FACULTY OF FILM, THEATRE AND ANIMATION (FITA) UNIVERSITY TEKNOLOGI MARA (UITM)
COURSE CODE / NAME:
ENT530 / PRINCIPLES OF ENTREPRENEURSHIP
LECTURER:
MADAM NURHUDA BT HAJI NIZAR
TITLE OF ASSIGNMENT:
BMC
DATE OF SUBMISSION:
16 JULY 2021
NAME STUDENT ID
AMEIRA BINTI ZAINUDIN 2019854926
NURUL IZZAH BINTI ABDI 2019251958
NOOR AMIRA BINTI MOHD ANSARI 2019229608
AZIZAH BINTI PITING 2019267542
RAHIZAM BIN HAMEDAN 2018455048
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1.0 TABLE OF CONTENT
BIL LIST PAGE
1.0 TABLE OF CONTENT 1
2.0 INTRODUCTION 2-4
3.0 BUSINESS PROPOSAL 3.1 Customer Segments 3.2 Value Propositions 3.3 Channels
3.4 Customer Relationships 3.5 Revenue Streams 3.6 Key Activities 3.7 Key Resources 3.8 Key Partnerships 3.9 Cost Structure
5-14
4.0 CONCLUSION 14
5.0 APPENDICES 15
INTRODUCTION
Business Model Canvas (BMC) is the core medium to be implemented by all types of organisations since it can be an effective guideline. By preparing a proper BMC, it tends to ease individuals in deeply understand about the company business nature. Moreover, BMC brings a benefit in creating a better understanding for the potential clients to arrange a collaboration with the company. BMC consists of nine basic components of a business model. Instead of simply having them in a row, they are put on a canvas to ease the visualization for different types of business management as well as the procedure. That kind of visualization might assist the user to map, discuss, design and invent new business models.
Other than that, the whole part can basically be divided in the product on the left side and the market on the right, while the value proposition is obviously divided in half. On the very right we have the ‘Customer Segments’, all the people or organizations for which they are creating value, including simple users as well as paying customers. For each of the segments, the BMC have a specific ‘Value Proposition’, which displays all the bundles of products and services which create value for the customers. Besides, The ‘Channels’ describes through which touch points the organization are interacting with their customers and delivering value, while the ‘Customer Relationships’ outlines the type of relationship they are currently establishing with their customer.
Next, the bottom-right part of the canvas, which is the ‘Revenue Streams’
creates clear visual on how and through which pricing mechanisms the business model is capturing value. For the assets of the business are shown in the ‘Key Resources’, meanwhile on the left directly under the ‘Key Activities’, the things that the organization need to perform well. ‘Key Partners’ are all those who help business owner in leveraging their business model, since they will not own all key resources nor perform all key activities by themselves. In addition, with the understanding of a business’ infrastructure, business owner will get an idea of the ‘Cost Structure’. It is a one-page document which works through the fundamental elements of a business or product, structuring an idea in a coherent way.
Thus, Miraz's Jar is also implementing the BMC to ease internal and external understands our company better. This implementation also will assist our internal to make an improvement for the company to reach our mission and vision. Having a BMC also helps in solving problems that occur specifically on important part. Thus,
will speed up the process on solving the problem. Moreover, during this pandemic, Miraz’s Jar actively observe the market demands. It is significant that the current market is demanding for food that is ready to be consume and not taking too much time to be prepared. For instance, the implementation of MCO had forced most company to assign their workers to work from home (WFH). Due to that, the workload that they are handling don’t give them enough time to prepare their lunch.
Because of that, we established products that are ready to be consume and easy to be carried and placed on their workspace.
Looking at Crimebites and Nims company which mostly produced cookies- based products, the company experienced years in producing the products. Similarly to Miraz’s Jar, which also provide some product using cookies-based. One of the famous products that similar is the choco jar. The differences found is the chocolate brand been used and the amount of chocolate that was mixed with the bubble rice.
Nonetheless this is the variances that the customer have to choose from.
Next, having an expert employee in food producing industry is one of the strengths that Miraz’s Jar possess. Therefore, the time it takes to produce our product will drastically increase. Every employee that wishes to be part of Miraz’s Jar will be filtered in-depth and will be asked various types of question regarding food producing and processing. As per conversation with one of the staffs who works at the Crimebites factory, she stated that almost every month the company will hire new employee due to the resignation of the earlier employee. This has shown that most of the employees are only interested in the salary and not because of passion itself.
Passion has been known as one of the most important feeling influencing our actions, decisions, attitude and daily life. Thus, it is important to have a passion in what we are doing.
