Chapter 3, Problem 3.3UYK

a.

Explanation of Solution

Comparing the value chains of the two business with regards to the management of bicycles:

In low cost business, the cycles which has been already used are acquired on cheaper cost. It takes less maintenance charge and minimal care should be taken to run the bicycle smoother. If the bicycle is damaged, it should be disposed and can’t be remodeled again.

In high cost business, the cycles are acquired from the quality oriented manufacturer...

b)

Explanation of Solution

Business process for maintaining bicycles for both business:

Maintenance for low-cost rental:

They will notproceed their maintenance work till they get the complaint from the customer...

c)

Explanation of Solution

Business process for acquiring bicycles for both the business:

The low-cost rental business uses the cheap bicycle parts. So, the sources used in the bicycle will not retain for more number of years...

d)

Explanation of Solution

Business process for disposing of bicycles for both businesses:

The low-cost rental bicycles are used till they break down completely. Once it is break down, the disposal of bicycle should be taken...

e)

Explanation of Solution

Roles seen in the information system:

The information system for the low-cost rental will be quite simple and the index card will be allotted for each shoebox...