Creativity and Entrepreneurship

This analysis focuses on formulating a business model for a café business that provides beverages and bakery products. The business model is based on the elements of the business model canvas.

Running head: CREATIVITY AND ENTREPRENERUSHIP
Creativity and Entrepreneurship
Name of the Student:
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Author’s Note

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Table of Contents
Introduction......................................................................................................................................2
Business Model Canvas...................................................................................................................2
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8

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Introduction
The focus of this analysis is to formulate a business model for a business which would be
providing different varieties of beverages and bakery products and would be a small café so that
the customers can be served coffee. The business model which is to be followed by the company
would be based on nine elements of business model canvas so that an appropriate business can
be formulated (Joyce & Paquin, 2016). The elements of business model canvas would be
discussed with respect to the new café business which the management of the company is
planning to establish in the market. The business canvas model would be explained in details
pertaining to the café business which would help the management to framework suitable policies
for the objective of enhancing the sales of the cafe.
Business Model Canvas
The business model canvas is a strategic management tool which is utilized by
entrepreneurs for the purpose of formulating, designing and setting strategies which can assist
the entity to set a suitable model which the business can follow (Hong & Fauvel, 2013). The
business model for the café business is discussed on the basis of elements of business model
canvas and explanation of different aspect related to the same is presented below:
Customer Segments
The senior officials are required to identify the customer segment which the cafe would
targeting for the purpose of ensuring that such proper customers are attracted so that the busibess
can serve its products as per thee menu formulated (Dudin et al., 2015). The target customers of
the business are appropriately listed in point form listed below:
 Teenagers who would be the main customers for different types of patties and pastries.

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 University and College students who have a taste for coffee and its related products such
as cappuccino and latte which are quite popular among this segment.
 Office workers who would be contributing mostly to the revenue to the company as they
are regular customers for coffee products.
 In addition to this, the café would be including bakery products such as cookies and
baked cakes which attract the attention of household wives. This would also help the
management to generate proper incomes from operations of the business.
Value Proposition
The value proposition element would be analysing how the management of the café
intends to create value for the customers which is distinct from that of its competitors so that
customers can be attracted (Bonazzi & Zilber, 2014). The management of the café would be
focusing on the following points for the purpose of creating appropriate value for the customers:
 The business would be focusing on quality and would be using high quality of coffee
beans and would also freshly bake cookies and other bakery products so that the
customers are offered quality products.
 The management of the café also intends to keep the prices of the product as low as
possible so that the customers are attracted due to the low prices for the products as well
as high quality for the products.
 The location of the café shop would also create value as the same would be located near
a campus of a University or college and the location would also be a route to business
area of the region. This would allow the café to attract the target segments (Matsumae &
Burrow, 2016). This factor would help the business to attract more revenue and thereby
enhance the profitability of the business.

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Customer Relationships
The customer relationships need to be maintained by the management of the café in a
proper manner as this way the café would be able to retain regular clients. The business model
which is adopted by the business needs to be focusing on providing appropriate services to the
customer and also display a polite behaviour so that the business is able to retain customers for a
long-term basis. The café would be appointing attendants who would be looking after all the
needs of the customers (Özbek & Turken, 2018). The attendants would be giving personal
attention to the customers in terms or their orders, hygiene so that no customers feel that they are
left out. The business also intends to offer discounts to the customers so that the café is able to
retain and invite more customers to the operations of the café. The café would be offering
appropriate discounts to the customers so that the overall sales of its products can be increased.
The management of the company also plans to take feedbacks from the customers so that it can
be ascertained whether the customers are satisfied with the services which is provided by the
business.
Channels
The channels refer to the major distribution medium which is the management would be
using for the purpose of serving the customers of the entity. The senior officials would be
opening a store so that the customers are attracted to have a coffee drink at the store itself. The
café would be providing beverages along with some bakery products and snacks so that the
customers are able to enjoy their coffee in a peaceful environment. In addition to this, the
management of the company also intends to utilize the online channel which would allow the
business to provide home delivery services for the customers (Sivertsson & Tell, 2015). This
would further contribute to the income which is made by the cafe. This shows that the café

