Business Model Formulation Presentation PDF

BUSINESS MODEL FORMULATIO N GUIDE QUESTIONS Source: PRDP Scale-Up: I-REAP Operations Manual  Business Model Design  Is a critical aspect of building a successful business.  It defines the strategy and structure of a company and provides a framework for d...

BUSINESS MODEL FORMULATIO N GUIDE QUESTIONS Source: PRDP Scale-Up: I-REAP Operations Manual  Business Model Design  Is a critical aspect of building a successful business.  It defines the strategy and structure of a company and provides a framework for decision-making.  It is an essential tool entrepreneurs, and managers use to create value, generate revenue, and manage costs.  Importance of using Business Model Design: Firstly, a business model is the foundation of a company’s strategy. It defines how a company creates and delivers value to its customers and how it captures that value in the form of revenue. A well-designed business model helps a company focus on its core strengths and identify the key activities to drive success. It also enables a company to differentiate itself from competitors and create a unique value proposition that resonates with customers.  Importance of using Business Model Design: Secondly, a well-designed business model helps companies to generate revenue and manage costs. A business model defines a company’s revenue streams, including the ff:  Pricing strategy,  Distribution channels, and  Customer segments. It also outlines a company’s cost structure, including the key resources, activities, and partners required to deliver the value proposition. Managers can make informed decisions about pricing, marketing, and investments by understanding a company’s revenue streams and cost structure.  Importance of using Business Model Design: Thirdly, a well-designed business model helps companies to stay competitive in a constantly changing market. Markets are dynamic, and companies must be agile and adaptable to stay ahead of the competition. A business model provides a framework for innovation and growth, enabling companies to experiment with new products, services, and business models.  Importance of using Business Model Design: Finally, a well-designed business model helps companies to attract investors and secure funding. Investors are interested in companies with a clear and compelling business model demonstrating the potential for growth and profitability. A business model provides a roadmap for success, and investors want to see evidence that a company has thought through its strategy and is focused on achieving its goals.  A well-designed business model provides a roadmap for success and helps companies generate revenue, manage costs, stay competitive, and attract investors. It is a critical tool that entrepreneurs and managers can use to create value and build successful businesses.  Source of Data/ Guide for 1. WHAT IS THE Information PRODUCT/SERV 4P’s of Marketing ICES OF THE Product ENTERPRISE? Price Place Promotion 1. WHAT IS THE Product PRODUCT/SERV  The product ICES OF THE is what your company sells. ENTERPRISE?  The product is what you make available to the consumer. RDS, Tablea Cassava Granules  Ideally, your product or service should fulfill an existing consumer demand. Ex. 5 Million MT cassava granules  The type of product or service you offer helps you determine how much to charge for it, where it should be placed, and how it should be promoted. 1. WHAT IS THE Price PRODUCT/SERV  PriceOF ICES THE is the amount of money you charge customers for the previously determined product or service. ENTERPRISE?  The right price drives up the most amount of sales and the most profit for your company.  The price also must be related to the product’s real and perceived value.  What matters most the Price or Quality of Product or Service? 1. WHAT IS THE Place PRODUCT/SERV ICES ThisOF THE is the place where you should sell your product. ENTERPRISE?  How it should be delivered to the market. The ultimate goal of place is to determine the best place to get products in front of the customers who are most likely to purchase them. Place can even refer to where you choose to advertise your product, like on TV, social media, or web pages. Physical Store or E-Commerce? Place and promotion are tied closely together. 1. WHAT IS THE Promotion PRODUCT/SERV  Promotion includes all of the advertising and public relations that ICES OF THE make up your promotional strategy for your product. ENTERPRISE?  The goal of promoting your product is to show consumers… Why they need it, what problem it will solve for them, and why they should fork over their hard-earned money for it.  What is the best way to reach your target market? Online marketing, social media, Google Ads, social media advertising, Influence marketing, content marketing, or email marketing. 