As for the weakness, Miraz’s Jar is one of the new companies that was established. Thus, Miraz’s Jar have plenty of improvements to be made in terms of marketing side. Looking at Nims marketing site, they took all the chances they can to promote and market their product. Moreover, the videos that they are marketing was very attractive, pleasant and satisfying to watch the chocolate flowing on the bubble rice.
As we all know, most of us had affected by the pandemic in terms of work-life and job satisfaction. To help the affected ones, we invent food that is very useful to them forget about their work and focus on the personal life by enjoying the taste of our products in easy to carry jar. In contrast to Nims and Crimebites, both of the companies focus on developing new product in the same packaging. By developing new packaging, this will ease the customer to work while eating anywhere they wanted to.
The threat that Miraz’s Jar is facing is the customers planning to saves money due the pandemic. This can be noticed because of the pandemic had affected most of the employees that their employers are forcing them to take unpaid leaves. In order to solves this, Miraz’s Jar is planning on doing a Pandemic Promotion which we include All-In-One price. Therefore, this will allow our customer to saves more money and at the same time to taste different types of products from Miraz’s Jar. In contrary to Nims and Crimebites, both companies are not doing any promotion during this pandemic.
EXECUTIVE SUMMARY
In this Covid 19 pandemic season, there must be a lot of social activities done at home such as online learning and also work done in a 'Work From Home' (WFH). Therefore, we provide products for those who love food or snack while studying or WFH.
Our product is a kind of snack that is packaged in a jar and easy to carry anywhere.
We sell a variety of snacks such as mini curry, popia cheese, mini cookies and also fried bitter gourd coated in crispy flour.
arrangement
Company background?
BUSINESS PROPOSAL
Customer Segments
To ensure a business’ appeal to its customer segment the business must work to understand who the customer is. These can be recognized by evaluating the customer’s environment, experiences and general context. All these factors contribute to how the customer will respond to your product. So a customer’s geographic, demographic and social context will define the customer’s persona, creating a customer archetype for your products and services.
Miraz's Jar also attaches importance to customer segments so that the products produced and supplied are suitable for the customer and do not invite danger. For our products, suitable for all genders and ages 5 years and above. This is because some of these products are not suitable for consumption by children under 5 years old. This product is also suitable for eating with the family while chatting and can strengthen family ties.
Value Propositions
A value proposition is a statement that identifies clear, measurable and demonstrable benefits and summarizes why a customer should buy a company’s product or use its service. Simply put, it’s a promise of value to be delivered to the client. A value proposition also introduces a brand to customers by showing them what the business stands for, how it operates, and why it deserves their attention. There’s a lot of stuff being sold out there, so companies must present their products as unique and make them stand out. And a good value proposition is one of the most important aspects that can help achieve this goal. Value propositions are everywhere. You see them every day, yet you may not even be aware of what they are when you come across them. They aren’t slogans or catchphrases.
Miraz's Jar will provide the best service for their customers if they buy items that have been produced by us. This is because for us customers it is a priority to get better profits from time to time. We will provide various types of offers to customers,
especially for customers who are loyal to us in supporting the purchase of our company's products.
Among the offers provided by Miraz’s Jar to its customers is the delivery of our products to the customer's home near our store. This can indirectly maintain the safety and quality of the product as usual. The second offer is that we provide free gifts to our customers if they purchase one of the products from the store. For example, gifts we will give such as spoons, chocolates and business cards. Gifts given to make it easier for our customers to eat the food and symbolize our appreciation of our customers who support us a lot.
Channels
Channels are the ways in which the company communicates its offer to individual customer segments. In BMC, Channels are located between Value Propositions and Customer Segments. With this layout, you can match a specific value to a particular customer segment via an appropriate channel. We use several platforms to run this business. among them are Instagram, whatsapp, facebook, website and direct selling.
We use whatsapp platform to run our business by promoting our products in whatsaap group as well as uploading products, sales results and feedback we get on our whatsaap status, whatsaap application is also used to make it easier for customers to connect with us.
The Instagram platform is also our choice to run our business by creating an instagram page and collecting followers to visit our page. We will also upload our products on our Instagram page as well as we will also upload feedback given by customers. In addition, we also pay an instafamous person to make a paid review of our products. Example product MIRAZ’ and captions.
MUSIM PKP NI MESTI NAK KUNYAH2 JA KAN? HA MEH BAGI YANG SUKA COKLAT MANIS NI ..KAMI ADA PRODUK YANG SESUAI.. SAMBL TENGOK
MOVIE NAK KUNYAH2..ONLINE CLASS KA KAN. MEH CEPAT ORDER LAJU2..
YANG JAUH KAMI BOLEH POST.
