DC Design Business Sustainability and Risk Analysis

This assignment analyzes the business model of DC Design, a luxury sports car customization company. It discusses critical success factors for business sustainability and identifies potential risks such as downsides in management and poor fund management. Recommendations for improving business sustainability and risk mitigation strategies are provided.

Running Head: DC Cars India
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NAME
INSTITUTIONAL AFFILIATION

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Table of Contents
Executive summary.................................................................................................... 3
Introduction................................................................................................................ 3
The Business canvas model of DC designers..............................................................4
Relationship a cross the nine building blocks.............................................................6
Critical success factors............................................................................................... 7
Commitment of the top executive...........................................................................7
Partnerships............................................................................................................ 7
Phasing.................................................................................................................... 7
Engaging employees in business activities.............................................................8
What will contribute to downside risk?.......................................................................8
Huge loses............................................................................................................... 8
Poor management of funds..................................................................................... 8
Conclusion.................................................................................................................. 9
Recommendations...................................................................................................... 9
References............................................................................................................... 10
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Executive summary
This report focuses on DC car design business which is located at Mumbai in India. The
report describes the business, its operations, its markets and the products and services they
provide. It also looks at the business model canvas as used by the business and describes the
relationship between the various blocks in the model. There is also discussion of the various
factors that will ensure success and sustainability of the business and the downside risk and what
contributes to such a risk.
Introduction
DC design is an automobile customizing company founded by Dilip Chhabria in 1983.
The automobiles are highly priced such that even the founder cannot customize his own car
(Chhabrria, 2016). It is located in India. The company rose very fast in the market due to the
quality design of cars they provide and is currently one of the most famous automobiles
manufacturing company in India. They customize both interior and exterior of the cars to provide
the best cars. They deal with a variety of cars which are luxurious and meant for the rich in the
society hence their market is mainly the high-end people in society such as movie stars. The
market they are targeting to work with is manufactures of automobiles locally and international
manufacturers (Chhabria, 2018). The market niche targeted by these designers is to provide
buyers with something that car manufacturers are not able to provide hence customization. They
work with the world’s best car manufacturers such as Ford and Renault.
The Business canvas model of DC designers
Key Partners
This building
Customer
relationships
Value
proposition
Customer
Segments

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block describes where
a company outsources
some of its activities.
Dc designers have
partnerships with big
marketing agencies in
America which help in
marketing their cars to
improve sales.
This block
describes how the
business ensures a
good and lasting
relationship with
customers. To
acquire
customers, DC
designers offer
free trials before
purchasing a
vehicle to show
the vehicles are
high quality and
ensure customer
loyalty after they
buy the cars.
Value
proposition
represents the
group of products
that build value for
a particular section
of customers that
will make them buy
from the company
and not any other.
DC designers
specially customize
their cars for
luxury. This attracts
the rich in the
society who want
and are able to live
luxurious lives.
This segment is
very important since
customers are very
important and first priority
of the business.
(Cummings, 2011) The
business mainly deals
with high-end people in
the society, therefore they
have marked their
customers such as
celebrities Vivek Oberoi
and Sanjay Dutt who they
have done several projects
for them.
Key Activities
This block in
the business model
describes all activities
that a business carries
out to effectively
operate. DC
automobile design
carries out activities
such as marketing,
consultancy and
creating partnerships
so as to perform
efficiently.
Key
resources
Key
resources
building block
Revenue
streams
Revenue
streams represent
the money that the

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describes what a
business should
have to be able to
operate in
general. DC
designers need
manufactured
cars or spare parts
to be able to
customize the
cars
(dcdesigners,
2018).
company gets from
sales. To design
high-end
automobiles, the
design company
gets almost $1
million from a
customer
(Chhabria, Dilip
Chhabria:
Tapping into
India’s Promise
as a Global Hub
for Car Design,
2015).
Cost structure
DC designers
incur a huge cost that
comes from their
activities, resources,
customer satisfaction
and all other elements
that form the business.
Channels
This building block explains how the company tries to reach
its customers or suppliers. When DC designers were founded social
media was not readily available, so they had to reach their customers
physically to advertise their cars. These days, they work with
marketing agencies which assist in marketing and also advertise on
their own on social media such as Facebook.

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The relationship across the nine building blocks
A business canvas model is a model that explains how a business ensures value of the
products and services they provide, the key partnerships that enable value to the business, key
resources that are used to achieve value, costs involved in the business, the key activities carried
out to facilitate operations in the business, how the business gets revenue and the relationship the
business has with its customers (Hossain, 2014). All the nine building blocks in the business
model are correlated. A business has different customer segment and strives to satisfy each
segment which is value proposition through customer relationships such that the customers
remain loyal to the business. Channels are used by the business to ensure different segments of
customers are satisfied and attended to. Value proposition and good customer relations help to
generate revenue. Key resources are required to ensure value proposition. By doing certain
activities with partners using the key resources, the business is able to generate revenue. The
entire business model shows where the costs incurred in the business come from (Bravanov,
2011).
Critical success factors
The commitment of the top executive.
The commitment of the top executive is very crucial for success (Atuluku & Achendu,
2017). Dilip Chhabria who is the CEO of DC design should lead other leaders and ensure they
are committed to the business. This will ensure that the executives manage the employees well
and attend to their needs. Their commitment should be true enough to even work together with
employees in designing and customizing quality cars. This will also motivate the workforce

