Example Burger ENT BMC - Business Model Canvas PDF

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UNIVERSITI TEKNOLOGI MARA

FUNDAMENTALS OF ENTREPRENEURSHIP (ENT300) Lecturer Encik Ahmad Kamal bin Mohd Yusop

BUSINESS MODEL CANVAS Prepared by:

Muhammad Nazmi Hakim bin Zainal 2018284388 Submission Date:

3 June 2020 AP116 4H (Diploma in Building) Faculty Of Architecture, Planning and Surveying Universiti Teknologi MARA Perak

INTRODUCTION

The Bites N Burgers is a company which serves its customer with Fast Food beverages. The Bites N Burgers strive in to makes the top quality burgers to be serve upon the customers. This restaurant also includes the majority of the fried foods because fried foods can be preserved for a long time and takes less skilled chef to makes one. The first branch of the restaurant started to build at Dungun, Terengganu. The founder of this company and restaurant is Muhammad Nazmi Hakim bin Zainal. The business started operating at 25/8/2019 and becomes even larger ever since. The Bites N Burgers main objectives is to serve and greet every customer with care. The company also wanted the customer to eats in a comfortable environment and makes them feels like eating at their home. Comfortableness is a primary objectives in this company as the company strive to become the most comforting and relaxing experience to the customer. The company focuses on making variety of fast foods but the main course of the menu are burgers. As for the organization, the company assign a general manager, chefs, assistant leader and the staff. The general manager is an executive who is responsible for managing both revenue and cost element of the company’s income. The chef’s duty is to cook the food prepared by the supplier. The company main targeted audience will be a family from different kinds of age. This restaurant will become family friendly restaurant for everyone to enjoy.

KEY PARTNERS

Key partners are the relationship that the company have with the other business, governmental, or non-consumers entities that helps the company to work. This also includes supplier, manufacturers, business partners, and etc. With the partnership, there is no doubt that the company will grows bigger and more succeed. When forming the key partners, there are important factors to keep in mind which is: 

Impact on your clients



A win-win situation



Defining expectations

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The reason and motive of the other parties

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Partnership that both parties agreed on

As for the key partner of The Bites N Burgers, the company chooses McDonalds fast food restaurant. McDonalds is a large company that mainly focusses its business into fast food which is similar business with The Bites N Burgers. With McDonalds as the key partners, The Bites N Burgers business will greatly increase as the company McDonalds have a large influence in fast food industry.

KEY ACTIVITIES

Key activities is a most important part in Business Company as it fulfil the business purpose. The company also must carry out the key action in order to achieve successful state as a business company. The key activities are also crucial in the company as its benefit the clients portions, sustain the client relationships, and eventually create a long-terms income. The key activity also include: 

Create the branding strategy



Product and packaging design



Marketing and promotion of the product



Making a website of the company

As for The Bites N Burgers, the key activities would be: -Create the branding strategy o The branding strategy for The Bites N Burgers would be brand positioning, brand name selection, brand sponsorship and brand development. -Product and packaging design o The product will be food and beverages provided by The Bites N Burgers. The company will make sure the product that comes from the company will be in a highest quality and highest grade raw material that is safe to consume. If one of the customer fell ill from the product that the company provided, the company will takes full responsibility because of the customer’s health is the company concern. o The packaging design should be colourful and family friendly as the company targeted audience is a groups of family from all ages. The packaging also should be biodegradable and easy to decompose. Uses of paper bags is a priority because of its more cheaper and reliable than plastic bags and also the paper bags protect the environment from the uses of plastic bags.

-Marketing and promotion of the product o For the marketing, the company will greatly benefit in making an ads commercial either in television or in the internet. With the ads surrounding the customers, the customers will become aware of the existence of The Bites N Burgers restaurant and the restaurants will become popular thus increasing in the number of income that the company will make. o As for the promotion, The Bites N Burgers will regularly makes all kinds of promotion according to the situation faced by the environment. As an example, the summer season is coming and the weather will be hotter than the regular day. The promotion will be include all kinds of cold beverages to be offered to the customers. -Making a website of the company o Every large company have its own website for the company information and marketing strategies. Making a website is a similar ways of marketing as making ads. With the company website, the customer will receive more information about the company whereabouts.

