October 20, 2015

Easnin Ara

Lecturer

Faculty of Business Studies

Bangladesh University of Professionals

Subject: Submission of Term paper.

Dear Madam,

We the students of your class (BBA-5, Sec-B), have completed our research and assessment on
our term paper topic Explain value chain analysis involves according to your specification and
regulation. For the purpose of completing the term paper we went to Takeout Burger Restaurant
and learned about their value chain process.

We also would like to draw your kind attention to the fact that, we tried our level best to gather
and organize all kinds of information needed for the particular assessment, and in doing so we
have tried our utmost to live up to the standard.

We sincerely hope, that our analysis will help you in making the correct decision. We truly
appreciate this assignment. If you have any kind of inquiry, we would be very pleased to
explain.

Sincerely yours,

01. M.A. Maswood Alim B1405056

02. Paresa Tabassum Khan B1405077

03. Fazlee Wahid Omi B1405113

04. Mafi Rahman B1405125

05. Tasneem Haque B1405147

06. Tasfia Jabin Bidita B1405160

07. Lamissa Elin B1405104

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 Declaration

We, M.A. Maswood Alim, Paresa Tabassum Khan, Fazlee Wahid Omi, Mafi Rahman, Tasneem
Haque, Tasfia Jabin Bidita, Lamissa Elin confirm that the work for the following term paper with
the title: Value chain analysis of Takeout was solely prepared by us for Easnin Ara, Lecturer,
Faculty of Business Studies, Bangladesh University of Professionals. All sections of the paper that
use quotes or describe an argument or concept developed by another author have been referenced,
including all secondary literature used, to show that this material has been adopted to support our
research.

Date of Submission: October 20, 2015

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 ACKNOWLEDGEMENT

Many Acknowledgements are due to the employees of Takeout who have immensely helped us
with this study. Regardless of the fact of having tremendous load of customer orders and
responsibilities, they chose to support us by providing adequate information.

It is also great pleasure to us in expressing my immense indebtedness, deep sense of gratitude,

sincere appreciation and profound regards to them for helping us.

Additionally, we thank our course instructor Easnin Ara, w h o believed that we could terminate
this term paper on time. Her moral guidelines, endless effort, and joyful encouragement made us
successful in this paper. The guidelines that she provided really helped us making this term paper
possible and the classes that she took made this term paper possible & really easy for us for that
we will always be in her debt. We truly are grateful to her.

Moreover, we are also thankful to our classmates, group members, and friends for their
helps and supports. We would like to show our endless gratitude to them for their help and patience
that they showed.

At last, we thank to our parents and other family members for their help, support and sacrifices
during the study period.

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 EXECUTIVE SUMMARY

This term paper is a part of the course, Marketing Management (MKT-2402). The topic for the
term paper is Explain what a value chain analysis involves. This topic was approved by Easnin
Ara, Lecturer, and Faculty of Business studies, Bangladesh University of Professionals.

At the beginning of this term paper we set some objectives. We then made some theory review.
We studied about the topic that was assigned to us for this term paper. We visited the burger
restaurant Takeout in Banani and talked with the employees there about their value chain. We
gathered information and discussed amongst ourselves, searched internet and read books about
value chain of a restaurant.

In this term paper we tried to cover every aspect of the value chain of the chosen restaurant too.
We learned about their process or activities by which they adds value to their production,
marketing, and the provision of their after-sales service.

Then we analyzed their value chain and suggested how they can improve. Our goal was to learn
about the value chain process in practical life. We did our best to achieve our goal.

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 Table of Content:
Topic Page
no.

A brief overview of Take Out 6

Value Chain 6

Value Chain of Take Out 9

Primary Activities 10

Inbound Logistics 10

Operation 10

Outbound Logistics 11

Marketing & Sales 11

Service & Support 12

Support Activities 12

Procurement 12

Technology 14

Human Resource Management 15

Firm Infrastructure 16

Conclusion 16

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Take out:
Every day, more than 1000 guests visit TAKE OUT around the Dhaka city. And they do so because
Take Out is known for serving high-quality, great-tasting, and affordable food. Take Out was
founded in June 8, 2014, and is the most popular burger shop in Dhaka. Their commitment is to
provide premium ingredients, signature recipes, and family-friendly dining experiences. And this
is what has defined their brand for one successful year. It has two outlet - one in Dhanmondi and
the other in Banani. They first started their journey with a small cart in front of Rifles Square
market. Within few months they were very much popular among the students because of their taste
and reasonable price. Their target market was mainly the students; so the pricing was done keeping
the student in mind. Seeing this much popularity they have decided to open another outlet in
Banani and recently they have opened that outlet too. And as a CSR project they have collected
fund from their customer and feed 100 poor children with their burger and provided them with
new dress for Eid-ul-Fitr. They are mainly famous for their different types of burgers. Besides
they also have french-fries with thousand island sauce, noodles, and signature beverages.