The same goes for the facebook platform. Miraz will create a business page
for this product on facebook and upload photos, feedback as well as the convenience of the public to connect with us as well as the function of this platform to promote and expand sales of this Miraz's Jar product.
MIRAZ'S JAR also has its own website to make it easier for the public to track the location of business operations as well as information and background of our business.
Customer Relationships
Our business organization uses three types of customer relationships, where it aims to gain and retain customers as well as increase sales for upsell purposes.
Among the customer relationships used by Miraz’s Jar are personal assistance, communities, and co-creation. Personal assistance is to interact directly with customers. The purpose of our company is to use such means to interact directly by providing assistance or support during the transaction process and also after making a purchase by our business staff. In addition to direct interaction, it includes through phone calls, emails and so on. This makes it easier for our company to attract more customers.
Next, the customer relationship our second company used was community. Our business organizations build online communities that aim to allow customers to exchange views and information to solve specific problems. Communities are also useful in helping our business organizations to understand the needs of our customers.
Moreover, this is very much related to the method of building our company’s relationship with customers. The third customer relationship used by our company is co-creation. The business organizations we run involve consumers in business processes. For example, encouraging customers to review products and services on the Miraz 'Jar website like most ecommerce websites, choosing product packaging designs and more. In addition, another example is through the YouTube channel that allows our users to build their own content or their feedback after purchasing a product from us.
Revenue Streams
Revenue streams used by Miraz 'Jar refer to the revenue streams that can be generated from the business. This involves our business to provide products and services related to the business we conduct. Has two categories of revenue streams, the first is income from payments on products we sell and services in a single purchase or transaction. While the second recurring income from a single purchase of products or services that our company provides.
There are various ways used by our company to generate income stream including asset sale. Asset sale is done for the purpose of selling whatever goods our company produces because the income stream can be generated when the purchase is made. In addition, our company also conducts revenue streams with licensing. This licensing can also generate revenue streams for our company by licensing intellectual property to other parties involved in our business processes. For example, this can license our trademarks and patents to others for a certain fee.
Key Activities
Key activities in our company describe what business entities need to do to ensure our business model is successful. These key activities are required to build value proposition, build and support our company's relationship with customers, and in turn generate revenue. The key activities of Miraz 'Jar company used in business processes is that Microsoft aims at the development of our company's purchase data and information system or software. The two key activities involved in our business process are problem solving and networking.
Problem solving aims to solve problems specific to each of our clients. It also aims to build new solutions to customers. This refers to our company's business model for consultancy services and key activities of our company require knowledge management and continuous training to company staff to ensure business processes are not disrupted. For example, our company provides services to customers who want to complain about the products we sell if our products are faulty. The second key activity is the platform or network. The platform we use can refer to our network, match making platform, software and even our business brand. For example, Miraz'Jar uses Microsoft because Microsoft Windows software is a platform in our business and Microsoft's business model requires relationship management with other companies that build software based on operating systems run by Miraz'Jar.
Key Resources
Key Resources are the key assets your company needs to create the final product.
How and what resources you need and how those resources can dramatically influence your business model. The primary source depends entirely on the type of business. Among the main keys in this matter are physical resources, intellectual resources, human resources, and financial resources.
Miraz’ Jar will prioritize all aspects especially matters involving our workforce and customers. This is because all those who are directly or indirectly involved, they play their respective roles in helping to make our work a success.
Financial resources are the main thing because it involves the finances of the company before doing other things to make the planned product a success. Miraz's Jar will prioritize finances so that there are no problems involving employee salaries, difficulty in obtaining raw materials to make food and so on.
Physical resources involve food processing places and equipment to make food before it is marketed to the public. We take good care of all equipment and cleanliness of the food preparation area so that there is no poisoning to customers.
Intellectual resources are things that involve the brand of the product, the quantity of the product and the working time to the employees in the store. Miraz's Jar will prioritize the quality and quantity of each product that has been produced to give satisfaction to the uniqueness in each food product that we produce. Human resources are the amount of manpower used to make and deliver our food to customers. We will prioritize the welfare of our employees so that no problems occur as we will provide leave in case the employees are in pain, emergency problems and others.
Key Partnerships
In business, our key partners are the relationships that your business has with other businesses to ensure your business model will be successful. The most obvious key partnerships are related to our supply chain. When you think about it, most companies are simply a link in a much larger value chain. We often think of our customers as end-users of our products and services, but in reality, our customers are most often simply the next link in the chain. To our customers, we are their key
partners. Without what we sell to them, they could not produce their output. Key partners are not restricted to just supply chain partners. Key partnerships can fall into one of four broad categories.
