Subject: Entrepreneurship
Assessment Task 1: The Venture Model
- Task description
Please refer to ‘Attachment 0_Assessment Task 1_ The Venture Model_Criteria’ to ensure all requirements are met for the best grades.
- Produce a business model canvas (BMC) – See Example in part B for the idea ‘Café’
- Attendant to and in support of the BMC, students will compose an explanation and rationale detailing and integrating the 9 elements of the BMC (no more than 1,000 words). For full marks, be sure the business model includes all specified components and fulfils intended purposes as stated in lecture and in the text. See Example in part B
The below process is recommended to complete this assessment
This assessment gives you an opportunity to demonstrate that you can apply concepts covered in topics 1-3 (see attached PowerPoint slides Course material) by crafting a business model for a venture of your choosing.
Preliminary to the comprehensive business plan, the first assessment task (AT1) is to create the business model of the intended project. Refer to Chapter 08 in the textbook for additional information on business models. The heart of the business model is the value proposition(s).
Students will apply knowledge and insights from the required readings as well as from other relevant external sources they may consult. Attribution to any sources used will be provided via in-text citations. Attribution provides acknowledgement of the source of the information (text, speech, image, dataset, assertions of fact etc.).
- Report structure will include the following headings:
Your business model composition must be organised using hierarchical headings.
Your submission must include the business model canvas.
- Executive Summary (Word count: 250 words)
- Business model canvas (Word count: Approximate as many words as use in below example)
Use the below example of a Business model canvas (BMC) for a T-shirt store to help create a BMC for a café. This website can also provide useful information, https://hbr.org/2013/05/a-better-way-to-think-about-yo.
- Expand on each of the 9 BMC components in Part 1. Use the below T-shirt store example, from the Course Text, to both structure the layout and address the relevant components. (Word count: 1,000 words)
- Customer Value Proposition: As described earlier in this chapter, the CVP is designed to solve a customer problem or meet a need. With regard to your new T-shirt business, ask yourself the following: What value do we deliver? What bundle of products and services are we offering? What are we helping customers achieve by providing a new range of T-shirts?
- Customer Segments: As defined above, a customer segment is a part of the customer grouping of a market. For example, gluten-free is a segment of the grouping of customers who buy food; another segment would be customers who are lactose intolerant. In Chapter 1 we saw that the caffeine-free ZOOS Greek Iced Tea would appeal to pregnant and new moms. The customer segmentation questions for the T-shirt business are these: Who are your most important customers? What segment of the market would be most likely to buy your T-shirts?
- Channels: The value proposition is delivered through communication, distribution, and sales channels. The core question here: What are all the ways in which you can reach your customer? For example, you could reach your customers online, through a brick-and-mortar store, and/or through word of mouth.
- Customer Relationships: Relationships can be developed on a one-to-one basis in a brick-and-mortar T-shirt store and/or through a purely automated process of selling the T-shirts online. Customer relationships go beyond just buying and selling; they depend on engendering positive feelings about your business, building a sense of customer identity (“I am a so-and-so T-shirt customer”), and motivating customers to want to bring their friends into the relationship. The key here is one of the most important questions an entrepreneur can answer: How do you establish and maintain relationships with your customers?
- Key Activities: What are the most important activities that the company participates in to get the job done? When running a T-shirt business, you will need to consider such activities as stock management, sales management, and T-shirt design selection.
- Key Resources: Resources are what you need to develop the business, create products and services, and deliver on your CVP. Resources take many forms and include people, technology, information, and physical and financial resources. How much and which resources will you need if your company has 1,000 customers or 1,000,000? What resources do you need to accomplish the key activities? If you’re opening up a store, then you need to figure out the location and size; you also need people who are going to sell your T-shirts; space to store inventory; and a range of artists who will provide the designs for your T-shirts. You will also need to calculate how much money you will need to set up, as well as accumulate the skills, knowledge, and information you need to start your own business.
