Here come the second part of the Business Modal Canvass which include Revenue Stream, Key Resources, Key Activities, Key Partner and Cost Structure.
REVENUE STREAM
Every
business must have their revenue, so our business’s revenue comes from 4
sources which are sales, services charge, delivery charge, and membership fee.
Instead of setting high price to show how
prestigious our products are, we decided to set lower price so that the
customers feel comfortable purchasing our product. Basically, pricing is
standard for all over the marketplace. So, we can get the revenue from selling
our products such as grocery, food, snacks, health care and pharmacy products.
In addition, delivery charges also help
our business to gain revenue. We can get earning when we deliver our product to
customer by charging them. Managing the delivery chain means managing the
components that make up that delivery chain. In most organizations, the key
components of the delivery chain are marketing, sales, service and fulfilment.
Moreover, we can get income from
customers by membership fee. Customer can be a member in our business to get
discount. With this, there will be mutually beneficial long-term relationship
between the company and the customer. A salesperson is best prepared for
customer interactions when an account history, a forecast and detailed
information about the prospect or customer is available. This positions the
salesperson with the best chance for mutually profitable business - a win for
the salesperson, the customer and the organization.
Furthermore, there are service charges
when customer come and have car services or medical services. This will make
earning to our business too. The service function offers vast opportunities for
collecting and disseminating customer information. Data gathered within the
service function includes complaints and resolutions, frequency of problems,
problem types, time to resolve, and so on. Using this information,
organizations can effectively tailor responses to customers in all of its
customer groups.
KEY RESOURCES
Key resources are the assets required to offer
and deliver value proposition to the customer. In terms
of assets, we need motorcycles, cash registers, supply of medicine, mechanic
tools, inventory, space (building) and racks to display our items. The space or a building needed is for our retail
sales. In this area, we will need racks to display our products. Not to the
area for the health clinic for medical consultant service and also car service
centre for our practical students worker to carry out their service. The
motorcycles are to be used for our delivery service.
From the human aspect, we need
doctors, mechanics, web operators, cashiers and delivery boy. For doctors, we
will get the students from that Faculty of Medicine in UM. On the other hand,
we can also get mechanics from the Faculty of Engineering in UM. This certainly
can help us to save costs. Furthermore, we also get students from Faculty of
Computer Science and Information Technology to become our web operator for our
website and online ordering system. We also need delivery boy to help us
deliver the goods to our customers. Cashiers are also needed for the payment.
KEY ACTIVITIES
Key activities are the most important part of a
company and it is a must to do to make the business works. Throughout the whole
project, we know that our production is the medical and car services, and also
the goods for convenience stores. We have to ensure that the goods and services
that we produce is high quality and high efficient. Hence, we will cooperate
with Faculty of Medicine and Faculty of Engineering to provide the car and
medical services as the usually the UM students are high quality. In addition,
we will also make sure it’s professional services and so that the customer will
be loyal to our services. In the case of convenience store, we will do the
system like 7-11 convenience store and we are more advanced because we will
include the online ordering system.
For the workers problem, we will have recruitment and
interview session for it. The interview session is specially for those who are
interested to work with us in our health clinic and car service centre to ensure quality of sevices and products we are
providing and thus increase the customer confidence
For networking purpose, we will publicize our business
on the social website such as Facebook, Twitter and so on to make our business
connect with our clients and also provide more information to them. On top of
that, we will have our own website and will update our on-going promotion from
time to time to ensure that our customers get the first hand information on our
latest promotion. In addition, we will also use the online ordering system for
their convenience. We will also maintain our websites and the online ordering
system from time to time.
We will advertise our business by posting the poster,
banner or even UM magazine around our campus to make them be informed and more
attractive. In addition, we will also do road show once a month in each faculty
especially for the convenience store with our promotion items of the month.
Moreover, we know that people are easily to attract by some creative events.
Hence, we will promote our business by doing some unique events like flash mob
to catch the eyeballs of customers. We will also choose an ambassador as the
representative of our services to advertise our services. This can create the
image and also the direction for UM 365°.
KEY PARTNERS
We
divided our key partners into 2 parts which are labour, supplier, landlords and
marketing. For labour, our key partners are the students from Faculty of
Engineering, especially the department of Mechanical Engineering, Faculty of
Medical studies, and other students who want to earn extra income. The students
from Faculty of Engineering will help out as the mechanics for our car service.
However, the students from faculty of Medical will assist in our health clinic.
With this, all the students do not only earn additional pocket money, however
they will gain hand on learning experience at the same time.
For
supplier, we will cooperate and have a partnership with Guardian, who have
their own product band on skin-care products, hair-care products and many
others. In this way, we will gain more reputation for UM
365° and cheaper cost of purchasing those products. On the other hand, for the
food and beverages supplier, we have a list of companies that could be our
supplier on different products such as Kraft Malaysia Sdn Bhd, Shoon Fatt Biscuit & Confectionary Factory
Sdn. Bhd., The Italian Baker Sdn Bhd and many others.
Additionally,
HEP will also be one of our main partners as our landlord. This is because we
will need a space in UM to set up our store where we planned to set up UM 365° at the Perdana Siswa Complex.
For publicity and
marketing, we will collaborate with LOL and The Pioneer. LOL is a radio program
under OneFM which can help student to promote on their activities for free. Not
only that, we will also make a video to be advertise in Asia Media TV that all
the students who take RapidKL will watch it. Besides that, we will publicise UM
365° on The Pioneer, our very own newspaper in UM. All these activity will able
to create exposure to UM population to know about UM 365°.
COST STRUCTURE
There are two costs incurred in conducting
our business which is fixed cost and variable cost. Our fixed costs are rental,
salaries for office manager, electricity, tools and equipment such as machines
and motorcycle. Then, our variable cost will be cost of utilities, petrol
(mileage), cost of purchasing accessories and products.
The most important cost inherent in our
business model is the cost of buying accessories and use parts of cars and the
products for medicine/ health care/ pharmacy. However, according to the
economics of scale, the more you buy, the cheaper you will get. So, we can contact large car part suppliers and wholesale
dealers to negotiate a discount if we buy in large amount. We only take inventories of the item that we
really needed such as common items: oil, filters and gloves on hand. Moreover,
for the medicine part, we may cooperation with our partner like Guardian to get
a lower cost.
The key resource which
is most expensive is the cost of mechanical tools (capital). We need machine to
start up our business. However, to make it cost-driven, we can consider rent or
buying second hand machine from other motorbike business which decided to
change their machines.
The most expensive key
activities will be the roadshow. In order to carry out this event, we have to buy
some special or outstanding accessories for exhibition and rent a suitable
location. Besides that, we need to buy many resources such as brochures,
pamphlets, flies and banner. As a solution, we can either find sponsors to
support our event.