Why Take Out:

Burger lovers like us would love to do value chain analysis with a best burger shop in the city.
Since all of us are a big fan of Take Out so we have decided to choose take out to do a value chain
analysis. They believe in making delicious burger with reasonable price and they also maintain the
hygienic issue. They don't have any extra waiter for serving their customer but they provide the
food on time. And the manager is very friendly with the customer and always try to take review
from them so that they can improve their quality. For these reasons customer loves and feels like
coming again and again. They always try to provide food according to the taste of Bangladeshi
people. For example the customer who loves to eat spicy food for them they have Naga burger
which is too spicy likewise they have spice meter and the customer can choose their burger
according to their preferences. And chocolate lover would love to drink their shakes because their
shakes are made of different chocolates according to the customer choice. So we can say the basic
marketing strategy of Take Out is to create value for the customer and provide the best food that
people would love to eat and also satisfy their want.

Value Chain:
The idea of the value chain is based on the process view of organizations, the idea of seeing a
manufacturing (or service) organization as a system, made up of subsystems each with inputs,
transformation processes and outputs. Inputs, transformation processes, and outputs involve the
acquisition and consumption of resources - money, labour, materials, equipment, buildings, land,

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administration and management. How value chain activities are carried out determines costs and
affects profits.
Value chain model from Michael E. Porter's Competitive Advantage:

Most organizations engage in hundreds, even thousands, of activities in the process of converting
inputs to outputs. These activities can be classified generally as either primary or support activities
that all businesses must undertake in some form.

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According to Porter (1985), the primary activities are:

1. Inbound Logistics - involve relationships with suppliers and include all the activities
required to receive, store, and disseminate inputs.

2. Operations - are all the activities required to transform inputs into outputs (products and
services).

3. Outbound Logistics - include all the activities required to collect, store, and distribute the
output.

4. Marketing and Sales - activities inform buyers about products and services, induce buyers
to purchase them, and facilitate their purchase.

5. Service - includes all the activities required to keep the product or service working
effectively for the buyer after it is sold and delivered.

Secondary activities are:

1. Procurement - is the acquisition of inputs, or resources, for the firm.

2. Human Resource management - consists of all activities involved in recruiting, hiring,

training, developing, compensating and (if necessary) dismissing or laying off personnel.

3. Technological Development - pertains to the equipment, hardware, software, procedures

and technical knowledge brought to bear in the firm's transformation of inputs into outputs.
4. Infrastructure - serves the company's needs and ties its various parts together, it consists
of functions or departments such as accounting, legal, finance, planning, public affairs,
government relations, quality assurance and general management.

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 Value Chain of Take Out:

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Primary Activities:

Inbound Logistics:
The activities concerned with receiving, storing and distributing the inputs to the product or service
is known as inbound logistics. These include materials, handling, stock control, transportation, etc.
Materials: Takeout purchases raw materials and vegetables from its fixed suppliers. It gets buns
from a local baker (the buns are packed in plastic crates to ensure quality), cheddar cheese from a
local dairy, fresh iceberg lettuce from a local farm, onions potatoes, salt and pepper from a local
vegetable market and the core ingredients, chicken, beef and bacon are purchased (non-processed)
from a local meat supplier. Its beverage supplier is Coca-Cola.
Handling and Stock Control: Takeout handles the raw materials all by itself, meaning its workers.
Its stock generally works in a daily basis to keep everything fresh. Raw materials for the day are
stocked every morning.
Transportation: The materials are transported to the Takeout outlets early in the morning by its
suppliers.

