MRKT 310 Entrepreneurship
Final Project
Business Model Canvas
Assignment Brief: The Business Model Canvas is a strategic management template used for developing new business models and documenting existing ones. It offers a visual chart with elements describing a firm’s or product’s value proposition, infrastructure, customers, and finances, assisting businesses to align their activities by illustrating potential trade-offs.
Key Deliverables: You are required to develop a business model canvas for your proposed venture idea. The final report and presentation must cover:
The report must be in the following format:
Page 1 Title Page (Venture Name + Your Name)
Page 2 Business Model Canvas (One page only ~ color)
Outcomes:
Course Learning Outcome to be achieved by this project:
S1 Develop the major components of business plan and marketing plan
S2 Show effective written, verbal, and non-verbal communication skills in developing and pitching proposals for new ventures.
V1Demonstrate the professional and ethical responsibilities relevant to the discipline, IT usage and business industries.
Rules:
All Students are required to follow the prescribed schedule:
Final project must be developed for the same idea presented in assignment# 1 and marketing plan presented in assignment # 2.
The final project report must be submitted on or before 30 Nov 2021 12:00 midnight.
The Webinar will be scheduled on 2 Dec 2021
Plagiarism is a serious offense. If someone found copying someone else assignment part of complete will be awarded zero in final project.
Similarity value must not exceed 10%
Grade Distribution:
Project Grade Breakdown
Marks
Business Model Canvas
9
Webinar
6
Total
15
MRKT – 310 Entrepreneurship
Business Model Canvas
Template
MRKT – 310 Entrepreneurship
Business Model Canvas
Rubrics for Assessment
Excellent
Very Good
Poor
Marks
1. Infrastructure
1.1. Key Activities
Clearly described the key activities
Somewhat described the key activities
Missing key activities
1
1.2. Key Resources
Clearly identified the key resources
Somewhat identified the key resources
Missing key resources
1
1.3. Key Partners/ Network
Clearly recognized the key partners/network
Somewhat recognized the key partners/network
Missing key partners/network
1
2. Product/ Service Offering
2.1. Value Propositions
Appropriately explained the value proposition
Somewhat explained the value proposition
Missing value proposition
1
3. Customers
3.1. Customer Segments
Clearly described the customer segment
Somewhat described the customer segment
Missing customer segment
1
3.2. Channels
Clearly identified the channels
Somewhat identified the channels
Missing channels
1
3.3. Customer Relationships
Clearly recognized the customer relationships
Somewhat recognized the customer relationships
Missing customer relationships
1
4. Finances
4.1. Cost Structure
Appropriately explained the cost structure
Somewhat explained the cost structure
Missing cost structure
1
4.2. Revenue Streams
Appropriately identified the revenue streams
Somewhat identified the revenue streams
Missing revenue streams
1
Total
9
MRKT – 310 Entrepreneurship
Business Model Canvas
Instructions
Description
Examples
1. Infrastructure
1.1. Key Activities
The most important activities in executing a company’s value proposition.
Like Value Chain Analysis
1.2. Key Resources
The resources that are necessary to create value for the customer. They are considered assets to a company that are needed to sustain and support the business. These resources could be human, financial, physical, and intellectual.
HR, Patent, Money
1.3. Key Partners/ Network
In order to optimize operations and reduce risks of a business model, organizations usually cultivate buyer-supplier relationships so they can focus on their core activity. Complementary business alliances also can be considered through joint ventures or strategic alliances between competitors or non-competitors.
buyer-supplier; joint venture; alliance
2. Product/ Service Offering
2.1. Value Propositions
The collection of products and services a business offers to meet the needs of its customers. Value proposition is what distinguishes it from its competitors. The value proposition provides value through various elements such as newness, performance, customization, “getting the job done”, design, brand/status, price, cost reduction, risk reduction, accessibility, and convenience/usability.
