Business Analytics Assignment: Value Chain Analysis For Pizza Restaurant
Project Objectives and Scope
The purpose of the business analytics assignmentis to apply concepts presented in the classroom within a business context. You will analyze a scenario and frame analytic opportunities that could help a management team accomplish its business objectives. You will create an analysis plan by identifying three (3) different analytic opportunities and describing them according to expected business value, decision making requirements, business questions to be answered, analytic modeling requirements and source data requirements.
You will use value chain analysis to determine key elements of your proposed analysis plan. Consider a value chain as a set of related items that must be identified and work together to create value as an output.
The business model links the many elements required to guarantee that the relevant information is maintained and paired with the necessary analytic models to ensure that the correct choices and actions are made to achieve the intended project outcomes (Meaton et al., 2015). The objective of this business analytics assignmentis to put classroom teachings into practice in a commercial setting. This project will examine a situation and identify analytic possibilities that might aid a corporate team in achieving its business goals.
In this case, the business outcome is the increase in revenue of the pizza restaurant. Consumers should be the major focus of the pizza restaurant's efforts to boost income (Chagomoka et al., 2014). Expand the market through increased marketing and sales activities, reviewing pricing tactics, and increasing market share. The restaurant must grow sales in order to stay in business. Increasing sales are an indicator of a company's financial health (Sharan et al., 2015). Hence, the restaurant must take proper actions that must take place to achieve the desired outcome. One of such actions is to give discounts and rebates. Discounts that are appropriately advertised give an incentive for customers to begin purchasing the pizza. Discounts on specific items on the menu, such as bulk purchases on multiple products, special deals, or discounts on all product lines in a store-wide sale, are all possible. A rebate often referred to as a delayed discount, is a proportion of the purchase price given in cash after the product is purchased (Sharan et al., 2015). The widely advertised discount creates more sales, but the lower redeeming rate lowers the cost. Another action that the restaurant can take is to manage the inventory management system properly to ensure that the waste is being properly tracked so, that the profit of the restaurant is maintained.
Before taking proper action to achieve the desired outcome the restaurant must make some decisions regarding the actions (Rosales et al., 2017). It is the responsibility of the restaurant owner or manager to decide the amount of the discount rather than the employee. The owner must decide which item on the menu shall fall under the discount category as well as all the conditions regarding the discounts. The owner or the manager should determine when, how and on what particular items should they promote the discount services. A consumer gratitude approach, such as special deals and bonuses, can encourage the previous consumers and clients to make another purchase. This gives them the sense that the pizza restaurant went above and above for them because they value them (Mudambi&Puck, 2016). And also, by taking Covid-19 into consideration it is the responsibility of the owners and managers to guide the employees to manage the inventory management system so that the waste of the restaurant is reduced.
Before making proper decisions and implementing them adequately there is a need to have some specific information as a query or series of questions to be answered in order to determine viable choices (Hamilton-Hart & Stringer, 2016). The information needed in this case are:
1. What is the cost per plate for each recipe on the menu?
2. What is the profit margin per plate for each recipe on the menu?
3. What will be the profit per plate after giving a discount to the consumer?
4. And the last is that how much food and beverages are currently wasted per day?
With the help of all these questions as the source of information the restaurant can make proper decisions on the amount of discount and the steps taken to manage the inventory system.
Inventory analytics are measures of present items, real estate, or raw resources. The analytics' purpose is to keep track of stock fluctuations (Olson, 2014). Inventory levels have an influence on corporate operations and reveal areas that need to be improved. Inventory management software keeps track of commodities all the way through the value chain, from raw resources to the ultimate sale of the pizza restaurant. Inventory goods are classified using the ABC categorization system depending on how valuable they are to the restaurant. The restaurant must prevent out-of-stock items, excess inventory, and delivery delays to stay competitive and meet consumers' on-demand expectations. Predictive analytics also enables the inventory manager to prioritise the product by the restaurant depending on the profitability and desire of the consumer (Olson, 2014). The restaurant must establish accurate manufacturing, producer, and supplier acquisition levels. Supply chain interruptions can be smoothed out. Consumption and revenue forecasts are important for the restaurant to make an increase in revenue. Analyse and alter transit routes as needed. Reduce the amount of waste by enabling the marketing team to customise suggested selling based on buyer patterns, surplus stock, or most popular things when the system identifies a trend in damaged goods from a supplier (Mitchell et al., 2015). Data warehousing, along with the capacity to monitor and analyse it, allows for a system that ensures and the resolution of typical inventory issues. Data-driven choices that are based on accurate forecasts minimise inventory deficits, overhyping, and wastage, all of which raise expenses and have a direct influence on profitability.
The most important thing needed to make a business outcome possible is Data. Data is needed to support the analytics as well as answer the questions. Therefore, the assumed data sets that the restaurant should have to increase the revenue are:
1. Supplier information Data – 8 years.
2. Menu data Items – 8 years.
3. Inventory management data – 8 years.
4. Customer order data – 8 years.
5. Financial information data – 8 years.
It is difficult to keep up with current customer expectations for the restaurant. It necessitates a large amount of data, which must be housed in a central warehouse and linked to a sophisticated inventory management system (Straková et al., 2020). For intelligent decision-making, customer, product, order, supplier, and procurement data are all required. Inventory management may be improved by using a prediction-based approach that integrates past big data. This improves customer happiness and profitability.
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