Business Model Design Through The System -Myassignmenthelp.Com

Question: Discuss About The Business Model Design Through The System? Answer: Introducation The current study presents a proposal for setting up a college caf. In essence, the college caf can be considered to be an internet market place that can deliver college students with the opportunity to purchase, sell and at the same time trade a range of college textbooks, engage in auctions, different post classified advertisements and purchase products for the college. The business proposal for establishing a college caf can be considered to be a viable project as the target market comprises of more than 15 million college goers who spend over and above $200 billion per annum. The availability of used textbooks can help students to acquire the books at a lower price. On the other hand, the students selling the books at the end of the semester can help in saving money (McKeever, 2016). Identification of the problem to be solved or the need to be filled The introduction of college caf can help in the process of establishment of and online market place for the students of the college by combining wide-ranging market specific expertise with internet technologies to generate revenue whilst generating a favourable solution for students (Schaper et al., 2014). The business case for college caf can help in the process of achievement of dominance of market by way of utilization of extensive domain experience, regional grass roots strategy of marketing along with partnership with firms within the specific college market. Way this benefits the community The establishment of a college caf can assist college students to purchase, sell and at the same time trade different used textbooks to different other students directly primarily by passing bookstores of this specific university. However, by means of selling textbooks to other students, the college students can acquire text books at a lower price (Wild et al., 2014). Again, at the same time, the students selling the text books can help in receiving money by marketing the old textbooks at the end of each of the semester. Performance measurement (Quantifiable) The performance of the college caf can be measured by means of exceptional generation of revenue at the end of one year. In addition to this, the other quantifiable performance measurement include profit generation especially during the period of operation (Finch, 2016). Business Options The business options of this business case of establishing college caf include offering college students an exclusive blend of both products as well as services, along with content that is not presented by any individual corporation on the internet. The functionality of the exchange of textbook can permit students to post textbooks online for sale (Cosenz Cosenz, 2017). In addition to this, the college caf can also offer effectual auction package where a particular fee can be charged form posting items that are to be auctioned. Apart from this, the college caf can also offer classified advertisements against a specific amount of fee. Expected Benefits/Current Situation and Market Opportunities The Australian college market can be regarded to be a growing yet very much under-served niche market. In particular, the Australian Government Department of Education and Training anticipates the Australian college market to grow from around 15 million during the year 2003 to around 17 million during 2008. Description of the current market as well as trends SWOT Analysis Strength: The strength of the college caf is that it makes it easy and simpler for the college students to get the books they want and purchase the books at the end of the semester at a competitive price Growth in demand and gradual growth of this market (Cosenz Cosenz, 2017). The customers of the college caf that are the students are essentially supportive of this idea of availing, that is trading, selling and purchasing used books Weakness: The inventory system can be upgraded from time to time in order to offer the students according to their needs There is difficulty in acquiring credit from the bank for the establishment (Cosenz Cosenz, 2017). Opportunity Making personalized recommendations to the college students in the long term Deliver products in the same day to different mobility-impaired consumers Threats Large chains essentially have more purchasing power. College students of the young generation dont have the habit of reading much (Geringer et al., 2016). Output Analysis Analysis of output refers to the results of establishment of this specific business. Analysis of the business reflects the fact that this business helps in getting easy returns. In addition to this, the results of this business also includes capability to pick up certain items for particularly immediate usage. Furthermore, this also permits one stop shopping solution, accurate information on particularly what textbooks require for their specific courses. In addition to this, trust as well as security of purchasing from a specific source especially on an on-campus location. Summarization of the market in relation to the SWOT Analysis The SWOT analysis helps in understanding and summarizing the conditions of the market in which the college caf can operate. Evaluation of the strength reveals that the Australian education industry is growing at a rapid pace even under such a niche market. The Australian Department of Education anticipates the student in the colleges of the Australia to grow at a rapid pace. Analysis of the report reveals the fact that Australias onshore worldwide education segment is forecasted to grow from 650000 enrolments to 940000 by the year 2025. In particular, the SWOT analysis reflects that Australia is well positioned to detect both quality opportunities as well as timely intelligence. However, information acquired particularly in market is dispersed to specifically the Australian education segment. However, an important priority is the development of different transnational education opportunities in both growth as well as emerging markets, particularly in Asia. As per the results of a int eractive study, college students approximately an expected amount of $200 billion every year. However, it can be observed that the college consumers are generally overlooked as most sources of information that marketers depend on for tracing behaviour of consumers have the tendency to under-reflect college students. Description of the specific target market and the place where this project stands in association to the market Specific Target Market: The target market of the College Caf refers to the potential market that comprises of the college students enrolled in huge number of institutions. However, for the first phase of the business of College Caf, management of the firm might plan to lay emphasis on particularly marketing efforts on definite subset market. The management might also consider expansion of the present market to different new markets with essentially phased approach highlighting on a totally novel