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.

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