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business would be relying more on direct selling channel and online selling channel for the
purpose of enhancing the revenue and spreading its reputation among the market segments.
Revenue Streams
The revenue streams also need to be considered while framing the business strategies and
model which the management intends to follow. The aim of the café would be earning
appropriate revenue so that the entity is able to continue in its initial year of operations. The
business would be charging the customers for direct services and also for food which is provided
in the store. Further the business would also be charging for home delivery services which is
provided by the entity (Abraham, 2013). These operations would be adding to the income which
is made by the entity so that the profitability of the business can be enhanced. The operations of
the business would be able to generate appropriate revenue for the business and thereby the cafe
would be able to enhance the profitability of the business.
Key Partners
The key partners of the cafe are providers of raw materials and executives who assist the
senior officials for the purpose of conducting the operations of the business. The key partners of
the business are suppliers from whom the business intends to acquire basic raw materials for the
purpose of ensuring that the business is able to sell its products and also provide appropriate
services to the customers (Bertels, Koen & Elsum, 2015). The aspect of partnership is considered
to be important as the same helps the business to enhance the sales of the business and thereby
also increase the profits which is generated by the business. The business also intends to enter
into a partnership agreement with the lessor of the store so that the business is able to enjoy
lower lease expenses and a proper contract can be formed for the lease of the property.
Key Activities

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The management of the café would be specially focusing on improving the efficiency of
the activities of the business. The principle activities of the business would be to providing
appropriate food and beverage to the customers and also provide appropriate customers to the
customers. The management of the company would be focusing on appropriate quality for
enhancing the reputation of the business in the eyes of the people. The management of the
company would also be providing different offers in terms of combos and also offer discounts to
the customers for increasing the sales (Jackson, Scott & Schwagler, 2015). The business would
also be responsible for appropriate marketing of the products so that the business is able to create
a buzz in the market for the products. Further, the cafe would also be responsible for distribution
of the bakery and different beverages. The most important for the business is to produce the
beverages from the raw material and bake the bakery products which the senior officials intends
to offer to the customers. The café business would be focusing on bringing about efficiency in
the activities so that the business is able to reduce the costs of operations and thereby enhance
the profits made by the café business
Key Resources
The key resources of the entity which would be utilized are important for conducting the
activities of the entity. The business would be requiring financial resources for the purpose of
financing the operations of the business and also meeting the initial expenses for the cafe. The
business would also be requiring physical resources such as furniture, raw materials for the
purpose of conducting the operations of the business. The key resources which would be
required by the business also includes human resources for serving the customers and also
preparing the product in the first place. The suppliers of the business would be providing raw
materials and other key resources to the business so that the business is able to maintain

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appropriate quality of the products which is offered to the customers. The senior officials also
needs to ensure that the employees of the business are satisfied with the working environment so
that the entity is able to retain the employees.
Cost Structure
The cost structure for the cafe mainly comprises costs which are directly associated with
the activities of the entity. The cost structure of the cafe appropriately includes raw material
costs, salaries and other administrative costs. The cost structure of the cafe is considered to be
important as the same can directly impact the profitability of the business. The costs of the
business would primarily be including material costs and labour costs which forms part of direct
costs. The senior officials needs to take all steps for the purpose of reducing the costs of the
business. This step needs to be taken by the management of the company so that the overall
profits of the business can be enhanced.
Conclusion
The above discussion appropriately shows the nine elements of business canvas model
which can be used by the management of the company for the purpose of framing proper
strategies for the business. The discussion also shows different aspects which would be
considered by the owners of the cafe in framing the strategies of the entity. Business Canvas
Model can be described as an efficient tool for identifying different aspects which the
management of the café must consider while framing the strategies. The business aims to focus
on quality of the foodstuffs which is to be presented by the entity so therefore the activities and
suppliers needs to be chosen appropriately by the management of the café.

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Reference
Abraham, S. (2013). Will business model innovation replace strategic analysis?. Strategy &
Leadership, 41(2), 31-38.
Bertels, H. M., Koen, P. A., & Elsum, I. (2015). Business models outside the core: Lessons
learned from success and failure. Research-Technology Management, 58(2), 20-29.
Bonazzi, F. L. Z., & Zilber, M. A. (2014). Innovation and Business Model: a case study about
integration of Innovation Funnel and Business Model Canvas. Revista Brasileira de
Gestão de Negócios-RBGN, 16(53), 616-637.
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative
business model canvas in the system of effective budgeting. Asian Social Science, 11(7),
290-296.
Hong, Y. C., & Fauvel, C. (2013). Criticisms, variations and experiences with business model
canvas.
Jackson, W. T., Scott, D. J., & Schwagler, N. (2015). Using the business model canvas as a
methods approach to teaching entrepreneurial finance. Journal of Entrepreneurship
Education, 18(2), 99.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Matsumae, A., & Burrow, K. (2016). Business model generation canvas as a method to develop
customer-oriented service innovation. In Serviceology for Designing the Future (pp. 551-
565). Springer, Tokyo.
Özbek, T., & Turken, S. (2018). A Business Model Innovation Through Canvas Model: the Case
of “Perfect past Times Mall”. EJME European Journal of Marketing and Economics, 1.

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Sivertsson, O., & Tell, J. (2015). Barriers to business model innovation in Swedish
agriculture. Sustainability, 7(2), 1957-1969.