Operations:
The process of transforming inputs into finished products is known as operations in the value
chain. The process, materials, machine tools, packaging, maintenance, etc are discussed here.
Process: The general process of making the burger is to grill the patty and then dress according to
the customers preference s but Takeout didnt agree to disclose this procedure in details. One of
its best parts is that it lets the customer decide the spice limit of the burger they want to have.
Materials: Other materials, for instance, Takeouts special dip is prepared by the workers from
scratch, which is one of the best in town.
Machine Tools: Takeout uses quite a number of machines, which are a grill to cook the patties,
dressing station for the final preparation of the burgers, fryer to make the French fries, soda
machine and milkshake machine. It has a counter for taking in orders and for serving the food.
Packaging: In cases of taking food out, Takeout packages its food quite well. All the food items
are packed individually first then are put into a to-go bag. This indicates a sustainable packaging
system.
Maintenance: Takeout keeps good quality of the raw materials while cooking and maintains well
until service.

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Outbound Logistics:
Burgers are served hot to the customers at the restaurant and their doorstep.

Marketing and Sales:

Segmentation and target market: It targets the people from age 12 to 40 including
students and working people. Young people are basically their main customers.

Branding: Takeout is a well-known and buzz creating brand for burgers in town. Its
burgers have a uniqueness in terms of the taste and authenticity and created a brand value
and satisfaction to the customers for its quality.

Redefining the menu: It has expanded its menu by adding noodles, fries and various
ranges of drinks along with the burgers to help the customers complete their meal. Also
they provide options to customers to prepare their burgers as they want. It offers a special
sauce named Thousand Island Sauce with fries which is very popular. This has helped
them to increase customer base and satisfy them.

Pricing: Pricing has been done as per the market demand and keeping in mind the
competitors which completely justifies its products and quite affordable for students.

Distribution: It had its only cart in Dhanmondi but recently it has opened a new outlet in
Banani for the large customer base residing in that area.

Advertising: Through Facebook page, online articles and groups for foodies it created a
bujj among people. It encourages reviews from people and try to improve itself taking the
reviews seriously.

Promotional offers: During launching any new flavor of the burgers it gives many
promotional offers to understand the base and demand of the customers.

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 Consumer benefits: People believe that Takeout offers uniqueness in terms of taste
according to its pricing. It became so popular that all the time the place remains crowded
with customers.

Service and support:

Takeout is a take away restaurant and it offers self-service after ordering meals.
The employees behave politely during taking orders and service and gladly help their
customers to pick their meals.
It takes online orders from customers through Hungrynaki.com. Customers can choose
their meals by seeing the menu and also can know if there is any offer and discount going
on.
Home delivery process and the service process are fast and convenient enough.

Support Activities:

Procurement:
Takeout has room for improvement in this particular supporting activity. The ingredients for a
good burger are simple and widely available here in Dhaka, and so Takeout relies entirely on local
suppliers for procurement of raw materials. A question remains though: Can the taste of the burgers
and its acceptability to customers be improved by using some imported ingredients such as
different kinds of cheese, jalapeo or pepperoni? This is being speculated by Takeout itself, and
depending on the results of their market research, changes in their sourcing can eventually be
introduced.

However, acquiring ingredients from the local market allows Takeout to keep their costs down and
provide cheaper burgers to their customers.

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There are a few negatives in the procurement process, and they can be explained under the
following categories:

Economies of scale being a small organization with only two outlets at Dhanmondi and
Banani, Takeout cannot enjoy sufficient economies of scale. There is a limit to their bulk
buying capacity, and this limits the opportunity to bring down costs. However, with the
growing customer base, this matter can be addressed if Takeout expands its business.
Sustainable packaging absent. The employees of Takeout go to the shop themselves
and buy the necessary ingredients in ordinary shopping bags and polythene packets. This
poses a hygiene issue for what actually goes on to become the burger, and there is also no
concern for the environment. Takeout risks losing business if this threat turns into negative
publicity.
Supply chain control there is little control over the backward supply chain. This is
because Takeout has only two suppliers, one for each of its branch. The relationship with
the suppliers is based on the quality of ingredients supplied and for the length of time for
which they have been doing business together. However, in the view of any one branch,
this dependence on only one supplier cannot be encouraged. If one supplier fails to deliver,
then the raw materials can come from the supplier of the other branch, but this will increase
costs, since both the suppliers are in close proximity of their nearest branch of Takeout.
Quality control though not very pressing, this is somewhat of an issue. Although
Takeouts supplier remains the same, the supplier of the supplier changes from time to
time. What this means is that the batch of chicken or beef that is being used in a burger
today may not be the same tomorrow because of differences in the origin of the meat or
breed of the animal. For vegetables used, such as tomatoes, lettuce, onion etc., the variance
comes for example, in the type of soil that these were grown in, the climatic conditions and
other human factors. This does affect the flavor, consistency and texture of the final burger
even to a small extent.

