Assessment 2: Business Model Blueprint

This assessment explores two business models for a roadside food truck venture, detailing blueprints, assumptions, risks, success rates, and a preferred model with references.

Assessment 2: Business Model Blueprint
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Table of Contents
Venture Idea...............................................................................................................................3
Blueprints...................................................................................................................................4
Assumptions...............................................................................................................................8
Key Relationships......................................................................................................................9
Upside Potential.......................................................................................................................10
Down Side Risk........................................................................................................................11
Success Rate.............................................................................................................................12
Preferred Business Model........................................................................................................14
References................................................................................................................................15
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Venture Idea
The idea about the new business would be roadside food truck that would provide food to the
people seeking the hot and delicious food at the reasonable price near their doorstep. In the
particular city, there would be a number of trucks at the different locations in the city. People
at the different locations do not have to travel the long distances for the food of this company
as the truck would be available at their location and they have to just reach to the truck to
take their food. The concept is a meal on wheel means the meal would be provided to the
customers on the wheels that are truck. This is the type of business in which the people can
come to the truck and can avail the different type of cuisines. In each truck, there would be
the Kitchen all the necessary food ingredients would be available in that kitchen.
The alternative business model in which there would be the use of the more resources like
this alternative business would launch the mobile app. People can pre-book the food through
their mobile app and then they can take their orders from the food truck which is nearby their
location or the food can be delivered.
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Blueprints
Business Model 1
Key partners
 Food
material supplier
 Kitchen
rental
Activities
 Customer
reward
management
 Planning
and procurement
Value
proposition
 Pro
motional
diet of the
week
 Healt
hy food
Guaranteed.
Relationships
 Good
relations and
satisfaction among
customers
 Enhancing
partner relationship
Customer
segmentation
 Customer
seeks food their
home
 Health
conscious
customers
Resources
 Kitchen
 Inventory
of food
 Chefs
(Gold, et. al.,
2013)
 Financing
 HR
Channels
 Teleconferen
ce
 Customer
directly come to
order food
Cost structures
 sales generation
 Accounting system
Revenue streams
 Pay per meal
 Multi cuisines meal (Gold, et. al., 2013)
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 Fixed employee salaries
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Business Model 2
Key partners
 Food
material supplier
 Truck
service rental
 Truck
providers
Activities
 Mobile
app development
 Order
fulfilment
 Shipping
of the food (Amit
& Zott, 2012)
Value
proposition
 Healt
hy food that
is
deliverable
at the
doorstep
 Peop
le are busy
with the
lifestyle that
they not take
Relationships
 Good
relations with truck
dealer
 Valuable
customer
relationships
 Good relation
with App developer.
Customer
segmentation
 Office
employees
 Students
 Food
seekers in late
night.
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the food
important
and eat
unhealthy
food
 Push
notification
of the
healthy food
availability
to the near
people
Resources
 Food
materials
 Appliance
s of Kitchen
 Departme
nt of Finance
 Chefs
 Marketing
 App
development
Channels
 Mobile app
 Teleconferen
ce
 Customer
directly come to
order food (Amit &
Zott, 2012)
 Food delivery
to home and the
other places
Cost structures
 App development cost
 Truck expenses
 Accounting expenses
 Marketing and advertisement
Revenue streams
 Payment per meal
 Special vouchers that attract large
customers
 Subscription (Lang & Heasman, 2015)
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Assumptions
For Business Model 1
The food that would be provided to the customers would be healthy. The hot food would be
available for the people near their location as the food truck would be available at the
different locations. The range of the multi-cuisine food would help in generating the good
amount of revenues as this would help in attracting a large number of the customers for this
company. Good marketing strategies and the promotional diets would also help this business
to become popular (Lang & Heasman, 2015).
For Business Model 2
In this business, there would addition inclusion of more resource that is the mobile app. With
the help of this mobile app, people can order their food. After that, it is their choice they want
to take their food from the truck or they want food to be delivered by the delivery person of
this business. This would help this business to target the customers that want their food at the
home, offices etc. The other customers that are the customers that are coming to the truck
would help in the getting sales (Cozzolino, et. al., 2012).
