Compare and contrast the operations value chains of these two businesses as they pertain to the management of bicycles.
The two bike rental companies have the same value chain activities. The companies, however, have different ways to implement these strategies. The low-cost rental organization employs low-level business practices to sustenance its value chain. The low-cost company employs ancient methods of data collecting and storage. The low-rental enterprise also employs an outdated method of record keeping. These outdated methods may result in the company not keeping track of their bikes; therefore, provide low-quality services. The poor financial; and record management may also result in the bikes not being properly maintained. The high-end company has elaborate methods of supporting its operation value chain; therefore, differentiating itself from competitors. The company has a proper record keeping system, which allows them to keep track of their bicycles and their customers. The company also employs digital methods of gathering customer and bike information; therefore, better organization and maintenance of the bicycles. The high-service rental organization also ensures constant improvement as evidenced by proposing of the new bicycle to the customer.
Describe a business process for maintaining bicycles for both businesses.
These businesses may have different bicycle maintenance processes due to their customers. The strategy employed by the low-cost company is one that used the bare minimum processes. Bicycle management is also likely to employ bare minimum processes. The bikes are not thoroughly inspected on return; therefore, it is impossible to notice any defects until it is too late. Maintenance is mainly carried out whenever a bicycle needs repair. Bicycle storage in the low-cost rental company may also be disorganized which may result in damage to some of the bicycles. The high-end company, on the other hand, is likely to employ elaborate business practices for the maintenance of its bicycles. The company is likely to conduct an inspection of the bicycle before returning it to the rack. The digital entry of information allows tracking of clients who may damage the bikes. The high-end company is also likely to conduct continuous assessments of the bikes; therefore, ensuring that any defects are repaired early. The high-end rental is also likely to have a feedback system where clients can comment on any issues related to the bicycles.
Describe a business process for acquiring bicycles for both businesses.
Describe a business process for disposing of bicycles of both businesses.
The two companies may have different processes of disposing of their bicycles. Due to the low economic capabilities of the low-rental companies, the company is likely to take some time before disposing of the bicycles. The company may avoid buying new bicycles by renting the existing bicycles until they are worn out. The low-sales company is likely to dispose of its bicycles only when the bicycles become unrideable. The low-sales rental enterprise is likely to dispose its bicycles at a scrap metal dealer, as most of these bicycles are unusable. The high-services rental is likely to dispose of its bicycles once the bicycles start getting old. The company is likely to purchase new bicycle often; therefore, disposal of the old bicycles. The disposal methods used by the company may involve selling the old bicycles to individuals or other low-cost retail shops.
What roles do you see for information systems in your answers to the earlier questions?
Information systems play an important role in the running of the 21st-century business. In the answers, provided information systems may promote the high-end rental business processes. The company employs information systems to record its client information. The use of information systems promotes fast recovery of information on what bicycles types clients may prefer. Information systems also play a role in determining what bicycles to buy. The use of the internet may assist both the companies to find bicycle suppliers. The two companies may also use the internet to promote their services as well as customer collect feedback; therefore, ensure continuous improvement. Information systems also play a role in the bicycle maintenance. The companies may install trackers on their bicycles to ensure they always know the location of each bicycle. The use of electric tags may also be a way to ensure that all bicycles are recorded and accounted for.
