strong competitor of Mercedes Benz, BMW, Bentley as well as Ferrari. It has a
revenue of 1,572.9 corers GDP.
Conclusion
The operation of the product and the service is a major aspect of the rise in the company. The
value chain provides opportunities for the company to expand and develop brand loyalty. On
the other hand, the customer benefit package provides the customers with packages that help
in the sale of the product or the service increasing the revenue of the company. Depending on
the company, the value chain varies. Every company has a different value chain designed for
providing the best services to the customers. There are various advantages as well as
disadvantages of the value chain. It enables the company to grow within a short period. It
gives the company a competitive advantage. Telstra ensures customer satisfaction providing
them with the best network and the customer benefit package. Whereas Rolls Royce makes
sure that, they do not compromise on the quality of the product. There are also disadvantages
of the value chain as it can affect the vision of the company. Other companies reducing the
scope of development of the company can easily identify the key differences and strategies.
Both the companies have a vision and mission, where they want to be in the next few years.
The vision and mission of the companies are completely different as the service they are
providing is different. Rolls Royce focuses on providing the best quality and innovation for
the customers whereas Telstra focuses on providing quality service with very low or
minimum costs. The companies try to provide the best packages to their customers,
improving the customer's benefits package. The companies assure to meet the demands of the
customers with regular feedbacks they receive from their customers.

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