Business Model Development for The Organix

The assignment requires an in-depth examination of The Organix's business model, identifying key elements such as its value proposition, target customer segments, main activities, key resources, cost structure, and revenue streams. The analysis aims to understand how the company creates and delivers value to its customers, and how it generates revenue. The assignment also mentions the importance of considering the environmental and social impact of business decisions.

The Organix

Table of Contents
BUSINESS CANVAS MODEL......................................................................................................1
Original Business concept...........................................................................................................1
Peer group reflection...................................................................................................................4
Concept improvement reiteration................................................................................................6
REFERENCES..............................................................................................................................10

BUSINESS CANVAS MODEL
Original Business concept
The Organix
Key Partners
 Owner of
the
restauran
t
 Hotel
and
restauran
t
associati
on
 Restaura
nt
equipme
nt and
food
item's
suppliers
.
 Investors
and other
stakehold
ers.
 Distribut
ors.
Key Activities
 Deliverin
g organic
chocolate
s, shakes
and other
food
items
that does
not harm
people.
 Develop
good
customer
relations.
Value
Proposition
 Offer
good,
healthy
and
organic
food
items on
low cost.
 No use
of
pesticide
s in the
food
items.
 Provide a
great
place to
the
customer
s where
they can
spend
their
quality
Customer
Relationships
 Regular
customer
feedback
.
 Consider
ing their
opinion
in food
delivery
system.
Customer
Segments
 Fitness
freak and
young
people are
the main
target
customer
of the
restaurant
.
Key Resources
 Skilled
staff
members
.
 Great
place to
establish
restauran
t.
 Suppliers
Channels
 Advertis
ement
channels
such as
televisio
n,
posters
etc.
 Social
media
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who may
deliver
organic
items to
prepare
food.
time and
relax.
such as
Faceboo
k.
Cost Structure
 Rent of the
restaurant.
 Salaries
and
compensati
on to the
staff
members.
 Cost of
preparing
food items.
Revenue Streams
 Income
from sales
of food
items.
 Food
delivery
charges.
A new restaurant The Organix is going to be established in UK. It is based on a
innovative business idea as organic food and beverage items that are going to be offered by this
restaurant to the customers. The food will be sold in the restaurant and delivery services are algo
going to be provided to the customers. Main target market of this business concept is youngsters
and fitness freak people who ignores fast food due to their concern to health. The location which
is decided for this is Manchester, UK.
Key partners: These are the people who are considered as the key part of restaurant. In
The Organix there are five different types of key partners. These are investors and other
stakeholders, owner of the restaurant, hotel and restaurant association, equipment and food
item's suppliers and distributors (Bekhradi, Yannou and Cluzel, 2016).
Key activities: The restaurant is mainly concerned with organic food and beverage items
delivery. The Organix's main concern is to offer such food items to the customers that they are
2

willing to have. Now a days people ignore fast food and soft drinks due to health issues but
Organix is providing such food items that does not harm the health of customers. The restaurant
is going to market its products through paid advertising strategy of marketing.
Value proposition: Main Value proposition of The Organix is to deliver good quality
and organic food and beverage items to the customers on low prices so that their requirement can
be fulfilled and good relations can be established with them. Provide a great place to the visitors
where they can relax and spend their quality time (Breuer and Lüdeke-Freund, 2017).
Customer relationships: It is very important for a new business to make good relations
with customers by meeting their requirements. The Organix have also planned to establish such
type of relation with its visitors by taking regular feedbacks and also considering their opinion to
make changes in food items according to them.
Customer segment: Youngsters and fitness freak people are the main target segment of
The Organix because people are becoming more concerned about their health. The food and
beverage items that are delivered by the restaurant are made of organic items that will help them
to maintain their health (Díaz-Díaz, Muñoz and Pérez-González, 2017).
Key resources: As The Organix is a new restaurant hence, it requires various resources
to operate the business successfully. These are new skilled employees, a place to establish
restaurant, organic items to cook food etc.
Advertisement channels: It is essential for a new business venture to advertise about its
products and services in order to aware customers about them. The Organix have chosen various
media to make advertisements these are social media, television, poster etc.
Cost structure: While running the business various costs may take place and it is very
important for The Organix to have sufficient monetary resources in order to bear all of them.
These are salaries, rent, cost of organic items etc. It has been estimated that the cost for
establishing the business would be around £150000. It is very important for the group to arrange
funds.
Revenue stream: The revenue streams of The Organix are food delivery fees and income
from sales of food and beverage items. Higher revenues can be generated by the restaurant if the
food and drinks are based on customer's requirements.
3