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Key Relationships
For Model 1
If the food supplier would provide the food materials on time then there would not be the
shortage of the food material and customers would get the food all time. The kitchen should
be managed and clean well time to time so that a good standard of hygiene can be
maintained. Health conscious customers if targeted in the gyms and the fitness centres then
there would be the good number of the customers. The good customer relationships and the
orders on the phone should be taken attentively with soft skills (Morris, et. al., 2013). There
would be the pay per meal system and the variable expenses like marketing, LPG expenses
should be marketed well.
For Model 2
In this model, there should be the good development of the mobile app as there would be
more costing that would be incurred on this resource. The good number of the customers
would come from the means of the mobile app. The people that are busy of their work in the
offices and not able to bring the food in the office would order food from this if targeted
directly from the marketing in the office (Baden-Fuller & Haefliger, 2013). The exciting
offers and the voucher through the means of the app would help this business to target more
customers and help in the growth of the business.
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Upside Potential
Business Model 1
The potential of this model is providing the food to the customers at the economical rates.
Another thing is providing the food near the location of the customers. The delicious food
and the food that is healthy would be provided to the customers that would attract the
customers in a good amount (Baden-Fuller & Haefliger, 2013).
Business Model 2
The mobile app is the main potential of this business. The good marketing can be done on
the mobile app that would attract a large number of the customers. Another potential would
be healthy food that having the good nutritious value. The food delivery to the customers
would be done at their doorstep from the truck or customers can collect the food directly
(Cozzolino, et. al., 2012).
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Down Side Risk
Business Model 1
This model would have the risk of the future if the food material supplier would not able to
supply the food on time. Then the kitchen would not able to produce the food. There would
be the risk of the food material contamination that would result in the cost of damages. There
can be the situation or if the customers not like the food of this business (Morris, et. al.,
2013).
Business Model 2
There can be the technical problems with the mobile app. There can be the different
complaints from the customers if the mobile app does not work properly or the wrong order
used to be ordered. The failure of the app would lessen the number of the customers for this
business. There can be the situation in which the customers would find the substitution of this
business.
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Success Rate
Business Model 1 budget
Vehicles AU$755000
Helper, chef and another employee AU$10000
Kitchen and appliances AU$15000
Food material AU$20000
Packing AU$5000
Marketing AU$20000
Total AU$825000
Business Model 2 budget
Vehicles AU$755000
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Helper, chef and another employee AU$10000
Kitchen and appliances AU$15000
Food material AU$20000
Packing AU$5000
Marketing AU$20000
Mobile app expenses AU$25000
Total AU$850000
Model 1 = $825,000 x 80% = AU$660,000
Model 2 = $850,000 x 90% = AU$765,000
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Preferred Business Model
The business model that would be preferred for this type of business would be the Business
model 2 in which there is the inclusion of the mobile app as there would be more business
profits and revenue to the com panty if there would be the small investment of mobile app in
business.
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References
 Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT
Sloan Management Review, 53(3), 41.
 Baden-Fuller, C., & Haefliger, S. (2013). Business models and technological
innovation. Long range planning, 46(6), 419-426.
 Cozzolino, A., Rossi, S., & Conforti, A. (2012). Agile and lean principles in the
humanitarian supply chain: the case of the United Nations World Food
Programme. Journal of Humanitarian Logistics and Supply Chain Management, 2(1),
16-33.
 Gold, S., Hahn, R., & Seuring, S. (2013). Sustainable supply chain management in
“Base of the Pyramid” food projects—A path to triple bottom line approaches for
multinationals?. International Business Review, 22(5), 784-799.
 Lang, T., & Heasman, M. (2015). Food wars: The global battle for mouths, minds
and markets. Routledge.
 Morris, M. H., Shirokova, G., & Shatalov, A. (2013). The business model and firm
performance: The case of Russian food service ventures. Journal of Small Business
Management, 51(1), 46-65.
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