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making them be committed to the business hence promoting its growth and development which
will, in turn, ensure sustainability.
Partnerships
Partnerships help a business to get new ideas and also improve their market. For DC car
design to be successful and ensure sustainability in the market, they should form partnerships.
These partnerships should be with different kinds of companies which would help the business to
grow. They already have partnerships with several marketing agencies in different parts of the
world who assist them in marketing. This has expanded their market internationally. Despite that,
the business should also establish partnerships with similar businesses such as Avanti which are
already established in the market. This will assist in getting skills and technique of remaining
relevant in the market hence ensuring sustainability.
Phasing
In order to ensure success and sustainability, DC car design should phase their activities.
The first phase is always how the employees are treated in the business and conserving the
environment through activities such as reducing pollution by fuels. These activities focus on
people, with a good environment and motivated workers, the sustainability of the business is
assured. The second phase is introducing activities that will ensure continuity of the business
such recycling wastes. The third phase is outsourcing activities such as partnerships which will
also contribute to sustainability (Atuluku & Uchendu, 2017).
Engaging employees in business activities
It is important for the business to always engage their employees in activities going on
through communication. When employees are engaged, they become more productive since they
feel as if they are part of the business (Perkins & Serafeim, 2012). This will also make it

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easier for them to communicate in case they have any problems and also promote teamwork. The
top executives should communicate to employees about the business’s sustainability goals and
engage them in activities that help ensure sustainability.
What will contribute to downside risk?
Huge loses
Downside risk describes a worst-case scenario in a business whereby the value of
investment drops hugely. This is caused by huge losses in the business whereby the returns of the
business are constantly lower than expected such that it causes the entire investment to fail
(Chong & Michaels, 2012).
Poor management of funds
Poor management of funds may also cause downside risk. When managers and other
executives in the business start to misappropriate and embezzle funds, there will be huge losses
in the business that cannot be recovered causing the entire investment to fail (Investopedia,
2018).
Conclusion
DC design is a high-end business which has a huge opportunity of growing due to the
great demand of luxurious sports cars among the rich since they are a clear pointer to someone’s
social status. With proper management from the executives, they can be a multi-billion company
in one decade.

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Recommendations
If DC cars design was my business, I will make certain changes to the business model to
ensure growth and sustainability of the business. With the partnership, I will do more
partnerships not only with the companies that will help in marketing and supply of cars but also
other businesses such as Avanti which is the fastest company in India selling customized sports
cars (The Hindu, 2016) This is also due to the fact that DC design is trying to imitate or do
activities they are doing. This will raise more ideas for the business which main cause growth
and ensure sustainability. To ensure more revenue, I will also venture into car manufacturing
alongside customizing cars. This will ensure reduced costs on buying cars and also the business
can earn from simply selling the manufactured cars.
References
Atuluku, A., & Achendu, J. (2017). Critical Success Factors for Business Sustainability.
Retrieved from http://sustyvibes.com/critical-success-factors-business-sustainability/
Atuluku, A., & Uchendu, J. (2017). Critical Success Factors for Business Sustainability.
Retrieved from http://sustyvibes.com/critical-success-factors-business-sustainability/
Bravanov, D. (2011, May 28). 10 thoughts on “The 9 Building Blocks of a Business
Model” . Retrieved from http://thestartuptoolkit.com/

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Chhabria, D. (2015, Feb 21). Dilip Chhabria: Tapping into India’s Promise as a Global
Hub for Car Design. (India Knowledge@Wharton, Interviewer)
Chhabrria, D. (2016, March 24). Why Dilip Chhabria can’t afford to customize his own
cars. (The Hindu, Interviewer)
Chong, J., & Michaels, P. (2012). Measuring risk for the cost of capital: The downside
beta approach. Journal of Corporate Treasury Management, 346–347.
Cummings, D. (2011, May 28). The 9 Building Blocks of a Business Model. Retrieved
from
https://davidcummings.org/2011/05/28/the-9-building-blocks-of-a-business-model/
do designers. (2018). DC design. Retrieved from http://dcdesign.co.in/
Hossain, M. (2014, July 2). Business Development Model of Canvas: The 9 Building
Block Approach. Retrieved from https://iammoulude.wordpress.com/2014/07/02/business-
development-model-of-canvas-the-9-building-block-approach/
Investopedia. (2018). Downside Risk. Retrieved from
https://www.investopedia.com/terms/d/downsiderisk.asp
Perkins , M., & Serafeim. (2012). How to become a sustainable company? MIT Sloan
Management Review.
The Hindu. (2016, March 24). Why Dilip Chhabria can’t afford to customize his own
cars. Retrieved from http://www.thehindu.com/news/cities/mumbai/business/why-dilip-
chhabria-cant-afford-to-customise-his-own-cars/article7989894.ece