2. WHO ARE Updated VCA/Industry Players/Local Sources for Baseline Data THE USERS (FARMERS/DIREC T Consider Horizontal, Backward and Forward Integration BENEFICIARIES)? Show how the enterprise will link producer WHO ARE THE groups in sourcing of raw materials and BUYERS operations to achieve the benefits of clustering (IDENTIFIED MARKET)? Show connection from source of raw materials towards destination of finish product Identification of Industry Players 2. WHO ARE THE Updated VCA/Industry Players/Local Sources for Baseline Data USERS (FARMERS/DIRECT Value chain: A linked set of value BENEFICIARIES)? creating activities that begin with basic raw materials coming from suppliers, WHO ARE THE moving on to a series of value-added BUYERS activities involved in producing and (IDENTIFIED marking a product or service, and MARKET)? ending with distributors getting the final goods into the hands of the ultimate consumer 2. WHO ARE THE Updated VCA/Industry Players/Local Sources for Baseline Data USERS (FARMERS/DIRECT Value Chain Analysis - Allows BENEFICIARIES)? the firm to understand the parts of its operations that create WHO ARE THE value and those that do not. BUYERS (IDENTIFIED MARKET)? 2. WHO ARE THE VALUE CHAIN ACTIVITIES USERS Product Design and Development (R &D) : material science, product design, development , testing (FARMERS/DIRECT Supply (inbound logistics) : brings inputs , ordering, BENEFICIARIES)? delivery procedures, quality check of input. quickly placing ordering and reliably. WHO ARE THE Operations : functions related to production, scheduling etc BUYERS Distributions: managing relationship with distributors, (IDENTIFIED wholesalers, retailers ensuring right stock MARKET)? Marketing & Sale : identifying need, promotional activity, setting prices of product. Selection of salesperson, distributors, retailers. After sale Service : repair, maintenance , complaints handling, customer training , telephone helplines etc 2. WHO ARE THE SECONDARY ACTIVITIES USERS Purchasing : identification of potential suppliers, negotiation of prices, delivery terms (FARMERS/DIRECT Process Development : activities enhancing technologies BENEFICIARIES)? like ERPS, reduce no. of parts, no. of assembly lines, times, time spent in fabricating, less attrition, enhancing WHO ARE THE output/employee BUYERS Human Resource management :Activities involved with (IDENTIFIED recruiting, hiring, training, developing, and MARKET)? compensating all personnel Finance & Planning: Activities that support the work of the entire value chain (general management, planning, finance, accounting, legal, government relations, etc.) Support core competencies 2. WHO ARE THE Updated VCA/Industry Players/Local Sources for Baseline Data USERS (FARMERS/DIRECT BENEFICIARIES)? WHO ARE THE BUYERS (IDENTIFIED MARKET)?  Consider Horizontal, Backward and Forward 2. WHO ARE Integration THE USERS (FARMERS/DIREC MARKET T BENEFICIARIES)? MarketINTEGRATION integration occurs when prices among different locations or related goods follow similar WHO ARE THE patterns over a long period of time. Groups of BUYERS goods often move proportionally to each other (IDENTIFIED and when this relation is very clear among different markets it is said that the markets are MARKET)? integrated. Market integration is an indicator that explains how much different markets are related to each other. Market integration is the fusing of many markets into one.  Consider Horizontal, Backward and Forward 2. WHO ARE Integration THE USERS (FARMERS/DIREC T BENEFICIARIES)? WHO ARE THE BUYERS (IDENTIFIED MARKET)? What is Forward Integration? Forward integration is the process by which companies acquire a segment (or segments) of their upstream supply chain - i.e. it acquires the companies ahead of it in the supply chain, hence the term ‘forward integration’. For a farmer, this could mean acquiring a milk processing plant; for a textiles producer, it could mean acquiring a home fabrics brand.  Show how the enterprise will link producer 2. WHO ARE groups in sourcing of raw materials and THE USERS operations to achieve the benefits of (FARMERS/DIREC clustering T BENEFICIARIES)? WHO ARE THE BUYERS (IDENTIFIED MARKET)?  Show how the enterprise will link producer 2. WHO ARE groups in sourcing of raw materials and THE USERS operations to achieve the benefits of (FARMERS/DIREC clustering T BENEFICIARIES)? WHO ARE THE BUYERS (IDENTIFIED MARKET)? Show how the enterprise will link producer groups in sourcing of raw materials and operations to achieve the benefits of clustering Show how the enterprise will link producer groups in sourcing of raw materials and operations to achieve the benefits of clustering 2. WHO ARE Identification of Industry Players THE USERS (FARMERS/DIREC T BENEFICIARIES)? WHO ARE THE BUYERS (IDENTIFIED MARKET)? THANK YOU !