Business Model Selection and Justification

This assignment presents a scenario where an entrepreneur is evaluating two different business models for a new café called Lucky Café. The analysis involves assessing each model's potential probability of success (70% vs 80%), estimated cash inflow (AUD $135,000 vs AUD $160,000), and overall viability. The entrepreneur must justify their choice of business model based on these factors, ultimately aiming to achieve the café's objectives and goals.

RUNNING HEAD: Business Model implementation
1
Name of the student-
Topic - Business Model implementation
University name

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Executive summary
In this report, business idea of starting up a new business venture has been taken into
consideration. The business would be to incorporate Lucky café business to offer foods and
beverage products to clients around the globe through the newly adopted cyber computing
enterprises resources planning. This report has shown how an entrepreneur by using proper
business canvas could improve the business performance of company.

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Table of Contents
Executive summary............................................................................................................2
2. Introduction..............................................................................................................4
2.1 Present description of organization..............................................................................4
2.2 Location of starting of new business........................................................................4
2.3 Founding Team........................................................................................................ 4
3. Business model canvas of Lucky café..................................................................4
4. Key assumption across the nine building blocks......................................................6
5. Key relation that exist across the nine building blocks.............................................8
6. Upside potential support.........................................................................................8
7. Downside risk of the company.................................................................................9
8. Success rate of business model canvas....................................................................9
9. Conclusion..............................................................................................................10
10. References............................................................................................................. 11

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1. Introduction
With the ramified economic changes and complex business structure, each and every
organization is running its business effectively. There are several business ideas which could be
taken to start a new business after evaluating the internal and external business factors (Palia,
2014).
2.1 Present description of organization
The name of organization is Lucky café incorporated to offer foods and beverage
products to clients through the newly adopted cyber computing enterprises resources planning.
2.2 Location of starting of new business
It is evaluated that this Lucky café business would be opened near to malls and corporate
offices where there are more numbers of clients to grasp.
2.3 Founding Team
This business idea would be started by at least 10 members, 2 would be promoters and
rest members would be indulged in value chain activities of the business.
2. Business model canvas of Lucky café
This business model canvas of Lucky café is accompanied by 9 building blocks which reflect all
the key activities of Lucky café (Siguaw and Simpson, 2015).

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Key strategic
partner
Alliance with other
organization.
Key Activities
Developing cyber
computing enterprises
resources planning in
business.
Creating dashboard
and mechanism.
Value Proposition
Creating new
business chain.
Establish online
marketing
channel.
Hiring new IT
experts.
Customer
Relationships
Direct sales
through off line and
online channel.
Using dashboard
and retail stores to
offer foods and
beverage products/
Customer
Segments
Focusing on
crowd places and
people roaming
around colleges
and direct
alliance with the
people in
corporate.
Key Resources
IT solutions:
Hiring IT people.
Installing new system
and training and
development.
Channels
Developing new
app and generating
online dashboard
Advertisement
through social
media.
Cost Structure Minimum Viable
Product
Revenue Streams

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Maintains cost
Website cost
IT development changes
Hiring IT staff
Infrastructure cost
Management dashboard
Payment to employees and other expenses
 Installing cyber
system.
 Use of Google
image section for
marketing.
Online dashboard to increase revenue
Creating core competency in cost
leadership and product differentiation
strategy.
Another substitute business model
Key alliance
Entering into
strategic alliance.
Project escalation
Keeping safe margin
for the product price
Hiring assessment
department to evaluate
activities of business.
Value Proposition
Establish ERP
system
Advertisement
Direct sales
through Seminars.
Customer
Segments
Focus on the
business
development.
Market
segmentation.
Employees hiring:
Experts hiring
Channels

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Establish modern
system.
Developing new
social app
Management cost
Infrastructure cost
Installing new cyber computing system
Key functioning
 Use of Google
image section.
 Customization of
the products and
services.

Net profit
Selling products at breakeven point.
Adding 20% profit.
3. Key assumption across the nine building blocks
Key strategic partners
 Strategic alliance will increase the overall turnover of company
 It will help company to create cost leadership strategy (Mohd, Idris and Momani,
2013).
Key activities
 It is accompanied with the long working process
 Company could easily find experts staffs to offer best quality of food and
beverage products to clients.