VALUE PROPOSITIONS

Value propositions is an innovative, service, or a feature intended to make customer feel attracted to the company or the product. The value propositions also should be developed based on targeted audience taste and mind or it will not become effective to the customers. The company will hit a huge success if the value propositions suites the customers taste and mind. The main keys in value propositions is to satisfy the customers’ needs. The value proposition can be determine by interviewing the targeted audience but the value proposition also can be changed from time to time as the generation started to changes. The Bites N Burgers will serve the customers with great service and only provide the customer with high quality products. The raw material such as frozen food will be keep in a cold freezer as to preserve the quality of the food. The food also needs to watched closely and recorded as the times passes to avoid the customer from eating expired and spoiled food. The company will makes burgers from their original recipe as it will differentiate the distinctive taste from other fast food company. The environment of the restaurant also will be taken seriously as the main motive of the company is to makes the customer feel as much as comfortable for them. The environment should be kept maintained and clean all the time in order to preserve the good image of the company.

CUSTOMER RELATIONSHIP

Customer relationship is how did the company wanted to approached and treated their customer and building some kind of relationship with the customer. The company should think what kinds of relationship did they wanted with the customer either should it be personal, automated, or somewhere in between. The best method to recognise this is to put yourself in the customer shoes and think what kind of ideal relationship did they wanted from their point of view. The relationship will greatly impacted the customer experience and it would be a great way to attract the customer to deal with the company more regularly. It is the company responsibility to build that kind of relationship with the customer as it ease the customer. It is up to the company to provide and extending the brand and the company personality across everything the company have to do. Communication plays a major role in this key as it greatly increase the customer perspective about the company either it is friendly or not. Fulfilling customer expectation about the company also will makes the customer’s relationship becomes closer. The kind of relationship that The Bites N Burgers wants to accomplish is to makes all of the customers feels comfortable and to makes the restaurant the place that the customers comes regularly to hang out. To establish this kinds of relationship, the company assign a friendly and communicative staff to works with the customer service. With this kinds of staff, the customer will become at ease as the friendly services provided by the staff. The company also will provide the customers with many kinds of events as in effort to deepen the friendly image and relationship with the customers. As for an example, birthday party event, New Year Eve party, Ramadhan Iftar event and etc. These kinds of event will attracted many kinds of customers and will greatly improve the company images thus improve the exaptation that the customers have for the company. The company also wanted to provide the customer with some kind of exclusives for the customer that comes regularly. The company will provide a membership card to the customer that comes in regularly. The membership will provides many kinds of promotion and discounts to the customer with the cards.

CUSTOMER SEGMENT

Customer segment are the types of customers that the company aims to sell the product or services to. The company should pay attention to the targeted customers as the customer segment is important in building the company towards success. The customers have many kinds of interest, needs, behaviours, and other traits. These things can be segmented into groups which can be defined into demographics such as age, profession, gender, ethnicity, and etc. The company will achieve more success if the customer segment and the value proportion matched together. The company should take an interest in the customer point of view which can decide the company success. For The Bites N Burgers, the company will target family’s consumers and the company will strive into giving the proper customer segment and value proportion to the customers. The company will maintain as a family friendly restaurant as it will benefit the company. As for the targeted audience will be families from different kinds of ages, the company will conduct multiple interviews with the customers and will comes out with the results. This will greatly benefit the company as the company knows what to expect and give to the customers according to their needs. The company also will assign a friendly staff in the customer service department. This will makes a positive image in the company’s name and it also fits the value proportion to the targeted customers. The Bites N Burgers customers segment: o Families o Young people o People who exhausted from works o People that loves to hangs out

KEY RESOURCES

Key resources is the most important assets that will greatly affected the company productivity. Without it, the company will become unable to works to its fullest and the productivity rate will drops rapidly. Every business model requires them as it is the main asset of the business. However, there are many types of key resources such as: -Physical resources 

Physical resources includes equipment, inventory, buildings, manufacturing plants and distribution networks that enable the business to function.

-Intellectual resources 

Intellectual resources is a non-physical resources such as brand, partnership customer list, customer knowledge, customer interest and copyrights.

-Human resources 

Employees is the most overlooked important asset as their productivity will increase the income of the company

-Financial resources 

Cash, lines of credit and ability to stock option plans for employees.

As for The Bites N Burgers, the main key resources is obviously the chef and the food supplier. The company will provide cooking lesson and meeting to the chef as in effort to improve the quality of the food provided. The chefs also will attend meeting from the different fast food company as in effort to expand the chef’s knowledge about cooking and food. McDonalds is one of the key partners in The Bites N Burgers business. This will greatly benefit both parties as the chefs will learn about food and cooking from both parties. As for the food supplier, maintaining a good relationship business with Supreme Fast Foods is a must in order for the company to continue producing fast foods.