Peer group reflection
The business model which is formulated by me is being presented in front of my group in
order to get their feedback. All of them have analysed the canvas model and then they have
analysed some problematic issues. These can be assessed with the help of Gibbs Model.
Different elements of this model are discussed below:
Gibbs Model: It was developed by Graham Gibbs in year 1988 which is used to reflect
the experiences of an individual. It encourages the ability of people to think systematically
regarding the phases that are experienced while completing a task (Gibbs model, 2015). There
are six different components of this model that are described below in detail:
 Description: A canvas business model is being made by me and I have described nine
different elements of it. These are Key partners, key activities, value proposition,
customer relationship, customer segment, key resources, cost structure, advertisement
channels and revenue stream. Detailed information regarding these components is being
provided in the business canvas model. It is formulated by me for a new and innovative
business idea of The Organix which is a new restaurant where customers will get food
and beverage items that are made of organic material. When I showed this model to the
group members they analysed some issues in it (Gudiksen, 2015). These are less number
of key activities, The Organix should enhance its value propositions, good relations can
be made by providing them such food items and shakes that they want to have. Other
issues are if Organix is wiling to capture large market share then it should expand its
customer segment, need to add food material in the key resources, advertisement through
pamphlets as it is a cheap and good medium to aware customers regarding the restaurant.
Organix is going to deliver and provide food and shakes to the customers so cost of
material should be mentioned in the cost structure. All these problems are figured out by
the peer group. I have planned to consider their point and make changes according to the
requirement of canvas model.
 Feelings: While formulating the business model I was very excited because it was based
upon a new business idea in which I am going to establish a new organic restaurant
named The Organix. At that time I was thinking that it is a new experience for me so I
should put my full efforts to form the model so that the business can be established
successfully in Manchester, UK (Ojasalo and Ojasalo, 2016). Before identifying the
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issues I was curious to know about the feedback of peer group. After getting their views I
was little upset but at the same time I was happy that I have another chance to make it
perfect after making modifications in it. Now I will try to modify my canvas model so
that all the problematic situations can be resolved. My peer group have supported me to
deal with the issues in appropriate manner and they think that I can convert it in a perfect
business canvas model.
 Evaluation: In this step I have started to evaluating the situations and finding ways to
overcome all of them. The positive factor of these issues is that after modifications my
business canvas model will be the best. The negative point in this situation is that I have
to spend more time for the modifications but it is for the best of my model. When I
realised that there are various problems in my model then I was little disappointed but I
decided to take action against it and make appropriate changes (Pekuri and et.al., 2014).
 Analysis: In this section I have assessed the factors that have helped me throughout the
formulation process of business canvas model and the modification process. As my peer
group have provided me their reviews on the model which has helped me to make
changes in my business canvas model. It will be very beneficial for me to establish my
business successfully.
 Conclusion: This experience of formulating business canvas model was great for me and
my peer group as well. Through out the procedure all of us tried hard to form the model
in an appropriate manner. Main objective of me for asking feedback of peer group is to
analyse the weaknesses of my business model. They helped me to find the issues and I
planned to resolve them. In future if stuck in the same problems then I will be prepare for
that because I have experienced it in advance and it wont affect me like this time. I am
going to work hard so that this type of problem wont take place again and affect me. I
need to be more aware and sensible while performing same tasks in future in order to
handle the problems in appropriate manner (Randles and Laasch, 2016).
 Action plan: In this stage I have decided to resolve all the issues that are identified my
peer group. I have formed an action plan that may help me to deal with problematic
situations. There are four different stages of the action plan these are identifying
solutions, evaluating all of them, selecting and implementing one of them and at last
5

reviewing that the solutions worked for the plan or not. All the stages are described
below:
 Identifying solutions: First of all I am going to find the possible solutions for the issues
that are available in my business canvas model. I have figured out two options that are
formulating a new model or make changes in the existing one. Both the ways are
appropriate and can be implemented.
 Evaluating alternatives: In this step I have evaluated the both options and assessed that
which one is good for implementation. If I choose to form a new model then I have to
invest more time and when I select the second option then I just have to make alterations
in the existing model. I think that I should go for the second option because I just have to
modify my old model (Rudtsch and et.al., 2014).
 Selecting and implementing the best option: I have chosen to implement the the second
option and made changes in my current business canvas model. In which I am going to
add marketing strategy in the key activities, providing free membership to the customers,
expand market area by targeting middle and upper class customers etc. Other changes
that are made by me are addition of food material in the key resources, cost of material is
also been added in the cost structure.
 Reviewing the success of implemented alternative: At the end I am going to review the
impacts of the changes that are made by me in the existing business canvas model. I have
analysed that all the modifications are relevant and I have also assessed that these
changes may lead to success.
All the above described points may help me to successfully resolve all the issues that may
affect my business idea in future. For me it is very important to overcome the problematic
situations so that the business can be established successfully. An action plan is also being
formulated by me which is going to be implements in order to resolve the problems (Simonse,
2014).
Concept improvement reiteration
Key Partners
 Owner of
the
Key Activities
 Deliverin
g organic
Value
Proposition
 Offer
Customer
Relationships
 Regular
Customer
Segments
 Fitness
6

