Value Proposition in Organisations – Real-World Case Studies

Introduction

The concept of creating value is generally understood by organisations as a connection of costs and benefits to their customers. The stiff market competition and the rapidly evolving market and technology have established value proposition as one of the most crucial challenges for domestic and international marketers around the world (Hassan, 2012). A value proposition is an explicit assurance given by companies to their customers that their products or services will deliver benefits that would create value. Since product or service value is only determined by the customers, Grönroos (2008) asserts that firms can only provide value proposition in their product offerings, and not the value itself. This implies that value proposition is a highly interactive process between companies and their customers (Talola, 2016). Firms can employ various methods to create value in their offered products and services. These methods are strongly correlated with keys dimensions that entail organisational structure and management. Value proposition is also correlated with the internal and external stakeholders of business organisations. In this regard, the purpose of this report is to discuss the value propositions of two real-world organisations, Heytsbury Holdings Limited and Ambrosia, in light of relevant organisational and management theories. The report also aims to evaluate the interactions of key business dimensions with value propositions offered by the selected companies and discuss the connection of value proposition of these companies with their internal and external stakeholders.    

Value Proposition of Heytsbury Holdings Limited and Ambrosia

The methods employed by the two selected companies to create value proposition have contrasting features in addition to some shared elements.

Heytsbury Holdings Limited

Based in Australia, Heytsbury Holdings Limited deals in retailing and property portfolio management. The company operates mainly in Australia and New Zealand through its network of franchises. Heytsbury Holdings Limited has developed a business model that enhances the firm's value proposition. The company's business model comprises of a franchising network that has enabled the firm to connect with their customers and add value to their demands. Heytsbury Holdings Limited's multinational operations are a true reflection of the company's high brand value and image that enhances the value proposition. Direct interaction with their customers has proved fruitful in building customer trust and providing value in every possible way. It is because direct contact has made it easier for the firm to obtain valuable feedback from its customers and address the areas where there is room for improvement. Franchising has strengthened the bond with the international customers, thereby adding value to the services provided by Heytsbury Holdings Limited. The franchising model is implemented across a hybrid organizational structure that plays a pivotal role in integrating the structure's functional elements across the firm's various international operating regions (Zheng, Yang, & McLean, 2010). The business model, along with the company's hybrid structure, has become an effective combination for attaining value proposition.