Australian small business owners tend to be prepared for hardship (staffing, cash flow and natural disasters, for example) and generally have contingency plans in place. But businesses today had never faced a global pandemic, so quick thinking and fast action have been paramount in ensuring the survival of many ventures.Companies need to ask themselves about their supply chains, how diversified their business is, and analyse where their income is coming from. Above all, they must stay close to their customers.

Recent data showedmore than a third of Australian businesses would continue to struggle financiallyuntil the Covid-19 pandemic is under control. Small companies are almost twice as likely to suffer financial problems compared to largerfirms. No matter what size, many companies have been forced to ask some or all of their employees to take pay cuts.

Some workers, such as Melbourne delivery driver Melky Sanjaya, have found extra work due to increased demand for food, groceries and other necessities such as medicine delivered to their doors. Mr Sanjaya is an international cookery student from Indonesia who is now unable to return to his homeland. He works for Chainshopper, an Indonesian-owned delivery service, which services the CBD and inner suburbs. He has worked for the company since August 2019, but since the start of Covid-19, his income has increased by 50 per cent. In addition, during the curfew, no Melbournians were allowed to leave their houses at night, so more people ordered food or urgent necessities, which was beneficial for delivery drivers.

Mr Sanjaya earns approximately $150 a day over three days a week, and that is enough to cover his living costs. There are also some customers who give tips, maybe because they really needed something at night, such as medicine. Mr Sanjaya said he believes the strong demand for home deliveries in Melbourne will remain even after restrictions are lifted or Covid-19 is under control. There has been a significant change in the lifestyle of people in Melbourne. People are now comfortable with goods delivered to their doors.

(a)What is the core service of delivery companies such as UberEats, Menulog, Deliveroo or any other delivery service you are familiar with?

(b)Begin by creating a diagram showing the 3 (three) circles of the service product concept - core, supplementary and augmented services that Mr Sanjaya currently provides. Then, fully discuss each service you have identified in this diagram.

(c) Suggest five (5) additional supplementary or augmented services that you recommend Mr Sanjaya could also provide and discuss how each suggestion could increase his weekly wage.