The procurement process can be improved if the above existing problems are looked into.

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Technology:
The use of technology at Takeout is just satisfactory. Considering the size of the firm and its
product line, it actually does not need much of technology, but it can definitely do better otherwise.
At its outlets, it uses computers to process, record and track billing information and sales. But it
does not use digital medium to maintain inventory or employee details, or have sophisticated
technology to manage customer database. There have already been a few cases of not being able
to serve customers with certain items due to shortage of ingredients, and that had resulted in lost
sales. So there is large scope to digitalize the internal activities of Takeout.

A recent addition to their outlets is free Wi-Fi for customers

Use of Facebook:

Takeout has two active Facebook pages for its two separate branches, and they are well maintained
and regularly updated. This has allowed Takeout to achieve the following:

Get customer feedback and suggestion customers can conveniently post reviews about
the food, their experience and also share their own ideas on how to make better burgers.
This comes in handy for Takeout because not only can they correct their mistakes and
provide better food and customer service based on these reviews, but also be able to create
innovative products (burger) and attract more customers.
Advertising it costs less to carry out digital marketing, and Takeout knows how to do it
right. By constantly sharing photos of their burgers, their prices, the entire menu and
sudden announcements, they can keep their customers constantly updated on what they
have to offer and help them avoid hassle. They also share news and photos on their
Facebook page of their participation in various events, and also activities for the
community, be that sponsorship for any event for a noble cause, or feeding the poor with
their burgers for free, or collaborating with other charitable organizations, and this
facilitates positive brand building.

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Partnership with Foodpanda:

People can now order Takeout burgers from their phone by using the Foodpanda application, and
get the food delivered to their home. This has resulted in happier fans of and better business for
Takeout. Use of this technology has increased the accessibility of Takeouts products.

Human Resource Management :

Takeout does not follow the usual norm of employing of waiters. They instead use a self-
service format where the only staff hired by the owners are the ones that work in the kitchen.
Workers with previous job experience are usually the ones who are preferred during a
recruitment. As all employees working for takeout are used in the kitchen, they prefer people
with experience to make operations smother.
There are no special training regimes for employees who are about to join Takeout. Workers
learn practically during working hours from supervisors or other fellow workers.
The limited interaction between workers and customers means that the employees will not be
judged by their level of interaction with customers; which is very different from what happens
in other fast-food eateries.
Customer interaction is only limited to the supervisor or manager of a certain branch.
Customer problems are usually dealt by them. Any issues are dealt very humbly, normally by
giving in to the problems of the consumer.
Appraisals are usually given on a monthly basis.
Performance appraisals are given to workers to boost their motivations. Such appraisals are
usually given annually.
Information is usually disseminated to other employees by the supervisor or manager of a
specific branch.
Employees are not laid off unless they are reported by a supervisor or a customer for bad
behavior or poor performance. The owners hold the right to fire as an employee at any time.

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Firm Infrastructure:
Takeout started their business in 2012 with a food cart in front of Rifles Square.Their initial plans
were short-scale but after Takeouts paramount success, they decided to open a branch in Banani.
The new premises is located in the heart of Banani 11. It is a 5000 square-feet single storied with
seating capacity of 20 people. Some might say that the space acquired is still too small for the
onrushing consumers. Another major problem is that the kitchen covers up almost 1/3 space so
there are plenty of evidence to suggest that the seating capacity is still unmatched to the number
of the customers visiting the eatery every hour. But many may argue that it is an upgrade compared
to the infrastructure of Rifles Square

The kitchen hosts some advanced equipment, but as we could only get a glimpse of it as it against
company policy for outsiders to enter the kitchen. A recommendation would be to increase the
seating capacity as it is not uncommon for a customer to find Takeout full with people, often people
prefer going home than waiting to the premises to enter.

Conclusion:
We looked at every step that Take Out goes through from buying raw materials to the eventual
end-user or customer. And by analyzing their value chain we found that their main goal is to deliver
maximum value to the customer for the least possible total cost. They set a target market and try
to satisfy them by making burger according to their taste and choice. And also offer their burger
with reasonable price. For these reasons customer feel like coming again and again. Their burgers
are delicious in compare to other burger shop and they always try to analyze customer feedback
and directly communicate with the customer through facebook or talking with them while taking
order. And that's how Take Out become famous within a very short period of time. It has become
a hangout place for almost all the students. So if you want a mouthwatering burger with affordable
price then we would suggest Take Out instantly.

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