1. Strategic alliances between non-competitors– As the name implies, this is a strategic partnership between non-competitors. For example, your business may choose to partner with a manufacturing company to produce a sub-assembly. The tire company and the car manufacturer are not competitors. While the car company could choose to be vertically integrated and manufacture its own tires, it is far more efficient to contract with a tire manufacturer to source its tires. Another great non-competitor strategic alliance was when Edger Thompson, president of the Pennsylvania Railroad partnered with Andrew Carnegie of Carnegie Steel to create its railroad tracks.
2. Coopetition– This is the strategic partnership between direct competitors.
For example, as an oil and gas guy, it is not very efficient for every oil and gas company to try to sway public opinion about fracking. Instead, many oil and gas producers pooled their money to create a series of public service announcements (PSA) to debunk many of the claims that fracking technology is bad for the environment and is responsible for polluting water supplies. While the oil and gas companies are in direct competition with each other, that does not mean that they may not have a key partnership with other oil and gas companies to cooperate on some things.
3. Joint Ventures to develop new businesses– This is where two companies combine their technology to create a new business. For example, Google had a robust internet delivery mechanism, while NASA had a defense mapping database with images of the planet. Through a joint venture, they created Google Earth.
4. Buyer-supplier relationships– Last but not least is the buyer-supplier relationship. Key partners in a buyer-supplier relationship can build mutually beneficial and reliable relationships with Porter’s five forces.
For this business, our partner are two sectors. Oil Station and Supermarket.
We will supplier and place our products at station oil and supermarkets in several districts so that our products are better known. In addition, it can increase and expand
the sales of our products.
Cost Structure
Cost Structure defines all the costs and expenses that the company will occur in operating the business model. This process is the final and important to help our team to decision. There are two types of categories of cost structure, value-driven and cost-driven. We must consider the most important costs in business and create hypotheses for the se expenses. Miraz’s Jar will need to consider both fixed costs, such as start-up and acquisition costs, and variable costs, such as our monthly operating costs. After gathering some data using resources to prove the hypotheses, so, it will be able to determine if product should proceed or not. On the other hand, Miraz’s Jar is using a cost-driven on cost structures to focusing in minimizing the costs of the product as much as possible. We aim at maintaining the leanest possible on cost structure, using low price value propositions, maximum automation etc.
Mira’z Jar cost structures may attribute to how the economies of scale, economies of scope, fixed cost, and variable cost. Fixed cost is those occur in the volume of selling or business activities such as insurances, salaries, and rent. Meanwhile, variable costs are costs that change in direct proportion to selling activities. For example, commissions, product cost, cost of labour and raw materials used in manufacturing etc.
To gain understanding of what Mira’s Jar cost structure are, we created an expenses mode. It will consist of an estimated cost for all the costs that would expect to incur, both start-up and recurring costs.
Start-up Costs (RM)
Initial Food Purchases 700
Truck 800
Permits and License 500
Legal/ Consulting Fees (including setup costs) 350 – 500
POS System 50 – 150
Utensils 400
Cookware 500
Initial Marketing 750
Unexpected Expenses 2000
Total start-up costs (RM) 6300
Recurring costs RM
Food supplies restock 500 - 700
Insurance 200
Storage 250
Fuel 200
Administration/ General/ Misc. Expenses 500
Maintenance/Unexpected budgets 1000
Approx. Monthly Recurring Costs 2850
Time Cost: 2- 5 months
CONCLUSION
In conclusion, all elements include customer relationships, revenue streams, key activities, key resources, key partnerships, and cost structure are very important in starting a business. The importance of knowledge in the field of business knowledge is very important in running a new business. Businesses that dare to take decisions and risks will have a vision of a successful business. Planning a business model planning tool can be used to help create new ideas and plans to generate and enhance business performance. Although there are pros and cons in business, it actually gives us an opportunity to improve our knowledge. Initially, hopes that the business will penetrates the market and the product has a great potential to be famous and successful in the near future.
Preparing the BMC certainly enable the entrepreneurs to gain more insight on how customers and products or service are connected. It also helps to design and observe every part which linked directly for the market demands. BMC should be
no swot analysis
used initially by the entrepreneurs and businessmen, as they get more experience with the benefit offered as they could create a try and error procedure with different variations that fit better for their businesses. Moreover, it enables the business owner or the organization to pay attention on certain important aspect that allows the emphasize success rate in the development as well as development of the business day-to-day.
Miraz’s Jar is the company which will never stop to develop new ideas. It is the key to sustain the company in facing whatever the situation is especially during pandemic. It is vital to look bottomless into what are the market demand day by day.
By inventing that way, Miraz’s Jar will need to be vigilant in paying attention to each part of BMC to solve and fulfil the demand that arise.
APPENDICES
