The Proposed Business Model
Discuss about the Venture Feasibility Analysis and Business Plan.
In the contemporary business world, the presence of different businesses almost covering all customers’ requirements has brought about the necessity to develop a precise business idea that does well in the environment it is implemented. Steady competition in the business market has also prompted the selection of a unique idea that will perform exemplary well when executed (Bartkowski, 2015). As a result, therefore, it becomes imperative to consider a few things before coming up with a business idea. Some of the considerations that ought to be made are the type of the commodity to sell, where to locate the business, the target market segments, the raw materials needed to start and sustain the business, the current legal requirements, among a few other factors. It is also crucial to determine the market gap that will be closed by the generated idea. This paper aims at generating a feasible idea and writing a brief report about it.
Thailand is one of the countries in the world whose biggest percentage of Gross Domestic product originates from agricultural products. However, most of the fruits and vegetables produced in this country are deemed for export leaving the domestic market with little or no fruits to consume (Cooper, 2016). To the warm tropical climate of Thailand, most of the people require fruit juices to keep them cool and refreshed. As a result, therefore, I would suggest starting a large fruit processing company in that country. The proposed company is to be located in Bangkok, the capital city of the country. Now, the reason for choosing this business idea is that there is a ready market for the product and that there are locally available raw materials as well as a labor force.
This business idea, when executed, will bring forth quite some benefits. For instance, it will satisfy the unsatisfied market. The business will help to fill a market gap that already exists. Products that are required in the market and not supplied will now start streaming into the market (Douglas, 2016). Again, the business will improve the living standards of the individuals living in Thailand. The business will create quite a good number of job opportunities. The employed people will be able to earn some income to fund their basic needs hence improve their living standards (Yew Wong, 2015). The corporate tax paid by the business will also be used to improve infrastructure in the company.
The Critical Success Factors
The business will also help attain sustainability. Employing people in the business will help the start earning their income thereby reducing the dependency ratio. The reduction of the dependency ratio is an implication of reduced poverty thus helping attain sustainability (Hong, 2016). The business will also help eradicate social evils like theft that come along as a result of lack of ability to provide for one’s basic needs. When people get employed in the business, they’ll be able to adequately cater for their basic needed hence no need to indulge themselves in social evils.
The business model to be used in this idea is the unbundling business model. This is a business model that integrates the management of infrastructure, customer relationship and product innovation. The reason behind choosing this business model is that it suits the selected business idea owing to the fact that all the customer segments are deemed beneficial and this offering value propositions to them will not be costly. In addition to that, there is a considerable requirement for maintaining innovativeness and close customer relationship. As a result therefore, this business model will be the most appropriate in the proposed business. In this business, customer segmentation will involve classifying customers into two broad categories, those who eat sugar and those who don’t. That will help the business know whether to produce two different products, one which is sugar-sweetened and another one that is not (Jia, 2016). Customers will be exposed to different value propositions like delivery, education on usage, custom production among others. The business will connect to the customers via social media platforms like Facebook, Twitter, etc. as well as advertisements through the mainstream media. The supply chain management department will serve the role of distribution of the products. The business will ensure that it creates a strong relationship with its customers to attract them to purchase its products and also maintain them.
There will be two revenue streams. The firm one is transaction revenue that will come from onetime payment for the products by the customers. The other one is recurring revenue that will arise from payment for the value propositions by the customers. The required resources are human, physical, technological and financial (Lin, 2017). The key activities carried in the business will be the acquisition of raw materials, processing, canning and distribution of the products to the final consumers. The partnership in the business would be the common seller-buyer relationship and strategic alliances. The costs to be incurred are for paying for raw materials, processing, canning and distribution.
Conclusion
During the execution of the business, several factors will be considered to ensure that the business maneuvers up well. For instance, the business will hire a highly skilled workforce. The hiring of the qualified workforce will lead to optimum performance leading to increased productivity per unit time (Nelson, 2014). The business will also acquire some of the retired experts in the field to act as an interim advisory ream for new employees. The business will also ensure that it meets the required legal requirements. Sometimes it is very difficult for businesses to operate without the necessary certifications and business permit. It would be imperative therefore to meet the requirements as well as the general trade policy.
The business will also ensure that it is in touch with its customers. One of the causes of business failure is poor customer relations (Somers, 2016). The business will establish good relationships with its customers from the word go. Again, the business will ensure that it has gathered all the necessary resources to start and run the business smoothly. It will ensure that it has human enough, financial, technical and physical resources during execution.
The business is assured of enough market due to the climate of the country and abundance of a big population in demand of the product. The business generally targets all the population, targeting to sell to more than 70% of the total Thailand population. The whole population is targeted because there will be two broad categories of products, ones that are sugar-sweetened and others that are not (Umble, 2014). The distribution re will be played by the logistics management component of supply chain management. The competitors will be a few other firms producing juice salads. The only significant competitive advantage available for them is having already a big brand. However, they have weaknesses such production of low-quality products and poor customer relations. As a result, they will be outcompeted. The proposed business does not have any legal restriction.
The execution of the business will demand $ 3 billion to successfully execute which will be got from the sale of shares and borrowing. The business will plow back profits to be able to grow (Wyckham, 2015). The business will operate for a period, not more than two weeks to make the first sales and a month to reach the breakeven point. As a result of hood feasibility evaluation, it is expected that the business picks immediately.
Conclusion
All the businesses running in the world were once a blueprint, and that is definitely where business starts, from an idea in the brain of a person to a huge premise. It is therefore important to get an insight of what it takes to come up with a feasible business that will do well when executed in the market. Some of the factors to consider are the legal requirements, the entrepreneurial gap to be filled, the market demand for the product to be sold, among other factors. It is also important to evaluate the benefits that will come along as a result of the establishment of the business. After that, it becomes time to consider the critical success factors, come up with a good business model and evaluate the business feasibility. Now, having satisfied all the above requirements, it is anticipated that the proposed business of fruit processing in Bangkok Thailand will maneuver.
References
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Douglas, E. (2016). The interaction between feasibility and desirability in the formation of entrepreneurial intentions. Journal of Business Venturing, 6 (8), 50-79.
Hong, K. (2016). The critical success factors for ERP implementation: an organizational fit perspective. Information & Management , 4 (8), 46-69.
Jia, F. (2016). Investigating the feasibility of supply chain-centric business models in 3D chocolate printing. Technological Forecasting and Social Change, 3 (6), 34-57.
Lin, Y. (2017). BPMN-based business process model feasibility analysis: a Petri net approach. International Journal of Production Research, 67 (7), 34-46.
Nelson, R. (2014). Energetic and economic feasibility associated with the production, processing, and conversion of beef fat to a substitute diesel fuel. Biomass and Bioenergy, 3 (88), 66-83.
Somers, T. (2016). The impact of critical success factors across the stages of enterprise resource planning implementations. Proceedings of the 34th Annual Hawaii International Conference on the Business process, 67 (7), 43-61.
Umble, E. (2014). Enterprise resource planning: Implementation procedures and critical success factors. European journal of operational research , 1 (6), 50-60.
Wyckham, R. (2015). Factors related to venture feasibility analysis and business plan preparation. Journal of Small Business Management, 56 (6), 74-82.
Yew Wong, K. (2015). Critical success factors for implementing knowledge management in small and medium enterprises. Industrial management & Data Systems, 24 (77), 78-93.
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