DISTRIBUTION CHANNEL

Distribution channel is a process of making the product or services available for the consumers who needs it. This can be done either by directly or by indirect channels. The company needs to determine which distribution is the best for its targeted audience. There are 4 channels of distribution which is: 

Direct selling



Selling through intermediaries

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Dual distribution

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Reverse channels

As for The Bites N Burgers, the restaurant offers direct selling for the customers. In order for customers to buys the company products, the customers must come to the restaurant by themselves. This distribution channel is the simplest method and will help improving the company images as the customer makes direct contact with one of the employees. The restaurant also offers 24 hours delivery services to the customers. The employees will directly give the customers the delivery services number in an effort to makes the customers to use the service. The customer will call the services number and one of the employees will taking the orders of the customers. The food then will be delivered to the customer location.

COST STRUCTURE

Cost structures will describe all cost involved in the business of the company. This step is important as it will helps the business to plans ahead. It is also refer to the type and relatives proportions of fixed and variable cost of the company. The key also used as ways to determine prices, if the company is based on cost-based pricing strategy. The Bites N Burgers main cost involves around the cost of the frozen food and raw material. It is also included the price of the machineries such as fryer, freezer, pressure cooker, smoothie maker and etc. There are also the salary of the employee that must be taken into the account. As for the restaurant, the cost structure are: -Variable cost o Cost of the frozen food o Maintenance of the machineries -Fixed cost o Salary of the employee o Electricity and water bills

REVENUE STREAM

A revenue stream comes from various source that provides the company income from various kind of source. As being said, the company will get income from various sources either by sales of goods or the services provided by the company. This usually comes with interest revenue, and rent revenue. -Revenue from goods and services fees o As the name said, this revenue comes from selling goods and services provided by the company -Interest revenue o This revenue records the interest earned on investment of the company such as debt securities -Rent revenue o The revenue comes from renting out a rented building or equipment.

As for The Bites N Burgers Restaurant, the revenue mainly comes from selling goods and services fees. The restaurant will charges customers with service tax in return for us to provide the customers the best customer service as possible. As for the delivery services, the restaurant also will charges the customers. This is because of the cost of the delivery services provided is slightly higher than direct selling. The restaurant also makes rent revenue from the customers that wanted to rent the restaurant for a special occasion like an annual dinner. With this various sources of revenue, the restaurant will strive in order to become larger and more successful fast food company.

KEY PARTNERS

KEY ACTIVITIES

o Chefs classes and meting provider

o Branding strategy o Colourful product and packaging design o Making a website of the company o Ads commercial

o Frozen food supplier

KEY RESOURCES

VALUE PROPOSITION o Serve the customers with great service. o Only provide the customer with high quality products. o The environment of the restaurant also will be taken seriously

CUSTOMER RELATIONSHIP o Assign a friendly and communicative staff to works with the customer service. o Provide the customers with many kinds of events. o Provides membership for regulars customers.

o Direct selling

o Supplier

o Delivery services

o Fixed cost -Salary of the employee -Electricity and water bills o Variable cost -Cost of the frozen food -Maintenance of the machineries

o Young people o People who exhausted from works. o People that loves to out.

DISTRIBUTION CHANNEL

o Chefs

COST STRUCTURE

CUSTOMER SEGMENTS o Families

REVENUE STREAMS o Services tax o Delivery services o Rent revenue

hangs

REFERENCES

o https://www.penangfoodforthought.com/2018/09/burgers-bites.html o https://www.cleverism.com/key-partners-in-business-model-canvas/ o https://www.business2community.com/strategy/key-activities-and-your-businessmodel-02232678 o https://medium.com/@nadia.Mktg/value-proposition-business-model-canvas-cocreation-process-c25b6efadb40 o https://strategyzer.uservoice.com/knowledgebase/articles/1194373-how-do-i-use-thecustomer-relationships-building-b o https://www.cleverism.com/customer-segments-business-model-canvas/ o https://www.cleverism.com/key-resources-building-block-in-business-model-canvas/ o https://businessmodelanalyst.com/distribution-channels-business-model-canvas/ o https://strategyzer.uservoice.com/knowledgebase/articles/1194382-how-do-i-use-thecost-structure-building-blockof#:~:text=About%20Cost%20Structure,generating%20revenue%20all%20incur%20 costs. o https://corporatefinanceinstitute.com/resources/knowledge/accounting/revenuestreams/...