- Key Partners: Entrepreneurs are not able to do everything by themselves, so partnering with suppliers, associates, and distributors is a logical option, not only for strategic purposes but also for efficiency needs. For example, you could partner with a designer who could advise you on the artwork of the T-shirts as well as provide you with a network into other designers. You could ask the questions around outsourcing: Could some activities be outsourced? Do you have a network of suppliers/buyers you could tap into or negotiate with?
- Revenue Streams: Revenue is generated if a successful value proposition is delivered. Here you need to ask: How much are my customers willing to pay? How many customers do I need? How much cash can be generated through T-shirt sales in the store or T-shirt sales online? How much does each stream contribute to the total? (We will explore revenue models in further detail in Chapter 10)
- Cost Structure: The cost structure represents all expenses required to execute and run the business model. What are the most important costs inherent in the business model? Which resources are the most expensive to get? Which activities are the most expensive? Store rental, employee salaries, the cost of purchasing T-shirt materials and designs, and the cost of sales and marketing are all factors to consider when formulating a cost structure.
- References:
Please include some if not ALL the references mentioned below.
Use Harvard referencing (see ‘Attachment X_Sydney Uni Referencing Guide’).
- https://aeroleads.com/blog/entrepreneurship-risks-challenges/
- https://hbr.org/2020/03/your-company-is-too-risk-averse
- Chapters 8 and 9 in Neck, H. M., Neck, C. P., & Murray, E. (2018). Entrepreneurship: The practice and mindset. Los Angeles: Sage.
- Chapter 08 Case Study in Neck, H. M., Neck, C. P., & Murray, E. (2018). Entrepreneurship: The practice and mindset. Los Angeles: Sage.
- Canvas Example: https://www.youtube.com/watch?v=CakUeC1sCSs
- Value Proposition Canvas Part 01: https://isaacjeffries.com/blog/2016/9/12/valueproposition-canvas-part-one
- Value Proposition Canvas Part 02: https://isaacjeffries.com/blog/2016/9/18/valueproposition-canvas-part-two
- Beat Yourself at Your Own Game: https://www.youtube.com/watch?v=rgufaJ4gjPo
- One Idea – Many Models: https://www.youtube.com/watch?v=CgiOylmT6OA
- Osterwalder, A. 2010. Business model generation: A handbook for visionaries, game changers and challengers. Hoboken NJ: John Wiley and Sons. Proctor, S. 2010. Building Financial Models with Microsoft Excel, 2nd ed. John Wiley & Sons, Hoboken NJ
- Recommended Website: Entrepreneur – Asia Pacific https://www.entrepreneur.com/
- Recommended Website: Small Business Trends http://www.smallbiztrends.com/
- Academic Journal: International Entrepreneurship and Management Journal
- Academic Journal: International Journal of Entrepreneurship
- Academic Journal: Journal of Applied Management and Entrepreneurship
- Academic Journal: Journal of Business and Entrepreneurship
- Academic Journal: Journal of Business Strategy
- Academic Journal: Journal of Innovation Management
- Academic Journal: Journal of Small Business and Enterprise Development
Your discussion and arguments should be supported by sound sources of evidence and you should use the Harvard method of citation and referencing throughout. * For example: mining, aged care, housing, tourism, ICT, printing, agriculture, finance, automotive, education, defence bioscience industries.
- Assessment Submission Requirements:
- Format: Report format
- Word length: 1,250 words approx.
- Language: Australian English (e.g. ‘Organisation’ instead of ‘organization’) not American English. Some of the key differences are -ize/-ise and -or/-our.
- References: At least 15 references
Please include the course text reference, i.e. Murray, Heidi M. Neck; Christopher P. Neck; Emma L. Interactive: Entrepreneurship: The Practice and Mindset Interactive eBook. SAGE Publications, Inc. (US), 2017. [VitalSource Bookshelf].
