Operations Management and Business Location

Introduction to Entrepreneurship

• This course introduces entrepreneurship concepts and strategies.
• It focuses on practical application and case studies.
• The editors are Sodri Ariffin and Syahira Hamidon.

Introduction to Business Model Canvas

• The Business Model Canvas, introduced by Osterwalder, is a method for analyzing, designing, strategizing, and testing a business model.
• It is based on nine business areas, visualized on a board, allowing for a comprehensive overview of the model.
• The canvas facilitates an understanding of each strategy and its relation to other strategies.
• The business model canvas is a chart that includes at least nine areas or elements in a business model.

Objectives

• Introduce students to the diverse tools available within the Business Model Canvas.
• Develop proficiency in using the Business Model Canvas for evaluating business opportunities.
• Facilitate the development of viable business models.

Learning Outcomes

• Students will master generic analytical skills including identifying, analyzing, and capitalizing on business opportunities.
• Students will be able to apply tools such as SWOT and Business Model Canvas to develop new business models and strategies.

List of Topics

• Business Model Canvas Components:
  • The components are: Customer segments, Value propositions, Marketing channels, Customer relationships, Key partners, Key activities, Key resources, Cost structure, Revenue streams.
    • Each topic area is detailed, covering examples, specific elements, and analysis.

Firm's Value Propositions

• A company's value proposition differentiates it from competitors based on various factors.
• These include newness, performance, customization, reliability, design, brand, price, cost reduction, risk reduction, accessibility, and convenience.
• Value propositions can be quantitative (e.g., price, efficiency) or qualitative (e.g., customer experience, outcome).
  • Concepts like Unique Selling Proposition (USP), Feature-Advantage-Benefit (FAB), and Points of Parity-Points of Difference (POP-POD), and Unique Value Proposition (UVP) are discussed.
  • Examples and explanations are given for each of these.

Marketing Channels

• Companies utilize various channels to present their value proposition to target customers.
• Cost-effectiveness in distribution via suitable channels is highlighted.
  • Direct marketing (direct selling, internet marketing, catalogues) is addressed.
  • The role of intermediaries and the importance of efficiency are explained.
  • Online marketing channels (Facebook, Twitter, Instagram, YouTube) are discussed.

Customer Relationships

• The importance of building customer relationships, for the development of customer acquisition, customer retention, increased sales, and brand loyalty, is presented
  • Customer relationship management (CRM) is introduced as a practical tool for managing customer relationships.

Key Partners

• Key partners form the supplier network that ensures the business model's smooth functioning.
• Partnerships are crucial for optimizing business models, reducing risk, and acquiring resources.

Key Activities

• Key activities are the tasks a company must perform to successfully implement its business model.
  • Examples include software development and marketing for a computer software company, and problem-solving for a consulting company.

Key Resources

• The crucial assets (physical, financial, intellectual, and human) that a business requires for implementation of its business model are discussed.

Cost Structure

• Businesses must formulate strategies to align cost structure with overall business model.
  • An example of a low-cost model (Air Asia) is cited to illustrate cost-optimization strategies.

Revenue Streams

• The money a company generates from each customer/product segment through various revenue models is the topic.
  • Entrepreneurs may develop additional revenue sources via export markets, online marketing or leasing idle assets.

Operations Management for Business Start-ups

• This chapter describes operations management, including inputs, processes and outputs; covering essential aspects for managing a new venture.
  • Processes of product design, process design, and location choice, are included as are aspects of production capacity planning, inventory and quality management.

Summary of the whole course

• The course covers a comprehensive range of subjects, encompassing all the necessary elements from business modeling to operations management, and marketing techniques.