restauran
t
 Hotel
and
restauran
t
associati
on
 Restaura
nt
equipme
nt and
food
item's
suppliers
.
 Investors
and other
stakehold
ers.
 Distribut
ors.
chocolate
s, shakes
and other
food
items
that does
not harm
people.
 Develop
good
customer
relations.
 Marketin
g
through
paid
advertise
ment.
good,
healthy
and
organic
food
items on
low cost.
 No use
of
pesticide
s in the
food
items.
 Provide a
great
place to
the
customer
s where
they can
spend
their
quality
time and
relax.
 Free
members
hip to the
customer
s.
customer
feedback
.
 Consider
ing their
opinion
in food
delivery
system.
 Providin
g them
such
food and
beverage
items
that they
are
willing
to have
freak and
young
people are
the main
target
customer
of the
restaurant
.
 Middle
and upper
class
customers
.
Key Resources
 Skilled
staff
members
.
 Great
place to
establish
restauran
t.
 Suppliers
who may
Channels
 Advertis
ement
channels
such as
televisio
n,
posters
etc.
 Social
media
such as
7

deliver
organic
items to
prepare
food.
 Material
to make
food
items
and
shakes.
Faceboo
k.
 Distribut
ing
pamphlet
s.
Cost Structure
 Rent of the
restaurant.
 Salaries
and
compensati
on to the
staff
members.
 Cost of
preparing
food items.
 Cost of
buying
material for
food and
shakes.
Revenue Streams
 Income
from sales
of food
items.
 Food
delivery
charges.
A reiterated business canvas model is being formulated in which various changes are
made in order to resolve the issues that are identified by the peer group. Modifications regarding
marketing strategy is made in the key activities. The Organix is going to use paid advertising
8

mode to market it self. It will help to aware customers regarding the food items and shakes that
are going to be delivered and provided by the restaurant in Menchester, UK (Zhang and Wen,
2015).
Another alteration in value proposition regarding free membership is also been made that
may help The Organix to retain its customers. But the membership will be taken by them if the
products offered by the restaurant are of good quality. In customer relations a point regarding
their need and choice is also been mentioned in which such items will be provided to them that
they are willing to have. Earlier the customer segment was fitness freak individuals but after
modification the segment have broaden towards the middle and upper class customers. It will
help to expand the business. In cost structure cost of buying the material for food and shakes is
also mentioned because the business is a part of food and beverage sector in which it is the main
cost that can be faced by a business entity.
9

REFERENCES
Books and journals:
Bekhradi, A., Yannou, B. and Cluzel, F., 2016. May. Importance of problem setting before
developing a business model canvas. In DESIGN 2016 14th International Design
Conference.
Breuer, H. and Lüdeke-Freund, F., 2017. Values-based network and business model
innovation. International Journal of Innovation Management. 21(03). p.1750028.
Díaz-Díaz, R., Muñoz, L. and Pérez-González, D., 2017. Business model analysis of public
services operating in the smart city ecosystem: The case of SmartSantander. Future
Generation Computer Systems. 76. pp.198-214.
Gudiksen, S., 2015. Business model design games: Rules and procedures to challenge
assumptions and elicit surprises. Creativity and Innovation Management. 24(2). pp.307-
322.
Ojasalo, J. and Ojasalo, K., 2016. Service logic business model canvas for lean development of
SMEs and start-ups. In Handbook of Research on Entrepreneurship in the
Contemporary Knowledge-Based Global Economy (pp. 217-243). IGI Global.
Pekuri, A. and et.al., 2014. Managing value creation: the business model approach in
construction. International Journal of Business Innovation and Research. 8(1). pp.36-
51.
Randles, S. and Laasch, O., 2016. Theorising the normative business model. Organization &
Environment. 29(1). pp.53-73.
Rudtsch, V. and et.al., 2014. Pattern-based business model development for cyber-physical
production systems. Procedia CIRP. 25. pp.313-319.
Simonse, L., 2014. Modeling business models. Design Issues. 30(4). pp.67-82.
Zhang, Y. and Wen, J., 2015. February. An IoT electric business model based on the protocol of
bitcoin. In Intelligence in Next Generation Networks (ICIN), 2015 18th International
Conference on (pp. 184-191). IEEE.
Online:
Gibbs model. 2015. [Online]. Available through:
<http://resources.eln.io/gibbs-reflective-cycle-model-1988/>
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