region of the nation in each and every semester (Hiduke Ryan, 2013). The target market during the first phase of the college caf can comprise of different universities such as follows: University of Melbourne University of Queensland University of Sydney University of New South Wales Monash University Griffith University Australian National University University of South Australia In addition to this, management of the firm can focus on a phase 2 on added colleges as well as universities. The disadvantages of marketing books online is that the purchaser is not able to share all the specific books with those concerned students of college unless the students provide the password of their personal account. However, with online sale of books, it is difficult to trust all the deliveries that can be made. In essence, this implies that even at the time when the purchaser is making payments for a specific book, then that person remains uncertain whether that specific delivery will be carried out in this online business of buying books. There are several other aspects such as disbursement of payments, identity, security, privacy as well as confidentiality that remains at risk (Belew Elad, 2017). In this case, a third party can have admittance to the personal information of the users. However, another uncertain aspect is essentially hovers around returning different unwanted books and remain certain of reimbursement. The Benefits review plan Nowadays there are several number of websites that deliver books online that it is quite intricate to select the best among the whole lot. In essence, it would be better for purchasers of books (customers) to find time for carrying out the research about the so-called sites before making orders. However, majority of online bookstores deliver books at very cheap prices than other traditional sellers of books. In particular, a plausible reason for the establishment of the online book store is that they do not have to incur diverse expenses of setting up a brick and mortar store. In addition to this, there is also necessity for a huge group of employees to handle all the functionalities of online bookstores as undertaken in conventional book store. However, in other words, with lesser number of employees than what is required for a specific bookstore located in a quite busy area, it is feasible to operate an online book store and draw business of higher worth (Bell, 2017). Further, the amount delivered for the rent for the storing space is essentially much lower than what it is required in a busy area of a specific town. It is important to make payments for both the package along with the delivery charges for the books that are ordered and could expect the delivery of the same within a certain period. However, nowadays people might prefer online shopping of books due to the convenience provided by the same. It is quite secure as well as safe to buy books online given that it is acquired from a reliable site. List and describing the major milestones The milestones are presented in a tabular format along with dates as well as managers in charge. Main Costs and overall budget Main Costs of the project: Identification of the tolls that can be used for cost analysis The tools that can be utilized for analysis of the costs of the project include Brainstorming of all the costs as well as benefits, assignment of value to the specific costs, assignment of monetary value to all the advantages and comparisons of costs and advantages. Investment Appraisal 1 2 3 4 Total Cash Inflow (assumed) 150000 150000 150000 150000 Present Value Factor 0.84 0.71 0.6 0.51 PV of Cash Flow 126000 106500 90000 76500 Less: Initial Investment 88290 Net Present Vale 37710 Return on investment Return on investment can be enumerated by dividing net income by the total investment. The net income from the business case can be calculated by deduction of the expenses from the gross profit. Payback Analysis Year Cash Inflow Cumulative Cash Inflow 1 150000 150000 2 150000 300000 3 150000 450000 4 150000 600000 Payback Period (88290/150000)=0.5886 Identification of five major risks to the best of knowledge in implementation of the proposal The risks that are essentially involved and the way the identified risks can be managed include the following:- Risk of getting infected with various malware Risk of hacking of the website Risk of not earning enough amount of money from the business Risk of getting website copied where contents can be plagiarized (Finch, 2013). Risk of mainly losing the primary source of income Discussion of the risks that are involved and the way the identified risks can be managed Risk of infection of malware- Different type off viruses in the computer as well as other malicious programs can affect the online platform of the college caf. Risk of hacking the website- Website security risks might be faced in case if website of the business gets hacked (Bell, 2017). Risk of not earning adequate amount: The investors of the business might face the risk of losing all or else a part of the amount invested as principal amount (Bell, 2017). Risk of getting website copied where contents can be plagiarised: There also remains risk of plagiarism of the content presented in the website of the college caf Risk of losing main source of income: Owners of the business might face the risk of earning lower than expected profits or else incur loss rather than acquiring profit (Bell, 2017). Ways in which the identified risks can be mitigated: The ways the identified risks can be mitigated include provision of the risks that are very much related to the operations of the project (Belew Elad, 2017). However, it is important to identify the functions that can help in mitigating the risks that are encountered in the process. Conclusions The above mentioned hereby helps in understanding the overall business case proposal on establishment of online college caf. The above study explains the feasibility of the business in order to acquire the loan for the entrepreneurial endeavour. References McKeever, M. (2016). How to write a business plan. Nolo. Schaper, M. T., Volery, T., Weber, P. C., Gibson, B. (2014). Entrepreneurship and small business. Wild, J. J., Wild, K. L., Han, J. C. (2014). International business. Pearson Education Limited. Finch, B. (2016). How to write a business plan. Kogan Page Publishers. Cosenz, F., Cosenz, F. (2017). Supporting start-up business model design through system dynamics modelling. Management Decision, 55(1), 57-80. Cosenz, F., Cosenz, F. (2017). Supporting start-up business model design through system dynamics modelling. Management Decision, 55(1), 57-80. Geringer, M., Ball, D. A., Minor, M. S., McNett, J. M. (2016). International business. McGraw-Hill Education. Finch, B. (2013). How to write a business plan (Vol. 35). Kogan Page Publishers. Hiduke, G., Ryan, J. D. (2013). Small business: an entrepreneur's business plan. Cengage Learning. Belew, S., Elad, J. (2017). Starting an online business all-in-one for dummies. John Wiley Sons. Bell, S. J. (2017). What about the bookstore?.