Question

Different types of businesses engage in different types of activities. Four businesses follow.

a) Dillard's (department store)

b) Applebees (restaurant)

c) Saturn (automobile manufacturer)

d) Comet (dry cleaner)

Required: For each business, list two examples of:

a) Value-added activity

b) A Non-Value added activity

c) A business-value-added activity

Answer 1

1. Dillard’s (department store)
   1. Value added activity - Sales to customers , Proper packaging to avoid spillage
   2. Non value added activity – Waiting time at counter of customers, elimination of expired, non-moving inventory of the shelves
   3. Business value added activity – Optimum advertisement mix of departmental stores (banners, radio, television, internet or public transport)
2. Applebees (restaurant)
   1. Value added activity – Opening a new section with premium features and ambiance for customers, technological changes to upgrade system of order placed and food received by customer (reduced turnaround time.
   2. Non value added activity – Food returned by customers, excess of food not usable for next day
   3. Business value added activity – Working on requirements to make the place more hygienic and ambience worth remembering
3. Saturn (automobile manufacturer)
   1. Value added activity – Opening service centres at all important points so customers are confident to purchase the brand, assured timely servicing guarantees
   2. Non value added activity – Compliance with environmental laws and regulation, car insurance handling
   3. Business value added activity – Upgrading the facilities to most recent technological changes and producing fuel efficient models
4. Comet (Dry cleaner)
   1. Value added activity – Technological changes for optimal timing of customers in queue, Discounts on repeat services
   2. Non value added activity – Making provisions for lapses in dry cleaning, reworking methods to reduce electricity costs on machinery
   3. Business value added activity – Feedback mechanisms and proper steps to incorporate valued feedbacks to processes.