Better price; Product efficiency; Better customer experience
The value propositions may be: Quantitative – price and efficiency or Qualitative – overall customer experience and outcome
3. Customers
3.1. Customer Segments
Mass Market: There is no specific segmentation for a company that follows the Mass Market element as the organization displays a wide view of potential clients. e.g. Car
Like mass market, niche market, segments, diversify
Niche Market: Customer segmentation based on specialized needs and characteristics of its clients. e.g. Rolex
Segmented: A company applies additional segmentation within existing customer segment. In the segmented situation, the business may further distinguish its clients based on gender, age, and/or income.
Diversify: A business serves multiple customer segments with different needs and characteristics.
Multi-Sided Platform / Market: For a smooth day-to-day business operation, some companies will serve mutually dependent customer segments. A credit card company will provide services to credit card holders while simultaneously assisting merchants who accept those credit cards.
3.2. Channels
A company can deliver its value proposition to its targeted customers through different channels. Effective channels will distribute a company’s value proposition in ways that are fast, efficient, and cost-effective. An organization can reach its clients through its own channels (store front), partner channels (major distributors), or a combination of both.
Exclusive, Selective or Intensive distribution channels or multiple of channels.
To ensure the survival and success of any businesses, companies must identify the type of relationship they want to create with their customer segments. That element should address three critical steps on a customer’s relationship: How the business will get new customers, how the business will keep customers purchasing or using its services and how the business will grow its revenue from its current customers.
3.3. Customer Relationships
Various forms of customer relationships include:
Self-Service, automated service, Communities, Co-creation, dedicated personal assistance
Personal Assistance: Assistance in a form of employee-customer interaction. Such assistance is performed during sales and/or after sales.
Dedicated Personal Assistance: The most intimate and hands-on personal assistance in which a sales representative is assigned to handle all the needs and questions of a special set of clients.
Self Service: The type of relationship that translates from the indirect interaction between the company and the clients. Here, an organization provides the tools needed for the customers to serve themselves easily and effectively.
Automated Services: A system similar to self-service but more personalized as it has the ability to identify individual customers and their preferences. An example of this would be Amazon.com making book suggestions based on the characteristics of previous book purchases.
Communities: Creating a community allows for direct interactions among different clients and the company. The community platform produces a scenario where knowledge can be shared, and problems are solved between different clients.
Co-creation: A personal relationship is created through the customer’s direct input to the final outcome of the company’s products/services.
4. Finances
4.1. Cost Structure
This describes the most important monetary consequences while operating under different business models.
Cost Driven VS Value Driven; Fixed costs, variable costs, economies of scale, break-even point
Classes of Business Structures:
Cost-Driven – This business model focuses on minimizing all costs and having no frills. e.g. Low-cost airlines
Value-Driven – Less concerned with cost, this business model focuses on creating value for products and services. e.g. Louis Vuitton, Rolex
Characteristics of Cost Structures:
Fixed Costs – Costs are unchanged across different applications. e.g. salary, rent
Variable Costs – Costs vary depending on the amount of production of goods or services. e.g. music festivals
Economies of Scale – Costs go down as the amount of goods are ordered or produced.
Economies of Scope – Costs go down due to incorporating other businesses which have a direct relation to the original product.
4.2. Revenue Streams
The way a company makes income from each customer segment. Several ways to generate a revenue stream:
Assets sale, usage fee, subscription fee, licensing, brokerage fee, advertising or renting
Asset Sale – (the most common type) Selling ownership rights to a physical good. e.g. retail corporations
Usage Fee – Money generated from the use of a particular service. e.g. UPS
Subscription Fees – Revenue generated by selling access to a continuous service. e.g. Netflix
Lending/Leasing/Renting – Giving exclusive right to an asset for a particular period of time. e.g. Leasing a Car
Licensing – Revenue generated from charging for the use of a protected intellectual property.
Brokerage Fees – Revenue generated from an intermediate service between 2 parties. e.g. Broker selling a house for commission
Advertising – Revenue generated from charging fees for product advertising.
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