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Value proposition
 Clients are more quality oriented and least care for the price
 Clients are more inclined towards companies who use advanced technologies in
its business.
Customer relation
 Use of social media will increase the customer relation
 Company could use seminars, meeting and monkey survey to build strong
customer relation.
Customer segment
 The main target of company would be college going boys and girls and corporate
working people.
 The main focus of company should be on couples and college students.
Cost structure
 Company would run its business at breakeven point where there will no profit and
no loss.
 Company would have project escalation of AUD $ 1 million while determining
the budget of company.
Minimum Viable Product
 Installing cyber system.
 Use of Google image section for marketing.
Revenue Streams
 Online channel would dominate the overall revenue of Lucky café as compared to off line sales
of its products in market.

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Channel
 Use of social media and Google image section would be the best median to establish effective
client’s relation (Solomon, 2014).
4. Key relation that exist across the nine building blocks
These nine building blocks are interrelated to each other.
Company should have proper surveillance on each and every process blocks to achieve set
targets and goals.
Installed cyber computing enterprises resources planning would establish nexus between
all of these nine building blocks (Diggle, 2013).
5. Upside potential support
The main supporting point for all of these building blocks in lucky café would be related to
use of advanced technical design and installation of new cyber computing system in
business.
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(Source by author)
It will attract more clients and reduce the overall cost of the production of company which
will eventually increase the return on capital employed by company (Wei, Samiee and Lee,
2014).
6. Downside risk of the company
The capital structure designed by company will decrease the financial leverage risk of
company (Brigham & Ehrhardt, 2013).
Use of internal control system and strategic business planning will decrease the mistakes
and possible losses of business
7. Success rate of business model canvas
Key performance indicators Success rate Potential probability
Total Turnover
40% This overall sale of company
is dependent upon the
client’s needs and demand.
Company could achieve only
40%.
Net profit 35% It is completely dependent
upon the total turnover of
company.
Employees turnover 45% Due to increase in business
complexity and adoption of
advanced technologies,
company will have to face
high level of employee
turnover.
Other factors 40%

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8. Select the preferred blueprint you intend to develop into a
business plan. Justify your choice
Blue print of business
2nd business’s model blue print
Customer focus
Customization of goods and serivce
Focus on clients
Simplicity
Keeping busienss process simple
Showcase the effective busienss
Building busienss
process
Identifiing the busienss process system
Innovation
Cyber computing
system
Installing new technical devices

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It is observed that one business model reflects 70% potential probability to achieve
the goals. On the other hand, other business model reflects achievement of potential
probability of 80% of its set goals.
Cash inflow from Business model-1 = AUD $ 1, 50,000
Cash inflow from Business model-2 = AUD $ 2, 00,000
Business model Inflow of money Assigned potential
probability
Estimated outcomes
Model-1 1, 50,000 70% 1,35,000
Model-2 2,00,000 80% 1,60,000
Justification of adopting particular model
It is analyzed that business model-1 reflects 70% potential probability which will
offer entrepreneur total inflow of cash AUD $ 1, 35,000. On the other hand, other business
Install new cyber
system
Establish automation in business
Customized product
Standards products
and serivces
Advacment in working process
create synergy in business process
Building new cyber
hub
Innovation
Training and
development
Increasing the quality of serivces

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model-2 reflects achievement of potential probability of 80% of its set goals which will
offer entrepreneur total inflow of cash AUD $ 1, 60,000.
Therefore, business model-2 would be accepted due to its higher cash inflow and
higher success rate.
9. Conclusion
After evaluating all the internal and external factors of business, it could be inferred that
if Lucky café could implement proper strategic planning and all the activities as per the
implemented business model then it could achieve all of its set objectives and goals in
determined approach.

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10. References
Brigham, E. F., & Ehrhardt, M. C. (2013). Financial management: Theory & practice. Cengage
Learning.
Diggle, P. J. (2013). Statistical analysis of spatial and spatio-temporal point patterns. CRC
Press.
Mohd, W., Idris, S. and Momani, R.A., 2013. Impact of environmental dynamism on marketing
strategy comprehensiveness and organizational performance. International Journal of Business
and Management, 8(9), p.40.
Palia, A. P. (2014). Target profit pricing with the web-based breakeven analysis
package. Developments in Business Simulation and Experiential Learning, 35.
Siguaw, J.A. and Simpson, P.M., 2015. A marketing plan for marketing instruction: A satirical
look at student comments. In Creating and Delivering Value in Marketing (pp. 129-133).
Springer International Publishing.
Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Engelwood
Cliffs, NJ: Prentice Hall.
Wei, Y.S., Samiee, S. and Lee, R.P., 2014. The influence of organic organizational cultures,
market responsiveness, and product strategy on firm performance in an emerging market. Journal
of the Academy of Marketing Science, 42(1), pp.49-70.

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